Banking, Taxes, and Money for US Remote Workers Living Abroad

The financial side of living abroad as a US remote worker is more complicated than most people expect — and more manageable than most people fear. The two areas where people get it wrong most often are banking and taxes. Banking because they do not set up the right accounts before they leave. Taxes because they assume moving abroad changes their US tax obligation. It does not — but it changes how you manage it, and getting that right saves thousands per year.

This guide covers both in full.

Banking Setup for US Remote Workers Abroad

The goal of your banking setup is simple: access your money anywhere in the world without paying fees, convert currencies at fair rates, and maintain enough US financial presence to keep your credit profile and financial relationships intact.

The Core Setup

Charles Schwab High Yield Investor Checking This is the foundational account for almost every long-term US expat and remote worker in Southeast Asia. It reimburses all ATM fees worldwide at the end of each month — every fee, from every bank, in every country. There are no foreign transaction fees. The account earns a small amount of interest. It requires no minimum balance.

The catch: you need to open it while you still have a US address. Open it before you leave. For the full pre-departure setup sequence, read How to Move to Southeast Asia as a Remote Worker: The Full Checklist.

Wise (Multi-Currency Account) Wise gives you local bank account details in the US, UK, EU, Australia, and several other countries. When clients or employers pay you in USD to your Wise US account details, you hold it in USD and convert only what you need at mid-market rates. The conversion fees are significantly lower than traditional banks.

Wise is particularly useful if you have any income in local currency — freelance work paid in PHP, THB, or VND can be received and held without paying conversion fees on both ends.

A local bank account in your country of residence For day-to-day expenses, paying rent, and utility bills, a local bank account reduces friction significantly. In the Philippines, BDO and BPI are the most commonly used by expats. In Thailand, Bangkok Bank and Kasikorn Bank both offer accounts to foreigners with the right visa documentation.

Opening a local account typically requires your passport, visa documentation showing you have the right to be in the country, and sometimes a local address. Requirements vary by bank and change periodically — confirm directly with the bank before visiting.

Using a VPN for US Financial Access

Once you are outside the US, some US financial services will restrict or flag access from foreign IP addresses. Online banking, investment platforms, and even some payment processors can lock accounts when they detect foreign logins.

A VPN with a US server allows you to access these services without triggering geographic flags. This is standard practice for US expats and remote workers and does not constitute fraud — you are a US citizen accessing your own accounts.

Choose a reputable VPN provider with reliable US servers. Mullvad and ExpressVPN are commonly used. Set your US IP before accessing US financial services from abroad.

US Taxes for Remote Workers Living Abroad

The most important thing to understand: US citizens are taxed on worldwide income regardless of where they live. Moving to Southeast Asia does not make you exempt from US taxes. You must still file a US tax return every year.

What changes is how much you owe — and with the right setup, many remote workers in Southeast Asia owe very little US federal income tax on their foreign earnings.

The Foreign Earned Income Exclusion (FEIE)

The FEIE allows qualifying US citizens living abroad to exclude a significant portion of their foreign earned income from US federal income tax. The 2025 exclusion limit is approximately $130,000 (adjusted annually for inflation).

To qualify you must meet one of two tests:

Bona Fide Residence Test: You are a bona fide resident of a foreign country for an uninterrupted period that includes a full tax year. This requires genuine residency — a long-term visa, a local address, local ties. It is not just being physically present.

Physical Presence Test: You are physically present in a foreign country or countries for at least 330 full days in any 12-month period. This is the more commonly used test for remote workers and digital nomads because it does not require formal residency in any country.

To claim the FEIE, file Form 2555 with your US tax return. If you are also self-employed, note that the FEIE excludes income from income tax but does not eliminate self-employment tax — you still owe the 15.3 percent SE tax on net self-employment earnings regardless of where you live.

The Foreign Tax Credit

If you pay income tax in your country of residence, you can claim a Foreign Tax Credit on Form 1116 to reduce your US tax liability dollar-for-dollar by the amount of foreign tax paid. This prevents double taxation.

Most Southeast Asian countries have low income tax rates for foreigners, and some have territorial tax systems — meaning foreign-sourced income (like a US salary) is not taxed locally at all. In practice, many remote workers in the Philippines, Thailand, and Vietnam pay little to no local income tax on their US-sourced income, which makes the Foreign Tax Credit less relevant but the FEIE more valuable.

FBAR and FATCA Reporting

FBAR (FinCEN Form 114): If the aggregate value of your foreign bank accounts exceeds $10,000 at any point during the calendar year, you must file an FBAR by April 15 (with automatic extension to October 15). The penalty for non-filing is severe — up to $10,000 per violation for non-willful failures.

FATCA (Form 8938): Reporting thresholds are higher — $200,000 for single filers living abroad at year end, or $300,000 at any point during the year. If you have significant foreign assets, consult a specialist.

The key point: open your Wise account, your local bank account, and any other foreign accounts with FBAR and FATCA in mind from day one. Track the aggregate balance monthly. Do not let the reporting requirement surprise you at tax time.