Moving Abroad

What U.S. Citizens Should Know Before Relocating

Planning to move abroad? Whether it’s for work, love, retirement, or adventure, moving to another country involves more than just packing your bags. As a U.S. citizen, you’ll want to stay informed about your tax obligations, financial reporting, and how your move affects your legal and financial life back home.

Do I still have to file U.S. taxes if I move abroad?

Yes. As a U.S. citizen or Green Card holder, you are required to file a U.S. tax return every year, no matter where you live. The U.S. is one of the few countries that taxes based on citizenship, not residency.

You must report your worldwide income using Form 1040, even if you also pay taxes in your new country.

Can I avoid double taxation?

In many cases, yes. You may be able to reduce or eliminate U.S. tax using:

• The Foreign Earned Income Exclusion (Form 2555)

• The Foreign Tax Credit (Form 1116)

• A tax treaty between the U.S. and your new country

But you must file the correct forms and follow IRS procedures. These benefits are not automatic.

Do I need to report my foreign bank accounts?

Yes—if the total value of your non-U.S. financial accounts exceeds certain thresholds, you must report them.

You may need to file:

• FBAR (Foreign Bank Account Report) – required if the total exceeds $10,000 at any point during the year

• FATCA Form 8938 – required if your foreign assets exceed reporting thresholds (varies by filing status and location)

Not filing these forms—even if no tax is due—can result in serious penalties.

Will I have to file taxes in my new country too?

Probably. Every country has different rules, but most require you to:

• File a local income tax return

• Pay social security contributions

• Possibly register as a tax resident

Our expat tax expert can help you understand the rules in your new country of residence.

What are tax treaties and how do they help?

Tax treaties are agreements between the U.S. and certain countries to avoid double taxation and clarify who has taxing rights over different types of income.

Treaties may:

• Exempt or reduce tax on certain income

• Affect Social Security taxation

• Provide residency tie-breaker rules

You often need to file Form 8833 to claim treaty benefits properly. A CPA familiar with international tax is essential.

What else should I do before moving?

Some important steps include:

• Check if you need a visa or residence permit

• Look into health insurance requirements in your destination country

• Notify your bank, employer, and the IRS of your change in address

• Consider filing Form 8822 to update your address with the IRS

Can my U.S. bank or brokerage account stay open?

It depends. Some U.S. banks and investment firms close or restrict accounts for clients living abroad due to FATCA rules. Check with your bank before you leave. If needed, we can connect you with specialists who offer solutions for expats.

What should I consider financially?

Before moving, think about:

• Currency exchange rates and fees

• Whether you can access your retirement or pension accounts abroad

• How to transfer money internationally without losing value

• Long-term tax planning in both countries

What if I’m behind on my U.S. taxes?

Don’t worry- you’re not alone. The IRS offers Streamlined Filing Procedures for Americans abroad who need to catch up. If you haven’t been filing, you may be able to become compliant without penalties—but only if you act before the IRS contacts you.

How can Expats Overseas help?

Expats Overseas helps Americans relocate with peace of mind. Here’s what you need to know before making the move.

At Expats Overseas, we provide:

• Fixed-fee FBAR filing services

• Guidance in plain English (or your local language)

• Support for missed years

• Complete confidentiality and no judgment

Contact us today for a free, no-pressure consultation. Let’s get you back on track — safely, affordably, and with peace of mind.