White Papers & Articles

U.S. Residual Tax and the Impact on Global Mobility Programs

By Jeremy Piccoli and Pat Jurgens

The United States has the ignominious distinction of being one of only two countries in the world (along with Eritrea) that implements citizenship-based worldwide individual taxation.

For U.S. citizens (and Green Card holders) living and working within the United States, the impact is relatively low as their earned income is not being taxed by foreign countries. However, for U.S. citizens living and working abroad, the citizenship-based taxation creates a compliance burden, potential for double taxation, and a potentially smaller cost savings while working in no- or low-tax countries.