US Tax Filing for Americans Living in Europe
Europe is one of the most popular destinations for US expats, and one of the most complex tax environments. Whether you're in Germany navigating Finanzamt, in France dealing with the remittance system, or in Portugal under NHR, your US obligations remain constant. The Foreign Earned Income Exclusion (FEIE) is the key tool for most European expats, but the interaction with local taxes requires care.
Is this for me?
- US citizens or permanent residents living anywhere in the EU or European Economic Area
- Paying income tax to a European government
- Self-employed or employed by a European company
- Holding foreign bank or investment accounts
- Wanting to ensure FBAR is filed correctly for European accounts
Why this is complex
- Most European countries have moderate-to-high tax rates, FTC vs FEIE decision matters
- European bank accounts typically trigger FBAR requirements
- Some European retirement accounts (e.g. German Riester) have complex US reporting rules
- VAT registration in Europe doesn't affect US taxes but is a common source of confusion
- Moving between European countries in one year creates complex residency analysis
Recommended plans
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Expat
- ✓ Schedules D & E for investments and rentals
- ✓ Foreign asset reporting (Form 8938)
- ✓ FBAR filing (FinCEN 114) included
What's included
Our AI gathers your information, spots missing data, and drafts your return, faster and more accurately than forms alone.
A licensed CPA (US) or qualified accountant (UK) reviews every return before it's filed. No AI-only filings.
No hidden fees. The price you see is what you pay, including all forms covered by your package.
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- startup founder, Lisbon, Portugal
Frequently asked questions about US Tax Filing for Americans Living in Europe
Can I use FEIE to reduce my US taxes while living in Europe?
Yes, if you qualify, either through the Physical Presence Test (330 days outside the US in any 12-month period) or the Bona Fide Residence Test (genuine resident of a European country). The 2024 exclusion limit is $126,500. Most European expats qualify and this is a major tax-saving tool.
Which European countries have tax treaties with the US?
The US has income tax treaties with most major European countries including Germany, France, the Netherlands, Spain, Portugal, Italy, Switzerland, and the Nordics. Treaty provisions vary significantly, we apply the right treaty for your specific country of residence.
I have a bank account in Europe, do I need to file FBAR?
If the combined balance of all your foreign accounts (including European banks, investment accounts, and retirement accounts like a German Riester or French PEA) exceeded $10,000 at any point in the year, yes. Our Expat package includes FBAR filing.
What about foreign retirement accounts in Europe?
Foreign pension and retirement accounts are a complex area, some European pension schemes are treaty-protected, others must be reported on Form 8938 and potentially Form 3520. We review your specific accounts as part of the filing.
Related tax guides
Qualifying via Physical Presence or Bona Fide Residence, and when FEIE is the wrong choice in high-tax Europe.
Why FTC often wins in Germany, France, and Spain, and the 5-year revocation bar risk.
European bank accounts, pension plans, and investment accounts that trigger FBAR.