The Hardest Thing About Being An Expat....Is Being An Expat

Michaela & Ricardo
Oct 15
5 min read

If you’ve spent any time researching how to move abroad, you’ve likely come across a wealth of articles singing the praises of international living. The sunshine, the lower cost of living, the slower pace of life—all appealing reasons why retirees are flocking to destinations like Portugal, Spain, Thailand, Panama, Costa Rica, and of course, Lake Chapala, Mexico.

But while the promise of sipping coffee on a terrace overlooking the Mediterranean or enjoying tacos by the lakeside in Mexico is real, what often gets glossed over is one simple truth: the hardest thing about being an expat… is being an expat.

There are real challenges to living abroad, especially when it comes to navigating the bureaucracies of two different countries, managing your finances, and maintaining compliance with the systems you’ve spent your entire life trusting—only to discover they don’t quite know what to do with you once you leave.

As a real estate agent living in Mexico since 2013 and the founder of Retire In Lake Chapala Seminars, I’ve helped many people explore this path. And I’ve learned that the biggest hurdle to international retirement isn’t logistics or language—it’s the lack of belonging in either system.

You Don’t Fit in the Box Anymore

One of the realizations you will come to as an expat is that there’s no checkbox for “Expat” on any government form. Neither the U.S nor Canada has a streamlined process for citizens living abroad permanently. You’re either “in” the system or you’re “out”—and unfortunately, as an expat, you live in the gray space in between.

Governments don’t exactly make it easy for you to leave. They still want their taxes and they want compliance with domestic policies that were never designed for someone living full-time in a different hemisphere.

Trying to deal with these agencies while abroad can feel like a full-time job:

Time zone nightmares: Need to contact Social Security or the IRS from Thailand or Italy? Prepare yourself that you might need to make calls at 2:00 or 3:00 AM.
Phone frustration: Many toll-free numbers don’t work internationally. You may need to invest in special calling plans, only to sit on hold for hours.
Verification woes: Banks like Bank of America or Chase often require U.S. phone numbers for two-step verification, locking you out if you don’t have one.
Mail mishaps: Receiving and returning official documents by mail—especially for things like “proof of life” for pension eligibility in later years—can be extremely unreliable. Letters go missing or can take months to be received.

These are not just annoyances; they can have serious financial implications, especially for retirees who depend on timely access to pensions, benefits, and secure banking.

The Financial Minefield of Expats

For those planning to retire overseas, managing money becomes a complex issue. You’ll likely maintain a bank account in your home country while setting one up in your new country. But many financial institutions don’t accommodate the idea of permanent residence abroad:

Some credit cards and bank accounts may be closed if you list a foreign address.
Amazon and other online services may reject orders when your shipping address and credit card billing address are in different countries.
In 2026, a new U.S. remittance tax is expected to take effect, which could further complicate how you move money abroad and potentially add costs to living abroad.
Cross-border taxation laws are constantly shifting. If you're not careful, you could easily end up double-taxed or facing late fees and penalties.

And let’s not forget about currency conversion fees, foreign transaction charges, and compliance paperwork. A seemingly simple thing like transferring money from your U.S. savings account to your Mexican checking account could require a frustrating chain of emails, phone calls, and fees.

Bureaucracy Doesn't Disappear—It Just Changes Languages

While it’s easy to blame your home country for these hurdles, remember: bureaucracy is universal. Every country has its own set of rules, regulations, and procedures—and they don’t always make sense.

In Mexico, for example, something as simple as registering your car or renewing your residency visa can become a days-long process involving:

Endless photocopies
Multiple trips to different offices
Officials who give incomplete or contradictory information
Rules that vary not just from one city or state to another, but sometimes between clerks at the same office

And of course, it all happens in a language you may not be fluent in. While many locals are helpful and friendly, the language barrier combined with unfamiliar processes means you’ll likely need a local facilitator, lawyer, and/or accountant to help you navigate the system—especially when it comes to taxes, property ownership, and legal matters.

This isn’t to scare anyone away from making the move abroad—it’s to prepare you for the reality of being an expat.

When You’re 80, It’s Not Just About the View

One of the most overlooked parts of becoming an expat is planning for your future self. Things might feel adventurous and exciting in your 60s or 70s, but what happens when you reach your 80s or 90s?

Who will help you manage documents, banking, appointments, and technology when you’re less able?
What if your pension gets suspended because you didn’t send in a proof of life certificate on time?
Can you still access your funds, or will digital banking and two-factor authentication become obstacles?
Will healthcare in your new country meet your long-term needs?

The questions are endless—and deeply personal. Each expat’s experience is different, and there is no one-size-fits-all solution.

Planning Is Everything

Becoming an expat is not just about moving to a new country—it’s about managing your relationship with your old one, too.

Before making the leap, it’s crucial to research:

Banking: Will your bank support international logins? Do you need to keep a U.S. or Canadian address?
Taxes: Will you still file U.S./Canadian returns? What are your tax obligations in your new country?
Government Benefits: Are there requirements to maintain Social Security, CPP, or pension benefits while abroad?
Healthcare: Are you covered abroad? Should you purchase international insurance or a Medical Evacuation Membership?

We Can Help You Ask the Questions You Didn’t Know to Ask

At Retire In Lake Chapala, we’ve created a community and seminar specifically for expats aspiring to move to Lake Chapala. We help you go beyond the YouTube version of living abroad—and instead, explore the practical, legal, and financial realities of life in another country.

Whether you're in the early stages of considering the move or already living abroad and feeling overwhelmed, we offer tools, guidance, and resources to help you transition with clarity and confidence.

Contact us today to learn more about our seminars and support services. Let’s make your dream of living abroad not just possible—but sustainable.

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