For many Americans, retiring abroad isn’t just a pipe dream. A recent Harris poll reported that 52% of Americans believe they can achieve a better quality of life by moving abroad, and some estimates put the number of retirees living outside the U.S. at more than 700,000. Those who choose to move to another country in retirement will have likely done their research, but beyond accommodations, health care, and living costs, there are some unexpected expenses that many people overlook. Here’s a look at the hidden costs of retiring abroad.

Getting the Paperwork Right

From immigration and visa fees to real estate transfer costs and local government charges, there are a slew of payments to make on top of regular living expenses when you choose to move abroad. The U.S. Department of State suggests hiring a financial adviser to get country-specific information and to “seek professional legal advice before settling abroad.” When reading up online about what to expect, use trusted sources such as government websites and cross-check information to make sure the advice you’re following is accurate.    

Paying Taxes in More Than One Location

When it comes to taxation, the U.S. Department of State’s advice is absolutely clear: “Leaving the United States does not exempt U.S. citizens from their U.S. tax obligations.” In fact, the U.S. is one of only two countries (with Eritrea) that taxes its citizens no matter where they live. The department adds, “If you retire abroad, you must also obey the tax laws of your new country.” 

Depending on personal circumstances, the IRS says that U.S. retirees who move abroad may qualify for certain exemptions, such as foreign-earned income exclusion or a foreign tax credit, but you can only qualify by filing a U.S. tax return. Depending on where you settle, you may also be able to benefit from bilateral tax treaties. Regardless, it makes sense to book an appointment with a tax adviser that specializes in foreign residency to be sure of your obligations and avoid any hefty and unexpected bills.

Currency Fluctuations

Exchange rate fluctuations are part and parcel of making transactions in a foreign country. Even though they are an everyday occurrence, currency issues can still have lasting consequences, from day-to-day living expenses to the value of any overseas property you own. Opening a multicurrency account, as recommended by HSBC Expat, can be a helpful tool to manage your finances. Rate alerts might also be advantageous, as they enable you to monitor the market.

Building a New Life for Yourself

With more time on your hands, a new place to explore, and the chance to become part of a new community, there are many upsides to retiring in a new country. But whether it’s learning the language or joining like-minded companions to enjoy your hobbies, it often comes at a cost.

For instance, a week’s tuition at the Antigüeña Spanish Academy in Guatemala (taking classes for six hours a day) will set you back $200. And green fees for a round of golf in Spain can range from $60 to over $400 depending on where you play. To stick within your budget, you might choose to focus on hobbies and interests that don’t cost as much yet still provide the opportunity to get to know your new neighbors.

Flights To See Family and Friends Back Home

Even if you’ve chosen to relocate a relatively short distance from the U.S., you’ll still have to budget for travel costs if you plan to return home for a visit. Airfares with budget airlines like Viva or Volaris from Mexico to cities north of the border can be cheap, but if you’ve chosen to move to Europe, you’ll need to budget considerably more for each time you return home. Thankfully, staying with friends and family can help keep the price of a trip home lower than a typical vacation. However, you’ll still be impacted by hard-to-predict costs such as increases in the price of aviation fuel (and thus tickets) triggered by political unrest.

Missing Out on Other Travel Opportunities

Sometimes, the costs associated with being a retiree abroad aren’t financial. Instead, they’re opportunity costs. You may have envisioned using your new base to explore the wider region — say, picturing yourself living in London and hopping back and forth to Europe’s most enticing destinations on a whim. But with a fixed budget, you may be in for a reality check. Plus, a roving retirement can be exhausting over time. You may prefer to concentrate on growing deeper roots in one place than to spread yourself too thin by trying to see everything and everywhere.