Working in another country can be an exciting and life-changing — but also fraught — experience. If you’re thinking about becoming an expatriate, here are a few things to consider first.

The United States government reserves the right to tax your worldwide income. The country in which you work, with some notable exceptions, also taxes your income.

To avoid double taxation, the IRS allows for a foreign earned income exclusion of up to $120,000 (in 2023). Who qualifies? Here is an excerpt from the IRS website at https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion assuming your tax home is in a foreign country:

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.

A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

Or 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.

You might also be able to deduct certain housing costs based on your foreign tax home.

Keep in mind taxes in most other countries are much higher than in the U.S. If you work for a U.S. company, company policies often make adjustments or give allowances to offset these costs. But those offsets could push your earned income over the exclusion limit. If you work for a foreign company, they might not have the same offsets.

Some positions, such as those involving work for an international organization, are generally tax-free in the foreign country of residence. When you add the benefit of the foreign earned income exclusion, these opportunities can be quite lucrative. They also can be very confusing, as I discovered working for the North Atlantic Treaty Organization many years ago in Europe.

Your U.S.-based medical insurance probably doesn’t cover you in a foreign country. You could buy into the medical insurance program in your tax home, but you should research this in depth. If you work for a major U.S.-based or foreign company, you probably will be offered some type of health insurance, but confirm the details.

You need permission — a visa or residency permit — to work in a foreign country. Major employers and international organizations usually take care of this requirement for you, but always check. If you organize your own overseas work experience, you could be limited in how long an entry visa allows you to stay. Many countries allow you to stay for up to 90 days, but then you must leave the country for some period of time — one to 90 days, usually — before you can obtain a new visa.
Be careful since many tourist visas don’t allow you to work legally.

While English is spoken around the world, especially in business environments, you’ll be living among local people, shopping in their stores, following their roads signs and more. If you don’t know at least the basics of the local language, you could feel isolated or run afoul of rules you didn’t know or understand.

Automobiles are expensive to buy, fuel and maintain in foreign countries. You might want to check out other means of transportation before you go to ensure you can get to and from work, housing and shopping without a car.

Living and working overseas isn’t like home. But that’s a major reason the experience can be so attractive. Before you commit:

Read everything you can find about living in your desired country.

Watch news from your desired country on cable, satellite or a streaming service.

Take a basic language course.

Check out local schools for your children.

Seek out others who’ve had the expatriate experience, especially in your desired country.

Develop a positive attitude.

This column isn’t intended as tax or legal advice. The tax situation, in particular, is very complicated. Always consult a tax specialist with expertise in the preceding areas.