{"id":15829,"date":"2025-11-03T10:09:46","date_gmt":"2025-11-03T10:09:46","guid":{"rendered":"https:\/\/axevera.com\/?p=15829"},"modified":"2025-11-03T10:29:31","modified_gmt":"2025-11-03T10:29:31","slug":"new-us-tax-law-how-expats-in-czechia-can-save-money","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/11\/03\/new-us-tax-law-how-expats-in-czechia-can-save-money\/","title":{"rendered":"New US Tax Law: How Expats in Czechia Can Save Money"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>US Tax Law and Opportunities for Expats in Czechia<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For many <strong>Americans living in Czechia<\/strong>, the new U.S. tax reform brings major updates. The <strong>One Big Beautiful Bill Act<\/strong>, signed in 2025, reshapes how <strong>foreign income<\/strong> is taxed. The U.S. still taxes citizens on <strong>worldwide income<\/strong>, but key changes now help expats <strong>save thousands of crowns<\/strong> and reduce double taxation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Foreign Tax Credits and Czech Income<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you already pay <strong>Czech income tax<\/strong>, you can reduce your U.S. liability through the <strong>Foreign Tax Credit (FTC)<\/strong>. While higher limits apply only to corporations, employees still benefit when <strong>Czech tax rates<\/strong> match U.S. ones\u2014often resulting in <strong>little or no U.S. tax due<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Foreign Earned Income Exclusion (FEIE)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Foreign Earned Income Exclusion<\/strong> now rises from USD 120,000 to USD 130,000. Expats in <strong>Prague and Brno<\/strong> who meet residency requirements can <strong>exclude more of their salary<\/strong> from U.S. taxation, keeping more funds in their <strong>Czech bank accounts<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Transfers, Deductions, and Compliance<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Starting in 2026, cash transfers to the U.S. will face a 1% fee, though <strong>bank transfers remain unaffected<\/strong>. The <strong>State and Local Tax (SALT)<\/strong> deduction cap also increases to USD 40,000, reducing overall tax pressure for those with U.S. property or state ties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t forget the <strong>FBAR (Foreign Bank Account Report)<\/strong>: any account over USD 10,000 must be reported to the IRS, even if already taxed abroad. Missing it can lead to <strong>serious penalties<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Working with an expert in <strong>international tax consulting in Prague<\/strong> helps ensure <strong>compliance<\/strong>, maximize savings, and build smarter <strong>tax strategies for expats<\/strong> across borders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ai image.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how expats in Czechia can cut double taxation and keep more income under the new US tax law.<\/p>\n","protected":false},"author":5,"featured_media":15826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525],"tags":[],"yst_prominent_words":[],"class_list":["post-15829","post","type-post","status-publish","format-standard","has-post-thumbnail","category-en"],"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=15829"}],"version-history":[{"count":1,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15829\/revisions"}],"predecessor-version":[{"id":15830,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15829\/revisions\/15830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media\/15826"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=15829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=15829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=15829"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=15829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}