Taxes for expats: what do you need to know when moving abroad?

Moving abroad is always a challenge. When moving to other countries, expats admit that employment and paying taxes are a complex system. Find out what features of the tax system should be taken into account when applying for employment outside your country.

Working abroad gives expats interesting experiences and career prospects. However, before you immerse yourself in a new life, you should understand a little about tax obligations and the specifics of employment.

How can I protect myself while working abroad? What are the features of the tax system for expats? When does a foreigner become a tax resident? A quick guide that will help you save money further.

How to be safe when working abroad?

1. Know your rights

One of the best ways to protect yourself abroad is to fully comply with local laws. Before traveling, familiarize yourself with the legal system of the new country. Make sure you know your rights to work and access to legal support.

Many countries have requirements for basic office conditions, and there are special health and safety laws that limit the length of working hours. Knowing your rights will reduce the likelihood that your employer will take advantage of you, or the likelihood that you will find yourself in a difficult situation.

2. Never accept an illegal job

When applying for employment, you must sign a contract with the employer, in which all the conditions of your cooperation will be described in detail.

3. Never agree to receive a salary in cash

If it turns out that the employer avoids paying taxes in this way, then a considerable fine may also be imposed on the employee or even the expat will be deported.

4. Request a payroll

After each salary payment, require a document showing how much money you have earned, how much taxes you have calculated and how much has been credited to your bank account.

Do foreigners have to pay taxes?

The taxation system in each country is individual, in particular, some states do not levy income tax on resident or non–resident individuals at all. In other regions, there is a system of territorial taxation, that is, you pay taxes only on income earned in this region, and income from outside your place of residence is exempt from tax.

However, in most countries, taxation is based on the place of residence, that is, if you are a resident of the country, you must pay tax on income earned both in this country and abroad.

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