The short answer
Taxes when living abroad run on two tracks: the US taxes citizens on worldwide income wherever they live, and your new country usually taxes you once you become resident, often after 183 days. The Foreign Earned Income Exclusion (US$132,900 for 2026) and foreign tax credits usually keep you from paying twice in full.
Taxes when living abroad work on two tracks at once. The United States taxes its citizens on worldwide income wherever they live, so the US return never stops. The country you move to may also tax you once you become resident there. Most people do not pay twice in full, because credits and exclusions offset each other, but the rules decide how much paperwork and how much tax you face.
Do I pay US taxes if I live abroad?
Yes. US citizens keep filing a federal return on worldwide income. The main tools that reduce double tax:
- Foreign Earned Income Exclusion (FEIE). Excludes up to US$132,900 of foreign earned income for 2026, if you pass the physical presence test (330 full days abroad in 12 months) or the bona fide residence test. It applies to earned income, not pensions or investment income.
- Foreign Tax Credit. Credits tax you pay abroad against your US tax. It matters most above the FEIE cap and for pension or investment income.
- Self-employment tax. The FEIE does not remove the 15.3% self-employment tax. A totalization agreement can, with a certificate of coverage.
- FBAR and FATCA. File an FBAR once your foreign accounts together exceed US$10,000 at any time in the year. Form 8938 applies above US$200,000 at year-end or US$300,000 at any time for single filers living abroad (US$400,000 or US$600,000 for joint filers).
- Your last state. Some states keep claiming you as a resident after you leave. Confirm with that state's tax authority.
Tax residency by country: the 183-day rule and its exceptions
When you become tax resident, how residents are taxed, and whether a US income-tax treaty and a US Social Security (totalization) agreement are in force.
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| Country | You become tax resident | How residents are taxed | US tax treaty | US Social Security agreement |
|---|---|---|---|---|
| Argentina | Permanent residence or 12 months of temporary residence | Worldwide, 5%–35% | No | No |
| Brazil | More than 183 days in 12 months | Worldwide, up to 27.5% | No | Yes |
| Canada | Residential ties; 183 days deems residence | Worldwide; top combined rate about 48%–54% | Yes | Yes |
| Colombia | More than 183 days in any 365 | Worldwide, 0%–39% | No | No |
| Costa Rica | More than 183 days in the tax period | Territorial; qualifying nomad income exempt | No | No |
| Croatia | 183 days, or a home available for 183 days | Qualifying nomad income exempt | Signed, not in force | No |
| Ecuador | 183 days in a calendar year, or ties | Worldwide, 0%–37% | No | No |
| France | Home, main work or economic centre in France | Worldwide, progressive | Yes | Yes |
| Germany | A home you keep and use, or over six months | Worldwide, up to 45% | Yes | Yes |
| Greece | More than 183 days in 12 months, or a home | Worldwide; 7% flat option on foreign pensions | Yes | Yes |
| Italy | 183 days under the residence tests | Worldwide, 23%–43% | Yes | Yes |
| Malta | More than 183 days, or intent to settle | 0%–35%; 15% flat on remitted pensions (retirement programme) | Yes | No |
| Mexico | A Mexican home or center of vital interests | Worldwide, progressive | Yes | No |
| Netherlands | Facts and ties; no 183-day rule | Worldwide, about 35.7%–49.5% | Yes | Yes |
| New Zealand | More than 183 days in 12 months | Worldwide, 10.5%–39% | Not established | No |
| Panama | Day-count test or a home | Territorial: foreign income generally untaxed | No | No |
| Portugal | More than 183 days in 12 months, or a home | Worldwide; NHR closed to new applicants | Yes | Yes |
| Spain | More than 183 days, an economic base, or family | Worldwide, progressive | Yes | Yes |
| Thailand | 180 days in a calendar year | Thai income plus foreign income remitted | Yes | No |
| Uruguay | More than 183 days, or your base of activities | Up to 36%; foreign pensions exempt | No | Yes |
Where the 183-day rule does not protect you
Many people assume they are safe below 183 days. In several countries we cover, they are not. France treats a home, main work or economic centre in France as residence, and 183 days only indicates it. Germany has no 183-day safe harbor: a home you keep and use can be enough. Mexico looks at your home and center of vital interests, and the Netherlands decides on facts and ties. Malta can treat you as resident from arrival if you intend to settle.
Digital nomad tax by country
A few countries exempt foreign remote-work income. Costa Rica fully exempts qualifying digital nomad visa holders' foreign income, and Croatia charges qualifying nomads nothing on foreign-payer work income. Panama taxes on a territorial basis, so foreign-source income is generally untaxed. Thailand taxes foreign income only when you bring it into the country. Portugal's IFICI regime can apply a 20% rate to qualifying work income for up to ten years. Everywhere else, assume worldwide taxation once you are resident. Our nomad visa comparison pairs this with each visa's income requirement.
Taxes on your pension abroad
For retirees, pension treatment can decide the country. Greece lets qualifying new residents choose a 7% flat tax on foreign pension income. Uruguay exempts foreign pensions for tax residents. Malta's retirement programme taxes remitted pension income at a flat 15%, with a minimum tax of €7,500 a year. Costa Rica exempts foreign-source income. Portugal's NHR program is closed to new applicants, and its progressive rates reach 53%. US tax treaties usually keep the US's right to tax its citizens through a "saving clause", so check how your pension is treated under the treaty before you rely on it.
US tax treaty countries and why the treaty is not a shield
Among the countries we cover, a US income-tax treaty is in force with Canada, France, Germany, Greece, Italy, Malta, Mexico, the Netherlands, Portugal, Spain and Thailand. Croatia's 2022 treaty is signed but not in force. The treaties help with specific income types and double-tax relief, but each contains a saving clause that generally preserves US taxation of US citizens. Without a treaty, as in Argentina, Brazil, Colombia, Costa Rica, Ecuador, Panama and Uruguay, relief comes from US foreign tax credit rules.
Common questions
Do I still pay US taxes if I live abroad?
Yes. US citizens file on worldwide income wherever they live. The Foreign Earned Income Exclusion (up to US$132,900 for 2026) and the Foreign Tax Credit usually prevent paying full tax twice.
What is the foreign earned income exclusion for 2026?
US$132,900 of qualifying foreign earned income, if you pass the physical presence test (330 full days abroad in 12 months) or the bona fide residence test. It does not cover pensions or investment income, and it does not remove self-employment tax.
Do I become a tax resident after 183 days abroad?
In many countries, yes: more than 183 days usually triggers residence. But France, Germany, Mexico and the Netherlands can treat you as resident earlier, based on your home, ties or economic centre.
What is the FBAR filing requirement?
When your foreign financial accounts together exceed US$10,000 at any time during the year. It is due April 15, with an automatic extension to October 15.
Which countries tax foreign pensions lightly?
Among the countries we cover, Uruguay exempts foreign pensions for tax residents, Greece offers a 7% flat option, Malta's retirement programme taxes remitted pensions at 15%, and Costa Rica and Panama tax mainly local income.
Do digital nomads pay tax where they live?
Usually, once they become tax resident. Costa Rica and Croatia exempt qualifying nomad income, Panama is territorial, and Thailand taxes foreign income only when it is brought into the country.
Sources and method
Facts come from the Out & Found guides: Retiree Edition (verified as of 1 August 2026) and Digital Nomad Edition (verified as of 17 October 2026), which cite each country's own authorities and named research organizations. US figures follow IRS Rev. Proc. 2025-32 and current IRS filing thresholds (see the IRS page for US citizens abroad). Talk to a cross-border tax professional before you rely on any of this for your own return. Requirements and laws change, so confirm the current rule with the official source before you act. This is research, not legal, immigration, medical or tax advice. How we research · Corrections