Best countries to move with family

Best countries to move abroad with a family: what taxes, schools, safety and visas really cost

Moving alone is a lifestyle question. Moving with children is a family decision — with a completely different checklist. A €40,000-a-year tax advantage is worth little if the international school costs €30,000 per child, insurance is unaffordable or the children can't sleep because of noise outside.

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Last updated 9 September 2026 · By dont-tax.me editorial team · Reading time approx. 12 minutes

The family calculation: what really matters

A four-person family has costs that simply don't exist for a single person. The calculation that decides whether a move succeeds has at least these lines:

School fees are in many destinations the largest item after rent. Two children in an international school in Dubai, Bangkok or Abu Dhabi: easily $30,000–50,000 a year, often payable upfront. Where there is no good international school, a country is out — regardless of the tax rate.

Health insurance for a family with children: within the EU, free movement and coordination rules apply; outside the EU you need an international family policy. For two adults in their mid-30s to 40s with two children: roughly €400–900 a month depending on provider and cover.

Housing: a four-bedroom flat in Dubai costs $3,000–5,000 a month, in Bangkok $800–1,500, in Lisbon €2,000–3,500. The tax saving can be entirely eaten by housing.

Flights home: four return tickets two or three times a year — that can be €5,000–15,000 for grandparent visits, medical appointments, school holidays.

The decisive metric is therefore not "how much tax do we save?" but: how much more is left at the end of the year than in the home country — at a comparable quality of life? The explorer calculates exactly that, per city, on your profile.

Why the explorer treats "Family" separately

The explorer's "Family" profile calculates differently from "Single" or "Investor": it applies joint-filing rules, dividend taxation on combined household income, health-insurance premiums for children and automatically filters for cities with available international schools.

International schools: costs, quality, availability

What an international school costs

The range is enormous — from €2,000 to €35,000 per child per year, before school bus, meals and activities. As a rule of thumb: the wealthier and more international the expat community, the more expensive the schools.

CityBudget int. schoolMid-rangeTop school
Dubai$8,000/yr$16,000/yr$30,000/yr
Bangkok$6,000/yr$14,000/yr$22,000/yr
Kuala Lumpur$5,000/yr$9,000/yr$16,000/yr
Panama City$5,000/yr$9,000/yr$15,000/yr
Lisbon€4,000/yr€8,000/yr€14,000/yr
Limassol€4,000/yr€8,000/yr€14,000/yr
Málaga€3,000/yr€6,000/yr€10,000/yr

Curriculum

Most international schools use IB, British A-levels or the US system. If you return to a country with its own matriculation, an IB diploma is widely accepted at universities but may need formal recognition — usually straightforward, sometimes bureaucratic.

Private local school vs international school: local private schools teach in the country's language but are significantly cheaper. In countries with strong private-school systems (Malaysia, Thailand), this is a real alternative for families planning a longer stay.

Set school fees as a hard filter

In the explorer, set "International school ≤ X/yr" as a ceiling. With two children, this is often the filter that removes Dubai from the shortlist and moves Málaga or Kuala Lumpur up.

Health insurance for families abroad

Within the EU

German families moving within the EU keep their public health entitlement under free-movement rules, applying at the new residence under local standards; children are included. The privately insured should check whether their policy covers permanent residence abroad — most standard policies do.

Outside the EU

International family policies (Allianz Care, Cigna Global, Bupa Global, April, Aetna) cover both parents and children. Typical annual premiums for two adults (mid-30s) with two children:

  • Base cover (out- and in-patient, no USA, with excess): €4,000–7,000/yr
  • Comprehensive (incl. dental, worldwide): €8,000–14,000/yr
  • USA coverage added: +30–50 %

Local alternatives: Thailand, Malaysia, Singapore and the UAE offer quality private health insurance at locally lower prices — often €2,000–4,000/yr for a family. Check coverage limits; pre-existing conditions are usually excluded or loaded.

Returning to the home-country system

Children who were privately insured abroad can join a parent's public cover on return to Germany without a surcharge. Keep this in mind as a reassurance for the return option.

Safety, environment, water: the underrated filters

Tax-saving calculations ignore safety — but for families it is often the veto criterion. The explorer shows per city:

Crime level: from "very low" to "very high" based on Numbeo and other sources. Relevant for the school run and whether children can move around independently.

Air quality (AQI): In many Asian cities — Bangkok, Hanoi, Delhi, parts of KL — air quality is poor at certain times of year. For children with respiratory conditions, a genuine deal-breaker. Measured via a real-time API and displayed per city.

Drinking water: tap water is safe in Germany; in many countries it isn't. Ongoing filtered or bottled water is a running cost and daily inconvenience. The explorer flags cities where tap water is safe.

Climate and school year: small children often tolerate tropical heat less well than adults. 35 °C with 80 % humidity in Bangkok from April to June is objectively hard. "Mediterranean" or "temperate" as a climate filter cuts the shortlist but is often the right choice for families with young children.

Visas and residency for families

Within the EU, the question is trivial: free movement. After three months, registration with proof of income and health cover suffices. Children are included.

Outside the EU: the main applicant applies for a visa; partner and children come as dependants. Most countries require:

  • Proof of income (bank statements, tax returns, pension notices)
  • Proof of health insurance for all family members
  • Marriage certificate + children's birth certificates, certified with apostille
  • Police clearance certificate for the main applicant
  • In some countries: school enrolment or letter from the accepting school

Family-friendly visas outside the EU (selection)

CountryVisaFamily coverageKey condition
UAEGolden Visa 10 yearsPartner + children to 25 (unmarried)Min. AED 2m property investment or qualifying employment
ThailandLTR "Wealthy Global Citizen"Partner + children to 20$80,000/yr passive income or $500,000 investment
MalaysiaMM2H SilverPartner + children under 21$150,000 fixed deposit, property purchase
PanamaFriendly NationsPartner + childrenEconomic activity or ~$200,000 property
Costa RicaRentista / InversionistaPartner + children$2,500/mo or $150,000 investment

Compulsory schooling: many countries require children with residency to attend school. International schools are generally accepted as fulfilling this; homeschooling is banned or heavily regulated in many countries.

Tax for families: joint filing, child benefits, dividends

Joint filing and its effect

Germany's Ehegattensplitting — splitting joint income, applying the rate on the half, doubling — is one of the most generous family tax mechanisms in the OECD. On €150,000 with one non-working partner it produces around €15,000–20,000 of relief versus individual filing. Most countries don't offer this. The explorer applies each country's family tax rules to the "couple" profile.

Child benefits

German Kindergeld (€250/child/month, 2026) ceases on emigration unless a parent remains unlimited-liable in Germany or EU rules assign it to the employment country. Most destinations don't pay an equivalent; some EU countries do (Austria, France). Budget it as gone.

Dividends for families with a company

For couples with a GmbH or shareholding:

  • Cyprus: 0 % dividend tax (non-dom), 12.5 % corporate — strongest EU combination for high distributions
  • Dubai: 0 % on everything — but high school fees and no welfare state
  • Portugal: 28 % dividends despite IFICI (IFICI covers employment income only)
  • Bulgaria: 5 % dividends + 10 % flat income tax + 10 % corporate — cheapest EU package overall, but limited international schools

Best countries for families compared

Europe

Cyprus (Limassol, Paphos) is currently the strongest EU package for families with business income: 0 % dividends (non-dom), 12.5 % corporate, good international schools in Limassol (€8,000–14,000/yr), safe, English-speaking, EU healthcare, 300 days of sun. Weakness: limited school choice outside Limassol, summer heat, limited public infrastructure.

Portugal (Lisbon, Cascais, Algarve) is the favourite for families who prioritise quality of life over maximum tax optimisation: excellent healthcare, EU, safe, good international schools (especially Lisbon). Less attractive taxwise since the NHR closed; IFICI only helps with qualifying employment income.

Spain (Málaga, Valencia, Madrid, Barcelona) has excellent public schools and the best healthcare in Europe, with moderate costs outside the major cities. Tax is unremarkable (19–47 %, plus regional wealth tax), but many families choose Spain despite the taxes — because of quality of life.

Malta is a niche: small, British school system, English-speaking, EU, cheaper schools. Tax complex; interesting for families with business income.

Middle East

Dubai works for high-income families willing to pay €15,000–30,000 per child per year in school fees and to live in an air-conditioned high-rise culture. Maximum tax saving, high living costs, no welfare state. For families with children under six, or at lower income levels, usually not a good deal.

Asia

Kuala Lumpur (Malaysia) is families' best-kept secret: very good international schools at comparatively low prices ($5,000–16,000/yr), excellent private hospitals, very safe, multilingual (English widely spoken), tropical climate (adjustment period), MM2H visa. Foreign income locally exempt (with post-2025 limits). Often the best cost-quality calculation outside Europe for families comfortable with an Asian lifestyle.

Bangkok scores on costs and international schools ($6,000–22,000/yr) but has tightened tax rules (remitted foreign income now taxed) and poor air quality at times. LTR visa for qualifying families.

Americas

Panama City has become Latin America's leading expat family destination: affordable international schools ($5,000–15,000/yr), stable dollarised economy, territorial tax (foreign income exempt), safe expat neighbourhoods, Pensionado and Friendly Nations benefits. Weakness: heat, limited public transport, medical care thin outside the capital.

Related

Cost of living by city: what housing, schools and daily life really cost · 10 min read

Worked example: couple, 2 children, €150k + €20k dividends

Both parents working (combined €150,000), GmbH dividend €20,000, children aged 8 and 11, both wanting international school. Live values from the explorer:

Married couple, two kids, €150k income + €20k dividends

Germany (avg)DubaiKuala LumpurLimassolPanama City
Total tax (income + dividends)66.086 €0 €57.000 €47.603 €53.500 €
International school, 2 children / yr~€40,000~$32,000~$18,000~€16,000~$18,000
Family health insurance / yrpublic~$6,000~$3,000~€4,000~$5,000
4-bed rent / mo1.400 €4.200 €1.100 €2.500 €1.900 €
Disposable / yr after tax + all costs103.914 €170.000 €113.000 €122.397 €116.500 €
Savings vs home+66.086 €+9.086 €+18.483 €+12.586 €

Tax, rent and savings are computed live from the explorer; school fees and health insurance are estimates based on explorer data, as of 09/2026.

→ Adjust and open this scenario

Note on Lisbon

The live data shows Lisbon producing a net disadvantage vs Germany for this profile — a result of the NHR's closure and high city living costs. The Algarve and Porto look better. Portugal remains attractive — but today for quality of life, not tax advantage.

How to use the family filter efficiently:

  1. Set climate: Mediterranean or temperate (children tolerate tropical heat differently)
  2. Safety ≥ "good" as a hard floor
  3. International school ≤ your budget per child per year
  4. Then sort by tax savings — the list is now realistic

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Frequently asked questions

Consistently top-rated (safety "very good" + good healthcare + good international schools): Singapore, Abu Dhabi, Kuala Lumpur, Limassol, Malta, Lisbon/Cascais, Vienna and Zürich. For families with school-fee budget constraints, Kuala Lumpur is often the best balance.

Usually no — emigration ends unlimited tax liability and with it the entitlement. Exception: one parent remains unlimited-liable, or EU rules assign the benefit to the employment country.

Within the EU, broadly yes; higher-education admission follows country-specific rules. An IB diploma is internationally accepted and, for return to Germany, converted by a KMK decision — usually straightforward.

For tax purposes what matters is that the family's centre of life moves. One parent going six months early with children following at year-end is generally unproblematic — as long as the family home at home is sold or let long-term.

Only in countries with their own joint-filing mechanism, or via a special election (Germany's 90 % rule, with EU/EEA residence). In most destinations each spouse is taxed individually.

dont-tax.me is a data and comparison tool, not tax or legal advice. All figures are estimates based on public sources (as of 09/2026).

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