Expat Residency Services for US Citizens
If you are a U.S. citizen looking to relocate overseas, you will need to take into account the various residency and visa requirements of your chosen country. Thankfully, many companies offer residency services for expats. If you still need to be registered in the United States, we’re going to explore why South Dakota is the right option for you.
Let’s say that you’re a US citizen and you’ve been living and working in Italy for the past few years. In many ways, you are now what is considered an ‘expat’. In other words, you have decided to live outside of your home country for an extended period. However, did you know that you could be losing money and missing out because of your home address (in the United States)?
Whether you’re working abroad, traveling full time, or have retired somewhere away from the United States in the sun, you can benefit from expat residency services. As the name suggests, the idea behind these services is to help you with the residency process in your home country. Wherever you are in the world, you can become a resident of South Dakota. This means having a vehicle registered in South Dakota, a driving license from South Dakota, and having all mail sent to South Dakota.
Why South Dakota? Because South Dakota is one of the most tax-friendly states for expats in the United States. If you become a resident of South Dakota, you will not have to pay any state income tax on your worldwide income. This can be a huge saving, particularly if you are earning a good wage in your new country. Alternatively, it means you keep hold of more of your retirement income rather than losing it to tax.
How does it work? Using a service like Dakota Post, you will be guided through the process and will soon have a South Dakota mailing address. This is vital as it will allow you to avoid paying taxes in your new country of residence, as well as give you a physical US address to use for banking and other important services.
If you work in another country, you may be able to exclude some or all of your foreign-earned income from US taxes using the Foreign Earned Income Exclusion (FEIE). To qualify for the FEIE, you must:
- Have foreign-earned income (wages or self-employment income)
- Meet the physical presence test or the bona fide resident test
- File IRS Form 2555, Foreign Earned Income
If you’re a US citizen or resident alien, you’re generally required to pay tax on your worldwide income. As well as excluding a portion of your income, you can reduce your burden by registering in a tax-favorable state, like South Dakota.
Furthermore, another benefit of choosing a South Dakota residency service is the mail forwarding service. Now that you have a South Dakota address, all mail is sent to the mail forwarding company that will then forward it to your current location – whether that’s a hotel, an Airbnb, or a long-term rental. So long as the company has your current address, they can send it on.
These days, mail forwarding services also offer a digital mailbox. This is an online mailbox that you can access from anywhere in the world with an internet connection. You’ll be notified whenever new mail arrives and you can even have it scanned and emailed to you if you’re not able to collect it in person. From here, you’ll choose whether to have it shredded or sent to your current address.
Why not explore residency services in more detail today?