Thanks to technology that makes it easier to work remotely and stay connected to family and friends, decamping for another country has never been easier. More Americans are establishing second homes abroad, but doing so without advanced planning can have negative financial repercussions. 

Purchasing real estate across borders is an exciting opportunity, yet the process is rarely straightforward. For many U.S. buyers and international investors, unforeseen hurdles can transform a dream purchase into a stressful ordeal. Understanding how to sidestep the most common—and costly—pitfalls is essential.

One of the first challenges is navigating unfamiliar legal systems. Every country has unique property regulations, ownership restrictions, and transaction processes. Missing a key detail or misinterpreting local requirements can lead to significant delays or additional costs. It’s vital to research not just market opportunities, but also eligibility rules, land use policies, and required documentation well in advance.

Financial planning is another stumbling block. Currency fluctuations, undisclosed fees, and cross-border tax implications can all influence your total cost. Many buyers underestimate transfer taxes, capital gains requirements, or even simple bank transfer regulations. We recommend creating a detailed financial plan, factoring in both short- and long-term costs, before making any commitment. Verrilli International can help identify these costs in advance.

Overlooking due diligence is an all-too-common error. Verrilli International can help you find the right agencies or professionals to verify the property’s legal status, secure a clear title, and confirm any existing liens or encumbrances. Relying solely on verbal agreements or foregoing inspections can result in unpleasant surprises after closing.

While international real estate transactions can be complex, careful preparation and informed decision-making help safeguard your interests. By anticipating these challenges, Verrilli International can help you approach the global property market with greater confidence and clarity.

Verrilli International can help you every step of the way.

When planning your move abroad, first make sure your U.S. travel documents are in order. Some countries require that your passport be valid at least six months beyond the date of your trip, and a few airlines won’t allow you to board if this requirement isn’t met. If your passport is nearing expiration, be sure to get it renewed before you even apply for a visa.

If you intend to stay longer than 90 days, many nations require a long-stay visa for such a visit. However, several countries, like Greece, Portugal, and St. Lucia, offer residency, multiyear visas, and even citizenship to foreigners who invest a minimum amount in real estate or the local economy. And some countries, such as Italy and Thailand, offer special visas for retirees—typically those ages 55 or above—who meet specific income requirements.

Gathering and submitting all the necessary documents will typically include a valid passport, the completed visa application, proof of health insurance, and proof of income or wealth status. If you are seeking official employment or looking to start a business in your new home country, this carries other implications such a work visa and taxes (see below).

After submitting the required documents, waiting times vary by country and even by region within a country. Some embassies are more efficient than others, some local municipalities require additional documentation. In some cases, you may want to consult with an immigration lawyer, who can help with everything from renewing visas to establishing permanent residency.

Verrilli International can facilitate visas once we know your targeted country.

To check the visa requirements for your targeted country, contact its embassy.

Many expatriates maintain dual bank accounts: one in their home country to handle ongoing payments or transfers and another in their destination country.

Overseas accounts can take time to set up, sometimes requiring a local address that’s not a hotel or P.O. box. In the meantime, maintain sufficient funds in a bank that operates globally or that offers reliable access to ATM networks abroad and can process transfers quickly. Some offerings even eliminate foreign transaction fees.

Here, is where advance planning can help. Notify your U.S. financial institutions that you’re so when you tap your assets abroad it won’t be flagged as fraud. You may also need to report overseas bank and investment accounts annually to the IRS—especially those with balances over $10,000. Neglecting to do so can incur stiff penalties.

Understanding how far your U.S. dollar will go in a different currency is imperative for your expectations of lifestyle. Exchanging US dollars is favorable in many countries in the Southern Hemisphere and Asia but can go against you in many countries in Europe. 

In addition, currency fluctuations can affect your purchasing power abroad quite suddenly and might affect your wealth if not carefully monitored. If the dollar is currently strong against the local currency in your new country but you’re concerned it will weaken, you may wish to transfer more of your U.S. dollars to the local bank account to capture the advantageous exchange rate.

Moving abroad invokes the risk of double taxation! The U.S. is one of the few countries that taxes by citizenship, not residence, meaning that, as a US citizen, you are taxed on all income regardless of what country you earn it in.

Even if you decide to reside abroad, you will pay taxes to that country and to the U.S. as long as you maintain American citizenship. This includes capital gains, interest, rental income, and ordinary income. The US IRS has some exceptions if you can take advantage of them. For example, the Foreign Tax Credit can help reduce your tax exposure in the U.S. There are also dozens of tax treaties between the U.S. and other countries that can further limit the potential for double taxation.

For long-term expatriates, the IRS also offers the Foreign Earned Income Exclusion, which allows U.S. citizens who can demonstrate they were abroad for 330 full days in a consecutive 12-month period to exclude up to $130,000 in foreign earnings per individual from U.S. taxes (2025 provision).

Also, you should check to see if the state you live in requires you to file taxes. Some states can be aggressive in collecting tax revenues no matter how much of the year you spend away, so, if feasible, it may be worth establishing residence in one of the seven states that have no personal income tax—Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming—prior to moving overseas. When considering a move abroad you should keep in mind that, the U.S. distinguishes between filing as single versus married, and between short- and long-term capital gains, whereas other countries may not honor these distinctions. Tax years, too, may not align, with some countries following the calendar year while others do not.

Verrilli International recommends that you consult with a cross-border CPA, a qualified tax expert, and possibly a tax attorney who is versed in both domestic and international tax laws. 

For those who are nearing or in retirement, be aware that Medicare generally won’t cover medical expenses incurred outside the U.S. That said, you should generally still sign up for Medicare and any Medicare supplements as soon as you’re eligible—typically at age 65—or potentially face penalties. If you’re abroad when you turn 65, you have three months after you return to sign up for Medicare Part B. If you fail to immediately sign up for Part B, your premiums will increase 10% for every 12-month period during which you were eligible but not enrolled.

Depending on your country of residence, you may qualify for its national health care plan, which could provide wide-ranging coverage for affordable monthly premiums. If so, consider keeping Medicare Part A, which covers hospital care, even if you forgo Medicare Advantage and prescription-drug plans. Enrolling in Part B depends in part on whether you anticipate seeing doctors in the U.S. often enough to justify the monthly premiums.

Whatever your coverage in the U.S., you will likely require separate coverage for your time abroad. Many major insurers offer private insurance plans tailored to expats.

In any event, make sure you remain current with any local immunization mandates, and ask your doctor for electronic copies of medical records you can store in a secure cloud service.

Updating your estate plan is also a good idea to ensure you accommodate foreign laws regarding the distribution of assets, inheritance and gift taxes, probate, and succession. Inadequate planning can lead to assets passing to the wrong beneficiaries or result in unnecessarily high taxes.

Nineteen U.S. states and the District of Columbia—plus 20 foreign countries1—recognize a uniform international will. For states and countries that do not, you may need to create a multijurisdictional will or supplement your primary will with a so-called situs will tailored to your adopted country. For example, if you have assets in Delaware, Florida, Spain, and the U.K., an international will would cover assets in Delaware and the U.K., but you may need separate wills for Florida and Spain.

Be clear in all your wills and documents about how assets should be distributed in both countries and keep your trustees up to date with instructions on how to act if anything happens to you. Some countries may require the executor of your will to be a local resident. It’s a good idea to find an attorney familiar with estate laws in your destination country.

You should also consider the potential emotional challenges of living in another country. It turns out to be a dream come true for many people, but can be emotionally isolating for spouses and children, especially if they don’t have a support system. Many cities have active ex-pat communities that can be found online.

Before you commit, consider taking a few extended trips to your desired location during different seasons to get a feel for daily living and begin building a community. It’s better to know as much as you can before you invest time and money abroad.

Cultural misunderstandings and language barriers often affect more than just your day-to-day interactions—they can influence negotiations, inspections, and even the due diligence process. Building strong local relationships and educating yourself about the region’s way of doing business can be invaluable.

Ultimately, international property deals don’t reward guesswork. The more you prepare and seek out accurate local information, the greater your chances of a smooth, rewarding transition. Start with careful research and a realistic assessment of your own goals. Avoiding these costly missteps ensures that your move is as exciting and secure as you imagine it to be.

Verrilli International can help you make informed international real estate decisions.