Working abroad from US

{{whyLabel}}: US citizens are taxed on worldwide income regardless of where they live, making tax planning the most critical first step.

{{howLabel}}:

• Review the Foreign Earned Income Exclusion (FEIE) requirements (Form 2555).
• Understand the Physical Presence Test (requiring 330 full days in a foreign country).
• Check the Foreign Tax Credit (FTC) as an alternative to avoid double taxation.

{{doneWhenLabel}}: [You have a written summary of which US tax exclusion you qualify for.]

{{whyLabel}}: Working on a tourist visa is illegal in most jurisdictions and can lead to deportation or company legal issues.

{{howLabel}}:

• Focus on countries with established Digital Nomad Visas (DNV) like Spain, Portugal (D8), or Greece.
• Verify income requirements (e.g., Spain usually requires ~€2,600/month for individuals).
• Confirm the visa allows for 'Remote Work' for a foreign-based entity.

{{doneWhenLabel}}: [One specific country is chosen based on its legal visa requirements.]

{{whyLabel}}: To avoid paying social security taxes to both the US and your host country.

{{howLabel}}:

• Visit the Social Security Administration (SSA) website.
• Look for an agreement between the US and your chosen country.
• Determine if you need a Certificate of Coverage to remain in the US system.

{{doneWhenLabel}}: [Confirmation of whether a bilateral social security agreement exists.]

{{whyLabel}}: Professional advice prevents costly IRS penalties and ensures compliance with FBAR and FATCA reporting.

{{howLabel}}:

• Book a session for the first Tuesday of next month at 10:00 AM.
• Prepare questions regarding State Tax Residency (some states like CA or NY are 'sticky').
• Ask about the impact of your move on 401(k) or IRA contributions.

{{doneWhenLabel}}: [Consultation is booked and calendar invite is sent.]

{{whyLabel}}: Companies fear 'Permanent Establishment' (PE) risk, where your presence creates a tax obligation for them in the foreign country.

{{howLabel}}:

• Search for clauses regarding 'Place of Work' or 'Remote Work Boundaries'.
• Identify if the company already has international entities.
• Note any restrictions on data privacy (GDPR) or hardware transport.

{{doneWhenLabel}}: [You have a highlighted list of potential contractual blockers.]

{{whyLabel}}: An EOR allows the company to employ you legally in a foreign country without setting up a local branch.

{{howLabel}}:

• Present generic EOR categories that handle local payroll, taxes, and compliance.
• Mention providers like Deel, Remote.com, or Oyster as industry standards.
• Highlight that the EOR assumes the legal risk of local employment law compliance.

{{doneWhenLabel}}: [A 1-page proposal is sent to HR/Management.]

{{whyLabel}}: Formalizes expectations regarding time zones, availability, and data security.

{{howLabel}}:

• Define 'Core Hours' (e.g., 9 AM - 1 PM EST) to ensure overlap with the US team.
• Specify that you are responsible for your own reliable high-speed internet.
• Include a clause on maintaining a US-based permanent address (if required for payroll).

{{doneWhenLabel}}: [Signed addendum by both you and your manager.]

{{whyLabel}}: Many US corporate tools (and streaming services) are geo-blocked or require a consistent US IP for security compliance.

{{howLabel}}:

• Purchase two travel routers (one for home-base in US, one for you).
• Configure a WireGuard VPN tunnel between the two devices.
• This ensures your laptop 'appears' to be in the US at the hardware level, bypassing software-based VPN detection.

{{doneWhenLabel}}: [Connection test shows a US IP address on your work laptop while abroad.]

{{whyLabel}}: To receive USD and pay local expenses in EUR/local currency without high FX fees.

{{howLabel}}:

• Use a platform like Wise or Revolut for Business/Personal use.
• Set up a 'Local Account' in the destination country's currency.
• Link your US bank account for easy transfers.

{{doneWhenLabel}}: [Account is active with a small test transfer completed.]

{{whyLabel}}: You need a physical US address for IRS correspondence, banking, and voting.

{{howLabel}}:

• Select a service that provides a physical street address (not a PO Box).
• Ensure they offer mail scanning and shredding services.
• Update your 'Address of Record' with your bank and the IRS.

{{doneWhenLabel}}: [First piece of mail is successfully scanned and viewed online.]

{{whyLabel}}: US-based health insurance rarely covers long-term international stays or emergency medical evacuation.

{{howLabel}}:

• Look for Global Health Insurance (not just travel insurance).
• Ensure it covers your specific destination and includes 'Medical Evacuation'.
• Verify it meets the specific visa requirements of your host country.

{{doneWhenLabel}}: [Insurance policy document is received and saved.]

{{whyLabel}}: Visiting a hub ensures you have the infrastructure (coworking, community) before committing to a long-term lease.

{{howLabel}}:

• Visit the Santos or Cais do Sodré districts, known for high-speed fiber and nomad communities.
• Check the 'Second Home' or 'LACS' coworking spaces.
• Verify walking distances to local amenities.

{{doneWhenLabel}}: [Visit completed or virtual tour of 3 coworking spaces done.]

{{whyLabel}}: This is the formal legal step to transition from a tourist to a legal resident.

{{howLabel}}:

• Gather FBI Criminal Background Check (apostilled).
• Provide Proof of Income (paystubs/contracts).
• Submit the application at the nearest consulate or via the online portal (if available).

{{doneWhenLabel}}: [Application submission receipt received.]

{{whyLabel}}: You cannot rent an apartment, get a SIM card, or open a local bank account without a local tax identification number.

{{howLabel}}:

• Visit the local Finanças office or use an online proxy service.
• Bring your passport and proof of address.
• Keep the document safe as it is required for all legal transactions.

{{doneWhenLabel}}: [Physical or digital Tax ID number received.]

{{whyLabel}}: Stable internet is your lifeline; never assume 'high-speed' means fiber-optic in older European or Asian buildings.

{{howLabel}}:

• Request a speed test screenshot from the landlord before signing.
• Ensure the contract is in writing and can be used for 'Proof of Residency' (Empadronamiento/Atestado).
• Check for dedicated workspace areas in the apartment.

{{doneWhenLabel}}: [Signed lease agreement with confirmed internet speeds.]

{{whyLabel}}: To qualify for the FEIE, you must track every single day spent outside the US to meet the 330-day rule.

{{howLabel}}:

• Set a recurring calendar event for the last Friday of every month at 4:00 PM.
• Log all travel dates, including flight times and border crossings.
• Save all boarding passes as secondary evidence for the IRS.

{{doneWhenLabel}}: [Recurring calendar event set and first month logged.]

{{whyLabel}}: Networking locally provides 'boots on the ground' knowledge about tax changes, healthcare, and social integration.

{{howLabel}}:

• Find a meetup on platforms like Meetup.com or Internations.
• Aim for the third Thursday of the month.
• Focus on building relationships with people who have been in the country for 2+ years.

{{doneWhenLabel}}: [One networking event attended and 2 professional contacts made.]

{{whyLabel}}: If your foreign bank accounts exceed $10,000 at any point, you must report them or face massive penalties.

{{howLabel}}:

• Aggregate the highest balance of all foreign accounts for the year.
• File the FBAR electronically via the BSA E-Filing System by April 15th.
• Ensure Form 8938 is attached to your annual 1040 tax return.

{{doneWhenLabel}}: [Confirmation of FBAR filing received.]