Tax Income

Tax residency determines your obligation to file taxes in your home country while living abroad. Some countries use the number of days spent in a country, while others rely on financial or personal ties to determine residency.

Even if you live abroad, many countries require expats to file taxes. For example, U.S. citizens must file regardless of where they live, while other countries may have different regulations.

Some countries, like the U.S., offer provisions such as the FEIE that allow expats to exclude a certain amount of foreign-earned income from their taxable income.

Double taxation agreements (DTAs) may exist between your home country and the country you live in to prevent being taxed twice on the same income. Research if your country has such agreements in place.

Be aware of tax deadlines in both your home and host countries. Missing deadlines may result in penalties. Some countries offer extensions for expats.

If you have foreign bank accounts exceeding a certain threshold, you may need to report them to your home country. For example, U.S. citizens must file an FBAR if accounts exceed $10,000.

Some countries offer tax credits for taxes paid in your host country, reducing your tax liability at home. Check if your home country has such provisions.

Tax laws for expats can be complex. Consider consulting a tax professional with expertise in international tax compliance to ensure you meet all obligations.

Keep records of any expenses that may be deductible, such as moving costs, housing, or education expenses, depending on your home country's tax laws.

Tax laws may change frequently. Stay informed about updates and changes in tax regulations for expats in your home and host countries.