One of two ways to qualify for the foreign earned income exclusion: being a resident of a foreign country for an uninterrupted period that includes a full tax year, based on your intent and ties, not a day count.
Bona fide residence: intent, ties, full tax year, flexible travel. Physical presence: 330 full days in any 12-month window, no intent required, tight US travel budget.
It suits people who have settled abroad and travel back to the US often, because there is no 330-day limit. It requires a full calendar year of residence before it applies, and a declaration to the foreign country that you are not a resident there breaks it.
Physical presence works from day one but limits US visits to about 35 days a year. Bona fide residence allows more US travel but needs a full year of established residence first. Many expats use physical presence the first year and switch.
Source: IRC 911(d)(1)(A); IRS Publication 54
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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