Border-Line Wealthy: March 2026 Newsletter

🇺🇸 1) US Tax: The “Pay vs. File” Trap

The IRS is now accepting 2025 tax returns. For many expats, the biggest risk isn't the filing deadline—it’s the payment deadline.

Key Dates to Circle

• April 15, 2026 (The Payment Deadline): If you owe the IRS money, you must pay by today. Even if you get an extension to file later, the IRS starts charging interest on unpaid tax today.

• April 15, 2026 (The FBAR Deadline): Did your non-US bank accounts total $10,000 or more at any point in 2025? You must report them. You get an automatic extension to Oct 15, but it’s best to finish it now.

• June 15, 2026 (The Filing Extension): If you live outside the US on April 15, you get two extra months to send in your paperwork.

💰 Pro Tip: FEIE vs. FTC

• FEIE (Foreign Earned Income Exclusion): For 2025, you can "hide" up to $130,000 of your foreign salary from US tax.

• FTC (Foreign Tax Credit): You get a "coupon" for taxes you already paid to your host country.

  • Rule of thumb: If you live in a high-tax country (like the UK or Spain), the FTC is often better. In low-tax countries, the FEIE usually wins.

Source: IRS International Taxpayers Guide

🇨🇦 2) Canada: The RRSP Deadline is Tomorrow

If you have Canadian income, you have a very short window left to lower your 2025 tax bill.

• RRSP Deadline: March 2, 2026. This is the last day to put money into your Registered Retirement Savings Plan to count for the 2025 tax year.

• The "Over-Limit" Trap: If you put too much into your TFSA (Tax-Free Savings Account), the CRA will charge you a 1% monthly tax on the extra amount until you take it out.

Pro Tip: When to get the most from RRSP

If you earned more money in 2025 than you expect to earn in 2026, using your RRSP deduction now will likely save you the most money.

Source: CRA Important Dates

🇪🇸 3) Spain: Don't Forget the "Modelo 720" (and 721!)

Spain has very strict rules about reporting what you own outside the country.

• The Deadline: March 31, 2026.

• Modelo 720: Required if you own more than €50,000 in foreign bank accounts, investments, or property.

• New! Modelo 721: If you hold crypto on a foreign platform (like Coinbase or Binance) worth over €50,000, you now have a separate form to file.

The "Beckham Law" Note

If you moved to Spain recently for work, you might qualify for a flat 24% tax rate. However, you generally cannot have been a Spanish resident in the 5 years before your move.

Source: Spanish Tax Agency (Agencia Tributaria)

🇬🇧 4) UK: Big Changes to "Non-Dom" Status

The UK has officially scrapped the old "non-dom" rules and replaced them with the FIG (Foreign Income and Gains) regime.

• The 4-Year Rule: New arrivals may get 4 years of tax-free foreign income, but you must claim it on your tax return. It is not automatic.

• Digital Tax Shift (MTD): Starting April 6, 2026, if you are self-employed or a landlord with income over £50,000, you must start using special software to send quarterly updates to the government.

Source: HMRC Making Tax Digital Guide

🪙 Global Insight: The End of "Invisible" Crypto

Governments are now sharing data on crypto. A new framework called CARF is rolling out. Most major countries (including Canada and the EU) will start tracking your exchange data starting in 2026.

Simple Action: Ensure your crypto exchange has your current address. If your exchange thinks you live in the US but you actually live in Spain, it can trigger a confusing (and expensive) tax audit.