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THIS WEEK ABROAD
In this edition, we’re unpacking Trump’s sweeping new tax bill and what it means for expats, spotlighting Serbia’s unbeatable cost of living, and showing why Swiss banks with US branches may be the most secure option for your cross-border finances.
Let’s dive in 👇
Need-to-Know News
🏛️ TRUMP’S TAX LAW: WHAT IT MEANS FOR EXPATS
Last month, President Donald Trump signed the “One Big Beautiful Bill” Act into law. While the new law makes sweeping changes to the US tax code, a few key provisions apply directly to US expats and digital nomads.
The Good News
SALT Deduction Raised: the law raises the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. If you’re still paying state income taxes, this is quite a significant jump. That said, most expats are better off establishing a domicile in a zero-tax state like Florida - a service that Savvy Nomad can provide.
FEIE Adjustment One thing that hasn’t changed is the Foreign Earned Income Exclusion, other than the previously scheduled increase from $126,500 to $130,000. |
The Bad News
1% Remittance Tax: starting in 2026, a new 1% Remittance Tax will apply to outbound transfers made with cash, money orders, or cashier’s checks. Bank-based transfers (ACH, debit, or credit) are exempt, underscoring the importance of maintaining a US bank account and residential address.
New Child Tax Credit Rules: on a positive note, the Child Tax Credit gets a bump from $2,000 to $2,500 per child. However, both the child and at least one parent must have a valid US Social Security Number. This could complicate claims for expat families with dual-citizen children who lack US documentation.
When It Kicks In
Remember that these changes affect the 2025 tax year, meaning you’ll see the impact when filing in 2026.
Savvy Nomad will keep breaking down how new tax laws affect Americans abroad, so stay tuned!
Video of the Week
RELOCATING FROM THE U.S. TO SERBIA: COST OF LIVING
Saving money is among the biggest perks of the expat life. And when it comes to living cheaply in Europe, it’s impossible to beat the continent’s eastern half.
One American expat recently regaled CNBC with her tale of paying just $580 a month for rent in Belgrade, Serbia. According to Numbeo, the cost of living in Serbia overall is 47% lower than the US.
Another key benefit of Serbian living is easy residency. After just three years, foreigners can apply for permanent residency in the country.
Money & Tax Corner
💰 BEST SWISS BANKS WITH US BRANCHES
For many US expats, digital nomads, and retirees, unexpected account closures, whether from Morgan Stanley, Fidelity, or even domestic UBS, have spotlighted the vulnerability of relying solely on US financial institutions.
Enter Swiss banks with US branches.
These institutions marry Switzerland’s legendary banking robustness with full compliance under US regulations like FATCA, plus FDIC coverage for dollar deposits.
Why They’re Ideal
Fully FATCA-compliant and aligned with US tax reporting.
FDIC insurance up to $250,000 for U.S. dollar accounts provides peace of mind.
Multi-currency accounts, expert wealth management, and intuitive digital platforms cater to cross-border lifestyles.
Top Contenders
UBS Bank USA (FDIC-insured): Featuring checking/savings accounts, investment services, mortgages, loans, and global ATM access—ideal for those seeking integrated, reliable banking.
Safra National Bank of New York (FDIC-insured): Offers private banking, multi-currency services, and tailored financial solutions—perfect for high-net-worth clients seeking personal attention.
M.Y. Safra Bank, FSB (FDIC-insured): Blends everyday banking ease with private banking perks and competitive currency services.
HAB Bank (Habib American Bank) (FDIC-insured): Community-focused with user-friendly accounts, accessible minimums, and efficient international transfers.
Credit Suisse AG New York Branch & Julius Baer Investment Management LLC (non-FDIC): Offer advanced investment and wealth strategies, but without FDIC protection.
Getting started is simple—just gather key documents like a US passport, proof of address abroad, SSN/W-9 for FATCA, then reach out to the bank’s US branch to begin onboarding.
➡️Read More: See Savvy Nomad’s full article on six Swiss banks with US branches.
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