Tax - Expat Magazine
Taxes are a word few people like. In fact, some choose to relocate for this reason only – to escape them. And this is not entirely impossible - as different countries have different approaches to taxation – especially when it comes to non-residents. Today, we are looking into real estate taxes—more precisely, the countries that don't impose them on non-residents.
2024 is not just another election year—it's a year jam-packed with significant political events, including the European elections, British general elections, early elections in France, and the upcoming US presidential election, not to mention past elections and reforms. This bustling schedule is causing concern among the ultra-wealthy, many of whom are increasingly moving to more business-friendly destinations.
England
The Labour government aims to move past the conservative era definitively. As the new budget vote approaches, expats might see some limited tax relief. However, this is to be taken with caution. The Labour Party recently criticized "catastrophic" national finances left by the previous government. What does this mean for expats in the UK and Britons living abroad? Let's break it down.
USA
If you are an American living abroad, did you know you can deduct up to US$126,000 from the income you earn from outside US territory? The Foreign Earned Income Exclusion, or FEIE, is an IRS provision designed for Americans who live and work in another country.
Kenya
The latest tax reform in Kenya has sparked intense protests and unrest. The BBC and France 24 report that at least 39 people were killed during the protests, while local news outlets say the death toll rose to 19 people. The situation has escalated and is drawing international attention and concern.
On September 9, 2022, the UAE, long regarded as a tax-free haven, announced the first batch of significant changes to its tax regulations. The changes affect both individuals and companies and, potentially, the business landscape of the country. The new rules also have direct implications for expats — with some finding themselves in a new tax residency status. So, what do the new regulations actually say?
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?
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