Excited to Move to the US as a Professional Athlete? Pre-plan and Avoid These Costly Mistakes

For professional athletes, relocating to the US can be a game-changing career move. Bigger contracts, sponsorships, and new business opportunities make it an attractive destination. However, many walk into the US tax system without a plan, leading to unnecessary tax bills, compliance headaches, and investment structures that no longer work. The key to a smooth transition? Smart planning before you become a US tax resident.

Leaving it too late to plan!

One of the biggest mistakes is waiting until you’re already a US tax resident to think about restructuring finances. Once you’ve spent 183+ days in the US, the IRS considers you a tax resident, meaning your worldwide income and assets become subject to US taxation.

The Substantial Presence Test:

• 31 days during the current year, and
• 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
  • All the days you were present in the current year, and
  • 1/3 of the days you were present in the first year before the current year, and
  • 1/6 of the days you were present in the second year before the current year.

By that time, options to restructure offshore holdings, optimize investments, or manage tax liabilities are limited—and often come with costly consequences. The right time to plan? Before setting foot in the US long-term.

Assuming you’ll stay under the radar?

High-profile individuals—especially professional athletes—are on the IRS’s radar. Many believe their foreign accounts, offshore investments, or business structures will go unnoticed, but US tax authorities actively monitor high-net-worth individuals. Failure to report foreign accounts (FBAR requirements) or certain offshore investments can trigger significant penalties. Ignoring compliance or assuming it’s “not a big deal” can quickly turn into a serious and costly issue.

US structures that don’t work abroad

Athletes often set up US companies, trusts, or investments without considering how they interact with their home country’s tax system. The result? Unexpected tax burdens, double taxation, or legal conflicts when trying to transfer funds or return home. Tax treaties don’t always provide relief, and structures that work well in the US can create problems internationally. Cross-border planning is essential to align US and home country tax rules.

Plan ahead and structure smartly

The US offers incredible financial opportunities, but capturing them requires careful planning.

Here’s how to plan:

• Pre-move tax planning – Adjust investment structures before becoming a US tax resident.
• International tax coordination – Ensure financial structures work in both the US and your home country.
• Full compliance – Stay ahead of foreign asset reporting rules and avoid costly penalties.

Expert advice for professional athletes from Alpen Partners International

Alpen Partners International has a dedicated desk specializing in advising professional athletes from Switzerland and other countries on effective financial planning before they become US tax residents.

Our team understands the unique challenges faced by athletes and helps them navigate tax complexities, optimize wealth structures, and avoid costly mistakes. The best approach? Start early and establish a well-structured plan to support your long-term financial stability. Moving to the US could present significant financial opportunities, but careful planning is essential to avoid potential challenges. With the right solutions, athletes can aim to protect their wealth, maximize earnings, and avoid tax pitfalls that can trip them up. The bottom line? Get expert advice before making the leap—you’ll thank yourself later.

The views expressed in this article reflect our opinions, estimates and expectations based on available information and are not guarantees of future outcomes or investment performances. Actual outcomes may differ materially due to various risks and uncertainties.

All investments involve certain risks. All investments carry the potential for financial loss, including the loss of the principal amount invested. Past performance should not be viewed as an indicator of future results.

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The above information should be considered before making any investment decisions.

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