What happens to my FEIE if I change countries in the middle of the tax year?

Changing countries mid-year does not break your Foreign Earned Income Exclusion (FEIE). Under the Physical Presence Test, your 330 foreign days can be spent in any combination of foreign countries. Under the Bona Fide Residence Test, continuous foreign residency (in one country or across multiple) can maintain eligibility, though the transition requires care.

Physical Presence Test and country changes:

• Days in any foreign country count toward the 330
• Transit days through the U.S. count as U.S. days
• International waters or airspace do not count as foreign
• Pick a 12-month window that maximizes foreign days across the two countries

Bona Fide Residence Test and country changes:

• A clean transition from one foreign country to another may preserve BFR
• An interruption where you return to the U.S. for more than a brief vacation may break BFR
• You need bona fide residency in a foreign country throughout the tax year (no requirement that it be the same country)

Filing mechanics for mid-year country changes:

• Form 2555 asks for the country of bona fide residence or the country used for PPT
• Use a single 12-month window for PPT that straddles the two countries
• If BFR was established in Country A and you moved to Country B mid-year, detail both in Part II (BFR) of Form 2555
• Foreign tax paid to both countries goes on Form 1116 (FTC) as needed

Practical country-change scenarios:

• UK to Spain in July: PPT counting days in both works well for the first year; BFR resumes after a full tax year in Spain
• Mexico to Portugal in March: Similar PPT treatment; BFR in Portugal starts after a full tax year of bona fide residency

For multi-country FEIE planning, see our Foreign Earned Income Exclusion guide.