Updated October 2026
Our original version of this page ranked the best countries to live and work. Rankings like that change constantly and depend on personal priorities, so we’ve rewritten the page for a growing group of readers: Americans who want to run their business while living abroad, whether for a few months or for years. This guide covers how to choose a country, visa options, US tax rules, banking and practical tips.
Can you run a US business from another country?
Table of Contents
Yes. Many freelancers, consultants, online sellers, software developers and agency owners run US businesses remotely. But it involves more than moving your laptop. You need permission to live (and sometimes work) in your new country, a plan for US and foreign taxes, banking that works across borders, and operations that function across time zones.
Choosing a country: what to consider
Instead of a one-size-fits-all ranking, compare countries on what matters to you:
| Factor | What to check |
|---|---|
| Visa options | Digital nomad, freelancer, entrepreneur or residency visas, and how long they last |
| Taxes | Local income tax rules for residents and whether a US tax treaty applies |
| Cost of living | Housing, healthcare, coworking and daily expenses |
| Internet | Reliable high-speed connections where you’ll live |
| Time zone | Overlap with your US clients’ working hours |
| Healthcare | Quality, access and insurance options for foreigners |
| Safety and stability | Current travel advisories and political stability |
| Language and community | Ease of daily life and expat or business networks |
The US State Department publishes travel advisories and country information that are worth checking before you decide.
Popular choices among remote business owners
Rather than a ranking, here are the qualities that draw many US business owners to certain places:
- Time zone overlap: Mexico, Central America and much of South America share hours with US clients.
- Remote worker visas: several European and Latin American countries offer dedicated visas.
- Cost of living: many countries offer lower living costs than major US cities.
- Established expat communities that make settling in easier.
Visit before committing, ideally for a few weeks, to test internet, housing and daily life.
Visa options for remote business owners
Many countries now offer visas aimed at remote workers and entrepreneurs, including digital nomad visas that let foreigners live there while working for clients or businesses abroad. Portugal, Spain and Costa Rica are among the countries that have introduced such visas in recent years. Other routes include freelancer visas, startup or investor visas, and residency for retirees or people with passive income.
Important points:
- Tourist visas usually don’t allow work, even remote work, in many countries. Check the rules rather than assuming.
- Requirements vary: proof of income, health insurance, background checks and application fees are common.
- Long stays can make you a tax resident of the new country, which brings local tax obligations.
- Rules change often, so confirm details with the country’s official immigration website or consulate.
US taxes when you live abroad
US citizens are taxed on worldwide income no matter where they live, so you’ll still file US tax returns. Key rules for 2026:
Foreign earned income exclusion (FEIE)
You can exclude up to $132,900 of foreign earned income for tax year 2026 (up from $130,000 for 2025) from US income tax if you qualify under the bona fide residence test or the physical presence test, which requires at least 330 full days abroad in a 12-month period.
Foreign tax credit
If you pay income tax to another country, the foreign tax credit can offset US tax on the same income, reducing double taxation. Some expats use the credit instead of, or alongside, the exclusion.
Self-employment tax still applies
The FEIE does not exclude self-employment tax of 15.3% (Social Security and Medicare) on net business income. The US has totalization agreements with some countries that can prevent paying social security taxes in both places; check whether your new country has one.
Reporting foreign accounts
- FBAR: if your foreign financial accounts total more than $10,000 at any time during the year, you must file a Report of Foreign Bank and Financial Accounts.
- FATCA (Form 8938): higher thresholds apply to Americans living abroad, such as foreign assets over $200,000 at year-end or $300,000 at any time for single filers.
State taxes
Some states continue to treat you as a resident after you move abroad unless you clearly cut ties, so plan your state residency carefully.
Tax rules for Americans abroad are complex; a tax professional who specializes in expat taxes is well worth the cost.
Your business structure
- Keep a US entity such as an LLC if your customers are mostly in the US. See our state LLC guides.
- Choose a registered agent with a US address to receive official mail.
- Check your state’s annual report and tax requirements, which still apply when you’re abroad.
- Consider a virtual mailbox service for business mail.
- Be careful about creating a taxable presence in your new country, which can happen if you run the business from there long term. Get local advice.
Banking and payments
- Keep a US business bank account for US clients and expenses. See best banks for small business.
- Use a multi-currency account for low-cost international transfers.
- Tell your bank you’re abroad and confirm it allows account access from overseas.
- Watch foreign transaction fees on cards.
- Keep records of where income is earned for tax purposes.
Practical tips for running a business abroad
- Set working hours that overlap with your clients’ time zones.
- Invest in reliable internet and have a backup, such as a mobile hotspot.
- Use a US phone number through a calling app so clients can reach you easily.
- Keep health insurance that covers you abroad.
- Protect your devices and data with a VPN on public networks and strong security. See encryption and data security.
- Build local connections through coworking spaces and business communities.
- Plan visits home for important client meetings, if needed.
Health insurance and Social Security
Health coverage is one of the most overlooked parts of moving abroad. US health plans and Medicare generally don’t cover routine care overseas, so look at international health insurance or the local public system if you’re eligible as a resident. On the retirement side, paying US self-employment tax keeps building your Social Security record; if a totalization agreement applies instead, your contributions to the foreign system may count toward benefits there.
Before you move: a checklist
| Task | Why it matters |
|---|---|
| Confirm your visa allows remote work | Avoids immigration problems |
| Talk to an expat tax specialist | Plans US, state and foreign taxes |
| Review your LLC’s registered agent and annual filings | Keeps the business in good standing |
| Set up a virtual mailbox and US phone number | Keeps mail and calls flowing |
| Arrange international health insurance | Protects you from large medical bills |
| Notify banks and update account access | Prevents frozen accounts and blocked payments |
| Tell clients about any time zone changes | Sets expectations early |
| Back up files and secure devices | Protects data while traveling |
Moving back to the US
If you return, plan the transition as carefully as the move: update your address with the IRS and your state, re-establish state residency, review health insurance, close or report foreign accounts as required, and check whether part-year rules affect your foreign earned income exclusion for the year you move.
Example: a consultant moves abroad
A marketing consultant with US clients moves to Portugal on a digital nomad visa. She keeps her US LLC and business bank account, works mornings and early afternoons to overlap with East Coast clients, and hires an expat tax specialist. She qualifies for the foreign earned income exclusion but still pays self-employment tax, and files an FBAR for her Portuguese bank account. Her clients barely notice the move.
This example is illustrative and not tax advice.
Frequently asked questions
Do I have to file US taxes if I live abroad? Yes. US citizens file US tax returns on worldwide income, though exclusions and credits may reduce or eliminate the tax owed.
What is the foreign earned income exclusion for 2026? Up to $132,900 of foreign earned income for qualifying taxpayers.
Can I work remotely on a tourist visa? Often not legally. Many countries require a specific visa for remote work; check before you go.
Do I still need my LLC if I move abroad? Many owners keep their US LLC to serve US clients and keep banking simple, but get advice on whether running it from abroad creates tax obligations in your new country.
Next steps
Read our guides to location-independent businesses, taxes and bookkeeping and remote working tools.
This guide is general information, not tax, legal or immigration advice. Rules change; consult qualified professionals.
Sources
- Greenback Expat Tax Services, US expat taxes: the 2026 guide
- IRS, Foreign earned income exclusion
- IRS, Report of Foreign Bank and Financial Accounts (FBAR)
- US Department of State, Travel and living abroad
Last reviewed October 20, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
Leave a Reply