Relocating overseas is a move toward freedom, opportunity, and a new lifestyle. For many LGBTQ+ Americans, especially in the wake of political shifts after the 2024 election, it’s also a move toward greater safety and cultural recognition. But moving overseas comes with unique financial considerations, relating to taxes and asset protection. Here are 10 essential considerations to help you move smart, stay compliant, and build wealth across borders.
1. Understand tax rules for Americans abroad
US citizens have to pay taxes on worldwide income. Moving abroad doesn’t change that, but it can complicate tax filing and investing.
When filing US taxes from abroad, you can claim the Foreign Earned Income Exclusion (FEIE) to exclude up to $130,000 (2025) in earned income, or claim the Foreign Tax Credit (FTC) to offset taxes you pay to another country.
Tax treaties with your host country may further help eliminate or reduce double taxation. An expat tax advisor can guide you through the best strategy.
US taxes for expats also affects investing. For example, some foreign investments such as ETFs and mutual funds trigger burdensome US reporting and sometimes additional taxes.
Don’t forget to plan for local taxes in your new country of residence too. Some countries, such as Spain, have a wealth tax, for example, applicable on your worldwide assets if you become a Spanish tax resident. There may be workaround, so planning in advance and seeking advice early is key and can save you headaches down the road.
2. Understand how countries treat LGBTQ+ families
Family recognition varies. Some countries allow same-sex adoption, joint tax filing, or partner visas, others don’t. If you’re married in the US, your marriage may not be recognized everywhere, for example, which in turn can affect everything from taxes to inheritance. If your spouse or children rely on your immigration status or healthcare coverage, double-check eligibility abroad.
If your marriage isn’t legally recognized, it could affect:
- Spousal inheritance and tax exemptions
- Access to survivor benefits
- Dependent visas
- Pension access or portability
To protect your family, get legal advice on cross-border estate planning, guardianship, and beneficiary designations. Don’t rely on assumptions, laws change by jurisdiction.
3. LGBTQ+ rights and legal protections abroad
While most countries in Europe are legally progressive, before you move, research how your destination handles same-sex relationships, parental rights, and healthcare access.
Start with the ILGA World database and US State Department travel advisories. If your rights aren’t protected abroad, you may need to update legal documents, like powers of attorney, healthcare directives, and wills.
Some countries offer strong protections, while others have restrictive laws or no legal recognition for same-sex couples. Key areas to understand include:
- Marriage and Civil Partnerships
- Anti-Discrimination Laws
- Adoption and Parenting Rights
Understanding local customs and laws is key. This influences both your experience and safety abroad.
4. Align your investments with your move
Most brokerage firms won’t work with non-residents, so you may have to change brokerage firms before you move. Schwab and Interactive Brokers are both expat friendly, depending on which country you’re moving to.
Many countries don’t recognize the tax benefits of American retirement accounts like IRAs or 401(k)s, unless there’s a specific tax treaty provision that covers this.
If you plan on taking income from US investments while living abroad, you should consider currency risk. This means that the relative value of your US investments and income can fluctuate depending on USD/EURO exchange rate movements. Use a specialist broker to transfer internationally rather than a bank, and consider diversifying your investments internationally to reduce currency risk.
Diversifying your assets across different classes, countries, and currencies can help lower risks from market volatility, too.
5. Protect your estate and legacy
Estate planning gets complex when you cross borders. US estate tax still applies above the exemption limit ($13.99M in 2025), and gifts to non-US spouses over $190,000 (2025) are taxable.
Your host country may have forced heirship laws, high inheritance taxes, or restrictions on trusts. Some don’t recognize US wills or marriage rights.
Create a cross-border estate plan with attorneys in both countries. This can mean having a will in both countries.
6. Be aware of US reporting requirements
While diversifying your investments internationally can bring benefits in terms of reducing currency risk, it can also mean increased US compliance. Be aware of:
- Filing Report of Foreign Bank and Financial Accounts (FBAR) if you have foreign bank or investment accounts
- Filing IRS Form 8938, under the Foreign Account Tax Compliance Act (FATCA) if your total foreign assets abroad exceed $200,000
- Disclose foreign pensions, partnerships, companies or trusts
Similarly to financial advisors, use tax professionals who specialize in working with Americans living abroad.
7. LGBTQ+-friendly healthcare access abroad
Not all national healthcare systems are inclusive. While many offer universal coverage, they may lack access to LGBTQ+-affirming services.
Trans healthcare, PrEP, and mental health treatment can vary widely by country. Before moving, review:
- Are gender-affirming procedures covered?
- Is PrEP available and affordable?
- Are English-speaking, LGBTQ+-affirming doctors accessible?
- Will your prescriptions be honored or need to be reissued?
If gaps exist in local healthcare, private global health insurance can offer broader access and peace of mind. Include long-term disability and emergency repatriation to the US in your plan.
8. Think about immigration and citizenship
For LGBTQ+ Americans in binational relationships, residency rights matter. Some countries allow family-based immigration for same-sex couples for example, while others don’t.
If your partner isn’t a US citizen, research whether they can stay with you abroad. Consider citizenship-by-investment programs or golden visas that support joint relocation, or some Digital Nomad Visas. Know your timeline to establish residency and avoid unintended tax exposure.
Monitor your days in-country. Once you spend 183+ days in many countries, you become a tax resident. That can trigger taxation on worldwide income, so plan your stay carefully.
9. Access LGBTQ+ resources for expats
Accessing the right resources can ease your transition abroad and ensure you’re supported every step of the way. Here are key areas to explore:
- Legal support & residency: Consult LGBTQ+ legal organizations or immigration law firms for advice on family structures, citizenship, trans rights, and cohabitation laws.
- Support networks: Join LGBTQ+ expat groups on platforms like Facebook, Reddit, Meetup, or WhatsApp for local advice, meetups, and region-specific support.
- Mental health resources: Access virtual therapy or culturally competent providers. Some international employers offer Diversity, Equity, and Inclusion (DEI) trained counsellors.
10. Work with an inclusive advisory team
Moving abroad requires careful financial planning to maximize the opportunity financially, optimize for taxes, and have a smooth move overall. Choose advisors who understand LGBTQ+ issues and cross-border financial planning. Make sure your team collaborates and understands the intersection of identity, US and foreign taxes, investing and international law.
If you have any questions about financial planning as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
