A Green Card is a tax status, not just an immigration one.
Lawful permanent residents file US returns on worldwide income exactly like citizens — and moving away doesn't end it. Only formal abandonment does, and the timing of that form carries real money.
Leaving the US didn't end your filing
A Green Card holder living in London still owes the IRS a return every year, plus FBARs for UK accounts. Claiming treaty residence in the UK can limit the US bill, but it must be claimed properly on Form 8833 — and it can jeopardise the card and count toward expatriation.
- Worldwide US filing while holding the card
- Treaty tie-breaker claims, with the immigration trade-offs explained
- FBAR and FATCA reporting on non-US accounts
- Long-term resident status tracking — the 8-of-15-year rule
Give it back on your schedule, not theirs
Hold the card in eight of the last fifteen years and surrendering it triggers the same exit-tax tests as renouncing citizenship. Filed a year earlier or later, Form I-407 can be the difference between a clean exit and a deemed sale of everything. We plan it before you file it.
What we typically handle for you
- Worldwide US filing while the card is held
- Treaty tie-breaker claims with trade-offs explained
- FBAR and 8938 for non-US accounts
- Long-term resident year counting
- I-407 surrender timing strategy
- Exit tax modelling before abandonment
- State filing position after leaving the US
- Compliance clean-up ahead of surrender
The services that usually apply
Questions we get about this
Expiry of the card is not the same as ending the status. The tax obligation can continue until it is formally abandoned or revoked.
People assume lapsing is a quiet exit, and it is one of the more expensive assumptions in this area.
There is a treaty tie-breaker, but claiming it as a permanent resident has immigration consequences as well as tax ones.
It is a decision to take with both sets of advice in the room.
Often a dual-status year, split between resident and non-resident portions with different rules applying to each.
Dual-status returns are more involved than either alternative and are worth preparing rather than approximating.
Yes, for as long as you hold the card. Physically leaving does not end US tax residence; formally giving up the status does.
People routinely assume the obligation lapses when they move, and that assumption accrues quietly for years.
It can. Long-term permanent residents are treated like citizens who renounce, based on how many of the last fifteen years you held the card.
Whether the exit tax actually bites depends on net worth, recent tax liability and your compliance history.
It can. Claiming treaty residence in another country is not a neutral act for a permanent resident, and it can undercut the case that you intend to keep the status.
It is a decision to make with both the tax and immigration consequences in view.
Related pages
- Who we help
Planning a move
Moving between the US and UK: pre-move planning, split-year treatment, and the decisions that are far cheaper made before departure than unwound afterwards.
- Service
Expatriation & exit tax
Renouncing US citizenship or surrendering a Green Card: covered expatriate tests, exit tax modelling and Form 8854, planned before you file, at a fixed fee.
- Free tool
Exit tax estimator
Model the US exit tax before you renounce: the covered expatriate tests, the deemed-sale calculation, and the planning that removes or reduces the charge.
- Service
Streamlined catch-up filing
Streamlined Foreign Offshore Procedures: 3 years of returns, 6 years of FBARs and the non-wilful certification, with no penalty on the Foreign route.
- Pillar guide
Accountants for US and UK
How to choose accountants for US and UK tax: what each credential permits, how to verify it, what drives the fee, and when you do not need a specialist.
- Free tool
Substantial Presence Test
Count your US days under the substantial presence formula, apply the weighting and exemptions, and see whether you are a US tax resident for the year.
Further reading
- Buying your first UK home with an American passport
Nothing stops an American buying a home here. What changes is the second set of records the purchase quietly starts, and the sale it sets up years later.
- The child tax credit abroad: the refund most expat families miss
Americans abroad often owe no US tax at all - and still qualify for a refundable credit. The catch is that the usual expat election can switch it off.
- Treaty-based return position: when Form 8833 is required
Most treaty claims need no disclosure at all. The ones that do are the ones where you are telling the IRS that the treaty beats the Code, and saying nothing is the expensive option.
Last reviewed . Thresholds and rates change annually — check figures against the current tax year before relying on them.
Holding a Green Card while living abroad?
The status carries filing duties until it is formally ended. We will tell you exactly where you stand.