this post was submitted on 25 Apr 2026
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[–] WoodScientist@lemmy.world 6 points 1 day ago* (last edited 1 day ago)

The main barrier to people living cheaper lifestyles abroad is their obligation to continue to pay American taxes for what amounts to no benefit.

This is a myth perpetrated by rich people. It's similar to the handwringing about the estate tax. It's just rich people bitching. The first $133k of foreign earned income is completely tax free. And additionally, any foreign taxes paid can be deducted as tax credits. So if you would normally owe $10k in taxes to the US government, but you paid $8k in taxes while living abroad to a foreign government, you'll only owe the IRS $2k.

The idea that this is a substantial barrier to middle class people moving abroad for a cheaper lifestyle is just fucking comical. It's only a problem if you are very, very wealthy. And even the very wealthy don't end up getting double-taxed. No one who moves overseas for cost of living reasons is going to have to worry about taxes being a problem.