Tax refunds for expats: what is it and how can a foreigner get money?
Often, residents of most countries of the world, after submitting an annual income tax return, get the opportunity to return previously paid taxes. Find out what a tax refund is and when an expat may be entitled to a refund
Expats who work abroad and pay taxes are entitled to a tax refund, but in order to receive the money, you must file a declaration and meet a number of requirements.
Read more about the features of the tax refund and the amount you can receive in 2024.
What is a tax refund?
A tax refund is the return of money that has been overpaid in taxes to the host country's government. This usually happens when employers withhold too much from an employee's wages.
Tax rules vary by country. However, in most states, employers pay taxes in advance. The employer remits these advance payments to the local tax office every month in the person's name. At the same time, there are many factors that can reduce taxes for foreigners, and each country has its own peculiarities.
When does an expat become entitled to a tax refund?
To find out if there is an overpayment and what its amount is, you need to submit a tax return for the country in which you worked to declare all the income you earned and determine whether you should get a tax refund.
It is worth noting that you can fill out a tax return and claim a tax refund even if you have already left the country and returned home.
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.
How much tax can an expat get back?
According to statistics, approximately 9 out of 10 employers pay more taxes than the employee actually owes.
The refund amount depends on many factors, but the approximate amount of payments in 2024 is as follows:
- Germany – 1072 euros,
- Netherlands – 975 euros,
- Great Britain - 1017 pounds,
- Ireland – 1096 euros,
- Austria – 904 euros,
- Norway – 5,822 kroner.
Additional benefits that an expat can receive after submitting a declaration
After submitting an income declaration, the employee will not only be able to receive a tax refund, but will also receive additional benefits from the country's government, such as child support:
- Germany – up to 250 euros for each child,
- The Netherlands – 270 euros for small children and up to 385 euros for seniors,
- Norway – 970 kroner per month.
- USA – up to 1500 USD.
How can an employee receive a tax refund abroad?
An expat can submit a declaration independently, but for this it is necessary to have a good command of the language of the country of residence and to know the legislation.
That is why many foreigners often cooperate with tax experts, one of the most experienced is RT TAX. Founded in 2000, the company occupies a leading position in the field of tax refunds worldwide. The network has 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.
The main advantage of RT TAX is that the company works on the basis of a successful 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.
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