this post was submitted on 15 Feb 2026
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Yeah I realize this is gonna be difficult

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[โ€“] ranzispa@mander.xyz 1 points 1 day ago (1 children)

Most Americans I met in Europe are still paying taxes in the US. I believe they need to get citizenship or at the very least residency to not pay taxes in the US.

[โ€“] reabsorbthelight@lemmy.world 2 points 1 day ago (1 children)

US citizens are always tax residents in the US, irrespective of foreign citizenship. They will also be taxed by their local government (eg. Spain, Germany) if they live there.

The US applies tax credits for foreign taxed paid. If a US citizen lives in Germany and works for a German company they will be taxed by Germany first and then the US will give them a credit (eg. reduces US taxes) based on German taxed paid. In effect, they typically pay local taxes and just have complicated tax reporting to the US.

The only thing that harms Europe is FATCA and PFIC. US citizens and companies effectively can't invest in EU funds or open companies in Europe due to very complicated compliance with US rules.

[โ€“] ranzispa@mander.xyz 1 points 1 day ago (1 children)

Thanks for the clear explanation! It's kind of wild that US citizens can not open companies abroad given the high reliance on finance of the US economy.

I did open a company in my EU country and I had to pay 1600 USD annually for US tax filing as a result.

If I open a US company and establish a foreign branch of the US company in Europe, it's only 200 per year.

You can do the math and see how this effectively forces US control over European companies if Americans are involved. It's in Europes interest to end this