U.S. citizenship, in addition to rights, carries significant obligations for all American citizens. The most important obligation is the requirement to file U.S. tax returns every year, as well as the obligation to report bank accounts held by U.S. citizens in foreign banks. The United States is perhaps the only developed country that exercises the right to tax citizens living outside its borders.

U.S. tax law requires most American citizens (and U.S. permanent residents with green cards) with income to file U.S. tax returns, even if the income is derived from activities outside the U.S. and even when the American citizen permanently resides abroad. There are some exceptions for those with income below a minimum threshold — for more details on who is required to file a U.S. tax return, you can visit the IRS website at [http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F](http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F). Generally, American citizens living in Greece with an annual family income above \$14,600 (approximately €13,490) for singles or \$29,200 (approximately €26,980) for married couples must file a U.S. tax return. The minimum thresholds are slightly higher for those over 65 and change slightly each year, so it is advisable to check the IRS website to confirm whether a tax return is required if your income is below these limits. Income includes salary from paid employment, interest on bank deposits, capital gains from the sale of stocks or real estate, etc. It should be noted that the obligation to file a tax return in the U.S. does not necessarily mean there will be a tax liability to the U.S. government. The so-called “foreign earned income exclusion” exempts up to \$126,500 of earned income from foreign sources from U.S. taxation under certain conditions. Additionally, taxes paid to other countries can be credited against or completely eliminate any U.S. tax liability. Finally, Greece and the U.S. have signed a “Double Taxation Avoidance Agreement” that can, in some cases, further reduce U.S. tax liability.

In summary, in the vast majority of cases, Greek Americans living and working in Greece who file U.S. tax returns do not owe money to the U.S. The deadline for filing U.S. tax returns for individuals residing permanently outside the U.S. is June 15 of the year following the tax year. Americans who have failed to file tax returns as required in the past must file late returns for the last three years. Recently, U.S. tax authorities have become particularly strict on these matters, and each time an American citizen applies for passport renewal, tax authorities are automatically notified to check if the citizen is up to date with tax obligations. So, do not be surprised if you receive a letter from the IRS a few months after renewing your U.S. passport. More information is available at [http://www.irs.gov/publications/p54/](http://www.irs.gov/publications/p54/).

In addition to the tax return filing obligation, U.S. authorities have imposed an additional requirement on American citizens who hold foreign bank accounts with a total balance exceeding \$10,000. Those who have or are co-owners or managers of accounts (bank, investment, etc.) outside the U.S. that cumulatively have a balance exceeding \$10,000 on any day of the calendar year must file a deposit report known as FBAR by April 15 of the following year (with an automatic extension until October 15). Penalties for those who fail to file FBAR are severe and include imprisonment for up to five years and fines of up to 50% of the total amount in the accounts. More information can be found in the related article or at [http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR](http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR).