Retiring to the USA: Routes, Places to Live and Taxes

It often starts with a picture. An older couple sits on a porch in Florida, the sun setting over the Atlantic, a light breeze moving through the palms. Or two retirees enjoying the wide open Texas prairie and a sense of freedom Europe lost long ago. Maybe it is Arizona (dry air, clear nights, red rock) or the West Coast with its California beaches.

The idea is always the same: spend your retirement not at home in Europe, but in America. In the land of unlimited opportunity, where you can start over, live freely and see your retirement years abroad not as an ending but as the start of a new journey.

But as romantic as that picture is, let's be clear: the USA does not make it easy for retirees. There is no classic "retirement visa", no door that opens just because you show a pension statement. If you really want to live in the USA, you need to bring more: capital, entrepreneurial spirit or family ties. And you have to face the practical questions, from health insurance and property to inheritance law.

So let's go step by step through what retirement in the USA in 2025 can actually look like.

1No retirement visa: the hard facts

Many people are shocked when they first hear it: the USA has no "retiree visa". Countries like Portugal, Thailand or Panama have programs that let you move there simply with a pension and proof of income and assets. America does not.

The message is clear: if you want to live here, you need a role, as an investor, an entrepreneur or part of a family.

2Visa options for retirees

• E-2 investor visa: ideal for retirees with capital who want to buy or start a small business, be it a motel, a café or a franchise. It requires an active business, but not necessarily working every day. With a well-run operation, you can be an entrepreneur and a retiree at the same time.

• EB-5 green card through investment: for wealthy people who can invest $800,000 or more. The capital goes into projects such as real estate or infrastructure. Upside: a direct green card. Downside: a large sum and a long commitment.

• Green card through your children: the most common route. If a child is a US citizen, they can sponsor their parents. A direct, solid path.

• EB-1 green card for extraordinary ability: realistic for artists, scientists or entrepreneurs with an international reputation. Rare in retirement, but not impossible.

What does not work: simply arriving with a pension. This is where America differs fundamentally from classic "retirement countries".

3Housing: rent or buy?

Once the visa is sorted, the next big question follows: where to live? And how?

• Renting: flexible, simple, ideal for the first few years. Many expats start out in rented apartments or houses before deciding.

• Buying: home ownership is more accessible in the USA than in Europe, but property tax is decisive. If you own a house in Florida or Texas, you pay several thousand dollars in property tax every year. Budget for it.

Property prices vary enormously. In California a small house costs millions, while in Texas or Arizona $400,000 to $600,000 still buys a spacious single-family home.

4Retirement cities: where is life best?

The USA is a continent. If you live here, choose your region deliberately.

• Florida: the classic. Warm climate, large European expat communities (especially in Cape Coral, Naples and Miami). No state income tax. Perfect for beach lovers.

• Texas: wide open space, deep quality of life, low cost of living and no state income tax either. Cities like Austin, Dallas and Houston draw expats.

• Arizona: popular with people who have respiratory problems: dry air, lots of sun. Phoenix, Scottsdale and Tucson are classic retirement spots.

• California: a dream for many, but expensive. High taxes, high costs, yet a quality of life like nowhere else.

• North Carolina or Tennessee: surprisingly popular, with a mild climate, lower costs and charming towns.

5Retirement communities: life in a Sun City

Beyond the classic cities there is a distinctly American invention: retirement communities. Places built solely for retirement.

The best-known example: Sun City, Arizona. A town just for people over 55. Golf courses, clubhouses, pools, medical centers, all tailored to the needs of older people. Those who live there know they are among like-minded people. The infrastructure is accessible, safety is high and social life is rich.

There are many such communities in Florida, Texas, Nevada and Arizona. Some are as big as small towns, others are intimate neighborhoods. They offer something Europe hardly knows: an environment made to measure for the third stage of life. For many European retirees, it is the ideal place to make friends and stay active.

6Health & care in later life

For retirees, medical care is the central issue. And this is where Europeans face the biggest adjustment.

• Medicare from age 65 is only available to US citizens or green card holders who have lived in the USA continuously for at least five years. Premium-free Part A is only for those who, themselves or through a spouse, have generally paid Medicare taxes for at least ten years; everyone else buys Part A for a premium.

• Expat retirees need private cover, either through the ACA Marketplace (Healthcare.gov) or through international insurers such as Allianz Care, which cover up to $5 million a year.

• Long-term care & assisted living are expensive in the USA: $5,000 to $10,000 a month is not unusual. Plan for these costs or cover them with supplementary insurance.

The good news: medical care is excellent. If you are insured, you get access to world-class medicine.

7Getting around & infrastructure

Europe has trains, buses and local transit. America does not. If you live here, you need a car.

• Car & driver's license: a must almost everywhere. Without a car you are lost, except in a few big cities like New York or San Francisco.

• Mobility in later life: many retirees move to retirement communities that offer shuttle services and their own infrastructure. If you are thinking long term, factor this in when choosing where to live.

10Selling property back home: watch out

But be careful: the US may still tax the sale. The US taxes its tax residents on their worldwide income. So if you move to Texas and become tax resident there, you have to report the sale of your home in Europe on your US return. US capital gains tax may be due, even if your home country no longer asks for anything.

This is where planning decides between thousands and millions. The right timing of the sale and a well-thought-out structure: all of it matters.

11Estate planning: the underrated factor

Many people never think about it: later in life, it is not only about living, but also about what comes after.

• Your will & powers of attorney need to be drawn up again in the US.

• Trusts are common tools for reducing estate tax.

• If you leave family behind in your home country, you need to plan for the clash of two inheritance law systems.

This is where the wheat is separated from the chaff: plan professionally and you secure your wealth for the next generation. Ignore it and you may lose millions.

12Quality of life & community

Retirement is not just a legal and financial question. Above all, it is a question of quality of life.

The US has it all: beaches, national parks, vibrant cities, golf courses, culture. But community matters just as much.

Many European retirees join expat communities and go to churches, clubs or associations from back home. Others deliberately put down roots in American neighborhoods. Both work: America is open, colorful and diverse.

13Between dream and reality

There are two kinds of stories. In one, retirees arrive naively without insurance and are bankrupt after their first hospital visit. In the other, well-prepared couples with a green card through their children or an E-2 business, solid insurance and a lovely home in Florida or Texas spend the best chapter of their lives there.

The US is no place for people without a plan. But for people with clarity, capital and courage, it is the country where you can start over, even later in life.

14How Mount Bonnell Advisors can help

For many years we have helped European entrepreneurs, families and retirees take the step to the US. We know: there is no retirement visa. If you want to move, you need to know the routes: E-2, EB-5, a green card through your children or other options. And you need answers to the practical questions: insurance, real estate, taxes, estate.

That is exactly where we come in. We explain, plan and guide you, so your retirement in the US does not stay a dream but becomes the life you live.

14.1Your next steps

1. Choose your legal route: E-2, EB-5, a green card through your children or other programs.

2. Plan location & lifestyle: Florida, Texas, Arizona, California or retirement communities such as Sun City.

3. Cover health & care: arrange health insurance (Healthcare.gov or Allianz Care) and factor in possible long-term care costs.

4. Structure your finances & estate: follow tax treaty rules, avoid the inheritance tax trap (5 years), time property sales strategically, set up wills & trusts.

5. Find your community: connect with like-minded people or deliberately integrate into American society.

Contact us for a personal consultation: we show you the way, so your retirement in the US is secure, predictable and fulfilling.

In short

• The US has no retirement visa. If you want to stay, you come as an investor or entrepreneur (E-2, EB-5), through family or with extraordinary ability (EB-1).
• Florida and Texas have no state income tax; Arizona, North Carolina and Tennessee attract with climate and costs, and retirement communities such as Sun City with a setting built for later life.
• Medicare is only available with citizenship or a green card from age 65; until then you need private insurance, and long-term care is expensive.

How we help you

• Visa RoadmapIn writing: which visa fits you and your family, prepared with the immigration attorney on the firm's team.
• Your US Tax ReturnForm 1040 or 1040-NR, handled in English.
• US Bank Account OpeningYour own access to the American financial system, even without an SSN.
• US Tax ConsultationYour US tax question, answered by people who know both sides.
• ConsultationOne hour with the firm: your case, your questions, a clear answer.