If you are a U.S. citizen living in Germany, Portugal, or elsewhere in Western Europe, you are still required to file U.S. taxes every year.
This applies even if:
- You live permanently abroad
- You pay full local taxes
- You owe nothing to the IRS
Many expats attempt to handle their U.S. tax filing themselves.
That is absolutely possible—if you approach it in a structured way.
Do U.S. Expats in Germany Have to File Taxes?
Yes.
If you are a U.S. citizen or green card holder, you must file:
- Form 1040 (U.S. tax return)
- Additional expat reporting (depending on your situation)
This applies regardless of where you live.
Living in Germany or Portugal does not eliminate your U.S. tax obligations.
Key U.S. Expat Tax Deadlines (2026 Filing Year)
- April 15, 2026
Payment deadline (most important) - June 15, 2026
Automatic expat filing extension - October 15, 2026
Extended filing deadline (Form 4868) - FBAR (FinCEN 114)
Automatically extended to October 15
👉 Even if you file later, interest starts from April 15 if tax is owed.
What Forms Do U.S. Expats Need?
Most U.S. expats in Germany and Europe will encounter:
Core Filing
- Form 1040
Expat-Specific Forms
- Form 2555 (Foreign Earned Income Exclusion)
- Form 1116 (Foreign Tax Credit)
- FBAR (foreign accounts > $10,000)
- Form 8938 (FATCA reporting)
Germany vs Portugal: What Actually Changes
The U.S. system is consistent. The difference is coordination.
Germany (Frankfurt, Hamburg)
- Local filing deadline typically July 31
- Common approach:
- Finalize German taxes first
- Use Form 1116 (Foreign Tax Credit)
Portugal (e.g., Cascais)
- Calendar-year system
- Requires:
- Reliable local tax assessment or estimate
👉 In both cases, correct coordination usually eliminates double taxation.
How to Do Your U.S. Expat Taxes Yourself
A typical DIY process looks like this:
Step 1 — Confirm you must file
If you are a U.S. citizen → you file annually.
Step 2 — Gather documents
- Salary statements
- Local tax assessments
- Bank and investment records
Step 3 — Convert income to USD
All income must be reported in USD:
- Salary
- Dividends
- Capital gains
Step 4 — Decide: FEIE vs FTC
This is the most important step:
- Germany / high-tax countries
→ Form 1116 (FTC) is usually better - Simpler cases
→ Form 2555 (FEIE) may work
Step 5 — Prepare and file
- Complete Form 1040
- Add schedules and expat forms
- File FBAR separately
Get the Free Expat Tax Checklist (2026 Filing)
To make this easier, I provide a structured “prep-by-client” checklist used in real engagements.
This includes exactly what you need to gather before filing:
- Prior U.S. tax returns (3–5 years)
- Worldwide income and foreign tax documents
- Bank and investment account details (FBAR/FATCA)
- Residency and travel records
- Entity / business / investment documentation
👉 This is the same structure used to:
- Identify FEIE vs FTC strategy early
- Assess FBAR and FATCA exposure
- Avoid back-and-forth and missed items
Request the checklist here:
📩 Email: info@drapal.ski
Subject: Expat Tax Checklist 2026
What to Prepare If You Want a Professional Review
If you plan to have your return reviewed, preparing upfront saves time and cost.
1. Identity & Prior Returns
- Last 3–5 years of U.S. tax returns
- Any IRS notices
- Prior Form 2555 / 1116 filings
2. Income & Foreign Tax
- Salary and payslips
- Foreign tax assessments (Germany / Portugal)
- Investment income (interest, dividends, gains)
- Rental or business income
3. Foreign Accounts & Assets
- All non-U.S. bank and brokerage accounts
- Maximum balances during the year
- Pension and insurance details
4. Entities & Investments
- Company ownership documents
- Stock options / RSUs
- Partnerships or side businesses
5. Residency & Travel
- Travel calendar (days in/out of U.S.)
- Residency permits / visas
- Lease or housing contracts
A clean document package upfront is the single biggest driver of an efficient and accurate filing.
Common Mistakes U.S. Expats Make
Most DIY filings are submitted—but not optimized.
Typical issues:
- Wrong choice between FEIE vs FTC
- Missing FBAR filings
- Incorrect currency conversion
- Misalignment with local tax filings
- Investment income handled incorrectly
These issues often compound over multiple years.
A Practical Approach: DIY + One-Time Review
Many expats choose a hybrid approach:
Prepare your return yourself → get a professional review once
This ensures:
- Correct structure
- Optimized tax position
- No missed filings
- Confidence going forward
Professional Review (Fixed Scope)
I support U.S. expats in Germany and across Europe with targeted, senior-level review—not full-service compliance.
A typical engagement includes:
- Review of your prepared return
- FEIE vs FTC optimization
- Cross-border consistency check
- Identification of risks and gaps
Fee: €600 per individual or couple (one-time)
No subscriptions. No unnecessary complexity.
Just a clear, professional second opinion.
Get Started
If you are filing yourself but want to ensure everything is correct:
Or request the free checklist first and decide from there.
Disclaimer
This content is for informational purposes only and does not constitute tax, legal, or accounting advice.
U.S. tax rules for expatriates depend on individual facts and circumstances. You should consult a qualified professional before making decisions or filing.