Using FEIE in Argentina as an Expat

What is the Foreign Earned Income Exclusion (FEIE)?

The Foreign Earned Income Exclusion (FEIE) allows qualifying U.S. citizens and green card holders to exclude up to $126,500 (in 2025) of foreign-earned income from U.S. taxation. This program was created to help reduce the burden of double taxation for those living abroad.

To qualify, you must have:

• foreign earned income
• a tax home outside the U.S. (the country you’re living in)
• and meet one of the residence tests.

Why is FEIE used?

Because the United States taxes its citizens on worldwide income, expats often face taxation from both countries they’re tied to. The FEIE helps ease that financial burden by excluding a large amount of income earned abroad, ensuring you don’t pay taxes twice on the same income.

For those who still owe foreign taxes, pairing FEIE with the Foreign Tax Credit (FTC) can further increase your savings. Stay tuned for our next series on whether FEIE or FTC better fits your situation.

How FEIE works for expats living in Argentina

If you’re living and earning in Argentina, the FEIE can be extremely beneficial. However, Argentina has its own progressive tax system, with rates ranging up to 35% on worldwide income tax for residents.

• Tax residency: You’re typically considered a resident if you stay in Argentina for more than a year (although shorter stays can qualify depending on circumstances)
• Double taxation: The U.S. and Argentina do not have a tax treaty, which makes FEIE and the Foreign Tax Credit even more important
• Example:
  An American remote worker living in Buenos Aires, earning $100,000 annually from a U.S. company could use FEIE to exclude that amount from their U.S. tax return. However, they’d have to meet the physical presence test (requiring 330 full days abroad in 12 months time).

Extra Tips for You

• Argentina’s inflation and currency controls can affect how you’re able to manage your money so be sure to keep all income records from the US and Argentina.
• Remember to file with FBAR/FATCA if you have more than $10,000 worth in a foreign account.
• Because Argentina doesn’t have a totalization treaty with the U.S., you may still owe double social security taxes if you’re self-employed.

Careful planning is essential

Living in Argentina can fill you with their cultivating culture and affordability. But navigating expat taxes aren’t as exciting. Reviewing the FEIE and understanding their rules and requirements could save you thousands on your U.S. tax obligations. Without the options of tax treaties or totalization agreements, careful planning and budgeting is essential.

Contact us today to get help with your U.S. expat tax filing.