Driving & Transportation

Transportation is one of the most underestimated adjustments for US citizens moving abroad. In the short term, most travelers can drive on a valid US license paired with an International Driving Permit (IDP) — a translation document issued only by AAA (and AATA) under authorization from the US Department of State, recognized in roughly 150 countries under the 1949 Geneva Convention. But the IDP is a tourist document, not a residency solution: once you establish legal residence, most countries give you a window of 90 days to one year before your US license becomes invalid for local driving, at which point you must either exchange it for a local license or take that country's full theory and road tests. Whether you can exchange without testing depends on bilateral agreements that often operate at the US state level, not the federal level, because driver licensing in the US is a state function. Portugal allows direct exchange for US license holders who apply within 90 days of residency, while Japan (under rules tightened in October 2025) grants test-free conversion only to licenses from seven states — Colorado, Hawaii, Maryland, Ohio, Oregon, Virginia and Washington — and requires everyone else to pass a 50-question knowledge test and a notoriously strict practical exam. Germany similarly splits US states into full-exchange, partial-exchange (written test), and no-agreement (full testing) tiers. Researching your specific state's reciprocity status before you move can save months of driving school abroad. The bigger lifestyle question is whether you need a car at all. Vehicle accidents are the leading cause of non-natural death for US citizens abroad, and road-fatality rates range from under 2 per 100,000 people in Norway to over 36 per 100,000 in Thailand. Meanwhile, many popular expat destinations — Singapore, Hong Kong, South Korea, Japan, Germany, Switzerland, Spain, Portugal — offer public transit that renders car ownership optional, at $50–$150 per month for an unlimited pass versus the $600–$1,200 monthly all-in cost of owning a car. Ride-hailing fills the gaps: Uber operates in about 70 countries, with Grab dominant in Southeast Asia, Bolt across much of Europe and Africa, and Careem in the Middle East. Importing a US vehicle is rarely worth it once shipping, import duties, homologation testing, and left-hand-drive restrictions are factored in; most long-term expats buy locally and insure locally.

Key Points

• 1An International Driving Permit costs $20 in person at AAA branches ($30+ online), requires two passport photos and a valid US license, is valid for one year, and is not renewable — it must be carried alongside your US license and only works as a translation document for visitors, not residents.
• 2Japan tightened license conversion (gaimen kirikae) in October 2025: only US licenses from Colorado, Hawaii, Maryland, Ohio, Oregon, Virginia and Washington qualify for direct exchange; all other states require a 50-question knowledge test and a strict practical exam, and applicants must show proof of a residential address.
• 3Portugal permits US license holders to drive up to 185 days as non-residents and offers direct exchange without testing for residents, but you must apply within 90 days of establishing residency or face full retesting.
• 4US license reciprocity abroad operates state-by-state because licensing is a US state function — Germany, France, South Korea, Taiwan, Japan and Canada each maintain agreements with specific US states, so two expats from different states can face completely different requirements in the same country.
• 5Vehicle accidents are the top cause of non-natural deaths of US citizens abroad, per the State Department; road fatality rates vary more than 20-fold between the safest countries (Norway, Iceland, Sweden at roughly 2 per 100,000) and the most dangerous (Thailand at 36.2 per 100,000).
• 6Car ownership abroad typically runs $600–$1,200 per month all-in (depreciation, insurance, fuel, parking, maintenance), while unlimited monthly transit passes in top-tier systems cost $50–$150 — Germany's nationwide Deutschlandticket covers all regional trains and buses for about €58/month.
• 7Ride-hailing coverage is regional, not global: Uber serves about 70 countries, Grab is the super-app across Southeast Asia, Bolt leads in Eastern Europe and much of Africa (45+ countries), and Careem covers the Middle East — download the local leader before arrival since US Uber accounts work abroad where Uber operates.
• 8Importing a US car usually costs more than it saves: expect import duties and VAT (often 10–30%+ of vehicle value), mandatory local homologation/safety testing, and insurance complications — most countries also will not insure a vehicle until it is locally registered, so long-term expats generally buy and insure locally.