3 Reasons the American Dream Is Easier Abroad in 2025
Written by
J. Arky
Edited by
Zuri Anderson
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Living in America brings the potential for greatness, but never the promise or guarantee that it will happen. So many people come to the United States or are raised with the idea of the “American Dream,” which appears to be less and less achievable within the country’s borders.
Greenback Tax Services conducted a survey that found a significant number of expatriates, or expats, from America have debated renouncing their U.S. citizenship following the 2024 presidential election. These people are weighing the implications of leaving America due to factors that include political, social, financial, and beyond.
Here are three reasons the American Dream might be easier aboard in 2025.
Cost of Living Is More Affordable
“I think for a lot of Americans, the financial realities of the ‘American Dream’ are becoming harder to reach,” commented Erika Kullberg, a personal finance expert and the founder of Erika.com. Kullberg cited that this is due to “rising costs of living, widespread inflation, healthcare expenses, and an unpredictable economic and political outlook.”
Kullberg pointed out that this reality really comes into focus when contrasted with other countries that offer lower living costs, more affordable housing, universal healthcare, and other benefits, highlighting that with these supports in place, it is easier to build wealth and maintain a higher quality of life.
“Achievements like owning a home, being financially stable and building for a comfortable retirement are the backbone of that dream, but many people especially of younger generations feel those goals are out of reach,” Kullberg added.
More Favorable Tax Situations
Kullberg noted that “taxes also come into play here, with our unique system that taxes citizens on worldwide income, even if they are living abroad. And so, you have the idea of renouncing citizenship to escape double taxation, as well as taking advantage of more favorable tax structures elsewhere.”
In places such as Panama, U.S. citizens living abroad qualify for the Foreign Earned Income Exclusion, according to Jackie Lange of Panama Relocation Tours.
“Americans dream of not paying half of their income in taxes!” she stated. “They can earn up to $126,500 in 2025 and not owe taxes on that income in the U.S. If they have an online consulting business (or are a freelance writer) and are not selling products in Panama, they owe no taxes in Panama either!”
Better Work-Life Balance
In America, there is a mindset to “work hard, play hard” that many citizens strive to achieve, yet consistently feel like they are coming up short on or needing to keep up. Outside the United States, workers tend to have longer vacation breaks, generous amounts of sick and family leave, and tend to not be defined by their jobs.
“Many Americans are finding a more enjoyable work-life balance, better social safety nets and exciting economic opportunities in foreign countries, as well as lower barriers to entry for businesses and startups,” explained Kullberg. “All this contributes to the idea that the American Dream might actually be more achievable outside the States.”
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