Expats & Taxes - 5 Things You Need to Know About Tax if You're Living Overseas

Death and taxes, as we’re so often told, are the only two things that are certain in life. While we don't have much experience with the former, we do know a bit about the latter. Today, we'll be sharing some things you need to know about taxes if you're living overseas because unfortunately, moving to another country isn't as straightforward as it may seem.

You Probably Still Need To Lodge A Tax Return

Although you may think that because you're living in another part of the world, you no longer have tax obligations at home, this isn't always true. For as long as you are considered a resident in your home country for tax purposes (or have any income streams that originate from home), you will be required to lodge a tax return each year. This is true regardless of where in the world you are currently living. If you're unsure whether this applies to you, or what process you need to follow, contact a registered tax agent for assistance.

You Can Still Contribute To,  And Benefit From, Your Retirement Fund

As a general rule, very little will change in terms of your retirement fund if you move overseas, apart from the fact that your international employer will not be required to make contributions like a local employer might have been.

Of course, the situation will differ depending on your country of origin, so once again, it’s worth seeking out professional advice to ensure you’re making the most of your retirement fund. 

You're Still Obligated To Pay Back Any Student Loans

Another thing you need to be aware of is that no matter what country you are considered a tax resident of, you will always be obligated to pay back any student loans you have acquired. This includes any loan taken out from the government to assist in completing tertiary education, so if you've gone to a technical college, university, or completed any short courses that you didn't pay out of pocket for, you'll probably have student debt.

Your Investments Will Be Taxed

Another thing to consider is that any shares, no matter what part of the world they are acquired from, will incur tax obligations in your country of origin. This is also true for income from investment properties, no matter where they are constructed. This can get a little messy, so make sure you seek professional advice if you're at all unsure about what your obligations are. This may mean talking to a financial advisor, tax accountant, or if you have real estate overseas, a property investment advisor.

You don’t have to worry about being taxed twice on the same income

This fear stops many expats from filing their taxes, which generally leads to problems for them down the line. The sad part is, they had nothing to worry about as you’ll never be expected to pay tax twice on the same income. There are credits, deductions, and exclusions in place to ensure you’re able to fully offset any foreign income that you’ve already been taxed on in your country of residence.

Taxes can be messy and confusing, but they're one of the few things in life that will always be guaranteed. Moving overseas can further complicate the process, so it's important to be aware of your obligations, no matter where in the world you are based. 

Hopefully, this article has helped clear up any questions you may have, but please remember that this advice is general in nature. You should never make any decisions without speaking to a professional who knows your personal situation.