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Expatriate Tax Information
Generally speaking, one becomes ‘tax resident’ in a country after having spent more than six months there in any one year. During this period, you would typically only owe tax to the host country on any income that you had earned there, as opposed to your worldwide income. It is usually the case that a stay of more than six months in a country means that you become tax resident, and will therefore pay tax on the same basis as other taxpayers who live there permanently.

However, there are a number of other factors which may come into play which could greatly affect your liability to tax. For example, some countries use a ‘territorial’ system of taxation, meaning that you would still only pay tax on income earned within the country’s borders. Unfortunately, territorial tax systems are relatively few and far between these days, with governments keen to grab a slice of an increasingly globalised economy.

So, when you do become tax resident it is much more likely that you would have to pay tax on your worldwide income. This however may give rise to a situation where your host country and the place from where you have expatriated may both have a claim to tax the same piece of income, so the existence of a double taxation avoidance treaty between the two countries, by which you can receive a credit in one country for tax paid in the other, is important if you intend to stick around in your new home for any length of time.
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