Before You Move Abroad, Try Living There First

Once most Americans decide to move overseas, they follow a predictable series of steps:

• Sell the house
• Ship the belongings
• Buy property in the country of their choice
• Begin a new life

But in recent years, I've started seeing a different series of steps that lead up to the move — steps more in keeping with any major financial decision:

• Research
• Testing
• Evaluation of the conclusions
• The move

The most intriguing of those steps is "testing." That may involve a trial run — a month or two living in the new country to see if it's a good fit.

The growth of the medium-term furnished-apartment market makes the experiment easier. Companies such as Blueground offer fully furnished apartments designed for stays of a month or longer, giving prospective residents an alternative to both hotels and traditional long-term leases.

Airbnb offers another alternative — extended stays in private homes and apartments.

A trial run in Italy

For someone considering a move to Italy, this can be particularly useful. Instead of visiting Rome, Bologna, Florence or another potential destination for a week, you can spend six or eight weeks there and experience something much closer to ordinary life.

There is one important caveat: Americans can generally visit Italy without a visa for up to 90 days in any 180-day period, but longer stays require an appropriate Italian long-stay visa. The rules also depend on what you plan to do while you're there.

For someone considering a permanent move, understanding those requirements is part of the testing process itself. An immigration lawyer can help determine which visa, if any, is appropriate before signing a rental agreement or making other commitments.

You can shop for groceries, take public transportation, work remotely, explore different neighborhoods and figure out the actual monthly cost of living without having to buy a house or sign a yearlong lease.

A furnished apartment through a rental service can be particularly useful because the basic logistics are already handled. Utilities and internet are generally part of the arrangement, and the resident doesn't have to buy furniture or negotiate the kind of long-term lease that can be difficult for someone who is still figuring out whether a city is right for them.

Airbnb's marketplace of individual hosts can provide more variety, while a professionally managed operator such as Blueground offers more consistency in quality and support.

A local furnished rental may offer better value for a longer stay but can involve more paperwork and local knowledge. House shares can be an inexpensive option and provide an immediate opportunity to meet people.

The best choice depends on what you're trying to learn.

Your fact-finding mission

If you're testing whether you can actually live comfortably in a particular city, for example, the goal shouldn't necessarily be finding the cheapest possible apartment, but rather obtaining useful information before making a much larger financial commitment.

Think of it as a financial fact-finding mission.

• What will your monthly expenses be?
• How much will you spend on groceries, restaurants, transportation and utilities?
• Will you need a car?
• How often will you travel back to the U.S.?
• What kind of health insurance will you need?
• Depending on how long you stay, what could the arrangement mean for your tax and immigration situation?

The answers can be very different from what you might conclude during a vacation in Italy — vacationing somewhere and living there are fundamentally different experiences.

A beautiful neighborhood may turn out to be too noisy. A picturesque town may become frustrating if you need a car for everything. A city that appears inexpensive may prove less affordable once you maintain the lifestyle you're accustomed to.

Conversely, a destination you had initially overlooked may turn out to be an ideal fit.

It's much better to discover those things while renting an apartment for six weeks than after purchasing a €300,000 (about $343,800) home.

Americans may assume that if they're serious about moving abroad, they should immediately purchase a home. But ownership eliminates much of the flexibility that makes an international move attractive in the first place.

Renting for several months allows you to determine whether you like the country, the city and even the neighborhood. You can then make a property purchase based on actual experience rather than assumptions formed during a vacation.

The growing availability of companies has effectively created another step between a vacation and a permanent residency. Instead of choosing between a hotel and a traditional lease, prospective residents can find furnished accommodations intended for the middle ground — long enough to experience a place as a resident, but short enough to preserve flexibility.

Is this the right move?

Of course, renting an apartment for a month or two doesn't answer every question. Americans considering a permanent move abroad still need professional advice about residency requirements, taxes, estate planning, health insurance and other cross-border financial and legal issues.

But those decisions should follow a more fundamental question: Can I actually see myself living here?

An international move doesn't have to begin with a one-way ticket. Rather, it can begin with a month-long rental — and a much smarter opportunity to decide whether the place you fell in love with on vacation is actually somewhere you want to call home.

Related Content

• Considerations for Americans Who Want to Move to Europe
• 5 European Countries Welcoming US Expats
• Retire in Italy for Culture and Beauty
• How to Get Dual Citizenship: Pros, Cons and Steps to Take
• How to Find the Best International Moving Company for Your Big Move Abroad (and Avoid Costly Mistakes)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.