Definitely - to a point. You pay local taxes first, but if they aren't high enough, you still have to pay US taxes. If you are married to someone of a different nationality, you cannot use online tax filing services without the spouse getting a number from the US government and reporting their income as well - even if they have never lived or worked in the US.
So it turns out that living in Norway means that I have to file paper taxes any year I work, but generally don't have to pay since Norway's taxes are high enough. If I lived somewhere with a low tax rate, I'd have to file and pay taxes.
Note: In general, I don't have to pay All taxes. We have Federal, state, and local taxes - they are generally only concerned with paying federal taxes while I live overseas. This also means that someone might still pay a lower tax rate overseas, depending on the state that they came from and the type of income they receive.
It‘s complicated for both sides. US citizens have to file their taxes but will be mostly exempt (depending on their income) since they will be already taxed abroad.
Likewise EU citizens may be taxed at home, depending on where the income originates.
So it‘s complicated.
But it‘s true that most countries determine where you are a resident (or have income from there) and then will tax you primarily on that and citizenship has no influence.
It is not true that we are "mostly exempt": only earned income (a narrow definition) is exempt.
And while it is true that many other countries have versions of taxing citizens living abroad for some time or under certain conditions (like having assets at home or conditions that deem the stay abroad "temporary"), there are only two countries in the world that have no mechanisms for stopping this taxation once one has truly and surely severed financial ties: the US, and Eritrea.
That's correct, American citizens are required to pay tax to the IRS regardless of their residency. However, you can deduct something like $106,000 from your yearly income if it's already been taxed, to avoid double-taxation of income.
Yes, around 106k USD, but this exemption applies only to EARNED income. The definition of earned income is quite narrow. This can cause a massive headache.
The way the US deals with taxation abroad is a travesty. I for one will be renouncing my citizenship because of it. Few countries deal with emigration in a perfectly hassle-free way, but the US makes living a life in any other country impossible if at any point you rely on income that isn't bog standard salary.
So it turns out that living in Norway means that I have to file paper taxes any year I work, but generally don't have to pay since Norway's taxes are high enough. If I lived somewhere with a low tax rate, I'd have to file and pay taxes.
Note: In general, I don't have to pay All taxes. We have Federal, state, and local taxes - they are generally only concerned with paying federal taxes while I live overseas. This also means that someone might still pay a lower tax rate overseas, depending on the state that they came from and the type of income they receive.