Why US Expats Want To Keep A US Residency

Living abroad can feel like the ultimate adventure. Expats get to soak up new cultures, gain new perspectives, and often live a life that feels freer than the one they left behind. Ultimately, nowadays you can fall in love with a destination and choose to settle in for the time being. Thanks to digital nomadic initiatives, it’s a lot easier for people to call a new place home. Whether it’s the slow and elegant pace of Vienna in Austria, the career opportunities in Dubai, or simply the soothing and enriching life of Osaka, the benefits of living overseas are virtually endless. 

But while expat life is great, it also comes with trade-offs. Leaving the US means leaving behind certain rights and conveniences that Americans at home take for granted. Indeed, when you no longer live in a US state, you may lose access to certain practical aspects of the typical American life. So how can American expats protect their essential ties without giving up the expat lifestyle they love? 

Why Florida Over Other States?

When Americans move abroad, they often find that the state they remain tied to can make life either smoother or more complicated. That’s why many expats look for a state that offers simple rules, fewer taxes, and long-term security. 

Florida consistently comes out on top. Unlike states like California or New York, Florida has no state income tax, no inheritance tax, and a streamlined process for renewing important documents from overseas. 

It’s no surprise that many guides recommend learning how to get a Florida residency as an expat, as doing so preserves key rights and reduces unnecessary costs. While other tax-friendly states like Texas, Nevada, and South Dakota also appeal to American expats, Florida’s combination of financial, legal, and lifestyle benefits makes it stand out. 

The Tax Advantages of Florida

For many expats, the first and most obvious reason to maintain a US residency is taxes. While living overseas often changes the way you file your returns, American citizens are still required to report income to the IRS, no matter where they live. 

As Florida has no state income tax, you don’t need to pay state taxes. This is an important consideration for retirees, business owners, or digital nomads who earn globally and want to save money. 

The benefits extend beyond income tax. Florida has no estate or inheritance tax, which makes it a popular choice for those who want to protect family assets. For expats with a property in the US or who are planning to pass down wealth, Florida is the perfect choice. 

Keeping Your US Identity Alive

Staying connected to your American identity is important when living abroad. Indeed, you need to maintain a state residency to be able to keep essential documents current. 

Your driver’s license, for example, is one of these. In the US, it’s more than permission to drive. Your driver’s license is a primary form of government ID. Unlike many European licenses, it expires regularly and needs to be renewed through your state of residency. So, when you lose that residency, you essentially lose your driving license and also a reliable way of proving your identity. 

Residency also safeguards your right to vote. Your eligibility as a voter depends entirely on being registered in a state. No state residency means no ballot, so you want to keep that connection to ensure your voice still counts in federal elections—no matter where you live.

Health Care & Insurance

Can expats just rely on the home insurance system of their new country? Yes, but things are more complicated than they seem. 

Indeed, many Americans abroad rely on their host country’s system or purchase international health insurance. But US coverage can still matter for some. 

For one, Medicare requires you to maintain a state residency. As the government program covers Americans over 65, you may not want to lose this option. It can’t be used abroad, but losing eligibility means losing a potentially important safety net later in life if you return to the US. So, you don’t want to shut that door just now, no matter how much you love your life abroad. 

Private insurance also plays a role. Some supplemental plans and global policies require a permanent US address. Residency makes it easier to qualify. It simplifies matters if you travel home for medical care or specialist treatment. Hospitals in the US generally don’t accept foreign health insurance, so having a US-based policy provides some peace of mind. 

Legal Benefits

Maintaining a US residency isn’t just about taxes or paperwork. It also simplifies legal and lifestyle matters that can easily become complicated once you’re abroad.

For example, estate planning laws often differ from state to state. If you don’t maintain a clear state residency, it can be difficult for your heirs to settle matters smoothly. Florida, like a handful of other states, offers straightforward inheritance rules without extra taxes or complications, making it a popular option for expats who want to protect their families’ financial futures.

Owning property in the US is another factor. While expats can certainly buy and manage real estate without residency, having an official home state makes the process easier. It provides a fixed legal framework for deeds, mortgages, and even rental agreements.

Lifestyle Benefits

Residency has lifestyle advantages that matter to many expats. For one, it offers peace of mind when returning to the US for extended visits. Having a state residency makes travel and temporary stays far easier, whether you’re traveling back to see the family or regularly hopping between the States and abroad. 

A residency also provides continuity. It means you can maintain a US mailing address, keep a driver’s license that doubles as an ID, and avoid the hassle of re-establishing everything from scratch if you decide to come back. This continuity is especially valuable for families raising children abroad, as it simplifies future transitions back into American schools or communities.

At its core, maintaining residency is about flexibility. Even if you’re committed to living overseas for the foreseeable future, life can change. By keeping one foot planted in the US, you give yourself more choices.

There are so many opportunities for expats that, if you feel this lifestyle is cut out for you, you wouldn’t want to miss. But, at the same time, you don’t want to burn bridges with the US, so that’s why you need to keep a US residency.