Moving abroad is always a challenge. Expats who move to other countries admit that finding employment and paying taxes is a complicated system. Find out what features of the taxation system should be taken into account when working outside your country

Order a consultation with a migration specialist to avoid unpleasant situations during the move

Buy

Working abroad gives expats interesting experience and career prospects. However, before plunging into a new life, it is worth understanding a little about tax obligations and the peculiarities of employment.

How to protect yourself 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 while 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 employment rights and access to legal support.

Many countries have requirements for basic office conditions, and there are also special health and safety laws that limit the length of working hours. Knowing your rights will make it less likely that your employer will take advantage of you or put you in a difficult situation.

2. Never accept illegal work

When you are employed, you must sign a contract with the employer, which will detail all the conditions of your cooperation.

3. Never agree to be paid in cash

If it turns out that the employer is avoiding paying taxes in this way, the employee may also be fined heavily or the expat may even be deported.

4. Request a payment statement

After each paycheck, ask for a document that shows how much money you earned, how much tax was deducted, and how much was deposited into your bank account.

Do foreigners have to pay taxes?

The taxation system in each country is individual, in particular, some states do not charge income tax at all from natural persons - residents or non-residents. In other regions, there is a system of territorial taxation, that is, you pay taxes only on income that was received in that region, and income from outside the borders of the place of residence is exempt from tax.

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

In order to safely move, travel or work in a new country, you will need health insurance. You can issue an extended policy on our website using the link.

When does an expat get the status of a resident of the country?

States have different rules regarding when a foreigner obtains resident status: in some countries you become a tax resident from the first day of moving to permanent residence, while in others you must meet a number of requirements and even pass a mandatory residence test to determine your status within tax year.

However, the vast majority of states adhere to the 183-day rule - the expat's country of work has the right to tax the wages received in that state if the foreigner spends more than 183 days a year there.

What to do if an expat works in two or more countries at the same time?

Usually, employees pay tax on their worldwide income in the country of residence (that is, in the country of which the foreigner is a resident). When working in multiple countries at once, you need to make sure you understand the residency rules in both countries, when the tax year starts and ends, and check for any double taxation agreements.

How to find out the amount of taxes to be paid?

In most countries, at the end of the year, each employer issues an annual form that states what the salary was and how much tax was paid. Also, employees are required to submit an income declaration every year during which you worked in the country.

How to correctly fill out a tax return?

Of course, every employee can fill out the tax declaration independently, but for this it is necessary to have a good understanding of the legislation of the host country, to know the peculiarities of filing the declaration and to have a good command of the language.

However, the majority of workers and expats in the world trust the completion of the declaration by a tax consultant. RT TAX is one of the most experienced tax experts. The company's network includes more than 400 representative offices in 40 countries. Over the entire period of work, 250,000 workers from all over the world became clients of the agent.

Also, do not forget that after submitting the declaration and calculating the taxes paid, most expats can count on a refund. RT TAX specialists can also help in this matter. The main advantage of the company is that the company works on the basis of success commission, which means that clients pay for services only when they receive a refund, without the need for an upfront payment.

We will remind you! The cost of living varies greatly between countries, with some states being much cheaper to live in than others. We have already talked about the TOP-5 countries in the world with the lowest cost of living in 2024, as well as where the lowest taxes and the highest average salary are.

Igor Usyk - Head of Migration department at VisitWorld

To ensure a safe move to a new country, I advise you to consult a specialist. My colleagues, qualified specialists with a legal education, will help you avoid unpleasant situations during migration.

Products from Visit World for a comfortable trip:

Travel guide for 200 countries;

Legal advice from a local specialist on visa and migration issues;

Travel insurance around the world (please select the country of interest and citizenship to receive services);

Medical insurance all over the world.

We monitor the accuracy and relevance of our information. Therefore, if you see any error or discrepancy, please write to our hotline.