Tax treaty US - France

calin-m · 2025-10-16T03:34:08-0400

Just reading the news, and I learned that the [anti-EU] Hungarian PM is going to meet the US president, to discuss - among other things - a new tax treaty between the two countries. Which meant there was none at this moment (!) Researching further the topic, I found out that in 2022 the US actually terminated its tax treaty with Hungary, effective January 2023, which dire consequences due to the double taxation for those in expat situation, beginning around 2024 (a year later).

Which then brings me to the topic of the treaty that may concern some of the members of this forum: considering the attitude of the current US administration towards EU countries, in general, what are the chances such treaties will be unilaterally terminated, for France included?

Bevdeforges · 2025-10-16T03:56:06-0400

If the tax treaties were to be unilaterally terminated, taxpayers would be left with just the "naked" Foreign Earned Income Exclusion and the Foreign Tax Credit - like anyone else in those countries without a tax treaty with the US. Though how much ability the US IRS would have to audit or investigate the various tax returns of US taxpayers overseas is anyone's guess.

It would make the option of renouncing US citizenship somewhat more attractive to those who are eligible for that. Or of simply flying beneath the radar for those of limited means or those who have cut their financial ties with the US. I'm probably somewhat more concerned about the "brain trust" in the White suddenly figuring out that there are plenty of non-US-citizens who are drawing US Social Security entirely legally, based on qualifying job experience or marriage to US citizens in the past. Though the SSA withholds the NRA tax rate on those payments before paying out the benefits anyhow. No tax return required!

Tax treaty US - France

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