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By Saidin M. Hernandez
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Moving abroad can offer a better quality of life and a fresh start, but it can also create tax and legal obligations that follow a family across borders.
Anyone considering a move should obtain a cross-border review before leaving, not after discovering that two countries may claim the same income or assets.
The trend makes this issue urgent. A 2026 report by The Boston Globe, citing Global Citizen Solutions research, estimated that 180,000 U.S. citizens emigrated in 2025, the largest outbound movement in decades.
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One major complication is the difference between tax systems.
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As PwC explains, the United States taxes its citizens on worldwide income regardless of where they reside, meaning that moving abroad does not automatically end their U.S. tax obligations or potential liability.
Citizens who relinquish citizenship and green card holders who properly terminate resident status face separate rules, and expatriation can trigger an exit tax in certain circumstances.
The IRS confirms that living overseas does not, by itself, end a citizen’s obligation to report worldwide income.
The problem becomes more complicated when another country’s tax system enters the picture. Tax treaties and foreign tax credits can reduce double taxation, but they are not universal protections.
They apply to specific taxes and circumstances, leaving some liabilities outside their coverage.
I am seeing this firsthand in a family’s relocation to Spain. Although the United States and Spain have an income tax treaty, Spain also imposes a wealth tax on certain taxpayers and assets.
Because the U.S. foreign tax credit generally applies to qualifying income taxes rather than taxes on net wealth, the Spanish liability may not generate a corresponding U.S. credit.
The IRS explains the income-tax requirement, while the U.S.-Spain treaty’s technical explanation distinguishes taxes on income from taxes on capital.
A family can face an additional tax burden despite believing treaty protections have addressed the problem.
Investments and Estate Planning
Taxes are only part of the equation. Investments structured efficiently under U.S. rules may become less advantageous abroad. Dividends, capital gains, and the timing of asset sales can receive different treatment, making portfolio adjustments necessary.
Business owners face another complication. If key management decisions are made from the destination country, local authorities may determine that the business is effectively managed there and subject it to local corporate taxation. One person’s relocation can affect an entire company.
Estate planning also requires scrutiny. Trusts, ownership arrangements, wills, and beneficiary designations may not operate as intended under another country’s laws.
I am advising a family in which the parents are moving abroad while their children, the beneficiaries, remain in the United States.
Their plan must account for the location of the parents, beneficiaries, and assets. Focusing only on the person relocating leaves critical parts of the family’s financial picture unaddressed.
Moving With Greater Certainty
Planning ahead makes an enormous difference. A prepared family understands its tax residency, reviews investments and business structures, updates estate documents, and coordinates qualified advisers in both countries before departure.
It can move with greater certainty and a structure designed to protect its interests.
Without that preparation, families risk overlapping tax liabilities, unexpected reporting obligations, and expensive restructuring.
By the time problems emerge, they may already be residents of another country, making corrective measures more difficult or less effective. An exciting new chapter can become a prolonged financial and legal burden.
There is no universal formula, and sometimes no perfect solution. But there is no excuse for making these decisions blindly.
Start planning as soon as an international move becomes a serious possibility. Review citizenship and green card status, destination-country residency rules, treaty coverage, investments, business management, trusts, and estate documents.
Engage qualified tax and legal professionals in both jurisdictions. Also consider healthcare, insurance, schools, language, and cultural differences before committing to a permanent move.
Do not wait until the boxes are unpacked. Before booking the one-way flight, arrange a comprehensive cross-border legal and financial review.
Moving abroad should open the door to a better future, not leave your family paying for decisions it could have made differently.
Saidin M. Hernandez leads Bridgepointe Global Counsel, a Florida law firm specializing in cross-border estate planning, global tax strategy, and legacy preservation. The views expressed are the author's own.
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