You&#x27;re right that this isn&#x27;t applicable in most European countries, but it does hit Americans harder in other major world cities which have lower taxes than the US, like Hong Kong or Singapore.<p>I&#x27;m in Abu Dhabi, where there is no income tax, so tax treaties aren&#x27;t really helpful. As a result, salaries here are actually proportionally lower than they would be in a higher-tax country, which works out well for everyone besides Americans. The exclusion is helpful, but you can still end up with a substantial tax bill as well as having to be careful about how much time you spend in the US.