The dream of living in Europe, with its rich history, picturesque landscapes, accessible healthcare, and more relaxed pace of life, attracts many Americans. However, this step is not without its challenges, and before making a decision, it is necessary to carefully weigh all the “pros” and “cons”. Let’s talk in more detail about relocating to Europe from the USA and discuss which countries are considered the most favorable destinations.
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Main reasons for moving to Europe
After watching series like “Emily in Paris” and succumbing to the charms of the romantic image of remote work on some Italian villa surrounded by vineyards, one might indeed want to pack their bags right now and book a ticket online to one of the European countries. There are quite a few such daredevils: according to the US State Department, there are about 9 million American emigrants worldwide. The figure is impressive, isn’t it?
First, let’s draw a rough portrait of an American citizen who moves to Europe. It’s one thing when we talk about refugees who move to prosperous European countries against the backdrop of armed conflicts or political repression. This is a matter of elementary freedom and personal safety. But the USA, even with all its internal problems, is itself considered one of the most prosperous countries. People from all over the world want to move here, and it’s hard to argue with that.
As a rule, people who move to Europe are often of a mature age, who have already accumulated a sufficient amount of funds for a comfortable old age. Indeed, why not move to, say, Spain or Portugal, where it is always warm, and real estate prices are often lower than in major US cities. Renting an apartment here, or even buying a townhouse or a large villa, is quite affordable for wealthy Americans. There is also the option of home exchange – you can read about this service here.
An important factor is the approximate parity between the dollar and the euro. Conditionally, the average salary in the USA is more than $4500 per month (as of 2023), which is two, and sometimes three times higher than in a number of European countries. Even following this rough logic, the average American (if, of course, they have been saving throughout their life) will feel most comfortable in most European countries.
Another important reason for moving is the opportunity to settle in a place by the sea, surrounded by diverse vegetation. This will positively affect both physical and psycho-emotional health. After all, after years of living in the USA, trying to achieve success and career advancement, one can significantly undermine their health.
Many Americans renounce their citizenship and move to Europe due to the relatively high taxes in the USA. By law, Americans are required to pay taxes regardless of their place of work and residence. Moving to a country with a more comfortable tax system allows for significant cost savings.
As we can see, there are many reasons for moving. According to the same US State Department statistics, as of May 15, 2023, 5315 Americans renounced their citizenship – this is more than twice the figures for 2022. But moving is a complex issue because it is important to clearly understand where you can move to Europe to make it as beneficial as possible. There are quite a few such countries, so let’s consider some of them.
Caribbean countries
Many wealthy Americans move to these countries to retire, being by the sea and sipping local cocktails. In all Caribbean countries, except Saint Lucia, there is no need to pay taxes on dividends, interest, and royalties. In Saint Kitts and Nevis, Antigua and Barbuda, there is also no income tax. Literally a tax haven on earth.
Citizenship by investment can be obtained in Saint Lucia, Grenada, Dominica, as well as in the already mentioned Saint Kitts and Nevis, Antigua and Barbuda. The governments of these countries offer several investment options: starting a business, a non-refundable contribution to a state fund, and purchasing real estate (or bonds). The amounts vary:
- Dominica: real estate purchase (from $200,000), contribution to the state fund (from $220,000).
- Antigua and Barbuda: real estate purchase (from $300,000), contribution to the state fund (from $230,000).
- Grenada: real estate purchase (from $270,000), contribution to the state fund (from $235,000).
- Saint Lucia: real estate purchase (from $300,000), contribution to the state fund (from $240,000).
- Saint Kitts and Nevis: real estate purchase (from $400,000), contribution to the state fund (from $250,000).
Contributions to the state fund are non-refundable. Real estate can be used not only for living but also for generating income. If desired, it can be sold after 3-7 years, depending on the country.
Andorra
This is a small but steadily developing country in Southern Europe, bordering Spain and France. It has one of the lowest crime rates in the world, and the average life expectancy is 83 years.
Healthcare is among the best in Europe. Local insurance covers 75 to 90% of all healthcare costs. Tax rates are among the lowest in the world. There are no taxes on dividends and profits.
One way to move to Andorra is by investing in the purchase of real estate or bonds for at least 600,000 euros. Money can also be invested in business, making it a very promising direction.
Malta
The cost of living in Malta is significantly lower than in the USA. An important advantage is the absence of property tax. The country is among the 20 safest in the world: its crime rate is lower than that of countries like Denmark and the Netherlands.
The climate here is Mediterranean, i.e., with hot summers and mild winters – an ideal option for those who decide to spend the rest of their days by the sea.
Instead of an investment program, in Malta, you can obtain a visa through naturalization. The most common option is obtaining Maltese citizenship by naturalization for exceptional services through direct investment. Behind the complex wording lies a simple scheme: you buy real estate, make a contribution to the National Development and Social Protection Fund, or donate to a non-governmental organization. The minimum amount is 690,000 euros.
Spain
Another country with a Mediterranean climate in most of its territory. According to recent data, Spain is home to the largest number of Americans in Europe.
In Spain, English is not as widely spoken, so you need to be prepared to learn Spanish at least at a basic level. Otherwise, Spain is one of the most favorable destinations due to its low cost of living (especially by American standards), mild climate, affordable real estate prices, excellent cuisine, and architecture.
The most advantageous option is the “Golden Visa”: you buy real estate worth at least 500,000 euros, obtain a residence permit, and after 10 years of living in the country, you can apply for citizenship. All current offers for buying and exchanging real estate can be found on our website “M2 Real Estate”.
Portugal
Portugal is the seventh safest country in the world. The cost of living here is even lower than in Spain (about 35% lower than in other Western European countries). The climate here is also excellent, with many sunny days a year, beautiful resorts, and well-maintained beaches. Almost a third of the population speaks English.
There are several options for moving here. One of them is the “retirement visa”. To obtain it, you need to confirm a passive income of at least 820 euros per month. This is an excellent option for those who receive a pension in the USA, rent out an apartment, or receive other passive income.
The second option is investing in real estate. You can obtain a residence permit by purchasing property worth at least 280,000 euros – this amount is provided for properties over 30 years old for renovation, located in sparsely populated regions of Portugal. Newer real estate in other areas of the country will cost more – at least 500,000 euros. After five years of living in Portugal, you can apply for citizenship. By the way, the investor’s residence permit gives a good bonus – to maintain the residence permit, it is enough to stay in the country for only 7 days a year (in other cases, the condition for maintaining the residence permit is living in the country for at least 183 days a year).
Greece
A country with a wonderful climate and a very rich cultural heritage. Recently, it has experienced a serious financial crisis, but the situation is gradually improving. Athens has many prestigious universities, bilingual and international schools. It has a very high level of safety and excellent healthcare.
You can obtain a residence permit in Greece through an investment program – the minimum amount is 250,000 euros. You can buy bonds or real estate, which is allowed to be rented out. After five years, you can obtain permanent residence and, if desired, sell the property. Two years later, you can apply for citizenship.
Conclusion
Moving to Europe from the USA is a very important step, so it is important to consider all the nuances. It is necessary to study the features of local legislation and taxation in advance, get acquainted with the culture of the country you want to move to. It is advisable to start learning the local language in advance because English is not spoken everywhere, and without communication and integration into the local community, it will be very difficult. Of course, you need to save up a sufficient amount, because obtaining a residence permit through an investment program requires a lot of money. But if you approach everything wisely, relocation will not be a serious challenge for you. On the contrary, it will be the first step towards a new happy life.
