Plan B Residency & Second Passport Tax Planner
Answer a few general questions (bands only, no personal details) and get a clear verdict per country for your situation: your top 3 destinations, a short avoid list with reasons, the key tax flags for pensions, crypto and foreign holdings, what you leave behind at home, and a realistic monthly budget.
Educational only — not tax, legal or immigration advice. Figures are rough ballparks with sources and an "as of" date (Oct 12, 2026); "no data yet" means we have not verified a figure. Rules change often — check with a licensed professional before acting. Your answers stay in this browser tab: they are not sent anywhere and not stored.
Who this planner is for
This planner is for people seriously weighing a move abroad for tax or lifestyle reasons: US citizens and green-card holders thinking about renouncing, Europeans considering a territorial or remittance-base country, retirees drawing pensions across borders, and founders or investors with crypto, equity or foreign-company holdings. You answer a few banded questions (no personal details, nothing is sent anywhere), and the tool checks whether leaving your current country triggers an exit tax, whether your citizenship keeps you taxable at home, and how 45+ destinations fit your income mix, holdings, budget and reasons for moving. The result is an educational verdict per country — your top destinations, a short avoid list, key tax flags and a realistic monthly budget — not tax, legal or immigration advice.
About you
About you
Your citizenship and tax residence decide which exit-tax and citizenship-based-tax rules apply. Age, household and retirement status shape the budget and the destinations that fit.
Plan B tax guide
A second residency or passport can cut your tax bill, but only if you understand the difference between tax residence and citizenship, what you leave behind, and how the US keeps taxing its people abroad. This short guide covers the essentials. It is educational only — not advice.
Residency vs citizenship
Tax is driven by where you are tax-resident, not by which passport you hold. Most countries tax residents on worldwide income; territorial countries tax only local-source income; remittance-base countries tax foreign income only when you bring it in. A second passport alone changes nothing until you also move your tax residence and cut residence at home — and even then, citizenship-based-tax countries (the US and Eritrea) keep taxing you until you renounce.
Exit tax basics for US citizens
When a US citizen or long-term green-card holder expatriates, IRC §877A may treat them as a covered expatriate if their net worth is at least USD 2M, their average annual net income tax over the prior five years exceeds about USD 211,000 (2026), or they cannot certify five years of tax compliance. Covered expatriates are deemed to sell all worldwide assets at market value the day before expatriation, with the first USD 910,000 (2026) of net gain excluded. Non-covered expatriates face no mark-to-market tax but must still file Form 8854. Germany, Canada, Australia and others have their own departure taxes.
FEIE, FTC and tax treaties
US citizens and residents living abroad can use the Foreign Earned Income Exclusion (FEIE) to exclude a set amount of earned income, or the Foreign Tax Credit (FTC) to offset US tax with tax paid abroad — usually whichever is better. The FEIE does not cover passive income, and the FTC cannot reduce tax below what the US would charge. Tax treaties assign taxing rights between countries and may lower withholding, but they do not end US citizenship-based taxation. Only renouncing citizenship does — and that may trigger the exit tax above.
Common mistakes
Assuming a second passport ends your home tax (it does not, for US citizens). Forgetting FBAR and Form 8938 reporting on foreign accounts. Ignoring CFC rules that attribute undistributed foreign-company profits to you. Overlooking that real estate at home stays taxed where it sits. Choosing a time-limited tax holiday that later reverts to normal tax. And underestimating that moving within the EU/EEA can defer, not erase, an exit tax.
Frequently asked questions
Does a second passport stop me paying tax in my home country?
Only if your home country taxes by residence. For US citizens and green-card holders, a second passport changes nothing — the US taxes by citizenship, so you remain taxable until you renounce, which may trigger an exit tax.
What is an exit tax?
A tax some countries charge when you give up tax residence or citizenship. The US marks covered expatriates to market on worldwide assets; Germany, Canada, Australia and others tax deemed gains on certain assets when you leave.
Am I a covered expatriate under US rules?
Likely yes if your net worth is at least USD 2M, your average annual net income tax over the last five years exceeds about USD 211,000 (2026), or you cannot certify five years of US tax compliance. This planner flags the likely outcome from your bands.
What is the difference between territorial and remittance-based tax?
A territorial country taxes only local-source income, so foreign income is generally free. A remittance-base country taxes foreign income only when you bring it into the country — useful if you keep foreign income offshore.
Do I still need to report foreign accounts as a US citizen abroad?
Yes. FBAR is required if foreign accounts exceed USD 10,000 at any time in the year, and Form 8938 applies above higher thresholds. Many countries also exchange account data automatically under CRS.
Can the FEIE or FTC eliminate my US tax abroad?
The FEIE excludes a set amount of earned income; the FTC credits foreign tax paid against US tax. They reduce US tax but do not end citizenship-based taxation, and passive income is not covered by the FEIE.
Is this planner tax or immigration advice?
No. It gives educational verdicts and ballparks from public sources with an as-of date. Rules change often and depend on your exact facts — consult a licensed tax adviser, lawyer and immigration professional before acting.
Sources & last updated
Destination tax, exit-tax, residency and citizenship data are drawn from PwC Tax Summaries, EY tax news, IRS expatriation guidance, official government portals and Numbeo cost-of-living figures. All figures are educational ballparks. Last updated: Oct 12, 2026.