US payroll / tax question for non US citizen/GC holder living abroad

Question

History:

• i am an Australian & British dual citizen currently living in the US (NYC)
• I am have a G4 spousal visa with employment authorization [but could easily get a E3 if required].
• I am employed here in the US (NYC) and i'm on a US [USD] payroll.

The question....

is it possible for me to work remotely overseas [with my family, so the G4 visa would become void] more than likely France, Spain or Italy, full time, whilst still being employed by my current employer [in the US], doing the exact same job, and getting paid in USD, as i do now?

if it was possible, what would my income tax situation be, in the US and in the country i was residing in?

Thanks

Answer 1

It is possible, of course.

However, you may need to become a contractor, if the employer doesn't have presence in that country, and that country requires employers to register and pay taxes (as most do).

As to taxes... The title of your question asks about citizen/gc holder, but you're neither. Being a non-US person - you'll pay no US taxes in this situation (unless you visit the US and work, in which case you'll prorate or use tax treaties).

If you are a gc holder/citizen - you will pay US taxes, but the portion attributed to your work while overseas may be excluded via the Foreign Earned Income Exclusion (up to a certain limit). You can also use the taxes paid in the country you live in to offset the US tax liability using the Foreign Tax Credit.

If you're a US person (gc holder/citizen) keep in mind the FBAR/FATCA/PFIC issues which bite almost any US person moving abroad, and especially to Europe.