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THIS WEEK ABROAD
What’s the best way to stay connected abroad without breaking the bank?
Many expats and nomads end up wasting a lot of time and money before they find the right tech stack. Our latest article provides a few strategies and suggestions.
Read more in this week’s newsletter.👇
Technology Review
ESIM VS. PHYSICAL SIM: WHAT EXPATS NEED TO KNOW
Staying connected while living abroad is always a challenge. Changing technology is making it even harder.
Apple phased out the physical SIM card tray starting with the U.S. version of the iPhone 14. With the advent of foldable phones, other manufacturers could soon follow.
Here’s how expats can think about the great physical SIM vs. eSIM debate.
• The Case for eSIM
The main argument for eSIM is convenience. You buy a plan online before you leave, activate it from home, and land in a new country already connected.
No hunting for a kiosk, no language barrier at a carrier store, no waiting.
Most eSIM-enabled phones can store multiple profiles simultaneously, so you can set up plans for several countries before a trip and switch between them in seconds.
For comparing options, eSIMDB is a solid free resource that lets you search and compare hundreds of prepaid travel eSIM plans side by side. Prices typically run $2 to $6 per gigabyte.
Convenient, yes. Cheap? Not always.
• The Case for Physical SIM
This is where it gets interesting. If you're spending a month or more in one country, a local prepaid physical SIM from a supermarket or authorized vendor will almost always be significantly cheaper than any travel eSIM plan.
The free Prepaid SIM Card Wiki is a great resource for finding local options country by country.
One nuance worth knowing: many countries require a local ID to buy a prepaid eSIM from a local carrier. Physical SIM cards typically have far fewer restrictions.
• Long-Term Phone Strategy
Most nomads end up using both eSIM and physical SIM.
Travel eSIMs can be useful for short trips or initial arrival in a new country. Long-term, a prepaid physical SIM from a local carrier is most economical. (For Apple users, this requires that you keep an older iPhone or purchase one overseas that still has a physical SIM tray.)
One tech stack: a local physical SIM that handles day-to-day data at local pricing, paired with an American Tello number for two-factor authentication.
Tax & Money Corner
U.S. STATE DEPARTMENT AXES RENUNCIATION FEE
Breaking up with America still isn’t easy, but it just got a lot cheaper.
The State Department has cut the fee to renounce US citizenship by roughly 80%, dropping it from $2,350 back down to $450. The change took effect immediately after being published in the Federal Register, following years of legal pressure from expat advocacy groups.
The fee was raised sharply in 2015 as renunciations surged, largely driven by frustration over aggressive US tax reporting requirements for Americans living abroad, particularly FATCA. The France-based Association of Accidental Americans, which represents people whose US citizenship comes purely from being born on American soil, filed multiple lawsuits challenging the fee as unconstitutional.
The renunciation process itself remains anything but simple. Applicants must make repeated written and verbal confirmations to a consular officer that they understand what they're giving up, take a formal oath, and wait for State Department review. Oh, and there’s a hefty exit tax to pay. (Other than that, it’s easy!)
For the expat community, this is a notable development worth monitoring, especially as US tax obligations abroad show no signs of getting simpler.
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