How I Set Up a Florida Domicile Before Moving to Thailand

About ten days before I moved to Thailand, I flew to Tampa, stayed with a friend, and drove up to the DMV in Sumter County to get a Florida driver's license. That one trip saved me thousands of dollars a year in state taxes and set up the financial infrastructure I needed to live abroad without issues.

If you are an American planning to move overseas, setting up a Florida domicile before you leave is one of the highest-ROI things you can do. It takes a few days of effort and pays for itself immediately. This guide covers exactly what I did, what it costs, and why it matters.

Why Florida

Florida is the most popular domicile state for Americans living abroad, and for good reason. The combination of tax benefits, legal protections, and practical infrastructure makes it the obvious choice for most people.

No State Income Tax

Florida has no state income tax. Zero. If you were previously domiciled in a state like California (13.3%), New York (10.9%), New Jersey (10.75%), or any other state with income tax, moving your domicile to Florida eliminates that liability entirely.

The savings are significant. If you earn $150,000 per year and were domiciled in California, you are paying roughly $12,000-14,000 in state income tax. In New York, similar numbers. Move your domicile to Florida before you leave the country and that drops to zero. That is $12,000+ per year back in your pocket, every year, for doing a few hours of paperwork.

Even if you were in a lower-tax state, the savings add up quickly. And this is not a one-time benefit. You save this every single year you maintain Florida domicile.

No State Estate Tax

Florida also has no state estate tax. Some states (like New York, Massachusetts, Oregon, and others) impose their own estate tax on top of the federal one, with thresholds as low as $1 million. If you have assets and care about long-term wealth planning, Florida domicile removes this exposure entirely.

Other Benefits

• No state capital gains tax. Sell investments, crypto, or a business? Florida does not tax any of it at the state level.
• Homestead protection. Florida has some of the strongest asset protection laws in the country. Your primary residence (even if it is an RV or mobile home on paper) is protected from most creditors.
• Strong privacy laws. Florida does not share tax information with other states the way some states do. Your financial affairs are more private.
• Easy domicile process. Florida is set up for this. The infrastructure for establishing domicile is well-tested because so many retirees, nomads, and expats do it.
• No personal property tax on intangibles. Stocks, bonds, and other intangible assets are not taxed by Florida.

Domicile vs. Residency: What This Actually Means

Your domicile is your permanent legal home. It is where you intend to return to, where you vote, where your driver's license is from, and where your legal and financial life is anchored. You can only have one domicile at a time.

Residency is different. You can be a resident of multiple states (or countries) based on physical presence. But domicile is about intent. It is where you say "this is my home base" for legal and tax purposes.

When you move abroad, you do not automatically lose your state domicile. If you were domiciled in California and just leave the country, California can (and does) argue that you are still a California resident and owe state taxes. California is notoriously aggressive about this. They have been known to audit people who left the state years ago.

By proactively establishing Florida domicile before you leave, you create a clean break from your previous state. You are not abandoning your domicile. You are moving it to a state with no income tax. This is legal, well-established, and done by tens of thousands of Americans every year.

Exactly How I Set Up My Florida Domicile

I did this about a week and a half before I moved to Thailand. I flew to Tampa and stayed at a friend's house, which worked out perfectly because I got to visit him before leaving the country. From Tampa, we drove up to the DMV in Sumter County, which is where the domicile service I used is based.

The whole in-person part took one day. The rest was done online over the following week. Here is the step-by-step.

Step 1: Sign Up with SavvyNomad

I used SavvyNomad to handle the domicile setup. They are a Florida-based service specifically built for Americans who live abroad or travel full-time. They give you a residential address in Florida (within an RV and mobile home community in Sumter County) and handle the legal filings, mail forwarding, and compliance monitoring.

I signed up for the Savvy Nomad plan at $90/month ($1,080/year when paid annually). This includes the residential address, a separate mailing address, mail scanning and forwarding, digital mail management, Florida Registered Agent service for an LLC, and access to their CPAs for tax questions.

Step 2: Get Your Florida Driver's License

This is the most important step and the one that requires you to physically be in Florida. You need to go to a DMV in Sumter County (where your new residential address is located) and get a Florida driver's license. SavvyNomad tells you exactly which DMV to go to and what documents to bring.

What to bring to the DMV:

• Your current driver's license from your old state
• Passport or birth certificate (proof of identity)
• Social Security card or W-2 (proof of SSN)
• Two proofs of Florida residential address (SavvyNomad provides these documents)

The DMV visit took about an hour including wait time. I surrendered my old state license, took the photo, and walked out with a temporary Florida license. The permanent card was mailed to my SavvyNomad address and they forwarded it to me.

Surrendering your old license is important. It is a tangible act that demonstrates you are severing ties with your previous state. Some states (especially California and New York) can argue you are still a resident if you maintain a driver's license there.

Step 3: Update Your Voter Registration

Register to vote in Florida using your new residential address. This is another strong signal of domicile intent. You can do this online through the Florida Division of Elections website right after you get your license. It takes five minutes.

Step 4: Update All Financial Accounts

This is the tedious but critical part. You need to update your address on every financial account to your new Florida address. Banks, credit cards, brokerage accounts, insurance policies, retirement accounts. All of it.

Use the residential address for:

• DMV / driver's license
• Voter registration
• IRS (tax return filing address)
• State residency filings
• Vehicle registration (if applicable)

Use the mailing address for:

• Banks and checking accounts
• Credit card billing addresses
• Brokerage accounts
• Insurance policies
• Subscriptions and online shopping
• Anything that sends you physical mail

I spent about two evenings updating all my accounts. Most banks and credit cards let you change your address in the app or online. A few required a phone call. One thing I found: most banks accepted the address with no issues. Robinhood was the exception. They flagged the address and would not accept it. Every other institution (Chase, Amex, Mercury, Schwab, Fidelity) took it without any problems. I also set up a Wise account for international transfers, which became essential once I was in Thailand.

Step 5: File a Declaration of Domicile

Florida allows you to file a Declaration of Domicile with the Sumter County Clerk of Court. This is a legal document that formally states your intent to make Florida your permanent home. SavvyNomad handles this filing for you as part of the Savvy Nomad plan.

The Declaration of Domicile is not strictly required, but it creates a dated, notarized legal record of your intent. If your previous state ever challenges your domicile change, this document is strong evidence in your favor.

The Full Tax Picture for Americans Abroad

Setting up Florida domicile is just one piece of the tax strategy. As an American living abroad, there are several federal tax benefits you may qualify for on top of eliminating state taxes.

Foreign Earned Income Exclusion (FEIE)

If you live outside the US for at least 330 days in a 12-month period (the Physical Presence Test), you can exclude up to $130,000 of earned income from federal taxes for 2025. This number adjusts for inflation each year. This applies to wages, salary, and self-employment income. It does not apply to investment income, rental income, or capital gains.

The key word is "earned income." If you are a freelancer, remote worker, or business owner earning active income while living in Bangkok, the FEIE can eliminate or dramatically reduce your federal tax liability. Combined with Florida domicile (zero state tax), you could be looking at a total effective tax rate in the single digits on your first $130,000 of income.

Foreign Housing Exclusion

On top of the FEIE, you can claim the Foreign Housing Exclusion (or Deduction if you are self-employed). This lets you exclude additional income to cover qualified housing expenses abroad that exceed a base amount (roughly 16% of the FEIE limit).

Qualified housing expenses include:

• Rent for your apartment or condo in Bangkok
• Utilities (electricity, water, gas)
• Renter's insurance
• Parking fees (if included in your lease)
• Furniture rental (if your lease includes it)

The exclusion amount varies by city. Bangkok has a specific limit set by the IRS. The base amount for 2025 is approximately $20,800 (16% of the FEIE max). If your qualifying housing expenses exceed that base, you can exclude the difference, up to the city-specific cap.

In practical terms: if your Bangkok rent is $2,000/month ($24,000/year) and your utilities add another $3,000/year, your total qualifying expenses are $27,000. Subtract the $20,800 base and you can exclude an additional $6,200 of income from federal taxes. On a higher rent, the benefit is even more significant.

Foreign Tax Credit (FTC)

If you pay taxes to Thailand on any income (which depends on your visa type and the source of your income), you can claim a Foreign Tax Credit on your US return to avoid being taxed twice on the same income. The FTC is an alternative to the FEIE, not an addition. Your CPA can help determine which approach saves more money based on your specific situation.

The Combined Savings

Let me put the full picture together. Say you earn $150,000 in self-employment income, live in Bangkok, and previously had a California domicile.

Even at lower income levels, the savings are substantial. Someone earning $80,000 from a previous New York domicile could save $15,000-20,000 per year. The SavvyNomad service pays for itself in the first month.

Business Deductions While Living Abroad

If you are self-employed or run a business remotely from Bangkok, many of your Thailand expenses may be deductible on top of the exclusions above. These reduce your taxable income further.

• Home office deduction. If you work from your Bangkok condo, you can deduct a portion of your rent proportional to the space used for work. The simplified method allows $5 per square foot up to 300 square feet ($1,500 max). The actual expense method can be higher if your rent is substantial.
• Internet and phone. Your AIS plan, home internet, and any work-related communication costs are deductible as business expenses.
• Coworking space. If you work from coworking spaces (Ve/La, Hubba, WeWork), those membership fees are fully deductible as a business expense.
• Health insurance premiums. Self-employed individuals can deduct health insurance premiums. Your international health insurance policy is deductible if you are self-employed.
• Travel for business. Flights, hotels, and meals related to business travel within Asia or back to the US are deductible.
• Software and tools. Subscriptions, software, domain names, hosting, and any tools you use for work.
• VPN. If you use a VPN for work security (and you should on public WiFi in Bangkok), it is a deductible business expense.

For health coverage abroad, SafetyWing starts at $45/month and is deductible if you are self-employed.

Mail Forwarding and Scanning

One of the practical benefits of SavvyNomad is their mail handling. Any mail that arrives at your mailing address gets scanned and uploaded to your dashboard. You can view it digitally, request forwarding to your Bangkok address (you pay actual postage), or have it shredded.

In practice, most of your mail will be junk or things you can handle digitally. The occasional important piece (new credit card, government letter, legal document) can be forwarded to Bangkok. International forwarding takes about 7-14 days depending on the shipping method you choose.

• Digital scanning: Included in the plan. All mail is scanned and viewable online.
• Forwarding to Bangkok: You pay actual postage costs. USPS First Class International is cheapest (~$3-5 for letters). FedEx/DHL for urgent items or packages.
• Package forwarding: They can forward packages too. Useful for items that do not ship internationally or if you need something from a US-only retailer.
• Mail shredding: For junk mail or anything you do not need. Keeps your mailbox clean.

The Privacy Angle

One underrated benefit of this setup: your name is not associated with the residential address in any meaningful way. It is a mobile home community in Sumter County, Florida. To anyone looking up your address, it is a random RV park. Your personal information is not tied to a property you own or a lease with your name on it.

This matters more than you might think. Data brokers, people search sites, and public records searches all use your home address. By having your legal domicile at a managed address in a mobile home community, your actual living situation in Bangkok is not connected to your US legal presence. It is a layer of separation that provides genuine privacy.

The Pre-Move Timeline

I did all of this about a week and a half before I moved to Thailand. If I could do it again, I would give myself two to three weeks for a more comfortable timeline. Here is the ideal schedule.

3-4 weeks before departure:

1. Sign up with SavvyNomad. Get your residential and mailing addresses. They will provide the documents you need for the DMV.
2. Gather your documents. Passport, Social Security card, and current driver's license. Make sure everything is current and not expired.

2 weeks before departure:

1. Fly to Florida. You need to physically go to the Sumter County DMV. If you have friends or family in the Tampa/Orlando area, stay with them and make a trip of it. I stayed with a friend in Tampa and we drove up to Sumter County together.
2. Get your Florida driver's license at the DMV. Surrender your old state license. Walk out with your temporary Florida license.
3. Register to vote in Florida. Do this online the same day you get your license.

1-2 weeks before departure:

1. Update all financial accounts. Banks, credit cards, brokerage, insurance, retirement accounts. Use the mailing address for financial institutions and the residential address for government/legal.
2. Update your IRS address. File Form 8822 (Change of Address) with the IRS if you want your address updated before your next return, or just use the new address when you file.
3. Cancel or pause state-specific services. State health insurance marketplace, state professional licenses, etc.
4. Depart. Start your 330-day clock for the FEIE Physical Presence Test.

SavvyNomad Plan Comparison

SavvyNomad offers two tiers. I went with the Savvy Nomad plan because of the mail forwarding, CPA access, and registered agent service for my LLC.

If you just need the address and driver's license setup, the Basic Domicile at $60/month works. If you have an LLC, want full mail management, or want CPA guidance on expat taxes, the Savvy Nomad plan at $90/month is worth the upgrade. I went with Savvy Nomad and have found the CPA access alone worth the price difference.

Common Concerns

Will my old state come after me?

Potentially, especially if you were in California or New York. Both states are aggressive about claiming former residents still owe taxes. The key is having clear documentation of your domicile change: Florida driver's license, voter registration, Declaration of Domicile, updated financial accounts, and no remaining significant ties (property, active business, dependents in school) in the old state.

If you own property in your old state, that alone does not prevent you from changing domicile. But it gives the old state more ammunition to argue you are still a resident. Consult a tax professional if you have complex ties to your previous state.

Do I need to spend time in Florida?

You need to physically go there once to get the driver's license. After that, there is no minimum time requirement to maintain Florida domicile. You do not need to spend any specific number of days in Florida each year. Your intent to make it your legal home, supported by the documentation above, is what matters.

Can I use a different no-tax state?

Other states with no income tax include Texas, Nevada, Wyoming, South Dakota, Washington, Tennessee, and New Hampshire (limited). Florida is the most popular for expats because the domicile infrastructure is the most developed, the process is the simplest, and services like SavvyNomad are specifically set up there. Texas and South Dakota are also common choices.

What if I move back to the US?

You maintain Florida domicile until you establish domicile somewhere else. If you move back to the US and settle in a different state, you will eventually need to establish domicile there (get a local driver's license, register to vote, etc.). But if you move back to Florida, you are already set up.

Is It Worth It?

The math is simple. SavvyNomad costs $1,080/year on the Savvy Nomad plan. If you were paying any state income tax at all, you save multiples of that. A former California resident earning $100,000 saves roughly $8,000-9,000 per year in state taxes alone. The service pays for itself eight times over.

Even beyond the tax savings, having a stable US address, mail management, and a Florida driver's license makes your life abroad much simpler. You have a billing address for all your accounts. You have a legal domicile that is not tied to a foreign country. You have mail forwarding so nothing important gets lost. And you have professional support for the tax and compliance questions that come up when you live overseas.

For the rest of the financial setup, see my guide on credit cards and points strategy for Thailand, the Thai bank account guide, and the full cost of living breakdown.