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U.S. Expat Taxes

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Pricing

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Packages and add-ons for individuals of all situations.

Standard

€369

/$459

Ideal for Salaried Individuals

Everything in Standard

Foreign Account Tax Compliance (FATCA)

Foreign Earned Income Exclusion

Foreign Tax Credits

Foreign or U.S. Wages

Refundable Child Tax Credit

Social Security Benefits

Tax Treaty Benefits

Premium

€469

/$589

Ideal for Self-Employed Individuals & Investors

Everything in Standard +

Dividends & Distributions

Individual Retirement Arrangements (IRA)

Interest Income

Miscellaneous Income

Non-Employee Compensation

Rental & Royalty Income

Sales of Securities

Schedule K-1

Self-Employment Income

Retiree package

€299

/$379

Ideal for U.S. retirees

Designed for Retirees with:

Social Security Benefits

Pensions, Annuities, and Retirement Account Distributions

Streamlined Filing - 3 Years

€919

/$1149

Ideal for Unintentional Non-Compliance

Everything in Premium +

Form 14653 (Certification of Streamlined Filing Eligibility)

Add-ons

€

/$9991

Ideal for clients with additional or non-standard tax requirements.

All the add-on prices

Certificate of Coverage Application Assistance - €155

Non-US Bank Accounts (FBAR) - €69

Renounce U.S. Citizenship (Form 8854) - €255

Entity Classification Election (Form 8832) - €99

Migration Year Optimization Calculations - €99

Non-US Mutual Fund (Form 8621) - €75

Non-US Partnerships (Form 8865) - €399

Non-US Disregarded entity (Form 8858) -€399

Non-US Corporations (Form 5471) - €399

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Taxbrella Times

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Jul

Catch Up On Your U.S. Taxes While Living Abroad

Online

Jul 03, 2026 — Jul 03, 2026

US-Netherlands Tax Treaty: A Simple Guide for American Expats

Netherlands

How US Citizens Living Abroad Can Avoid IRS Audits

Taxbrella Times

Understanding Trump Accounts (Custodial Traditional IRAs for Minors)

Taxbrella Times

A Guide to Voluntary Disclosure and the IRS Amnesty Program

Taxbrella Times

A Friendly Guide to FBAR for American Expats

Taxbrella Times

U.S. Expat Tax Filing Deadlines – Key Dates

Taxbrella Times

FAQ

All your questions answered

Many US expats in Germany want to know one thing. How does Germany treat US retirement accounts like 401(k)s, traditional IRAs, and similar plans? Germany taxes the worldwide income of German tax residents. But the US–Germany tax treaty gives special treatment to certain US tax-favored retirement plans.

Tax-advantaged schemes under the treaty

Germany often treats some US retirement plans as tax-advantaged schemes under the tax treaty. Your plan may sit on the treaty's list of qualifying pension or retirement schemes. If so, dividends, interest, and capital gains that stay inside the plan may avoid German tax for now. This holds true while the money stays in the account.

This matters a lot for long-term savers. It means the German tax office may not tax the yearly growth inside a recognized US retirement plan. That happens even though Germany would normally tax foreign investment income.

Not every US plan qualifies

Not every US account with a US tax benefit gets the same treatment in Germany. The treaty uses a defined list and set criteria. So these details matter:

The exact type of plan you hold (for example, employer 401(k), 403(b), certain IRAs)
Whether the plan meets the treaty's conditions for a qualifying pension or retirement scheme
Whether the contributions and benefits look truly retirement-focused from a German view

A plan that does not qualify as a tax-advantaged scheme gets different treatment. Germany may treat the account like an ordinary investment account. That means it could tax dividends, interest, and capital gains each year, even if you take no money out.[1]

Why plan-specific advice is essential

The rules run deep, and the treaty points to set types of schemes. So the answer for a US 401(k) can differ from the answer for a Roth IRA, a SEP-IRA, or another employer plan. Germany's treatment of future payouts (when you actually take money out) can also differ from its treatment of the yearly growth inside the account.

For that reason, US expats in Germany usually need a German tax advisor to:

Pin down exactly which US plan(s) they hold
Check whether the plan counts as a tax-advantaged scheme under the treaty
Confirm whether dividends, interest, and capital gains inside the plan skip current German tax
Explain how payouts will be taxed when you take them later[1]

Practical takeaway for US expats in Germany

You hold US retirement accounts and live in Germany as a German tax resident. Do not assume all your US plans get the same shelter from German tax that they get from US tax. The safest move is simple. Have a German tax professional check your 401(k), IRA, and other US plans against the treaty rules. Then you will know which accounts are protected and which may create taxable income each year in Germany.

When non-residents may still need to file

German tax residency is not the only thing that matters. Even if you live abroad and are not treated as a German tax resident, Germany can still tax certain income that arises from German sources.

This is especially important for Americans and other expats who assume that living outside Germany automatically means they have no German filing requirement. In many cases, that assumption is wrong.

Common examples of German-source income

Some of the most common examples of German-source income for non-residents include:

- Rental income from property located in Germany.

- Salary linked to work physically performed in Germany.

- Income connected to a German employer where part of the work is actually carried out inside Germany.

If you own a property in Germany and rent it out while living abroad, Germany can tax that rental income and may require a German tax return reporting that income.

Working in Germany for a German employer

Employment income can also create a German tax filing obligation, even if you live in another country most of the time. In the webinar example, the speaker explained that if you live abroad but work for a German company and perform some of that work in Germany, Germany can tax the portion of salary linked to the days worked physically in Germany.

That means the location where the work is actually performed matters. It is not only about where your employer is based or where your salary is paid.

Even one day can matter

This is the part many people miss: the filing obligation can start surprisingly early. According to the webinar example, if you live abroad, work remotely for a German company, and are in Germany for just one working day, Germany may tax the salary portion for that one day and require a German tax return for it.

That does not mean every one-day visit automatically becomes a major tax case, but it does show how quickly non-resident German tax exposure can arise.

Why this catches people off guard

Many cross-border workers think only full relocation creates German tax issues. In reality, a property in Germany, a few workdays in Germany, or other German-connected income can be enough to trigger filing obligations even when you remain non-resident.

This is particularly relevant for:

- Americans living elsewhere in Europe

- Remote workers employed by German companies

- People with German rental property

- Employees who travel into Germany for meetings, projects or short assignments

Why professional advice often helps

Once German-source income is involved, the next question is usually not just whether Germany can tax the income, but how much of it Germany can tax and whether a tax treaty changes the result. In practice, that often requires looking at the type of income, where the work was physically done, and whether any relief is available in your country of residence.

For that reason, non-residents with German-source income often need a German tax advisor even if they do not live in Germany full time.

Main ways tax residency starts

You are typically tax resident in Germany if:

- You rent or own a flat or house in Germany.
- You have a room you can access at any time, for example because you have your own key.
- You spend more than 183 days in Germany in a year.

What counts as a place of residence

A place of residence can be broader than many Americans expect. It can be an apartment in your own name, a house you own, or even a room in someone else’s home, as long as you can use it whenever you want and you are not just there as a short-term guest.

If you are registered at that address and can come and go freely, the German tax office may see you as tax resident even earlier than you expected. This catches some US expats off guard because they focus only on the 183-day rule and forget that housing access can matter on its own.

How the 183-day rule works

The 183-day rule is based on what Germany calls your habitual abode. If you spend more than 183 days in Germany during the year, you are usually treated as tax resident there, even if the lease, bills or property title are not all in your name.

This means you can become tax resident through time spent in Germany even if your housing setup looks informal.

Short visits versus moving to Germany

Short visits alone usually do not make you tax resident. If you are visiting family for a holiday, staying briefly, and there is no real plan to settle in Germany, that alone is normally not enough.

But things can become less clear if a short stay turns into something longer. If you arrive thinking you will stay a week or a month, then decide to remain in Germany, the date you effectively moved can become very important later, especially if you already had a key and a place you could access at any time.

Why the exact date matters

Once you are tax resident in Germany, the basic rule is that Germany can tax your worldwide income, unless the US-Germany tax treaty gives taxing rights to another country or provides relief from double taxation. That is why the exact start date of German tax residency matters so much for Americans living in Germany. It can affect when Germany starts looking at your salary, investments, rental income and other foreign income.

Why this matters for US expats

For Americans in Germany, tax residency is one of the most important issues to get right early. If you split time between countries, stay with friends or family, or move gradually rather than all at once, it is easy to become German tax resident without realizing it.

In those borderline cases, it often makes sense to have a German tax advisor review your housing, travel days and move timeline so you know exactly when your German filing obligations began.

Yes, in many cases you do. If you are a US citizen living in Germany and you are considered a tax resident there, you generally need to file a German tax return, even if you also file a US tax return each year. For many Americans in Germany, this is one of the first big tax surprises, because filing in the US does not replace your German filing obligations.

You are usually treated as tax resident in Germany if you have a place of residence there or if you spend more than 183 days in Germany during the year. A place of residence can be broader than many people expect. It can mean a flat or house that you rent or own, but it can also mean a place you can access at any time, for example if you have your own key and the arrangement is not just a short holiday visit.

Once you are tax resident in Germany, the basic rule is that Germany taxes your worldwide income. That can include:

‍Salary from a German employer
Salary earned abroad after you became German tax resident
US rental income
Dividends, interest and capital gains from US accounts
Other foreign income, depending on the facts

That does not always mean Germany gets final taxing rights over every type of income. The US‑Germany tax treaty can change which country taxes certain income first, and it can also help prevent double taxation through exemptions or foreign tax credits. But even when income is not fully taxed in Germany, it may still need to be reported on your German tax return.

This is where many Americans in Germany get caught out. Some assume they do not need to file because their employer already withholds German wage tax from payroll. In some simple cases, for example if you worked the full year for one employer, had no other income, and were in the standard tax class, there may be no filing obligation. But many US expats do not fit that simple pattern, especially if they have US investments, rental income, a mid‑year move, freelance income, or a spouse with a different tax position.

A mid‑year move can be especially tricky. If you move to Germany partway through the year, Germany may tax only the income you earned after the move, but it can still use your earlier worldwide income to determine the tax rate on your German income. This is often called the progression rule, and it can lead to a higher German tax bill than many new arrivals expect.

Key Takeaways

The key takeaway is simple: if you are an American living in Germany, do not assume your German employer or your US tax preparer has fully covered your German filing duties. If you are tax resident in Germany, there is a strong chance you need a German tax return, and the return may also need to include information about your US income and assets.

A few common signs that you may need to file a German tax return:

You moved to Germany during the year
You have a rental property in the US
You have a US brokerage account
You freelance or run a side business
You are married and your spouse’s situation affects your filing
You received mail or notices from the German tax office

For Americans abroad, the safest approach is usually to coordinate both sides properly: a German tax advisor for the German return and a US expat tax specialist for the US return. That helps you stay compliant in both countries and reduces the risk of missed reporting, double taxation issues or avoidable penalties.

If you haven’t filed U.S. taxes for several years, it’s usually better to act before the IRS contacts you. Many Americans abroad fall behind simply because they didn’t realize that U.S. citizens and Green Card holders often still need to file a U.S. tax return, even while living overseas.

While it may seem like you are “off the radar,” the IRS has significantly increased its ability to track expats. Filing now is about proactive protection rather than waiting for a problem to arise.

The statute of limitations: if you never file, the clock never starts

If you never file a tax return for a given year, the normal statute of limitations may never start. The IRS can technically audit or bill you for a year from a decade ago at any point in the future.

When you file a return and it is accepted, that generally starts the clock; in most non‑fraud cases the IRS has three years to audit that year. In practice, filing a correct return is one of the key ways to “close the door” on an old year.

Banks are reporting you

Under FATCA, foreign banks and financial institutions report account information of U.S. citizens to the IRS. Many Dutch and other European banks now even ask customers for their SSN or TIN simply to keep an account open.

If the IRS sees foreign bank activity but no corresponding U.S. tax return or reporting forms, it can eventually trigger an automated flag. That’s one reason relying on being invisible is increasingly risky for expats.

You have reporting duties too

Separate from your tax return, U.S. citizens whose foreign accounts exceed \$10,000 combined at any point in the year must file an annual FBAR (FinCEN Form 114).

Penalties for missed FBARs are often far higher than any actual tax owed, which makes this one of the most important pieces to put right when catching up. Fixing FBARs and other foreign asset reporting is often more crucial than the income tax itself.

Passport security

The IRS can notify the State Department of “seriously delinquent” tax debt (a threshold around \$65,000, adjusted periodically). In serious cases this can lead to your passport being revoked or a new passport being denied.

After many years of non‑filing, accrued interest and penalties on unpaid assessed tax can push a debt over that threshold more quickly than most people expect. This is still a worst‑case scenario, but it’s another reason not to ignore the issue for a decade.

Amnesty is available

The Streamlined Filing Compliance Procedures allow many expats to catch up without penalties if their failure to file was unintentional (non‑willful). The standard package usually involves:

- Three years of U.S. tax returns.
- Six years of FBARs.
- One signed statement explaining that your non‑filing was non‑willful.

These programs are policy tools the IRS can change or cancel at any time. If the IRS finds you first - through data matching, notices, or an examination - you may lose the right to use Streamlined and face the regular penalty regime instead.

You may even be owed money

Not every late filer owes tax. Many expats reduce or eliminate U.S. tax using the Foreign Earned Income Exclusion, Foreign Tax Credit, or other relief options.

In addition, expat parents often qualify for refundable Child Tax Credit amounts and other credits. However, refunds generally expire three years after the filing deadline, so each year of waiting can mean money permanently lost.

Cheaper and Safer

Coming forward on your own is cheaper and safer than waiting for the IRS to find you. Programs like Streamlined make this possible, but they won't last forever. Many expats who catch up find they owe little or no U.S. tax. They just need to fix their reporting and feel at ease again.

Taxbrella can handle the whole Streamlined process for you. We review your IRS transcripts and foreign accounts. We prepare 3 years of tax returns and 6 years of FBARs. We also draft your non-willful statement.

Book a free consultation today. We will show you if Streamlined fits your needs and the safest way to get back on track with the IRS.

FBAR penalties are some of the toughest in U.S. tax law. The form helps fight money laundering and hidden money, so “forgetting” is not taken lightly.

For 2026, what happens depends on your intent and your facts.

1. Non‑willful violations (honest mistakes)

Non‑willful means you did not know about FBAR rules or you misunderstood them.

The IRS can charge up to \$16,536 per year for each late or missing FBAR. This amount is adjusted for inflation from the original \$10,000 limit. After the Bittner case, this penalty usually applies per form, not per account. That change stopped the IRS from stacking fines for every single account in non‑willful cases.

Even one non‑willful penalty is painful. Several years in a row add up fast. If you have a good “reasonable cause” story and clean new filings, it is often possible to ask for a lower penalty or no penalty at all.

2. Willful violations (intentional or reckless)

Willful means the IRS thinks you knew the rules and chose to ignore them. Or that your actions were reckless, for example you hid accounts or lied.

For 2026, a willful FBAR penalty is the greater of \$165,353 or 50 percent of the account balance for each year. Often they use the highest balance in that year. This level of fine can wipe out a large part of your savings. On top of that, criminal charges are possible in very bad cases. That can mean large fines and even prison time.

Most expats with missed FBARs should focus on showing they were non‑willful, not willful. Your story and your records matter here.

3. Quiet but real risks

There are hidden risks that do not show on a simple penalty chart. First, the IRS can review several past years once it spots a problem. For FBARs the civil limit is usually six years, but if tax returns are also wrong or missing, those years can stay open much longer.

Second, large unpaid tax debts can lead to a “seriously delinquent” status. The IRS can then tell the State Department. In bad cases this can lead to passport problems, like denial or revocation.

Ignoring FBARs for many years can push you closer to both of these risks.

The safer way to fix missed FBARs

If your missed FBARs were non‑willful, there is a better path. The IRS Streamlined Filing Compliance Procedures help people catch up and avoid FBAR penalties.

For expats who qualify, Streamlined usually means:

- Three years of U.S. tax returns.
- Six years of FBARs.
- One signed statement explaining why you did not file.

For people living outside the U.S., the foreign Streamlined option normally has a zero FBAR penalty. You pay any real tax and interest that you owe, but not the huge FBAR fines, as long as your case is truly non‑willful and your package is complete and honest.

This is why waiting is risky. Acting now lets you trade unknown exposure for clear rules and a clean slate.

Get in Contact

Keizersgracht 756, 1017 EZ Amsterdam, Netherlands

P.O. Box 17208, 1001 JE Amsterdam, Netherlands

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U.S. Expat Taxes

Experienced tax advisors

Quick, simple, online service

Clear and affordable pricing

U.S. Taxes in 3 Easy Steps

Sign up for free

Complete the questionnaire

Review, sign, and done!

Low Cost and Transparent Pricing

€369

/$459

€469

/$589

€299

/$379

€919

/$1149

€

/$9991

Who We Are

Olof Lakmaker

Martin van Wingerden

Swaroop Chandramohan

Jingjing Huan

Taxbrella Times

Catch Up On Your U.S. Taxes While Living Abroad

US-Netherlands Tax Treaty: A Simple Guide for American Expats

How US Citizens Living Abroad Can Avoid IRS Audits

Understanding Trump Accounts (Custodial Traditional IRAs for Minors)

A Guide to Voluntary Disclosure and the IRS Amnesty Program

A Friendly Guide to FBAR for American Expats

U.S. Expat Tax Filing Deadlines – Key Dates

All your questions answered

Get in Contact

U.S. Expat Taxes

Experienced tax advisors

Quick, simple, online service

Clear and affordable pricing

U.S. Taxes in 3 Easy Steps

Sign up for free

Complete the questionnaire

Review, sign, and done!

Low Cost and Transparent Pricing

€369

/$459

€469

/$589

€299

/$379

€919

/$1149

€

/$9991

Who We Are

Olof Lakmaker

Martin van Wingerden

Swaroop Chandramohan

Jingjing Huan

Taxbrella Times

Catch Up On Your U.S. Taxes While Living Abroad

US-Netherlands Tax Treaty: A Simple Guide for American Expats

How US Citizens Living Abroad Can Avoid IRS Audits

Understanding Trump Accounts (Custodial Traditional IRAs for Minors)

A Guide to Voluntary Disclosure and the IRS Amnesty Program

A Friendly Guide to FBAR for American Expats

U.S. Expat Tax Filing Deadlines – Key Dates

All your questions answered

Get in Contact

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