Americans living abroad must still file US taxes on worldwide income every year. Key tools: the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit, and FBAR for foreign accounts over $10,000 in aggregate. This hub links to every country-specific expat guide, filing resource, and tax calculator on CountryTaxCalc.
At a glance
Key Facts
US Citizenship-Based Taxation
The US taxes citizens and green card holders on worldwide income — regardless of where they live or work. One of only two countries that does this (alongside Eritrea).
Foreign Earned Income Exclusion (FEIE)
Qualifying US expats can exclude a significant portion of foreign earned income from US taxable income. The exclusion amount is adjusted for inflation annually — see our dedicated FEIE guide for the current year figure.
FBAR Filing Threshold
$10,000 — if the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the year, US persons must file FinCEN Form 114 annually by April 15 (auto-extended to October 15).
Expat Filing Deadline
US expats automatically receive a 2-month extension, making the deadline June 15. A further extension to October 15 can be requested. Interest on any tax owed still accrues from April 15.
US Tax Treaties
The US has income tax treaties with approximately 68 countries. Treaties reduce withholding tax rates, resolve dual-residency conflicts, and can eliminate double taxation — but do not remove the requirement to file a US return.
183-Day Residency Test
Most countries consider you tax resident after 183+ days in a calendar year — but exceptions, partial-year rules, and treaty tie-breakers make this more complex in practice. Check the country-specific guide for accurate rules.
Introduction
Living abroad doesn't end your tax obligations — especially if you're American. The US taxes citizens and permanent residents on worldwide income regardless of where they live, making it one of only two countries (alongside Eritrea) that operates citizenship-based taxation. But the rules are manageable with the right tools: the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit, bilateral tax treaties, and country-specific tax regimes. This hub links to every expat tax guide, country-specific resource, and filing tool on CountryTaxCalc.
Section 01
US Expat Tax Essentials
Understanding the key mechanisms for managing US tax obligations abroad is the starting point for every American expat:
Foreign Earned Income Exclusion (FEIE)
The FEIE lets qualifying Americans exclude foreign earned income from US taxable income. To qualify, you must meet either the Physical Presence Test (330 full days outside the US in a 12-month period) or the Bona Fide Residence Test (established resident of a foreign country for a full tax year). Self-employment income is covered but still subject to self-employment tax. The exclusion amount is inflation-adjusted annually.
Foreign Tax Credit
If you pay income tax to a foreign government on income that's also subject to US tax, you can claim the Foreign Tax Credit (Form 1116) to offset your US liability dollar-for-dollar. This is often more valuable than the FEIE for expats in high-tax countries like Germany, France, or the UK — because you're getting credit for every dollar of foreign tax paid rather than just excluding a capped amount of income.
FBAR and FATCA
These are reporting requirements — not additional taxes. FBAR (FinCEN 114): required if foreign financial account balances exceed $10,000 in aggregate at any point during the year. FATCA (Form 8938): required for foreign financial assets exceeding $200,000 at year-end (or $300,000 at any point) for single filers living abroad. Penalties for wilful non-compliance are severe. See our dedicated FBAR & FATCA guide for full details.
Tax Treaties
The US has income tax treaties with approximately 68 countries. Treaties can: reduce withholding tax rates on dividends, interest, and royalties; provide tie-breaker residency rules for dual residents; exempt certain income types from double taxation. Claiming treaty benefits often requires filing Form 8833. Treaties do not eliminate the requirement to file a US return.
Section 02
Country-Specific Expat Tax Guides
Each country has different rules for how it taxes foreign nationals — and for how it interacts with US tax obligations. Our country guides cover local income tax rates, residency requirements, special expat regimes, and practical filing guidance:
Europe
Germany Expat Tax Guide — worldwide income taxation, progressive rates up to 45%, treaty benefits for US expats
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Do US citizens living abroad still have to file US taxes?
Yes. The US taxes citizens and permanent residents on worldwide income regardless of where they live — one of only two countries that does this. Americans abroad must file a US federal return if income exceeds the standard filing threshold. However, the Foreign Earned Income Exclusion and Foreign Tax Credit can significantly reduce or eliminate actual tax owed, especially if you live in a country with comparable or higher tax rates than the US.
Q
What is the Foreign Earned Income Exclusion (FEIE)?
The FEIE allows qualifying US citizens and resident aliens to exclude a portion of their foreign earned income from US taxable income. To qualify, you must meet the Physical Presence Test (330 full days outside the US in a 12-month period) or the Bona Fide Residence Test (established resident of a foreign country for a full tax year). The exclusion covers wages and self-employment income — not passive income like dividends, rental income, or capital gains. The limit is adjusted for inflation annually.
Q
What is FBAR and who needs to file it?
FBAR (Foreign Bank Account Report) is FinCEN Form 114, required from any US person whose aggregate foreign financial account balances exceeded $10,000 at any point during the calendar year. This includes bank accounts, brokerage accounts, and some foreign pension accounts. The filing deadline is April 15 with an automatic extension to October 15. Penalties for wilful non-filing can be severe — consult a qualified tax professional if you have unreported foreign accounts.
Q
Should I use the Foreign Earned Income Exclusion or the Foreign Tax Credit?
It depends on your host country's tax rate. In high-tax countries (Germany, France, UK, Australia), the Foreign Tax Credit typically produces a better result — it offsets US tax dollar-for-dollar with what you already paid abroad, often eliminating the US bill entirely. In low or no-tax countries (UAE, Singapore, Cayman Islands), the FEIE is usually better since there's little foreign tax to credit. Many expats benefit from combining both: FEIE for earned income and FTC for investment or passive income.
Q
Do I become a tax resident in a country after 183 days?
For most countries, yes — spending 183+ days in a calendar year typically triggers tax residency. But exact rules vary significantly: some countries use 182 days, others look at 'habitual abode' or 'centre of vital interests' regardless of day count. The UK uses a complex Statutory Residence Test with multiple factors. Tax treaties contain tie-breaker provisions to resolve dual-residency situations. Check the country-specific guide for the rules that apply to your destination.
Q
What happens to my 401(k) and IRA if I move abroad?
You can generally keep your US retirement accounts while living abroad — you don't need to cash them out. Contributions may be limited if you exclude all earned income via the FEIE (since contributions require US taxable earned income). Withdrawals from traditional accounts are taxed as ordinary income by the US regardless of residence. Whether your host country also taxes those distributions depends on the bilateral tax treaty — some countries exempt US retirement income, others don't. See our Expat Retirement Tax Guide for country-specific details.
Q
What is FATCA, and is it different from FBAR?
Both are reporting requirements — but they're separate filings with different thresholds. FBAR (FinCEN 114) is filed separately from your tax return if foreign accounts exceed $10,000 in aggregate at any point during the year. FATCA (Form 8938) is filed with your tax return for foreign financial assets exceeding $200,000 at year-end (or $300,000 at any point) for single filers living abroad. Many expats must file both — they cover overlapping but not identical categories of foreign assets.
Q
Which countries are best for US expats from a tax perspective?
Countries with no income tax (UAE, Bahrain) eliminate local income tax, though US expats still owe US tax on worldwide income minus the FEIE. High-tax treaty countries (UK, Germany, France) often produce zero net US tax liability because Foreign Tax Credits offset the US bill entirely. Countries with special expat regimes — Netherlands (30% ruling), Portugal (IFICI), Italy (impatriate regime), Denmark (27% scheme) — can significantly reduce local tax for qualifying new residents. See our Best Countries for Expats guide for a full comparison.
Disclaimer:This hub provides general information for educational purposes only — not tax advice. Expat tax rules vary by country, individual circumstances, and applicable tax treaty. Always consult a qualified tax professional for advice specific to your situation.