Cross-Border Knowledge Hub
The financial complexity that comes with crossing a border doesn't manage itself.
Every corridor creates a different set of tax treaties (or their absence), account traps, compliance deadlines, and equity treatment rules. This hub maps them by direction of move — with post-level depth on each decision that has a hard deadline.
Direction of Move
Moving TO the US
Direction of Move
Moving FROM the US
To India
To Australia
To Germany
To Netherlands
NRI-Specific
H-1B, Green Card & NRI Planning
The concepts that come up in every corridor
FBAR (FinCEN 114)
Annual report of foreign financial accounts exceeding $10,000 aggregate at any point during the year. Applies to US citizens, green card holders, and residents.
FATCA / Form 8938
Specified foreign financial assets reported on the tax return. Higher thresholds than FBAR. Different form, different agency.
PFIC
Passive Foreign Investment Company. Most foreign mutual funds, ETFs, and pooled investments are PFICs for US persons — punitive tax treatment applies.
FEIE
Foreign Earned Income Exclusion. Up to $132,900 (2026) of foreign-earned compensation excluded from US taxable income. Does not cover RSU income from US employers.
RSU Sourcing
RSU income is allocated to the countries where the work was performed during the grant-to-vest period — not to where you live at vesting.
Foreign Tax Credit
Credit for foreign income taxes paid, applied against US tax liability on the same income. Zero value in zero-tax countries (Singapore, UAE).
Frequently Asked Questions
Does moving abroad stop US tax obligations for US citizens and green card holders?
No. US citizens and green card holders pay US federal income tax on worldwide income for as long as they hold citizenship or permanent residency, regardless of where they live. Moving to Singapore, the UAE, Germany, or any other country does not reduce or eliminate US tax obligations. It may reduce host-country tax obligations. It does not affect the US side. The only way to end US worldwide tax obligations is to formally renounce citizenship or formally abandon the green card — both of which trigger specific tax events and filings. US persons living abroad still file Form 1040 annually, still file FBAR if foreign account balances exceed $10,000 in aggregate, and still report worldwide income including salary, RSU vesting, freelance income, and investment returns regardless of where those assets are held.
What is the difference between FBAR (FinCEN 114) and FATCA Form 8938?
FBAR (FinCEN 114) and FATCA Form 8938 are both foreign account reporting obligations but they have different thresholds, different filers, and different consequences. FBAR: filed with FinCEN (not IRS), required for US persons with any financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year. Penalties for non-willful failure: up to $10,000 per account per year. Form 8938 (FATCA): filed with the IRS as part of your Form 1040, required for US persons with specified foreign financial assets above certain thresholds ($50,000 on the last day of the year or $75,000 at any point, with higher thresholds for married filers and those living abroad). Both can apply to the same account. Missing either is a separate violation with separate penalties. NRE and NRO accounts, Indian PPF, foreign brokerage accounts, and foreign pension accounts may each trigger one or both requirements depending on value and account type.
What are PFICs and which foreign investments trigger them for NRIs and expats?
PFIC stands for Passive Foreign Investment Company. A PFIC is any non-US corporation where at least 75% of gross income is passive income, or at least 50% of assets produce passive income — which describes virtually every foreign mutual fund, ETF, OEIC, unit trust, or similar pooled investment vehicle outside the US. The PFIC tax treatment is punitive by design: gains on PFIC investments are taxed as ordinary income (not at capital gains rates), with an additional interest charge applied going back to when the income was earned. Investments that are commonly PFICs for US persons: Indian mutual funds (SBI Blue Chip, HDFC Mid Cap, etc.), UK ISA holdings that are funds, Australian superannuation, Canadian mutual funds and most Canadian ETFs, German mutual funds and Fonds, Netherlands fund structures (beleggingsfonds). The PFIC trap catches NRIs and expats who accumulate foreign fund investments before becoming US tax residents and then don't liquidate before the residency change. Three elections exist to mitigate PFIC treatment: the default (excess distribution) method, the mark-to-market election, and the QEF election. Each has different requirements and trade-offs. A cross-border CPA is required.
What is the Foreign Earned Income Exclusion (FEIE) and who qualifies?
The Foreign Earned Income Exclusion (FEIE) allows qualifying US citizens and resident aliens to exclude up to $132,900 (2026) of foreign earned income from US taxable income. To qualify, you must meet either the bona fide residence test (you are a bona fide resident of a foreign country for an uninterrupted period including a full tax year) or the physical presence test (you are physically present in a foreign country for at least 330 full days in any 12-month period). Critical limitations: FEIE covers only foreign earned income — compensation for services performed in a foreign country. It does not cover: RSU income from US employers (sourced to US workdays during the vesting period), investment income, 401K distributions, or US-source passive income. In countries with no income tax (Singapore, UAE), FEIE is the primary lever — but it doesn't cover the RSU income that often creates the largest US tax exposure for tech employees. In high-tax countries (UK, Germany, Australia), the Foreign Tax Credit is often more valuable than the FEIE because it can zero out US liability on income already taxed at a higher foreign rate.
What is the substantial presence test and when does it trigger US tax residency for NRIs arriving in the US?
The substantial presence test determines whether a non-US citizen is treated as a US tax resident for a given year. You meet the test if you were present in the US for at least 31 days during the current year AND 183 days during the current year and the two preceding years (weighted: all days in current year, 1/3 of days in first preceding year, 1/6 of days in second preceding year). For NRIs arriving in the US mid-year on an H-1B: you typically meet the substantial presence test partway through the first calendar year. The year of arrival may require a dual-status return (part-year non-resident, part-year resident). From the day you become a US tax resident, NRE account interest becomes US-taxable, Indian mutual fund PFIC obligations begin accruing, and FBAR reporting obligations apply to all foreign financial accounts above the $10,000 aggregate threshold. The substantial presence test applies separately for each year of US presence.
What is RNOR status and what tax benefits does it provide for returning NRIs?
RNOR (Resident but Not Ordinarily Resident) is a transitional Indian tax residency status available to individuals who return to India after being NRIs for 9 out of the 10 preceding years, or who were in India for 729 days or fewer in the 7 preceding years. RNOR status typically lasts 2–3 years after return. During the RNOR window, foreign income (income earned outside India and from foreign sources) is largely exempt from Indian income tax. This creates a planning window: 401K distributions from the US, which are taxable in India at approximately 10% under Article 20 of the US-India DTAA during RNOR, are far more tax-efficient during the window than after it closes. Roth IRA conversions should happen before leaving the US — not during the RNOR window — because the DTAA has no Roth provision and India taxes Roth distributions as ordinary income regardless. RSU income from US employers does not benefit from the RNOR window because it remains US-sourced income.
What happens to my US 401K when I move abroad?
Your US 401K remains in the US when you move abroad. It does not need to be closed, transferred, or distributed. The account continues to grow tax-deferred. Contributions typically stop when you leave a US employer (since 401K contributions require W-2 wages from a US employer). If you move to Canada, the US-Canada tax treaty (Article XVIII) recognizes the 401K — Canada defers Canadian income tax on 401K earnings until withdrawal. If you move to Australia, no such treaty provision exists, and Australian super cannot receive a 401K rollover. UK tax treaty provisions on 401K distributions differ from Canada's — periodic payments are taxed at 15% withholding. For countries with no income tax (Singapore, UAE) and no US income tax treaty, 401K distributions will be subject to standard US withholding. Do not cash out or distribute the 401K at departure. The penalties (10% early withdrawal plus ordinary income tax on the full balance) make this the most expensive possible option in almost all scenarios.
Should I keep my US Vanguard or Schwab brokerage account when I move abroad?
Yes, with an important caveat: some US brokerages restrict accounts for non-US residents. Vanguard and Fidelity may close or restrict accounts when they identify a non-US address. Charles Schwab International and Interactive Brokers both maintain accounts for US persons living abroad. Before you move, contact your US brokerage and confirm they will maintain accounts for clients at your destination address. If they won't, transfer to a brokerage that serves non-residents before you update your address anywhere. Keeping a US brokerage holding US-listed securities is strongly preferable to opening a foreign brokerage account and buying local funds — because local funds in virtually every country (India, UK, Australia, Canada, Germany) are PFICs for US persons, with punitive tax treatment. Your US-listed ETFs and stocks avoid PFIC classification entirely as long as they are listed on a recognized US exchange.
What financial accounts should I NOT open when moving abroad as a US person?
Several account types that are tax-advantaged in their home country are tax-traps for US persons: UK ISA (Individual Savings Account) — IRS taxes all ISA gains as ordinary income; the UK's tax-free wrapper is not recognized. Canada TFSA (Tax-Free Savings Account) — may be treated as a foreign grantor trust requiring Form 3520/3520-A, or face PFIC treatment on holdings. India PPF (Public Provident Fund) — tax treatment unsettled; some practitioners report as foreign trust (Form 3520). Australia superannuation — likely PFIC under US tax law; Form 8621 required annually. Singapore CPF — US tax treatment ambiguous; gains not automatically tax-deferred for US persons. Indian mutual funds — PFIC. Canadian mutual funds — PFIC. Australian managed funds — PFIC. The pattern: if a country offers a tax-advantaged wrapper, the IRS almost certainly doesn't recognize the wrapper. For US persons abroad, the safest investment structure is a US brokerage account holding US-registered securities. Foreign-domiciled investments of almost any type create complexity and potential punitive tax treatment.
What totalization agreements does the US have and which countries are excluded?
The US has totalization agreements with 30 countries. These agreements prevent double social security contributions and coordinate benefit eligibility. Countries with US totalization agreements include: UK, Canada, Australia, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Belgium, Switzerland, Austria, Sweden, Norway, Denmark, Finland, Portugal, Luxembourg, Czech Republic, Poland, Hungary, Slovakia, Slovenia, Greece, Ireland, Chile, Brazil, Uruguay, and Australia. Countries without US totalization agreements (key for NRIs and expats): India, China, Singapore, UAE, Mexico, and most of Southeast Asia and Latin America. Practical consequence for H-1B holders from India: if you return to India as a local hire, your Indian PF contributions do not count toward US Social Security credits. You need 40 quarters of US Social Security earnings to qualify for US benefits. Years of Indian employment don't count. For US persons working in countries without a totalization agreement, you may technically owe social security contributions to both systems simultaneously — though enforcement is inconsistent for foreign countries.
See the full picture of your cross-border financial situation
NettWorth consolidates your accounts, tracks your FBAR exposure, flags your PFIC obligations, and maps your RNOR window — both sides of the picture, in one place.