海角大神

By聽Winnie Sun

Learn more about Winnie at NerdWallet鈥檚聽Ask an Advisor.

Working or retiring abroad holds a lot of allure, promising the chance to see new places, interact with different cultures and experience amazing travel opportunities. But if you鈥檙e an American citizen, Uncle Sam is going to want a word with you before you take that overseas job offer.

The U.S. taxes the income of its citizens, no matter where they live or where they earn it. Failing to file annual income tax returns with the federal government will result in hefty interest charges and penalties. Starting this year, if you owe $50,000 or more in delinquent taxes, you could lose your passport.

The tax code is complex, and differing agreements between the U.S. and foreign governments cause variations from country to country. Consult聽with a tax professional who鈥檚 familiar with expatriate tax rules during your overseas stint, and even before you leave home.

Working abroad

One important discussion I have with my clients who work in other countries and their tax professionals revolves around currency. Some foreign聽employers let you choose聽which currency you鈥檇 like to be paid聽in, or even split your compensation among currencies.

It鈥檚 important to navigate currency issues carefully, taking into account such things as conversion rates, percentage breakdowns and varying tax levels. It can make for a lot of late-night Skype calls because of time zone differences, but it鈥檚 important. You shouldn鈥檛 suddenly find yourself without financial guidance because you left the U.S.

A lack of proper guidance for these complicated financial issues could lead to some drastic steps. A聽CNNMoney analysis this yearfound that the number of Americans who renounced their citizenship or long-term residency jumped more than 20% last year and was 18聽times the rate in 2008. The analysis cites the complicated Foreign Account Tax Compliance Act, which took effect in 2010, for at least part of the increase.

It鈥檚 not just income taxes you need to think about. Will the American financial institutions where you have your accounts let you聽keep them there after you leave the U.S.? Do you realize you may not find a bank in your new country that will聽open an account for you? And that you鈥檒l no longer be allowed to buy shares in U.S.-registered investments?

A聽529 college savings plan, for example, gets varying tax treatments depending on the agreement or treaty between the U.S. and the country you鈥檙e considering for your new work location. The gains on the account might be taxed in your new country of residence even though they鈥檙e not in the U.S.

Retiring abroad

These issues don鈥檛 apply only to those who work abroad. If you retire and decide to live in a different聽country, there are challenges ahead of you as well.

You won鈥檛聽be covered by Medicare if you move to a foreign country, so make sure you check on the availability of health insurance and the validity of your聽long-term care insurance policy聽in your new country. If you change your mind, return to the U.S. and want to sign up for Medicare after you first become eligible at age 65, you can be聽penalized聽in the form of higher monthly premiums, with the amount of the penalty depending on how long you delayed enrollment.

Health insurance aside, many retirees find life is cheaper outside the U.S., with some South American or Asian countries proving most popular. If you鈥檙e interested in this option, it鈥檚 important to do extensive research to identify places that have low rents, bargain food prices, good health care systems, services for seniors and, in some cases, more advantageous tax laws than the U.S.

If your dream is to travel, explore the world and widen your horizons, by all means do so. But before you get that passport stamped, make sure you talk with a financial advisor and a tax pro who specialize in the laws governing Americans abroad. You鈥檒l save yourself thousands of dollars.

Winnie Sun聽is the founding partner of聽Sun Group Wealth Partners聽in Irvine, California.

This story originally appeared on NerdWallet.