Tax and banking when you move abroad.

Americans: you file every year

The US taxes its citizens wherever they live. Move to Lisbon and you still file a US return each year your income is over the filing threshold. Most expats owe little or nothing, but only if they file and claim the right breaks.

• Foreign earned income exclusion (Form 2555). Exclude up to $132,900 of foreign earned income for 2026. You need to pass the physical presence test (330 full days abroad in 12 months) or the bona fide residence test. It covers work income, not pensions, rent or dividends.
• Foreign tax credit (Form 1116). A dollar-for-dollar credit for income tax you pay abroad. Often better than the exclusion in high-tax countries like Spain, France or Italy.
• FBAR (FinCEN Form 114). If your foreign accounts add up to more than $10,000 at any point in the year, report them. This is separate from your tax return, and the penalties for missing it are steep.
• FATCA (Form 8938). A second report on foreign assets, with higher thresholds than the FBAR. You may need both.
• Your state. Some states keep treating you as a resident unless you clearly cut ties. Close accounts, change your driver's license and voter registration where you can.

Brits: tell HMRC you're leaving

• Statutory Residence Test. Whether you're still UK tax resident depends on days spent in the UK and your ties there. Leaving isn't automatic.
• Form P85. Use it to tell HMRC you've left and to claim back tax overpaid on your last UK salary.
• UK income keeps being taxed. Rent from a UK property stays taxable in the UK.
• State Pension. It's paid abroad, but yearly increases are frozen in some countries. The EU and the US get increases. Australia and Canada don't.

Australians: check the residency tests

• ATO residency tests. You can stay an Australian tax resident after you move. The ATO looks at where you live, your ties and your intentions.
• Tell the ATO and your bank. Non-residents pay withholding tax on Australian interest and are taxed differently on Australian income.
• Medicare ends once you're no longer a resident. Plan your health cover before you go.

How your new country taxes you

Most countries make you tax resident once you spend 183 days or more there in a year, or once your main home or family is there. Then they usually tax your worldwide income. Some offer breaks for newcomers:

Banking: keep two

Keep one account at home for pensions, Social Security or Super, and one where you live for rent and bills. Expect some US banks to close accounts when you give a foreign address. Ask yours first.

Don't move money through your home bank's international wire. Their exchange rates are usually worse than they look.