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International Tax Services: Colombia, Mexico, UAE, Canada & Beyond
- Sabih Shafi E.A
- 3 days ago
- 6 min read
Living or doing business across two countries rarely means two sets of forms — it means two tax authorities, two filing calendars, and two different definitions of "resident," all applying to you at once. Most tax preparers stop at the US border. Most local accountants abroad have never heard of an FBAR.
As an Enrolled Agent, I handle the US side of that equation in-house — filings, representation, and everything the IRS touches. For the in-country side, I work with a vetted network of local tax professionals — with especially close working relationships in Colombia, Mexico, Canada, and the UAE — so the US and local pictures get coordinated instead of contradicting each other. This page is general information, not individual tax advice.
Americans living abroad still owe the IRS
The United States taxes citizens and green-card holders on worldwide income no matter where they live — there is no such thing as "I moved, so I stopped owing US tax." The Foreign Earned Income Exclusion and the Foreign Tax Credit are what keep most expats from being taxed twice on the same dollar, but neither one is automatic; both have to be elected and calculated correctly, every year.
On top of the income return, foreign bank accounts over $10,000 combined trigger an FBAR, and larger foreign asset holdings can trigger Form 8938 under FATCA. Falling behind is common and fixable — the streamlined filing procedures exist for exactly that — but the filing obligation itself never goes away just because your mailing address did.
Colombia: the 183-day residency trap
Colombia's tax residency rule does not run on the calendar year the way most people assume. The DIAN counts 183 days, continuous or not, inside any rolling 365-day window — arrival and departure days included. Cross that line and Colombia taxes your worldwide income at progressive rates, not just what you earned locally.
That creates a coordination problem, not just a compliance problem: your US return, your Colombian return, and your FBAR all need to tell a consistent story. We handle the US side directly; the Colombian filing side is coordinated through our local partners so nothing falls through the gap between the two systems. For the full breakdown of the residency rule, see our dedicated Colombia guide below.
Mexico: residency turns on your life, not just your days
Mexico approaches residency differently than Colombia does, and the difference catches people off guard. Mexico does not lead with a day count at all. The starting point is whether you have established a home — a casa habitación available for your habitual use — in Mexico. If you also keep a home in another country, the tiebreaker is your center of vital interests: broadly, whether more than half your income comes from Mexican sources, or whether Mexico is the principal base for your professional activities. The practical consequence is that someone can spend well under half the year in Mexico and still be treated as a Mexican tax resident, while someone who spends more time there is not.
For Americans in Mexico, the US return continues regardless, and Mexican bank accounts count toward the $10,000 FBAR threshold like accounts anywhere else. There is a US–Mexico income tax treaty, which helps sort out which country gets to tax what and reduces double taxation — but treaty positions generally have to be claimed correctly, not assumed. We handle the US filing directly and coordinate the Mexican side, including RFC registration and SAT filings, through our local partners.
The UAE: no local income tax doesn't mean no US tax
The UAE's lack of a personal income tax is real — and it is also the single most common source of confusion for American expats there. US taxation runs on citizenship, not residency: a US citizen or green-card holder in Dubai or Abu Dhabi still files a US return on worldwide income every year, exactly as if they lived in Ohio. The FEIE and Foreign Tax Credit still apply — there just isn't much foreign tax to credit against.
UAE bank accounts and any UAE free-zone company still factor into FBAR and FATCA reporting, and a UAE entity used to run a US-facing business raises its own structuring questions — which jurisdiction actually owns the client relationship, and where. We manage the US filing and coordinate any UAE-side registration or reporting through our local partners, so the structure holds up in both places at once.
Canada: a real treaty, but its own traps
Canada is one of the few countries with an actual US tax treaty, which genuinely helps — but it does not make Canada simple. Dual filers still juggle a US return and a Canadian return, foreign tax credits on both sides, and separate foreign-asset reporting regimes (FBAR on the US side, the T1135 on the Canadian side) that don't talk to each other.
Canadian founders looking at a US LLC hit a structural mismatch most people don't see coming: the US treats a single-member LLC as disregarded by default, but the Canada Revenue Agency generally views that same LLC as a corporation rather than a pass-through. When two systems classify the same entity differently, they can also tax it at different moments — which is how an owner ends up taxed twice on the same income with limited relief, even though a treaty exists. This is a problem to solve before the entity is formed, not after. We handle the US return and US entity compliance directly, and coordinate the Canadian filing side through our local partners so the structure is clean on both sides of the border, not just one.
Foreign founders: a US LLC or corporation, structured right
This part isn't country-specific — a non-US citizen from Colombia, the UAE, Canada, or anywhere else can form a US LLC or corporation and get a federal EIN without a Social Security Number. What trips founders up isn't formation; it's the ongoing federal compliance that comes with owning a US entity as a foreign person.
A foreign-owned single-member LLC generally has to file Form 5472 with a pro-forma Form 1120 every year — and the automatic penalty for missing it is $25,000, whether or not the company earned a dollar. Structured and maintained correctly from the start, none of this is hard. It becomes expensive only when it's ignored.
How we work across borders
The model is the same regardless of which country is involved: the US side — your federal return, entity compliance, IRS representation, and IRS §7216 confidentiality — is handled in-house by a federally licensed Enrolled Agent. The in-country side is coordinated through a vetted network of local tax professionals, with especially close working relationships in Colombia, Mexico, Canada, and the UAE, and partners in other countries as clients need them.
The point of that structure is simple: one firm that actually talks to both sides, instead of a US preparer and a local accountant who have never spoken to each other and are quietly filing two different stories about the same income.
Frequently Asked Questions
Do I still have to file US taxes if I live abroad?
Yes. The US taxes citizens and green-card holders on worldwide income regardless of where they live. The Foreign Earned Income Exclusion and Foreign Tax Credit reduce or eliminate double taxation, but the filing requirement itself doesn't go away.
What is Colombia's 183-day tax residency rule?
Colombia counts 183 days — continuous or not, including arrival and departure days — inside any rolling 365-day window, not the calendar year. Cross that threshold and the DIAN taxes your worldwide income, not just Colombian-source income.
How does Mexico decide whether I'm a tax resident?
Mexico does not use a simple day count. It starts with whether you have established a home available for your habitual use in Mexico, and if you also have a home elsewhere, it looks to your center of vital interests — broadly, whether more than half your income is Mexican-source or Mexico is the principal base of your professional activities. The answer can differ from what a pure day-count test would suggest.
Does living in the UAE mean I don't owe any US tax?
No. The UAE has no personal income tax, but US taxation is based on citizenship, not residency. A US citizen or green-card holder in the UAE still files a US return on worldwide income every year, though the Foreign Earned Income Exclusion often reduces what's actually owed.
Can a non-US citizen form a US LLC without a Social Security Number?
Yes. You don't need an SSN, ITIN, or US address to own a US LLC or corporation. The EIN application is filed by fax instead of the online tool. What most founders miss is the ongoing compliance — particularly Form 5472 — not the formation itself.
Related Reading
Talk to an Enrolled Agent
This page is general information, not individual tax advice. If you want to talk through your specific situation — in the US or abroad — book a free 15-minute review or call or text us directly.
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