American Expats: When Returning to the United States Seems Too Expensive

Nino Trentinella, who has been living in Tbilisi, Georgia for two years, employs a housekeeper and a cook, takes a taxi almost every day, and regularly dines out. This lifestyle, which her five-figure salary would not allow her to enjoy back home in Baltimore, is noted by The New York Times.

Since 2020 and the Covid-19 pandemic, digital nomadism has become more popular among young Americans. Approximately 5.5 million Americans are said to be living abroad, according to the Association of Americans Residents Overseas (AARO). They have been attracted to a less expensive way of life, and now a return to the United States seems financially out of reach.

Especially since those earning less than $130,000 per year abroad are exempt from US taxes, and many countries have very favorable tax regimes for digital nomads. For example, in Tbilisi, Nino Trentinella is only taxed 1% of her income.

Corey O’Flanagan, a video editor from Denver, has been able to save money by practicing what is known as “geographical arbitrage”: working remotely for American or Australian companies while living in countries with very low costs of living.

In Kuala Lumpur, Malaysia, he and his wife were able to receive a complete health checkup for $400 each – in the US, they would have had to spend thousands of dollars. “The American healthcare system really scares both of us,” says Corey O’Flanagan. “My wife is British, and she is very worried about this.”

Context: The article discusses the rise in digital nomadism among Americans living abroad and the financial benefits they can achieve by living in countries with lower costs of living.

Fact Check: The figures mentioned, such as the number of Americans living abroad and the income threshold for tax exemption, should be verified with official sources for accuracy.