Living in a tax‑neutral jurisdiction like the Cayman Islands doesn’t remove your U.S. filing duties. Use these practical tips to stay compliant, reduce tax, and avoid penalties as a U.S. expat.

1) Determine Your Residency Path

Qualify for the Foreign Earned Income Exclusion (FEIE) via the Physical Presence or Bona Fide Residence test—choose the route that fits your facts and documentation.

2) Combine FEIE with the Housing Exclusion

High Cayman housing costs may qualify for additional relief. Track rent, utilities, and eligible expenses with receipts.

3) Use the Foreign Tax Credit (FTC) When Relevant

For income taxed in other countries (e.g., investments), apply the FTC to offset U.S. tax. You generally cannot apply FEIE and FTC to the same dollar of income.

4) Banking & Reporting

Calendar FBAR (FinCEN 114) and FATCA (Form 8938) thresholds. Penalties for non‑filing are severe.

5) Plan Entity & Compensation

Coordinate salary vs. distributions, retirement contributions, and timing to align credits and exclusions.

6) Keep an Expat Tax Calendar

Track U.S. deadlines (June 15 for expats; Oct 15 with extension) and Cayman compliance items to avoid surprises.

7) Work with a Specialist

Ledger Pro helps Cayman‑based expats file correctly and minimize tax with tailored strategies.

📌 Schedule Your Expat Tax Consultation