Chase Buchanan Private Wealth Management, a long-established international provider of tailored financial advisory and wealth planning support for expats, has advised foreign nationals to be mindful of recent changes to digital border controls and their impact on residency planning and on the records that may underpin the declarations they must make.
The introduction of the Entry/Exit System (EES) across the EU, which became fully operational across the Schengen Area from 10 April 2026, combined with existing frameworks such as the Common Reporting Standard (CRS) and the American Foreign Account Tax Compliance Act (FATCA) mean that expats and globally mobile taxpayers must be up to date with their reporting obligations.
Changes to Cross-Border Information Sharing and Automated Data Logs
Governments and regulators have continued to expand data-sharing networks, which provide oversight of where assets and income are held and earned, where they are taxable, and whether residents in a specific jurisdiction comply with mandatory declarations.
The EES is a border-control system that logs when non-permit-holders enter and leave the Schengen Area. It does not report assets or income, but creates an official, biometric record of a person’s physical presence that may support or, in some cases, contradict the residency position they declare.
These systems are designed to support greater transparency across borders, but operate in different ways:
· Financial reporting frameworks, including the CRS and FATCA, enable financial account information to be shared between tax authorities and provide visibility into where assets and income are held.
· Border and movement-tracking systems such as the EES create official records of when individuals enter and leave the Schengen Area, capturing biometric and travel data as evidence of physical presence in relevant jurisdictions.
The EES records travel events, including entry refusals. It has replaced passport stamps with the collection of facial images and fingerprints, as well as highly specific travel dates and border crossing events.
For expats who travel regularly or professionals who work in multiple countries, the ramifications aren’t just about ensuring they correctly assess their tax residency status, but also about how accurately they report their assets and income.
The Reporting Rules and Regulations for International Expats
Alongside the newly operational EES, the CRS has been in place since 2016, and tax authorities exchange information showing any financial accounts held by non-residents within their jurisdictions. The system was built to combat tax evasion and enable annual information exchanges.
FATCA, while a US-specific regulation, imposes similar requirements relevant to US taxpayers and foreign financial institutions. The law, which came into force in 2010, requires American citizens with foreign assets exceeding a threshold to report them, while overseas institutions must report data on US account holders to the IRS.
Combined with modern digital border systems and improved cooperation in data sharing, these regulations are an essential consideration for expats given the implications of non-compliance, even inadvertent, such as FATCA penalties, which can include up to $10,000 failure to file penalties, and $60,000 fines for ongoing non-reporting.
Why the EES, FATCA and CRS Are Relevant to Expat Financial Management
Tax residency evaluations rely heavily on the exact number of days expats spend in each country. Conventionally, fragmented or vague travel records, inconsistent passport stamping, or logs that reflect days rather than actual times have made these calculations more complex or easier to interpret in ways deemed advantageous.
Automated tracking systems make it easier for authorities to determine where individuals spend their time and assess their tax obligations, while also helping individuals determine whether they are tax residents or non-residents of a specific country.
Lee Eldridge, Group CEO and Head of Investment Advisory for Chase Buchanan Private Wealth Management, says, ‘It’s never been so vital for expats to maintain accurate records and to ensure that all financial declarations they submit to any tax authority align with their physical residency and movement patterns.
International transparency standards are continuing to evolve, and that means it might be risky to assume that financial arrangements or historical tax residency positions remain static and won’t fall within the scope of reporting obligations.
A more connected reporting environment means expats need to be clear about what they need to declare and which reporting requirements they fall under, because non-compliance can lead to tax inefficiencies, unnecessarily high tax burdens and even fines and penalties.’
Chase Buchanan recommends that expats with any uncertainty about their tax residency status, unsure where to file their declarations, or concerned about compliance with foreign-asset reporting regulations, seek professional advice.
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