# FEIE question



## chalmersman (Apr 15, 2016)

Thanks first to all contributors who I'm learning a lot from! Very useful.

I have a relatively straightforward question that I believe to know the answer to but want to confirm. 

- I will qualify for the FEIE through physical presence (barely!)
- I work for a Danish charity organization
- I perform work in Greece
- I will declare to the IRS my tax home in Greece 

Does my FEIE depend on my paying taxes to Greek authorities? 

I think the answer is 'no', but I'm unsure about the 'tax home' issue when there is a tax treaty between the two countries. My Danish employer does not withhold taxes or expect any to be paid in Denmark (as all work is done outside of Denmark) but do report my income to US tax authorities.

Or perhaps my question should be, is there any communication between the IRS and foreign tax offices about where one pays or doesn't pay taxes? 

Many thanks


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## Bevdeforges (Nov 16, 2007)

Absolutely correct. It does not matter whether or not you pay taxes on your salary in Greece or anywhere else, for that matter. The FEIE applies strictly to "foreign earned income." Your tax home is whichever country you did your physical presence in - even if your income is not subject to taxes there.

Here in France, we have two big international organizations - the OECD and UNESCO - and under French law, salaries from such "international civil service organizations" are not taxed (at least for those working at a certain level). Similarly Americans who work in the Emirate states with no income tax do not pay local taxes where they live and work (yet their "tax home" is the place they live all the same).

I'm not sure why Greece doesn't tax your salary (other than if you're working for an NGO where all salaries are exempt from taxation), but it's perfectly legit to claim the FEIE on foreign earned income even when it is not taxed in the country in which you are residing. That's precisely what the folks do who work for the OECD and UNESCO. In the Emirates, those earning high incomes only pay tax on their salaries over and above the FEIE. So you're in good company. 
Cheers,
Bev


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## chalmersman (Apr 15, 2016)

Bev! Thanks a million! Or actually about 2% of a million


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