A European moving to the US

Last updated: 13 March 2023

I hold no responsibility for the consequences of anybody following this advice. Some people simply told me it was useful, which is why I share it here.

Table of contents
1. Before departure
1.1. Bank accounts and finances
1.1.1. Tax implications of foreign (to the US) bank accounts
1.1.2. Brokerage accounts
1.2. Registration
1.3. Passport
2. Most urgent items upon arrival
2.1. Bank account
2.2. Housing
2.3. Social security number (SSN)
3. General items
3.1. Phone plan
3.2. Credit card
3.2.1. Initial credit card
3.2.2. Building up your credit score
3.2.3. Get a real credit card
3.3. Driver’s license
3.4. ID card
3.5. Car
3.6. Taxes
3.7. Venmo
3.8. Registration with your home country

1. Before departure

1.1. Bank accounts and finances

You might or might not want to keep a European Bank account within SEPA with euro as currency. It comes in handy with a bank card when visiting home or if you intend to move back eventually. With accounts, the biggest issue to figure out is taxes and if you do not have any real estate in your name anywhere, the two points to watch out for here is your cash in checking accounts and potential brokerage accounts.

1.1.1. Tax implications of foreign (to the US) bank accounts

If you keep one or several bank accounts in Europe, what matters is the total amount if money you have in them. As long as that is less than ~€10,000, you will likely not have to declare it in your US tax return. If it is more, you will have to figure out how to correctly declare it. I do not know whether you actually pay taxes on foreign cash assets superior to the set amount, that’s a separate question to the need to declare.

Keep in mind that some banks still require you to show up in person to close your account, so keep that in mind for your moving plans.

1.1.2. Brokerage accounts

There is a reciprocity in what European tax residents are allowed to do in terms of stock trading in the US, and vice versa. With most European brokers, you will not be allowed to trade if you are a “US person”, meaning if your tax residency is in the US. This does not automatically mean that you need to sell all your positions; there is often an option where you can keep your account and your investments, but you are simply not allowed to buy anymore. The best thing is to reach out to your financial institution and ask them about it. This is true upon moving from the US to Europe too by the way: if your tax residency is in Europe, you are not allowed to invest with most US brokers. So if you intend to do that while you are there, keep that in mind.

1.2. Registration

Some countries/cities require you to deregister at the town hall or other administrative location when you move - sometimes in person. Figure out in beforehand whether this applies to you.

1.3. Passport

Obviously you will need a passport and a visa to move. If you want to keep things convenient though, make sure your passport does not expire during your anticipated time in the US. If it is due to expire soon, it pays off to renew it before getting your visa so that you don ot have to do it at your embassy after you move, and then on top of that get the visa transferred to the new passport.

2. Most urgent items upon arrival

2.1. Bank account

If you do not have a bank account, you cannot get paid. If you are not already getting to the US in advance of your first day at work, make sure there is at least one working day between your arrival and your first day. This allows you to walk into the nearest bank and open a bank account to be ready to receive a salary. You can always switch banks later if you find a more attractive or practical offer. You cannot do much wrong by identifying the closest Bank of America (BofA) office and just showing up there.

You can check online what you need to open a bank account, usually it will be at least:

• Passport
• Your visa (usually inside your passport, but just bring any documentation you have to be safe)
• A phone number (ask someone whether you can use theirs, it will make your life easier)
• An address (again, ask someone you know whether you can use theirs if you won’t have housing yet. You can just update it once you have your own place.)
• They will usually let you open the account without having a social security number (SSN) yet, but you will have to send it to them once you obtain an SSN.

2.2. Housing

It is usually a good idea to talk to somebody local or who knows the area who can advise you about safe and not too poorly connected neighborhoods. I would not go searching blindly as to an outsider, it is not obvious at all what good and bad choices are.

Overall, there are a couple of points to keep in mind while house hunting:

• Read potential housing contracts very carefully and maybe ask a colleague or friend to look it over with you. The US is much, much less regulated and some landlords create really adventurous rules that you might not be ok with.
• Make sure to ask in advance how rent would be paid. Wire transfers from one person to the next are not really usual in the US, so it often comes down to paper checks or PayPal transfers.

2.3. Social security number (SSN)

Your employer will provide you with the necessary paper work and tell you where to go to apply for an SSN. You show up there and request it, and then you get your SSN card sent by mail. It is ok if this does not happen immediately.

3. General items

3.1. Phone plan

You might be tempted to just keep your European phone number and contract because it has an amazing option for roaming in the US.

Don’t.

So many things depend on you being able to provide your phone number, and they will only ever accept a US phone number. This starts with really important things like access to online banking for your bank account, over ordering food and drinks at bars where you get an alert when it’s done, to being able to text and call with your colleagues and friends in the US - text messages are still extremely used over there. You’ll do yourself a favor if you get a US number.

Phone plans in the US are generally very expensive. Pre-paid cards can be a cheaper solution. I would in any case advise you check out the company “mint”. They have extremely affordable phone plans that you can always top up if you need extra data. The way to get the cheapest option is to pay for a whole year in advance. They will mail you a SIM card, you activate it and then you’re good to go. They also have e-sim options.

3.2. Credit card

While it is totally possible to exist in the US without a credit card, there are several reasons why it’s a good idea to get one anyway. One is that it helps you build a credit score and the other is that you can make money with it.

As you might have heard, the credit score is a super important concept in the US. It’s a number each person has on record that supposedly expresses how reliable they are financially. Without entering a discussion about its utility, fact is that having a decent credit score helps short-term people too. If you ever move, landlords might ask for your credit score, and if you buy a car, insurance companies definitely do.

And then the inherent thing is that many American credit cards work with some sort of reward program. Meaning, for every dollar you pay with your card, you can get a certain amount of money back. In my first year with my credit card, I made $600 like that.

Obtaining a normal credit card after freshly moving to the US is almost impossible though, because you don’t have a credit score yet. But if you need a credit score to get a credit card, and you need a credit card to start building your credit score, isn’t it a chicken and egg problem? Yes, but it can be solved with a temporary credit card that is based on a cash deposit. This will allow you to build your credit score for about 6 months, which is when you qualify for a real credit card.

Below I describe this process for accounts with Bank of America.

3.2.1. Initial credit card

Instead of the bank trusting you to buy on credit with a credit card, since you don’t have a credit score to establish that trust yet, you can leave a deposit for your credit card instead. In this way, the amount of your deposit specifies your credit card limit since it is used by the bank as a security for your spendings.

On their website, you can find these offers. Last time I checked they were for Mastercards, as opposed to their Visas on the rewards program, but that doesn’t matter. You apply for the card and you have to decide your deposit. There is a minimum (around $300) and a maximum. You will have a debit card with your bank account anyway, so you don’t have to rely on this credit card when it comes to spending limits. Also, you shouldn’t be maxing out your card initially, see next section.

3.2.2. Building up your credit score

To build your credit score you need to be buying things on credit, e.g. by paying with a credit card. For some reasons unknown to me, your credit score is apparently built best if you only use your card to ~30% of its limit, then you pay it off, and then you start again.

With the minimum deposit of $300 mentioned above, you would use your card until you have spent some $100 with it (you can keep track on your online account). Then you pay this, you wait until your settled bill is actually registered and your credit card balance is at zero. Then you restart.

Be careful, these credit cards do not get their debt paid automatically from your bank count like many European credit cards. You have to log in manually and specify what amount you want to pay off each and every time you pay your credit card bills.

You will need to keep doing this for pretty much six months exactly until you can apply (and get accepted) for a real card. Heads up, you will start getting a billion credit card offers by mail now, but either they’re useless or not trustworthy or you wouldn’t get accepted yet anyway. So they should go straight to the trash.

3.2.3. Get a real credit card

After about 6 months of the 30% game from above, you will be able to consult your credit score for the first time through your online banking account. Once this happens, they should pay you your deposit back because now, your good credit score is their security instead.

You can now pick one of the Bank of America credit cards with a rewards program and it will be very likely that they will accept your application. Your initial card limit won’t be super high but sufficient for most purposes, and you will have the option of raising it in the future.

Back in the day I opted for the BofA “Travel rewards” card because when looking at my spending habits and how many points I get per dollar spent, plus on what I could use those points, that made the most sense for me. The way it worked there was that once I had accumulated enough points, I could use them to pay off my credit card debt. It’s limited specifically to items related to traveling (hence “Travel rewards”) but this is taken very widely and includes air fares, taxis, Uber, parking, train tickets, hotels and what not, so I knew I would always be able to use those points.

Once you have your new credit card, you can close your old card. It is true when they say closing a credit card hurts your credit score, but it is very minor and will be rectified very soon if you keep using your new credit card. You could keep it of course, but since you’re getting points for using your new card and you get nothing for using the old one, I don’t see the point in keeping it.

3.3. Driver’s license

If you don’t have a driver’s license when you move to the US you can skip this part, although it’s definitely worth being able to drive in a country that relies so heavily on cars. Even if it’s not your own car, you can borrow somebody’s car or rent one when you need it.

Of course your European driver’s license is valid when you travel to the US - as a tourist. But now you’re here on a visa and you need a local driver’s license. Your home license will stay valid until about 60 days after your arrival in the US, in most states. So ideally, you will get your US license within that time frame.

Some European countries have contracts with some US states that allow you to simply trade in your home license for a US driver’s license. While this sounds easy, it also means you won’t see your home license for a while. In theory, once you leave the US and give your US license back, your US home state mails your original driver’s license to your home country where you can pick it up. But in the case of a French colleague, that took over a year. Also, it is not that hard to obtain a US driver’s license, so I definitely recommend that over trading it in.

You will find all information about how to obtain a driver’s license online. In Maryland, you need to sign up to take a written test on drugs and drug consequences for drivers before you can take the driving tests. After this written drug test, you compile your documentation (passport, visa, prof of address etc.) and go to the Department of Motor Vehicles (DMV) of your state (in Maryland this is called the Motor Vehicle Administration, MVA). You might be able to make an appointment for this but if you show up without one, plan for long waiting times. They will do the paperwork, take your picture on the spot and sign you up for the written test (on a PC). You might be able to take it on the same day, but that’s not always sure.

Once you pass the written test, you can make an appointment for the driving test. You will need to show up with a car for that, and you will need to show proof of insurance for that car. Asking a colleague might work. Some people rent a car, but some rental agencies explicitly prohibit doing driving tests with their cars. Double-check.

If you pass the driving test, you get a paper license on the spot and the actual card will be mailed to you.

Btw the most important part during the driving test is to always be able to tell what the current speed limit is, so keep an eye out for those signs.

3.4. ID card

A driver’s license serves as a general ID in the US (think going to bars, flying). You could do all of that with your passport, but (a) a passport is large and annoying to carry around and (b) it’s an unnecessary risk to carry your passport around in case you lose it.

If you do not have a driver’s license you might think you’re stuck with your passport. But in fact, you can go to the DMV to get a simple ID card instead.

3.5. Car

While in some (rare) cities it is definitely possible to survive without a car, the country is really made in such a way that your quality of life increases dramatically if you get a car, because you are then mobile within a much larger radius. This does not only apply to leisure time activities like going on hikes and what not, but it also means you can choose to go to specific grocery stores and similar things, which can be a game changer.

There are more than enough possibilities to buy a used car instead of a new one, but I definitely recommend asking a local for help. The important thing with a used car is that it has a valid state inspection. When buying second-hand, people should allow you to take the car for a ride, where it is absolutely normal to bring it to your mechanic of choice to have it looked over. But again, it’s best to get help from a local on this.

3.6. Taxes

You will be earning money in the US and you will be living in the US, so you will need to pay taxes there. Welcome to dealing with the IRS.

TL;DR: Pay someone to file your tax return for you. It’s not worth the hassle, time or potential for mistakes and it only costs about $100 per tax return if you don’t have something complicated going on with your finances.

The federal individual tax filing and payment deadline and is generally on April 15 or the following business day. People need to have filed their returns before this day.

There are federal, state and city taxes but people file them all at once. Your nationality and visa type also matters for your tax return, as well as for how long you have been in the country for. The tax advisor preparing your taxes will ask you for all this so that they can do their work. A big advantage of having your taxes filed for you is that if you pay someone to do it, they are responsible for any potential mistakes, not you, which makes it a little easier and less stressful for you.

One important piece of information for your tax return are the dates in the year you are filing for that you have been outside the US. Which means that you need to be able to produce a list of dates on which you have not been physically in the US when your tax advisor asks you for it.

3.7. Venmo

Venmo is a really useful app for paying each other and I don’t know anybody in the US who doesn’t use it. It works essentially like PayPal (I think it’s actually one of their products) except it’s an app on your phone, you can find your friends with their name/ID and you send money with one click. You need to connect a bank account (free) or a card (with a fee) to be able to use this app.

It’s very convenient when a group goes out for drinks and/or food, one pays the entire bill and then people pay that person back per Venmo - “I’ll venmo you”.

3.8. Registration with your home country

Some countries have registration systems for their nationals residing abroad. That way they know where you are and sometimes they send out useful information by mail or email, for example if any big elections are coming up and how you can vote from abroad. Check it our for your country.

–If you found this guide useful, and once you move to the land of the free to find your fame and fortune, consider sending some beer money my way by using your shiny new Venmo account - my handle is @Iva-Laginja, or simply click here.