Live and Invest Overseas
The Best Places To Retire In 2025

FREE REPORT: THE BEST PLACES TO RETIRE IN 2025






    We Value Your Privacy! We will not share your email address with anyone else, period.
    • Home
    • Countries

      Top Destinations:

      Whether you’re looking for fun and sun, a peaceful retirement, or the chance to earn some extra income, you’ve got a real world of opportunity open to you… In short, we’ve done our best to narrow down your best options, but only you can decide the right country for you.

      • Spain
      • Portugal
      • Panama
      • Belize
      • Colombia
      • Cyprus
      • Mexico
      • France
      • Montenegro
      • Browse All Countries

      Best For:

      • The Best Places To Retire
      • Health Care Abroad
      • Cost Of Living
      • Investing in Real Estate
      • Establishing Residency
      • Gun Laws In The World
      • English-Speaking Countries
      • Safest Places For Retirement
      • Best Places In Latin America
    • Budgets

      How Much Will It Cost You To Live Overseas?

      The only honest answer is, we have no idea. And neither does anyone else. The only one who can answer that question is you. Here’s the most important thing to understand about budgeting your new life overseas…

      Super Cheap

      • Chitré, Panama
      • Santa Marta, Colombia
      • Phuket, Thailand
      • Dumaguete, The Philippines

      Cheap

      • Medellin, Colombia
      • Boquete, Panama
      • Kyrenia, Cyprus
      • Hua Hin, Thailand
      • The Algarve, Portugal

      Affordable

      • Valencia, Spain
      • Cascais, Portugal
      • Las Terrenas, The DR
      • Pisa, Italy
      • La Rochelle, France
      • Mazatlán, Mexico

      Luxury

      • Ambergris Caye, Belize
      • Kotor, Montenegro
      • The Panama City Beaches
      • Paris, France
    • Resources

      Global Living

      • Living & Retiring Overseas
      • Raising A Family Abroad
      • Foreign Residency & Citizenship
      • Offshore & Diversification

      Making Money

      • International Real Estate
      • Banking
      • Employment
      • Investing

      Follow Us:

      • Meet Our Experts
    • Real Estate

      Join our Weekly Newsletter
      Overseas Property Alert

      Sign up for our weekly newsletter to receive expert insights on the best international real estate investment opportunities.






        We Value Your Privacy! We will not share your email address with anyone else, period.

        Buying Real Estate For Cashflow

        • Discover tips and strategies used by global property investing veterans

        Explore Our Latest Posts

        • Learn how to invest and purchase property abroad…

        Go To The Overseas Property Alert Site

        • How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams
      • Conferences

        Upcoming Events

        • Explore Our Events Site

        International Property Summit

        Caribbean Virtual Conference

        Live and Invest In Spain Conference

        PANAMA CITY, PANAMA

        June 18-20, 2025

        VIRTUAL

        July 17-19, 2025

        Valencia, Spain

        Sep. 17-19, 2025

        LEARN MORE
        LEARN MORE
        PRE-REGISTER
        LEARN MORE
        PRE-REGISTER
        • MORE EVENTS

        Contact Our Events Team

        Toll-Free U.S. and Canada:
        1 (888) 627 8834
        From Outside North America:
        1 (443) 599 1221
        Working Hours
        Monday – Friday 08:00 am – 17:00 pm EST.

        Reach us with your questions by email at: events@liveandinvestoverseas.com

      • Store

        Unlock The World

        • Access Your Library

        Overseas Havens Reports

        • Expats' comprehensive destination guides

        Conference Kits

        • Hours of coverage  from our latests conferences

        Lahardan Books

        • Titles on living and investing around the world
        • Explore Our Store
        Your passport to a life well-lived abroad

        Services

        overseas living letter offers affordable retirement guidance
        The Simon Letter Wealth Protection Insights
        Global Property Advisor Global Investment Opportunities

        Our Customer Service team is here to assist with any questions or concerns CustomerService@LiveandInvestOverseas.com

      • My Library
      Live and Invest Overseas
      • Home
      • Countries

        Top Destinations:

        Whether you’re looking for fun and sun, a peaceful retirement, or the chance to earn some extra income, you’ve got a real world of opportunity open to you… In short, we’ve done our best to narrow down your best options, but only you can decide the right country for you.

        • Spain
        • Portugal
        • Panama
        • Belize
        • Colombia
        • Cyprus
        • Mexico
        • France
        • Montenegro
        • Browse All Countries

        Best For:

        • The Best Places To Retire
        • Health Care Abroad
        • Cost Of Living
        • Investing in Real Estate
        • Establishing Residency
        • Gun Laws In The World
        • English-Speaking Countries
        • Safest Places For Retirement
        • Best Places In Latin America
      • Budgets

        How Much Will It Cost You To Live Overseas?

        The only honest answer is, we have no idea. And neither does anyone else. The only one who can answer that question is you. Here’s the most important thing to understand about budgeting your new life overseas…

        Super Cheap

        • Chitré, Panama
        • Santa Marta, Colombia
        • Phuket, Thailand
        • Dumaguete, The Philippines

        Cheap

        • Medellin, Colombia
        • Boquete, Panama
        • Kyrenia, Cyprus
        • Hua Hin, Thailand
        • The Algarve, Portugal

        Affordable

        • Valencia, Spain
        • Cascais, Portugal
        • Las Terrenas, The DR
        • Pisa, Italy
        • La Rochelle, France
        • Mazatlán, Mexico

        Luxury

        • Ambergris Caye, Belize
        • Kotor, Montenegro
        • The Panama City Beaches
        • Paris, France
      • Resources

        Global Living

        • Living & Retiring Overseas
        • Raising A Family Abroad
        • Foreign Residency & Citizenship
        • Offshore & Diversification

        Making Money

        • International Real Estate
        • Banking
        • Employment
        • Investing

        Follow Us:

        • Meet Our Experts
      • Real Estate

        Join our Weekly Newsletter
        Overseas Property Alert

        Sign up for our weekly newsletter to receive expert insights on the best international real estate investment opportunities.






          We Value Your Privacy! We will not share your email address with anyone else, period.

          Buying Real Estate For Cashflow

          • Discover tips and strategies used by global property investing veterans

          Explore Our Latest Posts

          • Learn how to invest and purchase property abroad…

          Go To The Overseas Property Alert Site

          • How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams
        • Conferences

          Upcoming Events

          • Explore Our Events Site

          International Property Summit

          Caribbean Virtual Conference

          Live and Invest In Spain Conference

          PANAMA CITY, PANAMA

          June 18-20, 2025

          VIRTUAL

          July 17-19, 2025

          Valencia, Spain

          Sep. 17-19, 2025

          LEARN MORE
          LEARN MORE
          PRE-REGISTER
          LEARN MORE
          PRE-REGISTER
          • MORE EVENTS

          Contact Our Events Team

          Toll-Free U.S. and Canada:
          1 (888) 627 8834
          From Outside North America:
          1 (443) 599 1221
          Working Hours
          Monday – Friday 08:00 am – 17:00 pm EST.

          Reach us with your questions by email at: events@liveandinvestoverseas.com

        • Store

          Unlock The World

          • Access Your Library

          Overseas Havens Reports

          • Expats' comprehensive destination guides

          Conference Kits

          • Hours of coverage  from our latests conferences

          Lahardan Books

          • Titles on living and investing around the world
          • Explore Our Store
          Your passport to a life well-lived abroad

          Services

          overseas living letter offers affordable retirement guidance
          The Simon Letter Wealth Protection Insights
          Global Property Advisor Global Investment Opportunities

          Our Customer Service team is here to assist with any questions or concerns CustomerService@LiveandInvestOverseas.com

        • My Library
        Live and Invest Overseas
         Moving Out Of The U.S?

        THE 10 BEST PLACES TO RETIRE IN 2025

        the 10 best places to retire in 2025

        PLUS: A SPECIAL BONUS DESTINATION

        Simply sign up to receive the FREE daily e-letter, Overseas Opportunity Letter, and we’ll immediately email you our editors’ latest research report… absolutely FREE






          We Value Your Privacy! We will not share your email address with anyone else, period.

          Home Offshore

          FEIE Basics

          Foreign Earned Income Exclusion: A 101 Guide For U.S. Citizens Living Abroad

          by Live And Invest Overseas
          Dec 26, 2020
          in Offshore, Taxes
          0 0
          'Tax time' memo on 1040 individual tax form

          iStock/alfexe

          The Foreign Earned Income Exclusion (FEIE) is one of the only expat’s line of defense against the IRS. It’s a tax relief on your foreign earned salary, which allows expats to exclude up to a certain amount of their income to avoid making payments twice on it, both in the United States and in your country of residence.

          If used correctly, the FEIE can help you exclude hundreds to thousands of dollars from your taxes. As an amount that is adjusted annually for inflation, for 2020 it allows you to exclude up to US $107,600 in wages, if you’re married you could exclude up to US$215,200 from your U.S. taxable income. In turn it can provide additional benefits to those living, working, and operating a business abroad.

          FEIE, a sort of relief package, as mentioned before applies to employment income in foreign countries, either from your own business, as an employee, or if you are self-employed. By earned income it includes money you obtain from exchange of goods and services. It doesn’t apply to passive earnings such as retirement, or other investment income. In other words, if you’re a pensioner retiring offshore, it’s something you don’t need to consider.

          Like anything to do with the fiscal system, the FEIE is full of rules and exceptions to those rules. If you’re planning a move overseas, you should engage help from a

          tax advisor to understand your own situation. But, to get started, here are some basic things a would-be expat should know:

          The Exclusion Applies To Federal-Income Tax

          It’s possible to qualify for the FEIE and still be considered a resident of a state in the United States… especially an aggressive cash-starved state like California. In that scenario, you may have to pay state tax on 100% of your salary. You should review your state laws with your local tax authorities before moving abroad to ensure you don’t get hit with a surprise tax bill. Some states of the United States do not honor the provisions of tax treaties.

          There Are Two Tests To Qualify For The FEIE

          The Physical Presence Test

          A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. When you rely on the physical presence test, it doesn’t matter where you are in the world. You can move around as much as you like, are not required to have a home base, and are not required to be in any one country for a certain period of time.

          The Bona Fide Residence Test

          A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. This usually means adopting the physical presence test your first year abroad, and then stepping up to the residency test.

          The key to the bona fide test is your intent to move to that place for the long term, with no intent to return to the United States. Any time a tax issue is determined by something as fuzzy as “intent,” you’re asking for trouble in an audit. You must compile a great amount of evidence in case you use of the FEIE is questioned… especially if your intentions change and you return to the United States after a few years.

          Tax Home In A Foreign Country

          The last step to qualify for the FEIE, the foreign housing exclusion, or the foreign housing deduction is your tax home, which must be in a foreign country throughout your period of bona fide residence or physical presence.

          U.S. Income Tax Treaties

          The United States has bilateral Income Tax Treaties with many countries which if imposed to foreign taxes entitles you as an American citizen to certain credits, exemptions, deductions, and reductions in the rate of taxes of the country you are residing abroad.

          Time Waiver For The Bona Fide And Physical Tests

          The bona fide residence test and the physical presence test have minimum time requirements. The minimum time requirements can be waived if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country.

          COVID-19 Waiver Of Time Requirement

          You may still be able to meet the requirements of the bona fide residence or physical presence test for 2019 and 2020 for purposes of determining the FEIE and housing cost exclusion or deduction if, due to COVID-19, you had to leave your home country of:

          • China (excluding the Special Administrative regions of Hong Kong and Macau) on or after December 1, 2019, but on or before July 15, 2020; or
          • Another foreign country on or after February 1, 2020, but on or before July 15, 2020.

          Income Tax Doesn’t Include Standard Deductions And Social Taxes

          Such as FICA, Social Security, Medicare, or self-employment taxes. If you’re an employee of a U.S. company while qualifying for the exclusion, you and your employer will pay these taxes. If you’re running a business and not incorporated offshore, you’ll pay about 15% in self-employment tax, which is not reduced by the FEIE. To avoid this, you or your employer can incorporate a subsidiary offshore from which you’ll draw a salary.

          The Exclusion Is Based On Earnings In U.S. Dollars

          If your country’s currency is appreciating against the dollar, the value of the exclusion to you is declining.

          To Get The Benefit Of The FEIE, You Must File Your U.S. Tax Returns

          As a U.S. citizen, you are taxed on your worldwide income. Your citizenship comes hand in hand with paying U.S. taxes.

          If you don’t file your tax return while abroad the IRS will chase you down and you’ll lose the right of the exclusion. Even if you spent every day for five years outside of the United States, and there would be no question of your qualifying, the IRS has the right to take away the exclusion for your failure to file.

          If you qualify, you can use Form 2555 to figure out your foreign earned income exclusion and your housing exclusion or deduction.

          As mentioned above, the FEIE is loaded with complexities and nuances. Before you start an offshore business or work overseas, be sure to consult with a tax expert in this specific area. Even if you’ve been living abroad for years, it’s in your best interest to have an experienced professional review your prior filings, plan out your next few years, and make sure you are in compliance.

          Tags: 'Social Security'earn moneyFEIEForeign Earned Income Exclusionincomemove overseasPaying Taxes OverseasTax exclusionTaxation
          Share114Tweet71
          Live And Invest Overseas

          Live And Invest Overseas

          Live and Invest Overseas is the world's savviest source for top opportunities to live better, retire in style, invest for profit, do business, and own real estate overseas. Established in 2008, the Live and Invest Overseas' editors and correspondents have more experience researching and reporting on top opportunities for living well, investing for profit, doing business, and owning real estate around the world than anyone else you'll find.

          Start Your New Life Overseas Today!
          Sign up for our free daily e-letter, Overseas Opportunity Letter, and we'll send you a FREE report on The 10 Best Places To Retire In 2025.

          We Value Your Privacy! We will not share your email address with anyone else, period.
          Our Expertise Unlocks The World

          quick links

          • Best Places To Live
          • Best Places To Retire
          • Finding A Job Overseas
          • Real Estate

          LIOS Resources

          • New To LIOS
          • Ask An Expert
          • Media Center
          • Contact Us
          • FAQs
          the 10 best places to retire in 2025
          Sign up for our free daily e-letter, Overseas Opportunity Letter, and get your FREE REPORT: The 10 Best Places To Retire Overseas In 2025






            We Value Your Privacy! We will not share your email address with anyone else, period.

            As seen in

            US Media Logos

            © 2008 – Live and Invest Overseas™ – All Rights Reserved.

            About Us / Contact Us / Privacy Policy / Terms / Unsubscribe
            Facebook-f X-twitter Youtube Linkedin-in Instagram

            Welcome Back!

            Login to your account below

            Forgotten Password?

            Retrieve your password

            Please enter your username or email address to reset your password.

            Log In

            Sign up to receive the FREE daily e-letter, Overseas Opportunity Letter and we’ll immediately email you our editors’ latest research report…

            BEST PLACES TO RETIRE 

            FREE REPORT:






              We Value Your Privacy! We will not share your email address with anyone else, period.

              Sign up for FREE and learn how to live the good life on a modest budget, find bargain property, and more. Plus, check out our free report on the 10 BEST PLACES TO RETIRE.

              RETIRE OVERSEAS AND LIVE LIKE ROYALTY






                We Value Your Privacy! We will not share your email address with anyone else, period.
                HOME

                Top Countries

                • Spain
                • Portugal
                • Panama
                • Belize
                • Colombia
                • Cyprus
                • Mexico
                • France
                • Montenegro

                Best For:

                • Health Care Abroad
                • Retirement Living
                • Cost Of Living
                • Investing in Real Estate
                • Establishing Residency
                • Gun Ownership
                • English Speakers
                • Safety
                BROWSE ALL COUNTRIES

                Budgets

                How Much Will It Cost
                To Live Overseas?

                Super Cheap

                • Chitré, Panama
                • Santa Marta, Colombia
                • Phuket, Thailand
                • Dumaguete, The Philippines

                Cheap

                • Medellin, Colombia
                • Boquete, Panama
                • Kyrenia, Cyprus
                • Hua Hin, Thailand
                • The Algarve, Portugal

                Affordable

                • Valencia, Spain
                • Cascais, Portugal
                • Las Terrenas, The DR
                • Pisa, Italy
                • La Rochelle, France
                • Mazatlán, Mexico

                Luxury

                • Ambergris Caye, Belize
                • Kotor, Montenegro
                • The Panama City Beaches
                • Paris, France

                Resources

                Global Living

                • Living & Retiring Overseas
                • Raising A Family Abroad
                • Foreign Residency & Citizenship
                • Offshore & Diversification

                Making Money

                • International Real Estate
                • Banking
                • Employment
                • Investing
                Meet Our Experts

                Real Estate

                Overseas Property Alert 

                 

                How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams

                VISIT SITE

                Buying Real Estate For Cashflow

                 

                Discover tips and strategies used by global property investing veterans

                READ MORE

                Explore Our Latest Posts

                 

                Learn how to invest and purchase property abroad…

                EXPLORE

                Conferences

                INTERNATIONAL PROPERTY SUMMIT

                PANAMA CITY, PANAMA June 18-20, 2025
                LEARN MORE

                CARIBBEAN VIRTUAL CONFERENCE

                VIRTUAL July 17-19, 2025
                LEARN MORE
                PRE-REGISTER

                Live and Invest In Spain Conference

                Valencia, Spain Sep. 17-19, 2025
                LEARN MORE
                PRE-REGISTER
                MORE EVENTS

                Contact Our Events Team:

                Toll-Free U.S. and Canada:
                1 (888) 627 8834

                From Outside North America:
                1 (443) 599 1221

                Working Hours
                Monday – Friday 08:00 am – 17:00 pm EST.

                Reach us with your questions by email at: events@liveandinvestoverseas.com

                Store

                Overseas Havens Reports

                • Expats' comprehensive destination guides

                Conference Kits

                • Hours of coverage  from our latests conferences

                Lahardan Books

                • Titles on living and investing around the world

                Services

                • Overseas Living Letter: Affordable Retirement Guidance
                • The Simon Letter: Wealth Protection Insights
                • Global Property Advisor: Global Investment Opportunitites
                VISIT OUR STORE

                Free Report

                THE 10 BEST PLACES TO RETIRE IN 2025

                FREE REPORT: The 10 Best Places To retire in 2025

                Sign up to receive the FREE daily e-letter, Overseas Opportunity Letter and we’ll immediately email you our editors’ latest research report…






                  We Value Your Privacy! We will not share your email address with anyone else, period.

                  LIBRARY

                  Follow Us:

                  © 2008 - Live and Invest Overseas - All Rights Reserved.