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May 24, 2024

US Tax Treaties: Save on Foreign Taxes in 60+ Countries

Over 60 countries hold active tax treaties with the US. Tax treaties help set clear guidelines for international income and avoid double taxation.

US Tax Treaties: Save on Foreign Taxes in 60+ Countries

Akhil Reddy
May 23, 2022

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Tax treaties are agreements between two countries to avoid double taxation on citizens living abroad.

The US is one of two countries that taxes its citizens on all worldwide income, not just income they earn while living in-country. When a US citizen works in a country with a US income tax treaty, a bilateral (two-party) partnership also called a double-tax agreement (DTA), they can get credit for the international tax they already paid on their foreign-earned income. They can get tax exemptions on the income tax they owe to the US.

Over 60 countries hold active treaties with the US. Let’s explore the various options for tax treaties around the world.

How do US tax treaties work?

US tax treaties avoid doubling of taxes between the US and foreign countries. The treaties allow two parties to pay taxes at a reduced rate:

  • US taxpayers earning income in foreign countries
  • Residents of foreign countries earning income in the US

Tax treaties vary in scope. In some countries, the US provides a tax credit up to a certain amount of income taxed by a foreign country. In other countries, such as in the UK, the treaty is more expansive. US citizens working in the UK don’t have to pay taxes on contributions to UK pension schemes because of the US-UK treaty.


US citizens complete and file Internal Revenue Service (IRS) Form 8833 with their tax return to list items of income earned in foreign countries and claim income treaty tax benefits.

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Countries with US tax treaty benefits

Consider this the highlight reel of US tax treaties. If you’re looking for a specific country, our list is in alphabetical order and you can learn more about each treaty on the IRS website.

Armenia

US citizens working in US companies while living in Armenia are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US Internal Revenue Code.

Learn more about the US-Armenia tax treaty

Australia

The US-Australia tax treaty doesn’t provide exemptions on all income. Instead, it offers specific deductions for individuals who meet specific eligibility requirements like students and retired people.

Learn more about the US-Australia tax treaty

Austria

The treaty allows citizens of the US and Austria to count foreign-earned income tax in their country of citizenship. It recognizes payments made to US federal income tax (excluding social security taxes), Austria’s income tax (die Einkommensteuer), and Austria’s corporation tax (die Körperschaftsteuer).

Learn more about the US-Austria tax treaty

Azerbaijan

Employees of US companies working in Azerbaijan are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Azerbaijan tax treaty

Bangladesh

Residents of the US and Bangladesh who receive income from the other country benefit from the US-Bangladesh tax treaty. Employees and companies can avoid double taxation on US federal income taxes and the Bangladesh income tax.

Learn more about the US-Bangladesh tax treaty

Barbados

The treaty applies to US federal income taxes as assessed by the Internal Revenue Code (excluding the accumulated earnings tax, personal holding company tax, and social security taxes and including excise taxes on insurance premiums paid to foreigh insurers).

In Barbados, the treaty prevents double taxation on income tax (including premium income tax), corporation tax (including branch profit tax), and petroleum winning operations tax.

Learn more about the US-Barbados tax treaty

Belarus

US citizens employed by US companies working in Belarus are subject to taxes and dues provided by the Commonwealth of Independent States (CIS).

Learn more about the US-Belarus tax treaty

Belgium

Any income, profit, or gain that comes from a company registered in the US or Belgium or an employee residing in either country will be subject to the taxes of the country they’re operating or living in.

The treaty covers the Belgian individual income tax, corporate income tax, income tax on legal entities, and income tax on non-residents as well as US federal income taxes (excluding social security taxes) and Federal excise taxes on private foundations.

Learn more about the US-Belgium tax treaty

Bulgaria

Any income, profit, or gain that comes from a company registered in the US or Bulgaria or an employee residing in either country will be subject to the taxes of the country they’re operating or living in. The treaty covers the Bulgarian personal and corporate income taxes and US federal income taxes (excluding social security taxes and including investment income for foreign foundations).

Learn more about the US-Bulgaria tax treaty

Canada

The treaty prevents double taxing on taxes imposed by the Government of Canada under Parts I, XIII, and XIV of the Income Tax Act as well as US federal income taxes imposed by the Internal Revenue Code.

Learn more about the US-Canada tax treaty

China

In the US, the treaty applies to any federal income taxes imposed on an individual or corporation. In China, the treaty covers the individual income tax, income tax concerning joint ventures with Chinese and foreign investment, income tax concerning foreign enterprises, and local income tax.

Learn more about the US-China tax treaty

Cyprus

In the US, the treaty covers the federal income taxes and excise taxes on insurance premiums paid to foreign insurers by private foundations (excluding the accumulated earnings tax, personal holding company tax, and social security taxes). In Cyprus, the treaty prevents double taxation on income tax, capital gains tax, and special contribution (Cypriot) tax.

Learn more about the US-Cyprus tax treaty

Czech Republic

The treaty prevents double taxation on US federal income tax (excluding accumulated earnings tax, personal holding company tax, and social security taxes and including excise taxes on investment income of private foundations) and the Czech Republic’s income taxes imposed by the income tax law and tax on immovable property (real property tax).

Learn more about the US-Czech Republic tax treaty

Denmark

In the US, the treaty provides tax exemptions on federal income tax (excluding social security taxes) and federal excise taxes on private foundations.

In Denmark, the treaty applies to the income tax to the State (indkomstskatten til staten), municipal income tax (den kommunale indkomstskat), income tax to county municipalities (den amtskommunale indkomstskat), and taxes levied under the Hydrocarbon Tax Act (skatter i henhold til kulbrinteskatteloven).

Learn more about the US-Denmark tax treaty

Egypt

In the US, the treaty prevents double taxation on federal income tax (excluding the accumulated earnings tax and personal holding company tax).

In Egypt, the treaty covers the tax on income derived from immovable property (including the land tax, building tax, and ghaffir tax); tax on income from movable capital, tax on commercial and industrial profits; tax on wages, salaries, indemnities, and pensions; tax on profits from liberal professions and other noncommercial professions; general income tax; defense tax; national security tax; war tax; and supplementary taxes imposed as a percentage of the above taxes.

Learn more about the US-Egypt tax treaty

Estonia

The treaty provides exemptions on US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes and including excise taxes on private foundations’ investment income), Estonia’s federal income tax (excluding tax on insurance companies per paragraph 35 of the Estonian income tax law), and Estonian local income tax.

Learn more about the US-Estonia tax treaty

Finland

In Finland, the treaty recognizes payments to the state income and capital tax, communal tax, church tax, and tax withheld at the source from non-residents’ income.

In the US, the treaty covers federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security tax) and excise taxes imposed on insurance premiums paid to foreign insurers by private foundations to the extent that the risks covered by the premiums are not reinsured with a person not entitled to benefits.

Learn more about the US-Finland tax treaty

France

In the US, the treaty prevents double taxation on federal income taxes (excluding social security taxes) and excise taxes on insurance premiums paid to foreign insurers by private foundation to the extent that the risks covered by the premiums are not reinsured with a person not entitled to exemption.

In France, the treaty applies to the income tax (l’impôt sur le revenu), the company tax (l’impôt sur les sociétés), the tax on salaries (la taxe sur les salaires), and the wealth tax (l’impôt de solidarité sur la fortune).

Learn more about the US-France tax treaty

Georgia

Employees of US companies working in Georgia are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Georgia tax treaty

Germany

In the US, the treaty recognizes payments to federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and the excise tax imposed on insurance premiums paid to foreign insurers to the extent that the risks covered by the premiums are not reinsured with a person not entitled to exemption.

In Germany, the treaty covers the income tax (Einkommensteuer), corporation tax (Körperschaftsteuer), trade tax (Gewerbesteuer), and capital tax (Vermögensteuer).

Learn more about the US-Germany tax treaty

Greece

The treaty covers US federal income tax (including surtaxes) and Greece’s income tax (including the scheduler or analytical tax, the complementary tax, and the professional or business tax).

Learn more about the US-Greece tax treaty

Hungary

In the US, the treaty prevents double taxation on federal income tax (excluding the accumulated earnings tax and personal holding company tax) and excise taxes on insurance premiums paid to foreign insurers by private foundations.

In Hungary, the treaty applies to the general income tax, income tax on intellectual activities, profit tax, profit tax on economic associations with foreign participation, enterprises special tax, levy on dividends and profit distributions of commercial companies, profit tax on state owned enterprises, and the contribution to communal development.

Learn more about the US-Hungary tax treaty

Iceland

The treaty applies to US federal income tax and the Icelandic national income tax, national capital tax, and municipal income tax.

Learn more about the US-Iceland tax treaty

India

In the US, the treaty prevents double taxation on federal income tax (excluding the accumulated earnings tax, the personal holding company tax, and social security tax) and the excise tax on insurance premiums paid to foreign insurers by private foundations to the extent that the risks covered are not reinsured with a person not entitled to exemption.

In India, the treaty applies to the income tax (including surcharges and excluding income tax on companies’ undistributed income) and the surtax.

Learn more about the US-India tax treaty

Indonesia

The treaty recognizes payments to Indonesian income tax (pajak penghasilan, to the extent provided in such income tax, company tax or pakak perseroan, taxes on interest dividends and royalties or pajak atas bunga) and US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes).

Learn more about the US-Indonesia tax treaty

Ireland

The treaty prevents double taxation for US federal income tax (excluding the accumulated earnings tax, personal holding company tax, and social security tax and including excise taxes on insurance premiums to foreign investors by private foundations) and the Irish income tax, corporation tax, and capital gains tax.

Learn more about the US-Ireland tax treaty

Israel

In the US, the treaty recognizes payments to federal income tax.

In Israel, the treaty covers the income tax (including capital gains tax), company tax, tax on gains from the sale of land under the land appreciation tax law, tax on income levied under the services tax law (banking institutions and insurance companies), and taxes on war loans and security loans.

Learn more about the US-Israel tax treaty

Italy

The treaty covers US federal income tax (excluding social security tax) and Federal excise tax on insurance premiums paid to foreign insurers by private foundations. It also recognizes payments to Italian individual income tax (l’imposta sul reddito delle persone fisiche), corporation income tax (l’imposta sul reddito delle persone giuridiche), and regional tax on productive activities (l’imposta regionale sulle attività produttive).

Learn more about the US-Italy tax treaty

Jamaica

The treaty applies to US federal income tax (excluding the accumulated earnings tax and personal holding company tax) and the Jamaican income tax, company profits tax, and transfer tax.

Learn more about the US-Jamaica tax treaty

Japan

The treaty covers the Japanese income and corporation tax and US federal income taxes (excluding social security tax).

Learn more about the US-Japan tax treaty

Kazakhstan

In the US, the treaty applies to federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security tax).

In Kazakhstan, the treaty covers the taxes on profits and income as outlined by the laws on Taxation of Enterprises, Associations, and Organizations and Income Tax on Citizens of the Kazakh SSR, Foreign Citizens, and Stateless Persons.

Learn more about the US-Kazakhstan tax treaty

Korea

The treaty prevents double taxation to US federal income taxes and the Korean income and corporation taxes. Additionally, the treaty covers taxes of every kind imposed at the national, state, or local level.

Learn more about the US-Korea tax treaty

Kyrgyzstan

Employees of US companies working in Kyrgyzstan are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Kyrgyzstan tax treaty

Latvia

The treaty recognizes payments to US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes and including excise taxes on investment income of private foundations) and the Latvian enterprise income tax (uzunemumu ienakuma nodoklis) and personal income tax (iedzivotaju ienakuma nodoklis).

Learn more about the US-Latvia tax treaty

Lithuania

The treaty limits double taxation on US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes and including excise taxes on investment income of private foundations) and the Lithuanian tax on profits of legal persons (juridiniu asmenu pelno mokestis) and tax on income of natural persons (fiziniu asmenu pajamu mokestis).

Learn more about the US-Lithuanian tax treaty

Luxembourg

In the US, the treaty applies to the federal income taxes (excluding social security taxes) and excise taxes on insurance premiums paid to foreign insurers to the extent that risks covered by the premiums are not reinsured with a person entitled to exemption (excluding excise taxes paid to foreign insurers for reinsurance).

In Luxembourg, the treaty covers the income tax on individuals including the surcharge for the benefit of the employment fund (l’impôt sur le revenu des personnes physiques, y compris la contribution au fonds pour l’emploi), the corporation tax including the surcharge for the benefit of the employment fund (l’impôt sur le revenu des collectivités, y compris la contribution au fonds pour l’emploi), the tax on fees of directors of companies (l’impôt spécial sur les tantiémes), the capital tax (l’impôt sur la fortune), and the communal trade tax (l’impôt commercial communal).

Learn more about the US-Luxembourg tax treaty

Malta

The treaty covers US federal income taxes (excluding social security and unemployment taxes) and excise taxes imposed on private foundations and the Maltese income tax.

Learn more about the US-Malta tax treaty

Mexico

The treaty prevents double taxation on US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and Federal excise taxes on insurance premiums paid to foreign insurers (to the extent that the risks covered by the premiums are not reinsured with a person not entitled to exemption), as well as the Mexican income tax as outlined by the Income Tax Law.

Learn more about the US-Mexico tax treaty

Moldova

Employees of US companies working in Moldova are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US Internal Revenue Code.

Learn more about the US-Moldova tax treaty

Morocco

In the US, the treaty applies to federal income taxes.

In Morocco, the treaty covers the agricultural tax; taxes on urban property; tax on public and private salaries, emoluments, fees, wages, pensions, and annuities; complementary tax; business profits tax; and compulsory loan for investment by the Moroccan government.

Learn more about the US-Morocco tax treaty

The Netherlands

In the Netherlands, the treaty prevents double taxation on income tax (de inkomstenbelasting), wages tax (de loonbelasting), company tax including the government’s share in the net profits of the exploitation of natural resources (de vennootschapsbelasting), and dividend tax (de dividendbelasting).

In the US, the treaty applies to federal income taxes (excluding social security taxes) and excise taxes on insurance premiums paid to foreign insurers by private foundations.

Learn more about the US-Netherlands tax treaty

New Zealand

The treaty covers US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and excise taxes on private foundations and the New Zealand income tax (excluding the excess retention tax and bonus issue tax).

Learn more about the US-New Zealand tax treaty

Norway

In the US, the treaty covers federal income taxes imposed by the Internal Revenue Code.

In Norway, the treaty applies to the national and municipal taxes on income (including contributions to the tax equalization fund) and capital, the national dues on the salaries of nonresident artists, the special tax in aid of developing countries, the municipal tax on real property, and the seamen’s tax.

Learn more about the US-Norway tax treaty

Pakistan

The treaty covers US federal income taxes (including surtaxes) and Pakistani income tax, super-tax, and business profits tax.

Learn more about the US-Pakistan tax treaty

The Philippines

The treaty limits double taxation on US federal income taxes (excluding the personal holding company tax and improperly accumulated earnings tax) and the Philippines' income tax as outlined by Title II of the National Internal Revenue Code (excluding the personal holding company tax and improperly accumulated earnings tax).

Learn more about the US-Philippines Treaty

Poland

The treaty covers the Polish income tax, tax on salaries and wages, and equalization tax (surtax) as well as US federal income tax (excluding employment taxes). Additionally, the treaty applies to any taxes imposed at the national, state, or local level.

Learn more about the US-Poland Treaty

Portugal

In Portugal, the treaty applies to the personal income tax (Imposto sobre o Rendimento das Pessoas Singulares), corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas), and local surtax on corporate income tax (Derrama).

In the US, the treaty covers the federal income taxes imposed by the Internal Revenue Code (excluding social security contributions) and the excise tax with respect to the investment income of private foundations under section 4940 of the Internal Revenue Code.

Learn more about the US-Portugal tax treaty

Romania

In Romania, the treaty applies to all income taxes covered under Romanian law (wages, salaries, fees, copyrights, and income from any other source received by individuals; profits of mixed companies; enterprises other than mixed companies or state enterprises; agricultural activities; rentals; and nonresidents.

In the US, the treaty covers federal income taxes (excluding social insurance taxes).

Learn more about the US-Romania tax treaty

Russia

The treaty prevents double taxation on US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and excise taxes imposed on the investment income of private foundations, as well as the Russian taxes on profits and income as outlined by the laws “On Taxes on Profits from Enterprises and Organizations,” “On Taxation of Income of Banks,” “On the Income Tax on Individuals.”

Learn more about the US-Russia tax treaty

The Slovak Republic

The treaty applies to US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and excise taxes on investment income of private foundations and the Slovakian income tax and immovable property (real property) tax.

Learn more about the US-Slovak Republic tax treaty

Slovenia

In the US, the treaty prevents double taxation on federal income taxes (excluding social security taxes) and excise taxes imposed on private foundations.

In Slovenia, the treaty applies to the tax on profits of legal persons; the tax on income of individuals, including wages and salaries, income from agricultural activities, income from business, capital gains and income from immovable and movable property; and assets tax on banks and savings institutions.

Learn more about the US-Slovenia tax treaty

South Africa

The treaty applies to US federal income tax (excluding social security taxes) and excise taxes imposed on private foundations and the South African normal tax and secondary tax on companies.

Learn more about the US-South Africa tax treaty

Spain

The treaty covers Spain’s income tax on individuals (el Impuesto sobre la Renta de las Personas Físicas) and corporation tax (el Impuesto sobre Sociedades) as well as the US’ federal income taxes (excluding social security contributions) and excise taxes imposed on insurance premiums paid to foreign insurers by private foundations (to the extent that the risks covered by the premiums are not reinsured with a person not entitled to exemption).

Learn more about the US-Spain tax treaty

Sri Lanka

The treaty covers US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and Sri Lankan income tax (including the income tax based on the turnover of enterprises licensed by the Greater Colombo Economic Commission.

Learn more about the US-Sri Lanka tax treaty

Sweden

In the US, the treaty covers the federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and excise taxes imposed on insurance premiums paid to foreign insurers to private foundations (to the extent that the risks covered by the premiums are not reinsured with a person not entitled to benefits).

In Sweden, the treaty applies to the State income tax (including the sailor’s tax and coupon tax), special income tax on non-residents, special income tax on non-resident entertainers and artistes, communal income tax, State capital tax, and excise tax on insurance premiums paid to foreign insurers.

Learn more about the US-Sweden tax treaty

Switzerland

The treaty applies to the Swiss federal, cantonal, and communal taxes on income (including total income, earned income, income from property, business profits, and more) and US federal income taxes and excise taxes on insurance premiums paid to foreign insurers by private foundations (to the extent that the risks covered by the premiums are not reinsured with a person not entitled to benefits).

Learn more about the US-Switzerland tax treaty

Tajikistan

Employees of US companies working in Tajikistan are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Tajikistan tax treaty

Thailand

The treaty covers US federal income taxes (excluding the social security taxes) and the Thai income tax and petroleum income tax.

Learn more about the US-Thailand tax treaty

Trinidad and Tobago

The treaty applies to US federal income tax (excluding the personal holding company tax and accumulated earnings tax) and Trinidad and Tobago’s corporation and income taxes.

Learn more about the US-Trinidad and Tobago tax treaty

Tunisia

In the US, the treaty prevents double taxation on federal income taxes (excluding the accumulated earnings, personal holding company tax, and social security taxes).

In Tunisia, the treaty covers the business profits tax; tax on capital gains on real property; tax on profits of non-commercial professions; tax on wages, salaries, and pensions; agricultural tax, tax on dividends, tax on income from credits, deposits, guarantees, and current accounts; personal income tax; and extraordinary tax for national solidarity.

Learn more about the US-Tunisia tax treaty

Turkey

The treaty covers the Turkish income tax (Gelir Vergisi), corporation tax (Kurumlar Vergsi), and levy imposed on income tax and corporation tax as well as US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and security social security taxes) and excise taxes on private foundations.

Learn more about the US-Turkey tax treaty

Turkmenistan

Employees of US companies working in Turkmenistan are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Turkmenistan tax treaty

Ukraine

The treaty provides tax exemptions on US federal income taxes (excluding the accumulated earnings tax, personal holding company tax, and social security taxes) and excise taxes on investment income of private foundations as well as the Ukraine’s tax on income of enterprises and income tax on Ukrainian citizens, foreign citizens, and stateless people.

Learn more about the US-Ukraine tax treaty

United Kingdom (UK)

The treaty covers US federal income taxes (excluding the accumulated earnings tax and personal holding company tax) and excise tax on insurance premiums paid to foreign insurers as well as the UK’s income tax, capital gains tax, corporation tax, and petroleum revenue tax.

Additionally, the treaty applies to taxes imposed on income by political subdivisions or local authorities of the US or UK.

Learn more about the US-UK tax treaty

Uzbekistan

Employees of US companies working in Uzbekistan are subject to taxes and dues provided by the Commonwealth of Independent States (CIS) as well as the US’ Internal Revenue Code.

Learn more about the US-Uzbekistan tax treaty

Venezuela

The treaty covers the Venezuelan tax on income and business assets tax and US federal income taxes (excluding social security contributions).

Learn more about the US-Venezuela tax treaty


Thera handles international payroll taxes on your behalf

Dealing with taxes in the US is already complicated enough. Mixing in foreign tax laws and tax treaties? It’s easy to get overwhelmed.

Thera's global payroll team can help companies going global avoid redundant taxation. Enjoy the perks of an international team without thinking about tax compliance.

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Elizabeth Wellington

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

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