Legal & Financial Resources

Foreign Earned Income Exclusion (FEIE)

For 2025, U.S. citizens living abroad can exclude up to $126,500 of foreign earned income from U.S. taxation if they meet either the:

• Physical Presence Test: Physically present in a foreign country for at least 330 full days during a period of 12 consecutive months
• Bona Fide Residence Test: Establish that you are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year

Foreign Tax Credit

If you pay income taxes to a foreign country, you may be able to claim a credit for those taxes against your U.S. tax liability. This helps prevent double taxation.

Foreign Bank Account Reporting (FBAR)

U.S. citizens with foreign financial accounts totaling more than $10,000 at any time during the calendar year must file FinCEN Form 114 (FBAR) electronically.

Foreign Account Tax Compliance Act (FATCA)

Requires U.S. citizens to report certain foreign assets on Form 8938 if they exceed specified thresholds.

Maintaining U.S. Bank Accounts

Most financial experts recommend maintaining a U.S. bank account even after moving abroad for:

• Receiving Social Security payments
• Managing U.S. investments
• Paying any ongoing U.S. bills
• Easier transfers to foreign accounts

Opening Foreign Bank Accounts

Requirements typically include:

• Passport and secondary identification
• Proof of local address (utility bill, rental agreement)
• Residency permit or visa
• Initial deposit (varies by country and bank)
• Tax identification number (both U.S. and local)

Money Transfer Options

Social Security Payments Abroad

The U.S. Social Security Administration can deposit your benefits directly into your bank account in most countries. Some countries have restrictions, so check the SSA's international payments page.

Estate planning becomes more complex when you live abroad. Consider these important elements:

Wills and Testaments

• You may need both a U.S. will and a will in your country of residence
• Some countries have forced heirship laws that may override your wishes
• Consider having your will translated into the local language

Power of Attorney

Establish both financial and healthcare powers of attorney that are recognized in both the U.S. and your country of residence.

U.S. Estate Tax Considerations

U.S. citizens are subject to U.S. estate tax on their worldwide assets, though the exemption amount is quite high ($13.61 million per individual in 2025).

Property Ownership

Research how property can be titled in your country of residence and how it passes upon death, as laws vary significantly by country.

Most countries offer several pathways to legal residency for retirees:

Common Residency Visa Types

Document Requirements

While requirements vary by country, most visa applications require:

• Valid passport (usually with at least 6 months validity)
• Proof of income or financial resources
• Health insurance coverage
• Criminal background check
• Medical examination (in some countries)
• Proof of accommodation

For detailed visa requirements for specific countries, please visit our Country Guides.

Finding qualified professionals who understand both U.S. and international laws is crucial. Here are resources to help you connect with experts:

Expatriate Tax Professionals

• American Institute of CPAs (AICPA) - Directory of CPAs with international expertise
• Tax Connections - Worldwide directory of tax professionals
• Greenback Expat Tax Services - Specializes in U.S. expat taxes

International Estate Planning

• American College of Trust and Estate Counsel - Directory of estate planning attorneys
• Society of Trust and Estate Practitioners (STEP) - Global professional association for practitioners who specialize in family inheritance and succession planning

Financial Advisors for Expatriates

• National Association of Personal Financial Advisors - Fee-only financial planners
• XY Planning Network - Fee-only financial advisors who work virtually