Learn about Apple requiring you to spend your Apple Account balance before you can switch Apple Account App Store region to another country.
Apple makes it mandatory to spend your Apple Account balance before you can switch your Apple Account App Store region to another country. In this guide, we talk more about it.

Let’s start with the basics.
When you first create an Apple Account, you’re asked to select a country and add an address. For most people, this is their country of residence.
Adding your actual country ensures you can download even those local apps that are only available in your country (and not globally). Secondly, the right country also ensures the correct currency transactions, balance load, offers, recommendations, top charts, and so forth.
Now, if you move to another country permanently or for the long term, you may want to switch your App Store country to the new one. This will ensure all the benefits of selecting the right country for your App Store account.
The process to change your App Store country or region is simple, provided you don’t have any balance remaining on your Apple Account, you have canceled subscriptions that don’t permit country change, and you fulfill a few other requirements.
To change your App Store country:

However, if you have a store credit balance (Apple Account balance), you’ll need to spend that amount first.

In certain jurisdictions, Apple is required by law to refund your account balance upon your request. You can try it out by contacting Apple Support and sharing the following details with them:
In case a refund to your original payment method or via cheque isn’t possible, your only option is to use the balance to buy things from Apple.
How to spend your Apple Account balance before changing the App Store countryThe answer is pretty obvious: you need to spend it by buying apps, app upgrades, songs, ringtones, movies, TV shows, and books.
Buy apps
Use your Apple Account credits to buy paid apps for iPhone, iPad, Mac, Apple Watch, or Vision Pro.

You can also buy one-time/lifetime upgrades for free apps you have been using for a while and want to unlock extra features. Remember not to buy recurring weekly, monthly, or yearly subscriptions.

In addition to apps, you can use the remaining account balance to buy songs from the iTunes Store. You’ll be able to listen to these purchased songs even if you don’t have an Apple Music subscription. Plus, these songs are not DRM-protected, so you can use them in your photo slideshow, turn a portion into a ringtone, and so on. Additionally, you can check out some premium ringtones for your iPhone and iPad.

Just like music purchases, you can buy movie titles and TV shows from Apple to spend your Apple Account balance. After buying, you can watch them without having a streaming subscription.
Consider buying books and audiobooks by going to the Apple Books app and tapping Book Store. Note that paid titles are not available in all countries.
If you still have a tiny amount left overAfter you have been on a spending spree and have used up all your credits, you’re ready to switch the App Store country (provided you have also canceled any active subscriptions and met the other requirements).
However, if you still have a tiny amount of money left, which is less than the cost of a single item, then contact Apple Support, and they will help you out.
Another option is to find a low-cost app, song, or ringtone priced near your remaining balance, add the difference, and purchase it to bring your Apple Account balance to exactly zero.
Create a new Apple AccountIf you can’t get a refund from Apple and don’t want to spend your Apple Account balance, then consider creating a new Apple Account for the new country. You can then go to iPhone Settings > Apple Account name > Media & Purchases > Sign Out to stop using your previous Apple ID for App Store, Apple Music, Apple TV, and other Apple services. Then, sign in with your new account.

Note:
On the same note: How to download an iPhone app that’s not available in your country
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