Yes. US citizens and green card holders must file US tax returns reporting worldwide income regardless of where they live. However, exclusions and credits (FEIE, Foreign Tax Credit) typically eliminate or greatly reduce actual tax owed — especially in high-tax countries. The filing obligation exists even if no tax is owed.

The FEIE allows qualifying expats to exclude up to $126,500 (2024) of foreign-earned income from US federal tax. To qualify, you must meet either the Physical Presence Test (330 days outside the US) or the Bona Fide Residence Test (established foreign resident). We determine eligibility and apply the exclusion optimally.

FBAR (FinCEN 114) is an annual report of foreign financial accounts with combined value exceeding $10,000 at any point during the year. It's filed separately from your tax return. Non-willful penalties start at $10,000 per account per year; willful penalties can be much higher. If you've missed prior FBARs, we can often use streamlined procedures to catch up with reduced penalties.

The IRS Streamlined Foreign Offshore Procedures allow qualifying expats who non-willfully failed to file or report foreign accounts to catch up by filing 3 years of returns and 6 years of FBARs, with significantly reduced penalties. This is the preferred path for most non-compliant expats. We guide you through the entire process.

Renunciation is irreversible and triggers an "exit tax" (mark-to-market gains on worldwide assets) if your net worth exceeds $2M or you've had high average annual tax over the prior 5 years. We advise on the full implications before any client considers this path. For most expats, proper tax planning eliminates most or all US tax owed — making renunciation unnecessary.