Survey Reveals a Complex and Evolving Landscape for American Expatriates

expat network

Survey Reveals a Complex and Evolving Landscape for American Expatriates

The latest survey results from Greenback Expat Tax Services reveal a complex and evolving landscape for American expatriates, as they face an array of regulatory and financial challenges. Notably, 1 in 5 US expats are contemplating or planning to renounce their US citizenship, and an alarming 42% are not dismissing this drastic measure.

This data, coupled with the fact that 69% of US expats don’t believe they should be required to file US taxes, emphasizes the dissatisfaction stemming from the tax obligations of US citizens abroad.

A contributing factor to this dissatisfaction is the Foreign Account Tax Compliance Act (FATCA). Despite 36% of expats reporting no impact from FATCA, a significant 27% still need to file form 8938 for FATCA compliance. Furthermore, FATCA and Foreign Bank Account Reporting (FBAR) regulations continue to challenge US expats, particularly the 5% who are unfamiliar with these requirements.

These findings highlight the challenges and frustrations that many American expatriates face. The US is one of the few countries that taxes its citizens on their worldwide income, regardless of where they live. This can make it difficult for expatriates to comply with US tax laws, and it can also lead to financial hardship.

Click here to read more about the key findings of the Greenback survey and learn more about the challenges and opportunities facing American expatriates.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.