Tax - Expat Magazine
Combating international tax fraud remains a work in progress. Although far from complete, governments are pleased to note significant advancements since cooperation was bolstered. Tax authorities find an unexpected ally in their efforts to monitor foreign bank accounts: social media.
Government tax announcements frequently raise concerns and set the course for economic and social policies. Will there be greater aid for individuals or raised taxes for particular groups? Concurrently, inflation worries everyone, impacting populations differently and shaping expatriates' financial plans. Here's an overview of the tax changes expatriates can anticipate in 2024 across favored destinations.
According to the World Tourism Organization, the number of digital nomads has risen considerably ever since governments started issuing digital nomad visas. These workers now have a structured environment to carry out their work while being on the move. But what about tax considerations for digital nomads? How does living in multiple foreign countries affect their tax status?
Feeling confident about the robust market, you've chosen to venture into property investment overseas. Despite the ongoing crisis, real estate investment remains a secure choice. However, it's crucial to navigate the tax regulations diligently as an expat. How can you ensure compliance with these rules?
When planning their relocation, few people take into consideration the tax system of the host country. Yet it impacts the payment of tax, the tax situation, the management of income in the host country, and, if any, in the home country.
When it comes to expat taxes, it's best to look at it twice. Tax residence, as well as terms of income tax return and payment of taxes, can vary significantly when you move abroad. What if you receive income from a foreign source? Find out whether you have to file these in your returns even if they are not taxable in your host country.
Taxation is perhaps one of the least attractive aspects of living abroad. Depending on the destination, filling taxes or working on a particular tax initiative can be simple or complex. It's not always easy to understand the tax jargon and the different people involved in the process. So let's have a look at some of the world's more straightforward to the more complicated tax systems for expats.
Portugal
How far can Portugal go to attract foreign capital? After granting generous tax benefits to retired expatriates, the country, mired in a never-ending real estate crisis, is now backsliding. Let's look at how this will attract Portugal's attractivity in the eyes of expats.
Income tax, corporate tax, inheritance tax… These are taxes that all expats are familiar with because they exist in nearly all countries. But have you heard of municipal taxes for owning a dog in Switzerland, tax breaks for donating deer meat in South Carolina, or the compulsory church tax for German church-goers? Here are some lesser-known tax laws in parts of the world. In most cases, expats also need to pay them.
Argentina
The Argentine Congress might soon pass a new tax bill that will be a game-changer for remote workers who earn money from abroad. Until now, to legally keep their earnings in an Argentine bank, they had to convert them into pesos. The depreciation of the peso and lack of regularization of freelance work has pushed the state to come up with a bill that would allow these workers to leave up to US$30,000 unconverted in their Argentine account. The Congress's lower house has already approved this bill, but the upper house's vote is pending.
Gulf countries have long been attractive to expats for levying zero taxes. But they are now trying to diversify their economy from the oil sector, and that requires getting revenues from taxes. All six GCC countries have slowly been implementing low taxes, starting with VAT, excise tax, real estate tax and corporate tax. They haven't introduced personal income tax, at least not yet.
Last week, Belgium's Data Protection Authority ruled that the country must stop sharing the private financial information of Americans living in Belgium with the US Internal Revenue Service. What does this mean for American expats? Will this have an impact on their decision to settle in Belgium?
France
The French tax filing campaign started last month and will continue until early June for online filers. This year, a new feature has been added - the declaration of property assets in addition to the income tax return. As an expatriate living in France, you may be wondering which tax rules apply to you. This article breaks them down for you.
Portugal
Good news for expatriates who own property in Portugal! The Portuguese tax authorities have finally ended a practice that was widely viewed as discriminatory and will now treat residents and non-residents equally. Here's what you need to know about the new tax rules on capital gains and how they will impact you.
Which countries have the most favorable tax systems for expats? If tax evasion is a crime, tax optimization (which consists in using legal means to reduce taxes) is quite normal. Some countries offer a particularly advantageous tax system for expatriates. But do these advantages always mean saving money? Are there other forms of taxes?
After a good few years of living in the same country, expats might consider becoming permanent residents. For some, it is the first step towards their end goal of citizenship. For others, it's simply a way to be able to get more opportunities or travel in and out of the country more easily. However, expats have to carefully consider the tax implications of being a resident.
Which are the best or worst countries in terms of taxes in Europe and the Eurozone? The latest Eurostat study leaves little room for suspense. France, famous for its high tax regime, remains at the top of the list but is not the country with the highest tax rate. How does this affect expats and people who are looking to move to Europe? Here is an overview of the study and some answers to questions you might have.
The sunny autonomous community of southern Spain, Andalusia, has scrapped the wealth tax that used to be levied on assets. It wants to attract expats and boost the economy with its tax attractiveness. Other autonomous communities, Galicia and Murcia, are following suit, while the central government plans on adopting measures that will cancel out the advantages of Andalusia's fiscal reform.
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