Form W-8BEN for Expats: Who Needs It & Instructions

Form W-8BEN for Expats: Who Needs It & Instructions

If you are an American living abroad and a bank, investment platform, or client asks you to fill out Form W-8BEN, it is easy to assume it is just routine paperwork for people with an overseas address.

In almost every case, filling it out is a mistake.

U.S. citizens and green card holders should not complete Form W-8BEN. When you sign this form, you are legally certifying under penalty of perjury that you are not an American citizen or green card holder. Instead, Americans living overseas provide Form W-9 to confirm their U.S. tax status and provide their Social Security number.

Form W-8BEN is meant strictly for foreign individuals (what the IRS calls “nonresident aliens”) who live outside the U.S. and do not hold U.S. citizenship. It confirms they are foreign and lets them claim lower tax rates if their home country has a tax treaty with the United States.

In this article, we’ll explain why expats run into this form, and what to do when a bank or client asks for one.

Key Takeaways

  • U.S. citizens use Form W-9, not W-8BEN. Living overseas or holding a second passport does not change your tax status as an American.
  • Form W-8BEN is for foreign citizens only. It proves you are not a U.S. taxpayer and helps reduce U.S. tax withheld from investment income.
  • Joint accounts need both forms. If you share an investment account with a non-U.S. spouse, you submit Form W-9 and your spouse submits Form W-8BEN.
  • Giving up citizenship changes the rules. Former Americans who have officially renounced their citizenship and certain green card holders who claim foreign tax status under a treaty may need to use Form W-8BEN.
  • Foreign businesses use a different form. If you run an incorporated business overseas, your company uses Form W-8BEN-E, while you personally still use Form W-9.
  • Hiring foreign contractors requires keeping a W-8BEN on file. If you run a business abroad and hire non-U.S. freelancers, keeping their signed W-8BEN protects you if the IRS asks why you didn’t withhold U.S. taxes.
  • The form is valid for three years. A signed Form W-8BEN generally remains good for three full calendar years after the year you sign it.

What Is Form W-8BEN?

Form W-8BEN, officially called the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), is an IRS document foreign citizens use to show they do not live in or pay taxes to the United States.

Normally, when a foreign person earns money from U.S. investments, like dividends from Apple stock or royalty checks from an American publisher, the U.S. government takes a flat 30% tax cut right off the top before sending the payment. This is called tax withholding.

Form W-8BEN does three main things:

  1. Proves you are a foreign citizen: Tells the U.S. bank, broker, or client that you do not hold U.S. citizenship and do not live in the U.S.
  2. Confirms you own the money: Verifies that you are the person legally entitled to the income.
  3. Lowers your tax rate: Allows you to take advantage of tax treaties. The U.S. has agreements with dozens of countries that lower this 30% tax to 15%, 5%, or even 0%.

Form W-8BEN isn’t a tax return, and you never mail it to the IRS. You give it directly to the bank, investment platform, or company that is paying you.

You can download Form W-8BEN directly from the IRS.

Navigating a Cross-Border Residency Change?

Switching tax residency under a treaty or expatriating involves strict IRS rules and timing. Our CPAs and Enrolled Agents help you establish your legal tax status and avoid costly compliance missteps.

When Might an Expat Need Form W-8BEN?

For everyday Americans living abroad, you will almost never fill out this form for yourself. The U.S. taxes its citizens on all income earned worldwide, no matter where you live, what visa you hold, or what your local address says.

However, your tax classification can change in a few specific situations:

Joint Accounts with a Non-U.S. Spouse

This is the most common reason an American expat household needs to handle Form W-8BEN. If you open a joint U.S. brokerage account with a spouse who is not an American citizen, the brokerage cannot accept a single form. As the U.S. citizen, you complete Form W-9. Your non-U.S. spouse must complete Form W-8BEN for their share of the account so the brokerage does not improperly withhold 30% tax on their half of investment payouts.

Green Card Holders Living Abroad

Holding a green card generally makes you a U.S. tax resident, even if you move back to your home country. Giving up your card by filing USCIS Form I-407 is one way that tax status ends, but it is not the only way.

In some cases, a green card holder living abroad can use the “tie-breaker” rules in a tax treaty to be treated as a resident of their new country, rather than the U.S., for tax purposes. This requires filing special annual paperwork with the IRS (Form 1040-NR with Form 8833).

For long-term Green Card holders (those holding LPR status in at least 8 of the previous 15 tax years), claiming treaty-based nonresident treatment or ending permanent residency can also trigger the IRS exit tax. See our guide on the unexpected U.S. tax complications of holding a green card to understand how long-term residency impacts your global assets.

Former U.S. Citizens Who Renounced Their Passports

If you have formally renounced or given up your U.S. citizenship, you are now considered a foreign individual for U.S. tax purposes.

If you still keep an American brokerage account or receive payouts from a U.S. company, they will ask you for Form W-8BEN. This documents your new foreign status and ensures you get the correct tax treaty rates on your dividends. The State Department determines the official date your citizenship ends when you take your oath of renunciation, not simply when you file your final IRS paperwork (Form 8854).

Why Do Financial Institutions Ask Expats for This Form?

Banks and investment platforms face heavy penalties if they fail to verify their customers’ identities. When a system flags an international phone number, a mailing address in London, or recurring wire transfers to a European bank, compliance software often automatically sends out a Form W-8BEN request.

  • If a U.S. broker or bank sends you a W-8BEN: Reach out to their support team. Let them know you are a U.S. citizen living abroad, ask them to update your mailing address, and provide Form W-9 instead.
  • What if the broker threatens to close your account? Many U.S. brokerages do not support accounts for residents living outside the U.S. due to international regulations. Never sign a W-8BEN just to keep an account open, signing it as a U.S. citizen is perjury. If your brokerage will not accept a foreign address on Form W-9, consider moving your assets to an expat-friendly custodian like Charles Schwab International or Interactive Brokers.
  • If a foreign bank asks for U.S. tax details: Under a federal law called FATCA (the Foreign Account Tax Compliance Act), foreign banks must report American account holders to the IRS. When your local bank abroad asks about your tax status, they will want Form W-9 or your Social Security number, not a W-8BEN.

Form W-8BEN vs. W-8BEN-E vs. W-9

Here is a quick look at which form belongs to which person or business:

Who You AreForm to UseWhat the Form Does
U.S. citizen living abroadForm W-9Confirms you are an American and gives your Social Security number
Dual citizen (U.S. + another country)Form W-9Confirms your U.S. status (your American citizenship always comes first for taxes)
Green card holder living abroadForm W-9Confirms you are a U.S. tax resident
Foreign citizen (no U.S. ties)Form W-8BENProves you are a foreign individual and claims treaty discounts
Former citizen / Treaty nonresidentForm W-8BENDocuments your foreign status after officially leaving the U.S. tax system
Foreign corporation or LLCForm W-8BEN-EDocuments that a business is foreign for international tax rules

Some entities and payment types require different forms. Our W-8 vs. W-9 guide explains the differences in more detail.

What If You Own an Overseas Business? (Form W-8BEN-E)

Many expats set up local companies where they live, like a Limited Company in the UK, an S.L. in Spain, or a Pty Ltd in Australia. When your overseas company works with American clients, they’ll often ask for a tax form before paying your invoice.

Because your company is a separate legal entity, it uses Form W-8BEN-E (the “E” stands for Entities), not the personal Form W-8BEN.

A common misunderstanding is that signing this form is what keeps the IRS from taking 30% of your business invoice. In reality, personal services are taxed based on where the work physically happens:

  • If you and your team do all the work outside the United States, that money is considered foreign-source income.
  • Foreign service income earned by a foreign company is generally not subject to U.S. tax withholding in the first place.

Form W-8BEN-E simply documents that the business is foreign so your client’s accounting department has a clean paper trail. Keep in mind that owning an active company abroad as an American also brings personal reporting duties on your Form 1040, such as filing Form 5471.

Hiring Foreign Contractors

If you run a business abroad and hire foreign freelancers (like a local web designer in Berlin or a copywriter in Canada), you should have them sign a Form W-8BEN and keep it in your files. You don’t send this form to the IRS, but it shows why you didn’t withhold U.S. taxes or send them a Form 1099 at tax time.

Check out our complete guide to Form 1099 rules for foreign contractors for a step-by-step breakdown of sourcing rules and payment reporting.

Running a Business Abroad with U.S. Clients?

From setting up entity tax documentation to keeping your personal expat returns accurate, cross-border business rules are complicated. Greenback helps you stay compliant on both sides of the border.

How to Complete Form W-8BEN

If you are a foreign individual, an expat’s non-U.S. spouse, or a former American who has renounced citizenship, here is how to fill out the form correctly:

Part I: Who You Are

Part I establishes your identity, country of citizenship, residence, and tax identification information.

LineName of FieldWhat to Put
1NameYour full legal name, matching your passport exactly
2Country of citizenshipYour home country (never enter the United States)
3Permanent residence addressYour physical home address (do not use a P.O. Box or mail drop)
4Mailing addressOnly fill this in if you receive mail at a different address than Line 3
5U.S. TINYour Social Security number or ITIN, if you have one
6aForeign tax identifying numberYour local tax number (like a UK National Insurance or Canadian SIN number)
6bFTIN not legally requiredCheck this box only if your country does not issue tax numbers
7Reference numberOptional: your bank or investment account number, if requested
8Date of birthYour birthday in month-day-year order (MM-DD-YYYY)

Do you need an Individual Taxpayer Identification Number (ITIN)?

Usually no. Most foreign individuals receiving investment payouts can simply list their local home-country tax number on Line 6a. You generally only need a U.S. ITIN if you claim specific treaty benefits for certain independent contractor work or specialized pension payments.

What Is the Reference Number on W-8BEN?

Line 7 is generally used for account or other reference information that helps the payer match the form to your records. For example, a brokerage may ask you to enter your investment account number here. If the institution hasn’t requested a reference number, you may be able to leave this line blank.

Part II: Claiming Tax Treaty Benefits

Part II is used when you’re claiming a reduced U.S. withholding rate or exemption under an applicable income tax treaty.

Line 9: Write the name of your country of residence to certify you qualify under its tax treaty with the U.S.

Line 10: You only need to fill this out if you are claiming a special rate for things like book or music royalties, research grants, or specific foreign pensions. You will state the treaty article number, the discounted tax percentage, and why you qualify. Routine claims for standard stock dividends do not usually require Line 10.

You can review our overview of U.S. income tax treaties to find the relevant provisions.

Part III: Certification

Read the fine print before signing. By signing your name, you are swearing under penalty of perjury that all information is true, you are the legal owner of the funds, and you are not an American citizen or green card holder.

These instructions follow the IRS’s October 2021 form revision. Always check the current IRS form and instructions before submitting it.

What Happens If You Don’t Provide a Form?

If an international payee fails to send back a requested tax form, the payer cannot simply guess what to do. Under IRS default rules:

  • For investment income (dividends and royalties): The payer is generally required to assume you are an undocumented foreign person and must withhold the full 30% tax from your payout.
  • For other payments (like freelance services): The payer may be required to enforce backup withholding at 24% or freeze payments until proper paperwork is on file.

Returning the correct paperwork early keeps your payments moving without unexpected tax deductions.

How Long Does Form W-8BEN Last?

A signed Form W-8BEN is generally good from the date you sign it through December 31 of the third full calendar year.

For example, a form signed on June 15, 2026, stays valid until December 31, 2029.

If your life circumstances change, such as moving to a new country, changing your citizenship, or becoming a U.S. tax resident, the form becomes invalid immediately. You must inform your bank or payer within 30 days and provide an updated form.

Take the Stress Out of Expat Taxes

Whether you need to clarify your tax status with a financial institution, claim foreign credits, or catch up on past-due returns, we make expat filing simple.

Frequently Asked Questions

Can an American Citizen Fill Out Form W-8BEN?

Generally, no. The IRS instructs U.S. citizens, including dual citizens living abroad, not to use W-8BEN to document foreign status. They normally provide Form W-9 instead.

Does Submitting Form W-8BEN Exempt Me From Filing a U.S. Tax Return?

No. Form W-8BEN is a withholding and reporting certificate, not a tax return.
Foreign individuals receiving certain U.S. income may still need to file Form 1040-NR.
U.S. citizens living abroad remain subject to U.S. tax filing requirements when they meet the applicable thresholds or other filing conditions, regardless of which forms they’ve given their bank.
Our U.S. expat tax guide explains the broader filing requirements for Americans overseas.

Do I Need an ITIN to Complete Form W-8BEN?

Not always. In certain circumstances, a foreign tax identification number may be sufficient.
A U.S. taxpayer identification number may be required for particular payments or treaty claims. Check the IRS instructions and the requirements for your income rather than assuming everyone completing a W-8BEN needs an ITIN.

Can Green Card Holders Living Abroad Use W-8BEN?

Generally, not while they’re treated as U.S. tax residents.
Certain residency-termination or treaty-based nonresident situations can change the answer, but these have specific legal and tax requirements. Simply moving abroad doesn’t make W-8BEN the appropriate form.

Where Do I Submit Form W-8BEN?

You give the completed form directly to the bank, brokerage, business, or other payer requesting it.
You don’t normally send Form W-8BEN to the IRS or attach it to your annual tax return.

What Happens If I Haven’t Filed U.S. Taxes While Living Abroad?

If you’re a U.S. citizen who has missed required tax returns while living abroad, you may have options to catch up.
For certain taxpayers whose failure to file was non-willful, the IRS’s Streamlined Filing Compliance Procedures may provide a way to resolve overdue returns and foreign account reporting.
Form W-8BEN doesn’t replace those filing requirements.