Tax Samaritan publishes U.S. expat tax guides for 43 countries across the Americas, Europe, Asia-Pacific and the Middle East. Each guide covers the local tax environment and the U.S. tax issues that apply to Americans living there.
If you have landed on this page, chances are you are either already living abroad or seriously considering it. Either way, congratulations. Moving overseas can be an exciting change. For Americans, it also comes with a few extra tax considerations.
The United States is one of only a small handful of countries that tax citizens on worldwide income. So whether you are working remotely from Thailand, retiring in Costa Rica, or building a life in France, your U.S. tax filing responsibilities may still apply.
What changes from one country to another is how those U.S. rules interact with the local tax system. Tax residency, pensions, investments, Social Security taxes, tax treaties, and other rules can vary considerably depending on where you live.
North America and Caribbean
Panama
Panama is a long-established destination for American retirees and business owners, helped by its use of the U.S. dollar and its residency programs. Panama generally taxes income sourced within the country rather than worldwide income, which can leave Americans with limited foreign tax credits to offset their U.S. liability. That makes understanding which U.S. expat tax provisions apply particularly important.
Read: U.S. expat taxes in Panama
Bermuda
Bermuda is a common posting for Americans working in insurance, reinsurance, and financial services. Bermuda does not levy a personal income tax on individuals, though other local taxes apply, which means Americans living there generally have no foreign income tax to credit against their U.S. liability. The foreign earned income exclusion and the high local cost of living both deserve close attention.
Read: U.S. expat taxes in Bermuda
Cayman Islands
The Cayman Islands is a major center for funds, insurance, and financial services, and a frequent destination for American professionals in those industries. The Cayman Islands does not impose a personal income tax, so Americans working there generally have no local income tax to offset their U.S. obligations. Foreign account and asset reporting requirements deserve particular attention given the local banking environment.
Read: U.S. expat taxes in Cayman Islands
Costa Rica
Costa Rica has long been a popular choice for Americans looking to retire or relocate overseas. Both residents and nonresidents are generally taxed on income earned within Costa Rica rather than on worldwide income. Americans living there must still consider their U.S. worldwide income reporting requirements along with any Costa Rican tax obligations.
Read: U.S. expat taxes in Costa Rica
Canada
Canada’s proximity to the United States and cultural similarities make it a common destination for Americans moving abroad. Canadian residents are generally taxed on worldwide income, while nonresidents are generally taxed on Canadian-source income. There are also important differences between the two tax systems, including how married couples file their Canadian income tax returns.
Read: U.S. expat taxes in Canada
Mexico
Mexico’s proximity to the United States, lower cost of living, and established expat communities make it a popular destination for American retirees and remote workers. Mexican residents are generally taxed on worldwide income, while nonresidents are taxed on Mexican-source income. Your residency status therefore plays an important role in determining your local tax obligations, while your U.S. worldwide income reporting requirements continue to apply.
Read: U.S. expat taxes in Mexico
South America
Colombia
Colombia has drawn a growing number of American retirees, remote workers, and entrepreneurs, particularly to Medellin and Bogota. Colombian tax residency is generally established by spending more than 183 days in the country, and residents are generally taxed on worldwide income. Americans living in Colombia should understand how Colombian income taxes, the availability of foreign tax credits, and their continuing U.S. filing obligations interact.
Read: U.S. expat taxes in Colombia
Europe
Austria
Austria appeals to Americans working in international organizations, finance, and professional services, particularly in Vienna. Austrian tax residency generally follows where you maintain a home or your habitual abode, and residents are generally taxed on worldwide income. Americans in Austria should understand how Austrian income taxes, the U.S.-Austria tax treaty, and the totalization agreement affect their overall position.
Read: U.S. expat taxes in Austria
Portugal
Portugal has become increasingly popular with American retirees, remote workers, and others moving overseas. Your Portuguese tax residency can affect how income earned both inside and outside Portugal is taxed locally. Americans considering a move should also review how Portugal’s tax rules and any available special tax treatment interact with their continuing U.S. tax obligations.
Read: U.S. expat taxes in Portugal
United Kingdom
The United Kingdom remains one of the most common destinations for Americans living and working overseas. UK tax residency is determined under the Statutory Residence Test, and the UK tax year does not follow the same calendar-year schedule used for U.S. tax returns. This difference can make income reporting and tax planning more complicated for Americans who have filing requirements in both countries.
Read: U.S. expat taxes in United Kingdom
Asia-Pacific
South Korea
South Korea attracts Americans working in technology, manufacturing, education, and on military assignments. Korean residents are generally taxed on worldwide income, with different treatment available to certain foreign workers depending on their circumstances and length of stay. Americans in Korea should understand how Korean taxes, the U.S.-Korea tax treaty, and the totalization agreement affect what they owe and where.
Read: U.S. expat taxes in South Korea
Philippines
The Philippines is a popular destination for American retirees and others looking for a lower cost of living overseas. Local tax treatment can depend on your residency status, citizenship, and the source of your income. Americans living in the Philippines should also consider how local income, foreign accounts, pensions, and other assets may affect their U.S. reporting requirements.
Read: U.S. expat taxes in Philippines
Australia
Australia has long been a popular destination for American professionals and families. Australian residents are generally taxed on worldwide income, while nonresidents are generally taxed only on Australian-source income, with separate rules available for certain temporary residents. Americans living in Australia should also understand how Australian income, investments, and retirement accounts may be treated differently for U.S. tax purposes.
Read: U.S. expat taxes in Australia
Taiwan
Taiwan attracts Americans working in semiconductors, technology, and education. Taiwan generally taxes income sourced within Taiwan, with a separate minimum tax regime that can reach certain foreign-source income above a threshold. Because there is no comprehensive U.S.-Taiwan income tax treaty, Americans living there should understand carefully how the two systems interact.
Read: U.S. expat taxes in Taiwan
Middle East
United Arab Emirates
The UAE has become a major destination for American professionals and business owners, particularly in Dubai and Abu Dhabi. Because the UAE generally does not impose personal income tax on employment income, Americans living there may not have foreign income taxes available to offset their U.S. tax liability. This makes it especially important to understand which U.S. expat tax provisions may apply to your situation.
Read: U.S. expat taxes in United Arab Emirates
Kuwait
Kuwait draws American professionals working in energy, defense contracting, education, and healthcare. Kuwait does not levy a personal income tax on individuals, so salary earned there is generally not taxed locally. With no local income tax to credit against your U.S. liability, the foreign earned income exclusion becomes the primary relief available, and self-employed Americans in Kuwait should pay particular attention to U.S. self-employment tax.
Read: U.S. expat taxes in Kuwait
Qatar
Qatar attracts American professionals working in industries such as energy, engineering, education, healthcare, and finance. Qatar generally does not impose personal income tax on employment income, which can affect how Americans reduce their U.S. tax liability while living there. U.S. citizens and resident aliens should still consider their worldwide income reporting and any foreign account or asset reporting requirements that may apply.
Read: U.S. expat taxes in Qatar
Saudi Arabia
Saudi Arabia draws American professionals working in energy, construction, healthcare, education, and defense. Saudi Arabia generally does not impose a personal income tax on employment income for individuals, which means Americans working there typically have no foreign tax credit available against their U.S. liability. Self-employed Americans should pay particular attention to U.S. self-employment tax exposure.
Read: U.S. expat taxes in Saudi Arabia
Compare all 43 countries
North America and Caribbean
|
Country |
Local income tax on residents |
U.S. Tax treaty |
Totalization Agreement |
|---|---|---|---|
|
Territorial, local source only |
No |
No |
|
|
No personal income tax |
No |
No |
|
|
No personal income tax |
No |
No |
|
|
Territorial, local source only |
No |
No |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
No |
|
|
Residents taxed on worldwide income |
No |
No |
South America
|
Country |
Local income tax on residents |
U.S. Tax treaty |
Totalization Agreement |
|---|---|---|---|
|
Residents taxed on worldwide income |
No |
No |
|
|
Residents taxed on worldwide income |
No |
Yes |
Europe
|
Country |
Local income tax on residents |
U.S. Tax Treaty |
Totalization Agreement |
|---|---|---|---|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
Asia-Pacific
|
Country |
Local income tax on residents |
U.S. Tax Treaty |
Totalization Agreement |
|---|---|---|---|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Resident aliens taxed on Philippine-source income only |
Yes |
No |
|
|
Residents taxed on worldwide income |
Yes |
Yes |
|
|
Taiwan-source income taxed; foreign income may be included in basic tax |
No |
No |
|
|
Local source plus same-year remitted foreign income |
Yes |
No |
|
|
Permanent residents taxed worldwide; non-permanent residents have remittance limits |
Yes |
Yes |
|
|
Territorial, local source only |
No |
No |
|
|
Territorial, local source only |
No |
No |
|
|
Worldwide after six years of residence |
Yes |
No |
|
|
Residents taxed on worldwide income; transitional-resident exemptions may apply |
Yes |
No |
|
|
Territorial; remitted foreign income may be taxed |
No |
No |
|
|
Ordinarily resident individuals taxed on worldwide income |
Yes |
No |
Middle East
|
Country |
Local income tax on residents |
U.S. Tax Treaty |
Totalization Agreement |
|---|---|---|---|
|
No personal income tax |
No |
No |
|
|
No personal income tax |
No |
No |
|
|
No personal income tax |
No |
No |
|
|
No personal income tax on salaries |
No |
No |
|
|
Residents taxed on worldwide income |
Yes |
No |
How Can U.S. Expats Avoid Double Taxation?
Paying taxes overseas does not necessarily mean you will pay tax twice on the same income. The U.S. tax system includes several provisions that may help reduce or eliminate double taxation for Americans living abroad, depending on where they live and the type of income they receive.
These may include:
- Foreign Earned Income Exclusion
- Foreign Housing Exclusion or Deduction
- Foreign Tax Credit
- Applicable U.S. income tax treaties
- Social Security Totalization Agreements
Which provisions apply depends on your country of residence, type of income, tax residency, and other facts surrounding your situation.
It is important to note that even when these tax benefits reduce your U.S. tax liability to zero, you may still be required to file a U.S. tax return. These benefits generally must be claimed on a properly filed return.
Planning a Move Abroad?
If you are planning to move overseas, reviewing the potential tax impact before you relocate can help you understand what to expect. The way the United States treats foreign investments, retirement accounts, businesses, and other financial arrangements may differ from how they are treated in your new country of residence.
In many situations, we recommend working with a local tax professional for your foreign-country tax obligations and a separate U.S. expat tax professional for your U.S. federal and state tax requirements.
Use the country guides above as a starting point for understanding some of the tax issues that may apply in the country where you live.
Need Help With Your U.S. Expat Taxes?
Every expat tax situation is different. Your filing requirements can depend on where you live, how long you have lived overseas, the type of income you receive, your foreign financial accounts and investments, and other factors.
Tax Samaritan prepares U.S. federal and state tax returns for Americans living abroad and handles tax planning and tax resolution. Randall Brody is an Enrolled Agent, a federal credential that allows representation before the IRS from any country.
Request a Tax Preparation Quote today or schedule a free 30-minute consultation to discuss your U.S. expat tax situation.
