The trial move
A year abroad.
The door stays open.
You're not sure the permanent move is right for you. Portugal for a year. Greece for two. Wherever. You want to find out if you actually love it — the real version, not the vacation version.
This is a different setup than a snowbird (3–5 months, no foreign tax residency) and a different mindset than a permanent move (where you've already decided). You'll cross 183 days, which changes the tax picture. And the Medicare penalty math is the sharpest edge here — one wrong decision before you leave can follow you for the rest of your life, regardless of how the trial goes.
Published
This page is educational, not professional tax, legal, or insurance advice. Medicare rules, visa requirements, and tax treaty interpretations change — verify current details with official sources before making coverage or residency decisions.
Four things to get right before you leave.
The trial move is the most forgiving of the four scenarios — if you set it up correctly. Everything should be reversible:
- Keep Part B and get Medigap Plan G before you leave — dropping Part B for a temporary absence locks in a permanent 10%-per-year penalty if you return. Get Medigap G while your guaranteed issue window is open. This is the most time-sensitive step.
- Get international health insurance for your abroad year — IPMI is the right product for a year-plus abroad. If you're staying in one country and won't be crossing borders much, a local private plan ($80–150/month) is cheaper and sufficient. Both cover what Medicare doesn't.
- You'll cross 183 days — foreign tax residency is real — unlike a snowbird, you'll trigger tax residency in your host country. What that means for your pension and Social Security depends on the country and US tax treaty. Choose your destination knowing this.
- Pick your visa before you book flights — Portugal D7, Greece FIP, and Italy's Elective Residence Visa are the three proven paths for US retirees. Each has different income requirements and tax implications.
The sections below cover each piece and where the trial-move scenario differs from a permanent move.
The one decision
you can't take back.
Every other part of the trial move can be undone. The Medicare Part B penalty cannot. Get this right before you leave.
The Part B penalty math.
Drop Part B for a two-year trial and come back: you saved roughly $4,870 in premiums while you were gone. But the late enrollment penalty — 10% per 12-month period, permanent — is now attached to your premium for the rest of your life. At the current $202.90 base, that's +$40.58/month forever. The break-even is about 10 years post-return. If you return at 68 and live to 85, the penalty costs you more than you saved.
The only scenario where dropping Part B makes financial sense is if you're genuinely never coming back. On a trial move, you don't know that yet.
Keep Parts A, B, and D
Part A is free for most people — there's no reason to drop it. Part B stays on (see above). Part D carries the same penalty logic: 1% per month without coverage, permanent, compounding. For a 1–2 year trial, the savings don't outweigh the risk of the penalty if you return and need prescription drug coverage.
Medigap Plan G — before you leave
Medigap's guaranteed issue window opens at Part B enrollment and lasts 6 months. After it closes, insurers in most states can deny your application or charge more based on your health history. The window doesn't pause for your trial period — if you leave without buying Medigap, you may face medical underwriting when you return and apply for the first time.
The switch to make before you go —
IPMI or local plan —
one question decides it.
For a year-plus abroad, travel insurance isn't enough. You need a plan designed for people living abroad, not passing through. The choice between full IPMI and a local private plan comes down to one thing: how much you'll move around.
Local private plan ($80–150/month)
If you're planting yourself in Portugal, Greece, or Italy for the year with no plans to cross borders regularly, a local private insurance plan is the right-sized option. Cheaper than full IPMI, integrated with local hospital networks, and designed for residents rather than travelers.
The trade-off: it doesn't travel with you. Layer a short-term travel plan for any extended trips back to the US or elsewhere during the trial year.
Full annual IPMI
If your trial year includes significant travel — spending time in multiple countries, returning to the US for a few months, or visiting family elsewhere — a full International Private Medical Insurance plan makes more sense. It follows you wherever you go and functions as a real health plan, not just emergency coverage.
Get the "worldwide excluding US" tier. Your US visits are covered by your Original Medicare and Medigap Plan G.
You'll cross 183 days.
Here's what that means.
A trial move crosses a threshold that a snowbird doesn't: 183 days in your destination country, which triggers foreign tax residency. This isn't necessarily bad — but it's a real variable in choosing where to go.
You still file US taxes every year
US citizenship-based taxation follows you everywhere and never stops. Social Security, pension distributions, IRA withdrawals, and investment income are all still reported on your US return. Living abroad for a trial year doesn't change the US filing obligation — it just adds the question of whether a foreign country also has a claim.
Your host country can tax you too
Once you cross 183 days, your destination country generally considers you a tax resident and can tax your worldwide income. Whether they actually do — and how much — depends on the country's tax code and the US tax treaty with that country. Greece's 7% flat tax regime is the most attractive option currently available. Portugal and Italy have their own regimes with different terms.
Destination choice is a tax decision, not just a lifestyle one.
Greece's Article 5B regime taxes all foreign-source income at 7% flat for up to 15 years — your Social Security, pension, and investment income qualify. Italy's southern-region regime does the same, capped at 10 years. Portugal has moved away from the old NHR structure; standard Portuguese rates now apply to most retirees. Which country you choose has a direct, calculable effect on your after-tax income.
Three proven options
for US retirees.
The trial move requires an actual visa for stays over 90 days. These three countries have established, documented paths for US retirees — with known income thresholds, insurance requirements, and permit processes.
Portugal
Most popular
The most popular trial destination for US retirees. Low income threshold, English widely spoken, direct flights from the US, and a well-established expat community. 5-year path to citizenship. The Algarve and Lisbon area are the two main bases.
Portugal D7 visa guide →Greece
Higher income threshold than Portugal, but the 7% flat tax on foreign-source pension income can make it attractive for retirees with larger pensions. Athens, Crete, and the islands are the most popular bases. Growing expat infrastructure.
Greece FIP visa guide →Italy
Southern Italy offers a 7% flat tax on all foreign-source income for up to 10 years — one of the most favorable regimes in Europe for US pension income. Stricter visa requirements (passive income only, no employment), but the tax math can be compelling.
Italy Elective Residence Visa guide →Test the off-season, not just the highlight reel.
Most people visit Portugal in July and fall in love. Then they start their trial year in... July. They confirm what they already knew. The real test is February in Lisbon: rain, cold, shorter days, fewer tourists, less English. If you still love it in February, you've learned something. Pick at least one month of your trial year to be the worst-weather month your destination offers.
What to keep open
while you're away.
The whole point of a trial move is that you can come back. These are the things most worth preserving while you're gone.
What to leave intact
- US domicile and mailing address — even if you're renting out your home, maintain a US address (a family member's, a virtual mailbox) for Medicare, IRS, and Social Security correspondence
- US bank accounts — keep your primary checking account receiving Social Security and pension deposits; it's easier to unwind than rebuild
- US brokerage accounts — don't transfer assets to a foreign account during the trial; most US brokerages will close expat accounts once you have a foreign address on file
- Medicare Parts A, B, D, and Medigap — covered above, but worth repeating: these are the hardest to restore at the same cost once you've let them lapse
Rent, don't sell
Selling your US home before the trial resolves is the move with the least reversibility. If you come back, you're buying into whatever the market looks like then. Renting it out preserves the asset and generates income — at the cost of dealing with tenants and a property manager.
If the home is too much to manage, consider family staying there, a house-sitter arrangement, or a short-term rental that gives you flexibility to return. Selling is the final answer to a question you haven't answered yet.
Maintaining a US address while abroad →If the trial becomes permanent.
The best outcome of a trial move is certainty. If you finish the first year and know you're not coming back, the permanent-move guide covers what changes: the Part B keep-or-drop decision shifts, you may want to look at local healthcare system access, and the domicile strategy evolves. None of that is urgent on day one of the trial — but it's worth reading before you renew the visa.
Common Questions
Should I drop Part B to save money during the trial?
Do I become a tax resident in my destination country during a trial move?
Should I rent out my US home or leave it empty during the trial?
Can I use the D7 visa for just a one-year trial?
What if I decide to make the trial permanent?
Six things to do before you leave.
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Keep Part B — and buy Medigap Plan G before you go
Most time-sensitive step. Medigap's guaranteed issue window opens at Part B enrollment and lasts 6 months. Buy it while the window is open — don't leave this to the last month before departure. If your window has already closed, apply anyway; some states have additional protections.
Medicare guide for a trial move → -
Switch off Medicare Advantage during Annual Enrollment
October 15–December 7, with coverage starting January 1. Do this the fall before your trial year begins. Advantage auto-disenrollment at 6 months happens on the plan's timeline, not yours — switching before you go keeps you in control.
Medicare Advantage abroad: the 6-month rule → -
Choose your visa and start the application 3–6 months out
Portugal D7 (€920/month), Greece FIP (€3,500/month), or Italy ERV (~€2,600/month). Each has different insurance requirements, document checklists, and processing timelines. Consulate backlogs are common — start earlier than you think you need to.
Portugal D7 visa guide → -
Get international health insurance before departure
Local private plan if you're staying put in one country ($80–150/month); full IPMI if you'll be crossing borders. Apply at least 4–6 weeks before you leave — some plans have waiting periods for pre-existing conditions.
Insurance options for trial movers → -
Understand your foreign tax situation before you arrive
You'll become a tax resident in your destination country after 183 days. Read the country's tax treaty with the US, understand which income streams are affected, and decide whether Greece's 7% flat tax or Italy's southern regime changes the math for you.
How foreign tax residency works → -
Find an expat CPA before your first full tax year abroad
Your first year abroad warrants a tax professional who handles international situations — dual filing obligations, treaty elections, FBAR if you open foreign bank accounts above $10,000, and the timing of any regime elections (Greece's 7% flat tax must be applied for, not automatic).
The Medicare decision, in full.
Part B penalty math, the Medigap guaranteed issue window, the Advantage trap, and the complete coverage stack for someone who's leaving — but might come back. Everything you need to make this decision before you go.
Medicare guide for a trial move