Check whether you have any US-source income or US-situated assets. If so, consult a US tax advisor to assess filing obligations and potential planning strategies.
Among other things, tax treaties can reduce or eliminate US income tax on items like dividends, rental income, and gains. For example, under some treaties, withholding on dividends may drop from 30% to 15% or even zero. Treaties can also determine which country has the primary right to tax certain types of income, provide rules for avoiding double taxation, and offer definitions that clarify residency or source of income. To benefit from a treaty, you generally must meet the treaty’s residency requirements and may need to file specific forms, such as Form W-8BEN.
If you are a non-US person and hold a joint account containing US-situated assets, such as shares of a US corporation, with another person, there can be significant US estate and gift tax consequences. For US federal estate tax purposes, the entire value of the jointly owned US-situated assets may be included in the estate of the first joint owner to die, unless you can prove the surviving joint owner originally contributed to the purchase of those assets. This rule can result in unexpected estate tax liabilities, especially given the low USD $60,000 exemption for non-US persons.
Planning tip: If you are a non-US person holding US-situated assets jointly, maintain clear records showing who contributed what funds. Consider using separate ownership or alternative structures to reduce US estate tax exposure.
If you are a non-US person with beneficiaries who are US persons or may become US persons in the future, holding assets in a foreign grantor trust can be a powerful planning tool. While you are alive and treated as the grantor, the trust’s income is generally not taxable to the US beneficiaries, and US reporting requirements for them are minimal. This allows you to transfer wealth into the trust without triggering US federal estate or gift tax on non-US-situated assets.
A foreign grantor trust can also help manage US estate tax exposure by keeping non-US-situated assets outside the US estate tax net, even after they pass to US beneficiaries.
You can elect married filing jointly (treating you as a US tax resident) — but then your worldwide income becomes taxable in the US. Filing separately avoids that but can limit deductions and credits. Talk to a US tax professional before choosing.
FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold 15% of the gross sale price when a non-US person sells US real estate, even if you sold at a loss. This withholding is not the actual tax due but a prepayment, and you must file a US tax return to calculate the final tax liability and potentially claim a refund. In some cases, you can reduce or eliminate the withholding if you apply for a withholding certificate from the IRS before closing, but this requires advance planning. There are also ownership structures, such as holding the property through a US LLC (with a check-the-box election) or corporation, that may affect the application of FIRPTA or the amount withheld, but these must be set up before a sale and carefully planned to avoid unintended tax consequences.
Yes. Rental income from US real estate is taxable. You can choose to treat it as effectively connected to a US trade or business (and deduct expenses), or take a flat 30% withholding on gross income if passive. In most cases, treating it as effectively connected to a US trade or business would result in the lowest US tax liability but please check with your US tax advisor.
There is also US federal estate tax exposure if you hold the US real property directly because it is considered a US-situated asset.
Before moving to the US, it is important to engage in pre-immigration tax planning. This can include restructuring investments, stepping up the basis of your assets, selling certain assets to avoid future US capital gains tax, reducing holdings in US-situated assets to limit estate tax exposure, and unwinding ownership of foreign entities that could create complex US reporting requirements. You may also consider setting up trusts or other structures in advance. Proper planning before you become a US tax resident can help minimize future US tax burdens and reporting obligations.
Estate and gift tax treaties can offer relief in some cases, but Singapore, Hong Kong, and Taiwan do not have such treaties with the US. Holding US assets through foreign entities may help reduce exposure, but these structures must be navigated carefully to avoid IRS scrutiny and potential adverse tax consequences.
Yes, but only when giving US-situated property. Gifts of US real estate or tangible personal property located in the US are considered US-situated assets for US gift tax purposes. But shares of a US corporation are not treated as US-situated assets for US gift tax purposes, although they are considered US-situated assets for US federal estate tax purposes.
Form 706-NA is the US estate tax return for non-US citizens domiciled outside of the US (a “NCND”). It is required when a NCND dies owning US-situated assets with a total value above US$60,000. Filing Form 706-NA allows the IRS to assess the estate tax owed. The IRS will not issue the transfer certificate until the full estate tax is paid. This certificate is required by banks, brokers, and other institutions before they will release US-situated assets such as cash accounts, securities, or real estate to the heirs or the estate’s executor.
Because the tax must be paid before the assets are released, estates that do not have sufficient liquid funds outside the US can face severe liquidity problems. This can result in being unable to access the very assets needed to pay the tax.
Planning tip: To avoid this issue, consider keeping enough liquidity outside the US or using ownership structures such as certain foreign entities or life insurance that can provide funds for the estate tax without relying on the frozen US assets.
For US estate and gift tax purposes, being domiciled in the US means you are physically present in the US with an intent to stay in the US. Domicile is determined by facts and circumstances rather than a strict day-count test. Factors include where you own or lease a home, where your family lives, where you keep personal belongings, where you conduct business, and where you have social or community ties. You keep your US domicile until you establish a new one, which means you could still be considered a US domiciliary even while living outside the US. Once you are considered domiciled in the US, your worldwide assets are subject to US estate and gift tax, not just your US-situated assets.
Potentially, yes. Individuals who are neither US citizens nor US domiciliaries are subject to US estate tax only on their US-situated assets, including US real estate and shares of a US corporation (for example, META or NVDA). The exemption for non-US persons is very low, currently around USD $60,000. The value of US-situated assets above that threshold is taxed at graduated rates up to 40 percent.
Importantly, the US estate tax is applied to the gross value of the assets, not just the gain. For example, if a non-US person owns US real estate worth US$1 million at death, the tax is calculated on the full US$1 million value, regardless of what they originally paid for it. US estate tax is generally calculated based on the fair market value of the assets at the date of death (or 6 months after), and the tax must usually be paid before the estate can transfer the property to the heirs. This makes advance US estate tax planning critical.
If you are a non-US person (defined in another FAQ), you generally do not owe US federal capital gains tax on the sale of shares of a US corporation, provided the gain is not effectively connected with a US trade or business. However, there is also a special US capital gains tax that may apply if you stayed in the US for over 183 days but remained a non-US person because your days were exempted from the substantial presence test. The main exception is if the shares are in a US real property holding corporation under FIRPTA, in which case the gain may be taxable and subject to withholding. While capital gains may escape US tax, US estate tax can still apply if you own shares of a US corporation at death, as they are considered US-situated assets.
Yes, but only on:
A "US person" includes US citizens, green card holders, and individuals who meet the substantial presence test. You could technically elect to be treated as a US person for tax purposes, though few people do so—for reasons that should be self-evident..
You can:
You should speak with a qualified tax professional before making this decision. In most cases, it is better not to treat the non-US spouse as a US person for tax purposes.
Possibly. Some states such as California and New York make it difficult to break residency for tax purposes. Common factors that may help show you have left include selling or renting out your home, closing state bank accounts, registering to vote elsewhere, obtaining a driver’s license in another state or country, moving your family, and changing your mailing address. However, taking these steps does not guarantee that your former state will agree you have broken residency. Each state has its own rules, and some apply an intent-based test that can still find you to be a resident if they believe you maintain sufficient ties.
You can use the IRS Streamlined Filing Compliance Procedures to catch up without penalties, provided you certify your failure to file was non-willful. This is common for Americans who moved to Asia years ago and did not realize they still had US filing obligations.
Yes, if you are not a covered expatriate. Careful pre-expatriation planning, such as reducing net worth below USD $2 million or qualifying for an exception to the net worth test (for example, being a dual citizen at birth), can help you avoid covered expatriate status.
For more details, check out our interactive guidehere.
A covered expatriate is a US citizen or long-term green card holder who meets any one of these tests on the date of expatriation:
Covered expatriates may be subject to the exit tax, which treats most assets as if sold the day before expatriation, with tax due on the unrealized gain above an exclusion amount. They are also subject to the reverse gift tax rule, which can impose US gift or estate tax on certain transfers to US persons made after expatriation.
For more details, check out our interactive guide here.
The exit tax applies to covered expatriates and treats most of your assets as if sold the day before expatriation, with tax due on the unrealized gain above an exclusion amount (US$890,000 for 2025). It can also tax certain deferred compensation, pensions, and trusts. Planning ahead can reduce or avoid the exit tax.
For more details, check out our interactive guide here.
A long-term US green card holder is someone who has held lawful permanent resident status in at least 8 of the last 15 years, counting even partial years as full years. For example, if you became a green card holder in December 2015, that year still counts as a full year toward the 8-year total, even though you only held it for one month. Long-term green card holders have similar US tax obligations as citizens, including worldwide income reporting and possible exposure to the exit tax if they give up their green card.
For more details, check out our interactive guide here.
To expatriate, you must:
Covered expatriates are also subject to the reverse gift tax rule, which can impose US gift or estate tax on certain transfers to US persons made after expatriation. We strongly recommend consulting a qualified US tax attorney before renouncing, as the process can carry significant and lasting tax consequences.
For more details, check out our interactive guide here.
Yes. Even if you have never lived in the US, you are a US citizen under US law and are required to file annual US tax returns and international reporting forms until you renounce citizenship or prove you are not a citizen through a treaty.
An accidental American is someone who is a US citizen by birth but has little or no connection to the US. This can happen if you were born in the US while your parents were temporarily there, or if you were born abroad to a US citizen parent who met the physical presence requirement for transmitting citizenship. For children born on or after November 14, 1986, that requirement is generally 5 years of physical presence in the US before the child’s birth, with at least 2 of those years occurring after the parent turned 14. Even without a US passport or ties to the US, accidental Americans are still subject to US tax and reporting obligations unless they formally renounce citizenship.
A PFIC is generally a non-US corporation that earns mostly passive income or holds mostly passive assets. This includes many non-US mutual funds, ETFs, and investment-linked insurance products common in Asia. PFIC rules are harsh. Without proper elections, gains can be taxed at the highest ordinary income tax rate plus interest. Form 8621 is required each year you hold a PFIC unless an exception applies.
If you own a foreign company such as a Singapore Pte Ltd, you may need to file Form 5471 and report income even if profits are not distributed. Special anti-deferral rules known as GILTI (or “net CFC tested income”) can trigger US tax before you receive any cash. You may be able to defer or reduce your US tax liability with careful planning.
Yes. If your total foreign account balances exceed USD $10,000 at any point, you must file an FBAR. If your assets are above certain thresholds, you must also file Form 8938. Penalties for missing these can be severe.
Yes. You must file a return to claim the Foreign Earned Income Exclusion. Without filing, you cannot exclude the income, and the IRS will assume it is fully taxable.
You must have foreign earned income (e.g., wages for working in Asia) and meet either of these tests:
For more details about these tests, please check out IRS’s website on the Physical Presence Test and the Bona Fide Residence Test.
In addition to Form 1040, expats often need to file these:
This list covers the most common international forms for US expats, but your situation may require additional filings.
Generally, the payment deadline for US federal income tax is April 15. While US expats get an automatic extension to June 15 to file their return, any tax owed must still be paid by April 15.
June 15 – Automatic extension for Americans abroad. The state income tax filing deadline may be different and might not follow the federal extension.
October 15 – File Form 4868 to request this standard extension.
December 15 – Possible with a special written request to the IRS if you are still overseas.
If the 15th falls on a Saturday, Sunday, or legal holiday, the deadline is pushed to the next business day.
VERY IMPORTANT: US income taxes are still due on April 15.
If you live in a low-tax jurisdiction such as Singapore, the Foreign Earned Income Exclusion (FEIE) often gives the biggest benefit. In higher-tax countries, the Foreign Tax Credit (FTC) is usually better. Many expats combine both, using the FEIE first and then applying the FTC to the remaining income. However, the FTC will be reduced by a formula that removes the part of the FTC tied to the income you already excluded with the FEIE.
You can reduce or eliminate US tax through:
While there are certain exceptions that can exclude you from filing (not covered here), the general answer is yes. US citizens and green card holders are taxed on worldwide income even if you live in Singapore, Hong Kong, or Taiwan. You must file a US tax return every year, no matter where your income is earned or where you pay local taxes.
