September 2019   BECOMING AN EXPAT

Expat Tax

When it comes to moving abroad, there are many things you will need to get in order before you go.
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Especially when it comes to paying tax, be sure to do your research in advance. You may find yourself having to pay various kinds of tax or account for fiscal charges that you were not familiar with before. Entender las implicaciones de los impuestos por lo tanto es de gran importancia al trasladarse a otro país.

This helpful guide provides an overview of what you should know about taxes before you move to a new country.

Paying taxes abroad

expat tax

Tax repercussions can be of such relevance that it is not uncommon for it to become a reason for moving abroad.

This can be the case for both wealthy people and people with a much lower income. In some countries, taxes can be very costly and often take up much of a person’s salary,  or represent a major difficulty for affording property.

La falta de conocimientos legales específicos podría llevarle a tener problemas con las autoridades fiscales o bien le podría llevar a pagar más impuestos de los necesarios, así que asegúrese de estar informado sobre los sistemas fiscales vigentes en su nuevo destino antes de la mudanza.  Find out also about local regulations concerning international taxation, as in some cases there may be ways to minimize international tax burdens.

Finding your local tax office

Some tax authorities require all taxpayers to be registered, or to acquire a tax ID, so it’s best to start by finding out who the authority is in your new country and what you’ll need to do to get things in order.

In many cases, expats will receive assistance from their employer to take care of this,  , so we recommend asking your employer if you are in doubt or whether they need any documentation from you.

If you are an expat and eventually decide to return to  your home country, you may be able to apply for tax return. Por ello vale la pena informarse sobre las solicitudes de devolución de impuestos, qué oficina local puede ocuparse de su devolución de impuestos y qué necesita para prepararse para ese supuesto.

Las oficinas tributarias pueden ser un excelente lugar en el que solicitar información y asesoramiento. Before your move, we suggest finding out where your local tax office will be and what services they can provide.

When trying to figure out the tax system, try and think of all the different aspects that might apply to your particular situation.

¿Qué parte del sueldo se llevan los impuestos? ¿Estará obligado a declarar el impuesto sobre la renta en su nuevo país?  ¿Hay impuestos sobre la propiedad de los que aún no está al corriente?  Si está casado, ¿tendrá que pagar impuestos diferentes?

Income tax

Al igual que ocurre con el impuesto sobre la renta, muchos países tienen un sistema de seguridad social al que los trabajadores tienen que contribuir mediante deducciones en el salario. Si usted es trabajador por cuenta ajena o por cuenta propia, puede que tenga que contribuir a un sistema de seguridad social.

With some basic research, you can find out if there is a social security system in the country you will be moving to. As employers deduct employees’ social security contributions directly from their salaries, try and find out what the impact on your income will be.

Las contribuciones a un sistema de seguridad social pueden proporcionarle beneficios como atención médica. In other cases, however, you may be excluded from the system as a foreign national, in which case it’s highly recommended to get personal insurance.

Getting advice for expat tax

moving and paying tax

Los aspectos fiscales y tributarios cambian mucho de un país a otro, y un sistema se vuelve más difícil de descifrar en países en los que la tributación es particularmente compleja o en el que el idioma es un obstáculo.

Si se siente abrumado al tratar de comprender las repercusiones de la tributación en su nuevo país, considere la opción de buscar asesoramiento en la oficina tributaria o consultar con un asesor.

Getting advice from an expert can be expensive, but it can make the understanding much easier. It would keep you in line with the tax authorities and it could even save you money - as it might prevent you from paying more taxes than you need to.

Continue reading

Now you know essential information about paying your taxes abroad, read our guide to managing your finances abroad and see what’s involved before you make the move.

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