Expat money glossary

The acronyms and terms that trip up Americans abroad, in plain English. Every figure here is a general reference — confirm specifics with the linked guides and a qualified professional.

Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.

US taxes & filing

FEIE — Foreign Earned Income Exclusion

Lets US citizens abroad exclude foreign earned income (wages or self-employment) from US income tax, up to an annual cap ($130,000 for 2025). Claimed on Form 2555; covers earned income only — not investments or pensions. Learn more

Foreign Tax Credit (FTC)

A dollar-for-dollar US tax credit for income taxes you paid to a foreign government, claimed on Form 1116. Excess credits carry forward up to 10 years, and it often beats the FEIE in high-tax countries. Learn more

FBAR (FinCEN Form 114)

The Report of Foreign Bank and Financial Accounts — filed electronically with FinCEN (not the IRS) if your foreign accounts together top $10,000 at any point in the year. Learn more

FATCA (Form 8938)

Reporting of "specified foreign financial assets" above higher thresholds, filed with your tax return. It overlaps with the FBAR but is a separate requirement. Learn more

PFIC — Passive Foreign Investment Company

Almost any non-US mutual fund or ETF. The IRS taxes PFICs punitively (the default Section 1291 method) and requires a Form 8621 per fund — so US persons should generally hold US-domiciled funds. Learn more

Totalization agreement

A US Social Security agreement with another country that stops you paying into two Social Security systems at once and lets you combine credits toward a benefit. Learn more

Tax treaty

A bilateral income-tax treaty that coordinates which country taxes which income and reduces double taxation. The "saving clause" limits how much it helps US citizens.

Saving clause

A tax-treaty provision letting the US tax its own citizens as if the treaty didn’t exist — the reason many treaty benefits don’t actually help Americans.

Self-employment (SE) tax

About 15.3% US Social Security + Medicare tax on net self-employment earnings. The FEIE does NOT reduce it; only a totalization agreement can shift it. Learn more

Streamlined Filing Compliance Procedures

An IRS catch-up program to file back FBARs and returns penalty-free when the failure to file was non-willful (e.g. you simply didn’t know). Learn more

Bona fide residence / Physical presence test

The two ways to qualify for the FEIE — genuine residency in a foreign country, or being physically abroad for 330 full days in a 12-month period.

Exit tax (expatriation tax)

A US tax on unrealized gains for certain high-net-worth "covered expatriates" who renounce US citizenship or give up long-term green-card status.

Tax residency

The country with the right to tax you based on where you actually live — separate from citizenship. The US uniquely taxes by citizenship regardless of residency.

Domicile

Your permanent legal home. It’s harder to change than residency and is the key to whether a US state keeps taxing you after you move abroad. Learn more

Remittance basis

A tax system (used by the UK and Ireland) under which non-domiciled residents are taxed on foreign income only when they bring it into the country.

Money & transfers

Mid-market rate

The real exchange rate — the midpoint banks use to trade with each other (what you see on Google). The benchmark to judge any transfer rate against. Learn more

Exchange-rate spread (markup)

The margin a bank or service adds to the mid-market rate. It’s usually hidden, and typically the single biggest cost of an international transfer. Learn more

SWIFT / correspondent bank

The network international bank wires travel over; intermediary "correspondent" banks along the way can skim "lifting fees" from the money in transit.

Dynamic Currency Conversion (DCC)

When a foreign card terminal or ATM offers to charge you "in USD" — at a marked-up rate. Always choose to pay in the local currency instead.

Residency & local

Tax ID (NIF / NIE / CURP / AFM)

Local tax-identification numbers (Portugal NIF, Spain NIE, Mexico CURP, Greece AFM) usually required before you can open a bank account or sign a lease. Learn more

Golden Visa

Residency granted in exchange for a qualifying investment, often in real estate or an approved fund.

Digital Nomad Visa

A residence permit for remote workers who earn their income from outside the host country.

Non-dom regime

A favorable tax status some countries offer new residents who aren’t domiciled there (e.g. Greece’s flat tax, or the UK’s former non-dom rules).

Keep reading

• All guides — the full how-to library.
• Country money guides — banking, taxes, and transfers by destination.
• Transfer cost comparison tool.