That’s where we come in. Bright!Tax has helped thousands of clients in hundreds of countries worldwide file US taxes accurately, on time, and optimally. This includes finding all the ways you can be as tax-efficient as possible. One of those opportunities specific to the UK – American expats can withdraw up to 25% of their UK pension without being taxed by either country.

Taxing Pension Withdrawals in the UK vs. US

Before delving into the specifics of tax-free lump-sum pension withdrawals for American expats in the UK, let’s first examine how the UK and the US tax pension withdrawals.

How the UK Taxes Pension Distributions

Let’s dig into one of the biggest tax benefits the UK offers. The UK grants pensioners a one-time tax-free withdrawal of up to 25% on pensions, up to £1,073,100. This is known as Pension Commencement Lump Sum (PCLS). After this withdrawal, the pension administrator withholds taxes on the remaining pension at standard rates.

The UK tax authorities will then tax the remaining 75% at the standard personal income tax rate, which ranges from 20% to 45%, depending on your total annual income, upon distribution.

How the US Taxes Pension Distributions

US Taxes on Distributions From Domestic Pensions

In the US, the taxation of domestic pension (or retirement) income varies depending on its source:

• Traditional 401(k)s, traditional IRAs, pensions/annuity distributions, short-term capital gains, bond income, non-qualified dividends: Ordinary income rate (between 10% and 37%, depending on total annual income)
• Roth IRAs, Roth 401(k)s, qualified distributions: Tax-free, since contributions came from post-tax income
• Social Security: Up to 85% of the benefit is taxed at ordinary rates (between 10% and 37% depending on total annual income); the remaining 15% is tax-free
• Long-term capital gains, qualified dividends: Long-term capital gains rate (between 0% and 20%, depending on the total of gains realized)

US Taxes on Distributions From Foreign Pensions

As you likely already know, the US’s citizenship-based taxation system means that all American citizens and permanent residents are subject to federal income taxes, even if they live and work abroad — so by extension, pensions owned by US taxpayers that are based in other countries are still subject to US taxes.

The US does not consider most foreign pensions as qualified — meaning they don’t recognize the tax-deferred treatment of the pensions like the foreign country does. This means, by default:

• You pay tax on the income you contribute to pensions — so even if the foreign country doesn’t tax the income that you put into a pension account, the US will
• As your pension accumulates, you must pay taxes on any investment gains or earnings that contribute to the account’s growth.
• If you fail to report pension contributions and growth as income properly, the IRS will tax you on the distributions.

In such cases, the US taxes foreign pension distributions at ordinary income rates (between 10% and 37%, depending on annual income) unless they have a tax treaty with that country that specifies a different tax treatment.

Related: Taxes in the UK vs. US: The Full Breakdown

The Role of International Tax Treaties

So what exactly is a tax treaty, and why are they so important?

Again, Americans who live abroad may be subject to taxation by the US and the country where they reside. To eliminate or reduce the risk of double taxation, the US has signed a number of different international tax treaties.

These treaties often include several common elements, such as:

• Residency determination
• Permanent establishment criteria
• Treatment of certain types of income (e.g. wages, gifts, bonuses, capital gains, etc.)
• Withholding tax rates on dividends, interest, and royalties
• Procedures for dispute resolution/tie-breaker rules
• Savings clause

To claim the benefits of a treaty like this, you must meet particular requirements. The specifics vary from treaty to treaty, but generally, you must be a tax resident of both the US and the country in question.

Unfortunately, most of these treaties contain a savings clause. This states that the US government reserves the right to tax its tax residents as if the treaty didn’t exist. However, this doesn’t preclude you from claiming benefits under the treaty. The savings clause typically includes a list of exceptions to which it does not apply – in other words, provisions that survive and remain enforceable in a legal context.

The US-UK Tax Treaty

(Bear with us, we’re about to get technical.) 

The UK is one of the countries with which the US has a tax treaty. The treaty covers a wide variety of topics, but a few of the most noteworthy provisions include:

• Avoiding double taxation on certain types of income
• Income taxes & capital gains taxes between the two countries
• Measures designed to combat tax evasion

For the purpose of this article, however, we’re going to focus primarily on the US-UK pension tax treaty provision: Article 17. Two components of Article 17 are of particular interest to those with UK pensions:

• Article 17(1)(b) states that distributions from pensions based in one country are exempt from taxation in the other
• Article 17(2) states that lump-sum withdrawals are only taxed in the country in which the pension is based

While the US-UK tax treaty includes a savings clause that negates Article 17(2), Article 17(1)(b) is not affected. It is acknowledged that interpretations of these clauses can vary among professionals. Nonetheless, at Bright!Tax, we assert with confidence that because Article 17(1)(b) remains effective, we can rely on the reciprocity provision. This key provision mandates that any tax exemption granted by the UK government is to be mirrored by the US government.

In practical terms, this means that a lump-sum withdrawal from a UK-based pension, if it constitutes 25% or less of the total value, remains tax-free in both the UK and the US. This interpretation aligns with the savings clause’s directive for the US to honor UK’s tax-free treatments.

Our analysis of the treaty is both extensive and meticulous, grounding our position and ensuring that our clients fully leverage every exemption available to them. Further, we have actively validated this interpretation through consultations with numerous external financial and legal experts, confirming the exemption of such withdrawals from taxation in both jurisdictions.

Related: US Citizens Working in the UK: A Guide to UK Employment Tax

Practical Considerations of Lump-Sum Pension Withdrawals

Making a tax-free withdrawal of up to 25% from your UK pension can be a great way to minimize your tax liability and jump-start your retirement with a comfortable cushion of liquid assets. However, it may not necessarily be appropriate for every American expat living in the UK. Keep in mind that:

• The typical minimum age at which you can make a withdrawal is 55, but it may vary between plan administrators.
• Tax exemption applies to one-time lump sums only.
• Any withdrawal exceeding 25% of the pension’s total value will be subject to ordinary UK tax rates unless you hold certain lifetime allowance protections.
• You may not transfer funds from US-based pre-tax accounts such as traditional 401(k)s or traditional IRAs into a UK pension since that would result in you not paying taxes on that income at any point.

If you do decide to capitalize on the US-UK pension tax treaty provision — or claim other benefits of the overall US-UK tax treaty — you must file Form 8833 along with your federal tax return.

Speak With an Expat Tax Expert

Before making a big change to your tax or retirement strategy — including a lump-sum withdrawal from a UK-based pension — you should always consult with a tax professional. Bright!Tax’s team of dedicated expat tax experts can help you learn more about and claim this provision, as well as optimize your overall tax strategy.

Schedule a consultation today!

The post The US-UK Pension Tax Treaty Provision Expats Need to Know About appeared first on Bright!Tax Expat Tax Services.

Below, we’ll go over everything you need to know about Greece’s Golden Visa: why it’s so hot right now, what the requirements are, how it might affect your tax obligations, and more. 

What is the Greece Golden Visa?

Golden visas — that is, visas offered to individuals who make a sizable investment in a particular country — have been around since 1984, when the small island nation of St. Kitts and Nevis launched their program. In recent years, however, more and more countries have been offering them as governments around the world see the benefits other countries are reaping by attracting immigrants who bring with them tax revenue, jobs, and economic opportunities.

The reason why applicants are interested in these visas varies. Some are attracted for financial reasons, like tax incentives or a lower cost of living, while others seek a higher quality of life in the form of more robust social programs, improved work-life balance, better walkability, nicer weather, safer communities, or other factors. And, of course, some simply want the adventure that comes with living and traveling abroad.

What’s more, Golden Visas typically offer a relatively straightforward way to live in a country on a long-term basis and perhaps even obtain permanent residence or citizenship. As long as you have the funds to invest and meet basic requirements — for example, being in relatively good health and not having a prior criminal record — you can secure a visa.

Compare that to other immigration pathways that require you to find an employer or family member with citizenship or permanent residence to sponsor you, and the Golden Visa is usually much less involved.

Rising interest in the Greece Golden visa in 2023

As we hinted at earlier, interest in Greece’s Golden Visa has been on the rise in recent years. In fact, Greek officials received over twice as many applications in 2022 as they did in 2021. Why? For one, there’s just more awareness of Golden Visas in general. Additionally, certain countries that previously offered these visas — such as the UK and Ireland — have been closing their own programs. 

Even though the minimum investment for real estate has recently increased in some areas, Greece’s Golden Visa still requires a lower financial investment compared to many other countries.

Additional benefits of Greece’s Golden Visa include:

• The right to live and work in Greece for five years
• The ability to bring immediate family members with you
• A direct path to acquire permanent residence permits
• Visa-free travel to anywhere in Europe
• No requirement to visit Greece for a certain number of days per year in order to maintain a visa
• Access to Greece’s healthcare and education systems
• Non-tax residents are taxed only on Greek-sourced income
• Tax residents may opt into an alternate lump sum tax of €100,000 (~$109,943) per year for 15 years

Related: Retire in Portugal: Visas, Healthcare, Taxes & More

Requirements for the Greece Golden Visa

In order to be eligible for the Greek Golden Visa program, you must:

Be a non-EU citizen

Greece’s Golden Visa program is not available to anyone who already has EU citizenship.

Be Of Legal Age & in Good Health

Golden visa applicants must be at least 18 years old and submit a certificate signed by a medical professional confirming that they don’t have any contagious diseases or conditions that could pose a public health or safety risk.

Have Private Insurance

You must purchase a private insurance policy for yourself and any dependents you might have that covers at least 80% of medical bills related to:

• Disability: Up to €15,000 (~$16,472)
• Accidental death: Up to €15,000 (~$16,472)
• Accidents: Up to €1,500 (~$1,647)
• Illnesses: Up to €1,500 (~$1,647)
• Inpatient stays: Up to €10,000 (~$10,981)

Often, these policies can be purchased for around €200 to €400 (~$220 to $439) per year.

Make a Qualifying Investment

At the heart of Greece’s Golden Visa is a significant investment in the country. There are several different investment options:

• An investment in real estate (residential or commercial) of at least €250,000 (~$274,723) for most properties in Greece
  • Note: As of August 2023, 36 different municipalities in Greater Athens, Thessaloniki, and the islands of Mykonos and Santorini require a minimum real estate purchase of at least €500,000 (~$549,568)
• An investment of €250,000 (~$274,723) in timeshare or furnished tourist residences with a 10-year lease agreement
• A deposit of €400,000 (~$439,524) into a Greek bank account
• An investment in shares and bonds:
  • €400,000 (~$439,524):
    • Purchase of shares and bonds on the Greek stock market
    • Purchase of Greek government bonds
    • Capital contribution to a private equity firm, venture capital fund, or real estate investment company investing solely in Greece
    • Investment into a Greek mutual fund or alternative investment fund
  • €800,000 (~$879,032):
    • Investment into a combination of shares and bonds on the Greek stock market and Greek government bonds

Make sure to review all of these investment options with a cross-border financial planner to decide which option is best for you, and consult a US expat tax professional to ensure that your investments won’t incur punitive tax treatment. Investments in foreign mutual funds, for example, are almost always taxed much more harshly than investments in US mutual funds.

Related: Understanding PFIC and Filing IRS Form 8261 for US Expats

Greece vs Portugal Golden Visa – which is better? 

If you’ve been looking into Greece’s Golden Visa, you’ve likely already heard of Portugal’s Golden Visa. Portugal’s Golden Visa has historically been more popular than Greece’s, thanks to its early launch, favorable tax incentives, and quicker path to citizenship. Portugal has also been seen by many as a more desirable country to live in than Greece due to its slightly lower crime rates, more stable government, and more affordable cost of living.

Recently, however, there have been major changes to Portugal’s Golden Visa, including the elimination of previously qualifying investment options through real estate purchases and capital transfers. The Portuguese government also recently decided to get rid of a favorable tax system for non-habitual residents starting in 2024.

Whether Portugal or Greece offers the better Golden Visa is subjective, but we’ve included a table to help you compare the two side by side.

Golden Visa: Greece vs. Portugal

Greece vs Portugal: Golden Visa Paths to Citizenship

Obtaining a Golden Visa does not absolve holders of US tax obligations

Living outside of the US doesn’t automatically eliminate your US tax obligations. It may not seem very fair, but all US citizens and permanent residents are subject to federal taxes, even if they live in another country.

While any American who meets the minimum reporting thresholds must file a federal tax return, however, they may not necessarily owe anything in US taxes thanks to tax breaks like the Foreign Tax Credit (FTC) and Foreign Earned Income Exclusion (FEIE). As an expat, you may also have to file additional forms, such as the Foreign Bank Account Report (FBAR) or Form 8938.

Expat taxes without the effort

We know how complicated US expat taxes can get, especially when foreign investments are brought into the mix. Bright!Tax has helped thousands of clients in hundreds of countries optimize their US tax strategy while making the filing process as stress-free as possible — and we’d love to help you, too.

Meet Your Dedicated CPA

References 

1. Record Application Volume Sees Greek Golden Visa Authorities Struggling to Keep Up With Demand
2. 9 Benefits of Greece Golden Visa
3. Greek Golden Visa FAQs
4. Greece Provides Significant Tax Breaks for Foreign Investors
5. Greece Golden Visa Program
6. Residence Permit Insurance in Greece
7. Greece Golden Visa Program Guide
8. Greece Golden Visa Program minimum investment limit raised from August 1
9. Is Portugal’s Golden Visa Scheme Worth It?
10. Portugal to Apply New Golden Visa Changes Soon, Following President’s Approval
11. The end of an era: Portuguese Non-Habitual Residents regime to end
12. Greece Golden Visa Costs
13. Portugal Golden Visa: The Ultimate Guide to Portugal’s Golden Visa 2023
14. Personal Income Tax Rates
15. Portugal – Individual – Taxes on personal income
16. Portugal Golden Visa 2023: New Rules and Complete Guide
17. Portugal Golden Visa: The Definitive Guide 2023
18. Greece passport ranking
19. Portugal passport ranking

The post Your Guide to the Greece Golden Visa: Its Appeal, Requirements, & More appeared first on Bright!Tax Expat Tax Services.

From sushi and curry rice to cherry blossoms and bamboo groves to natural hot springs and tea ceremonies, Japan has long captivated the attention of Americans. But how hard is it to move to Japan, and how can you do so? 

Below, we’ll cover how to move to Japan as an American, from visas to airlines to places to live and more.

Snapshot of Expat Life in Japan

Population: 125.7 million

Approximate number of American expats: 62,425

Capital city: Tokyo

Currency: Japanese Yen (¥)

Official language(s): Japanese

Top cities for expats: Tokyo, Okinawa, Kyoto, Sapporo

School-year calendar: April to March

Best time to move abroad: Fall

How to move to Japan from the USA: Types of visas

Whether you want to know how to move to Japan permanently or just for a gap year, looking into the general visas below is a great starting point.

Working visa

The Japanese working visa is for professionals who have received a job offer from a Japanese company. It can last anywhere from three months to five years, depending on the length of the employee’s contract, after which it can be extended.

Related: Differences Between an Independent Contractor and an Employee

Intra-company transferee

Japan’s intra-company transferee visa is for employees of multinational companies with offices in Japan. Again, it can last anywhere from three months to five years depending on the length of the employee’s contract, after which it can be extended.

Multinational companies with headquarters in Japan

Seeking companies that regularly recruit international talent for positions in Japan? A few international corporations with headquarters in Japan include:

• Sony
• Toyota
• SoftBank
• Nintendo
• Mitsubishi

There are also many American-based companies with offices in Japan in industries like tech  (Apple, Google, SAP, Amazon, Salesforce), finance (PwC, Deloitte, Goldman Sachs, EY, KPMG), and consumer packaged goods (Johnson & Johnson, Procter & Gamble, Unilever, Coca Cola, Kraft Heinz).

Highly skilled professional visa

The Japanese highly skilled professional visa is for those working in advanced academic research, specialized or technical activities, or business management activities. It lasts for five years, after which it can be extended.

Student visa

The Japanese student visa is designed for individuals planning to study at educational institutions in Japan. It can last anywhere from three months to four years and three months, depending on the duration of your studies, and can be extended upon expiration for those who continue to be eligible.

Visas for spouses & children

Japan provides visas for spouses and children of Japanese nationals, spouses of Japanese permanent residents, and dependents of Japanese visa holders. It can last anywhere from six months to five years, depending on the spouse/parent’s circumstances, and can be extended upon expiration for those who continue to be eligible.

Entrepreneurship visas

The Japanese startup visa is for entrepreneurs hoping to start a new business in Japan. It offers a transitory six-month stay for those who are getting their business off the ground, after which point it can be extended once for an additional six months. To stay longer, entrepreneurs would need to apply for a business manager visa under the highly skilled professional visa category.

Related: A Japan Digital Nomad Visa? Not Yet, but Other Options Exist

Long-term residency visa

Americans with Japanese heritage may be able to apply for Japan’s long-term resident visa. Eligible groups include the grandchildren of Japanese nationals and second and third-generation Japanese settlers in foreign countries. The visa can last anywhere from six months to five years, after which it can be extended.

Note: After ten years of continuously living in the country, you can apply for permanent residence in Japan.

American-Japanese dual nationality: Are you eligible?

Japanese law forbids holding multiple nationalities on paper, but in reality, it’s a little more complex.

Individuals who were granted both US and Japanese citizenship at birth are often permitted to keep dual US/Japanese citizenship until 22 years old, at which point the Japanese government typically requires them to choose between nationalities. Choosing Japanese citizenship, however, does not automatically revoke your US citizenship — so some people are able to maintain their dual citizenship under the radar.

If the Japanese government finds out you acquired or maintain another nationality, however, they will generally revoke your Japanese citizenship. They will also require you to give up your US citizenship (or any other citizenship you hold) if you apply to become a naturalized Japanese citizen.

Planning for a long-term move to Japan

Big moves inevitably come with a lot of questions, like “How much does it cost to move to Japan,” “What should I bring to Japan,” and “How do I find a job in Japan.” While you’ll likely still need to do some independent research to prepare for your move, we’ve come up with a checklist to help get you started:

• Gather all of your official documents, such as your passport and visa
• Have at least 500,000¥ (~$3,315 USD) in savings for upfront moving costs
• Book your flight and reserve a short-term stay
• Create a packing list
• Bring a three-month supply of prescriptions (if applicable) and a copy of your medical record
• Sort through your possessions to determine which you will bring with you, put in storage, sell, or donate 
• Cancel services and subscriptions that you won’t use anymore (e.g. internet, phone plan, US-specific streaming services)
• Alert your bank and credit card company to your move so they won’t flag purchases abroad as suspicious
• Complete a change of address form
• Research options for Japanese banks and cell phone plans
• Reach out to other US expats living in Japan for advice — Facebook groups and subreddits are a great place to start

Best airlines to fly from the US to Japan

Numerous airlines provide direct flights from the US to Japan, with some standing out for their exceptional customer experience. Consider booking with, All Nippon Airways (ANA), Japan Airlines (JAL), Singapore Airlines, Delta Airlines, or United Airlines.

Best places to live in Japan

There are plenty of great places to live throughout the country, but some of the best expat hubs in Japan include:

Tokyo

Tokyo, Japan’s capital and largest city, is a fascinating blend of technology, popular culture, and tradition. Whether you want to eat in a Michelin-starred restaurant, stroll through a typical Japanese garden, indulge your inner geek at the Ghibli Museum or Pokémon Café, or shop for avant-garde street fashion in Harajuku, you won’t want for entertainment options in Tokyo. A few popular neighborhoods for expats include Roppongi, Hiroo, and Azabu.

Okinawa

The small southwestern island of Okinawa, on the other hand, offers a serene escape from the hustle and bustle of mainland Japan. With white sand beaches, crystal-clear waters, and a warm subtropical climate, Okinawa is perfect for anyone who loves surfing, scuba diving, swimming, or just soaking up some rays. Expats also appreciate Okinawa’s relaxed pace of life, traditional Ryukyuan culture, and natural beauty. A few of the most popular expat areas include Yomitan, Chatan, and Sunabe.

Kyoto

Kyoto, Japan’s former capital, is a major draw for those looking to immerse themselves in traditional Japanese culture. Ancient temples, shrines, castles, and historic tea houses all contribute to an atmosphere steeped in cultural richness and spiritual depth. Nature lovers, meanwhile, can find refuge in sites like Iwatayama Monkey Park and the famous Arashiyama Bamboo Grove. A few Kyoto neighborhoods favored by expats include Katsura, Karasuma, and Pontocho.

Sapporo

Sapporo may be best known for its eponymous beer — but this northern Japanese city offers expat residents much more than just that. Sapporo’s numerous ramen stalls and seafood markets have marked it as an up-and-coming foodie destination, while the modern architecture and vast green spaces make it a pleasure to stroll around on a nice spring day. But Sapporo arguably shines brightest during the winter months, when residents take advantage of the nearby ski slopes and celebrate the Sapporo Snow Festival. If you are thinking of moving to Sapporo, there are English services to find property, like Find Hokkaido Agents.

Investing in language-learning

If you move to Japan, it could be well worth your time to learn Japanese. Less than 8% of the country speaks fluent English, and while those numbers tend to be higher in urban areas, your day-to-day life will almost certainly be easier with some Japanese under your belt.

Prices for a three-month Japanese language course vary by institution and location, typically ranging from 150,000¥ to 200,000¥ (~$995 to $1,325 USD). Many academies offer both part-time and full-time courses, making it possible for working professionals to take an intensive language course.

Some of the more well-known language schools include KAI Japanese Language School, KCP International Japanese Language School, and Genki Japanese and Culture School.

Finding accommodation in Japan

As finding an apartment in Japan usually takes four to six weeks, it’s advisable to arrange short-term accommodations while securing a long-term living situation.

Some of the best options for short-term stays in Japan are “share houses” — fully-furnished living spaces shared by multiple renters — such as Sakura House, Oakhouse, and Social Apartment. Of course, you can also look up hostels on HostelWorld or short-term rentals on sites like Airbnb and Vrbo.

When it comes to long-term rentals, most foreigners choose to go through a real estate agency. Some, like KEN Corp, are specifically geared toward foreigners. Others, like Minimini, cater to a more general audience and, as such, may require you to hire a translator (or have a high level of written and spoken Japanese). Other popular housing resources include Gaijinpot, Facebook groups, and the government-affiliated Urban Renaissance Agency (UR) website.

How much is rent in Japan

Rent in Japan varies by location, with the average cost for a one-bedroom apartment in the city center being around $585 per month.

Urban areas, of course, tend to have higher rents, with Tokyo in particular being the most expensive (about $655 USD per month). In more rural areas, on the other hand, apartments may go for as little as $300 USD per month.

How to open a bank account in Japan

Opening a Japanese bank account will make it easier for those living in the country on a long-term basis to get paid, pay bills, and make daily purchases. While you may need the help of a Japanese-speaking friend or translator to fill out forms or talk to a representative, the process itself is fairly straightforward:

• Gather the required documents
  • Passport
  • Residence card (aka Zairyu card)
  • Town hall registration
  • Proof of address (e.g. utility bill)
  • Personal seal (aka inkan or hanko)
  • Japanese mobile number
• Apply for an account in person or online
• Fill out the application form
• Make an initial deposit, if required (typically at least 1,000¥, or about ~$7 USD)
• Get your bank card
• Set up online banking

Best Japan banks for expats

Some of the best banking options in Japan for English-speaking foreigners include Japan Post Bank (JP Bank), Shinsei Bank, Rakuten Bank, SMBC Trust Bank, and Sony Bank.

Online banks may be an option

If you don’t want to open a physical bank account in Japan, you might consider opening an account with an online bank such as Starling Bank, Monzo, or Monese. Money transfer services like Wise, meanwhile, make it easy to transfer funds between your US and online bank accounts as well as send and receive payments.

Filing US taxes in Japan

Moving abroad doesn’t mean you’re off the hook for US taxes. If you’re an American citizen or permanent resident who meets the minimum income reporting threshold, you must file a federal tax return regardless of where in the world you live.

If you’re also subject to taxes in Japan, this can potentially open you up to double taxation, despite the existence of the US/Japan tax treaty. The good news? US expats abroad can often erase their US tax bill entirely through tax breaks, including the following.

Earn a dollar-for-dollar, nonrefundable credit

The Foreign Tax Credit (FTC) gives you dollar-for-dollar credits for any foreign income taxes you’ve paid that can be applied to your US tax bill

Avoid double taxation on earned income

The Foreign Earned Income Exclusion (FEIE), allows you to exclude up to $126,500 USD of your foreign earned income for taxation in the 2024 tax year. Those who qualify for the FEIE via the Physical Presence Test or Bona Fide Residence test also qualify for the Foreign Housing Exclusion, which allows you to write off certain foreign housing expenses

Claim refundable credits for your dependent children

The Child Tax Credit (CTC), which typically allows expat parents to claim up to $1,700 USD per qualifying child/dependent 

FATCA and FBAR considerations

Although expatriates receive certain tax breaks, they also face additional reporting obligations. Those with over $10,000 USD across foreign financial accounts at any point in the tax year must file a Foreign Bank Account Report (FBAR). 

Similarly, the Foreign Account Tax Compliance Act (FATCA) requires those abroad with foreign financial assets totaling over $200,000 USD on the last day of the tax year — or over $300,000 at any point in the tax year — to report them on Form 8938.

Common tax challenges for US expats in Japan

Filing taxes as a US expat in Japan can add a layer of complication to your tax and reporting obligations. For example, you may have to file both a US tax return and a Japanese tax return, which can be time-consuming and tedious. Additionally, navigating Japanese tax forms could be difficult if you don’t have a strong grasp of the language.

It’s also likely that there are tax breaks available to you that you may not be aware of or clear on how to claim, which can implicate your understanding of your tax and reporting obligations, and how to comply with them. 

Related: Taxes in Japan for US Expats – A Complete Guide

Let Bright!Tax do the heavy lifting.

As US expat tax professionals, we know how confusing taxes can be, especially when you live in another country. Bright!Tax makes US taxes stress-free for expats. Schedule a free first call to meet your CPA today.

Get Started

References

1. The Japan Long Term Resident Visa
2. Japan Living Costs: How much is it to move to and rent?
3. 6 Best Airlines to Fly to Japan
4. Japan Doesn’t Want to Become Another Casualty of English
5. Top Language Schools in Japan: A Comprehensive Guide for 2023
6. Getting an Apartment in Japan
7. Cost of Living in Japan
8. Cost of Living in Tokyo
9. Cost Of Living In Rural Japan – The Countryside Breakdown
10. Opening a Bank Account in Japan: A Step-by-Step Guide for Expats

The post How to Move to Japan from the US appeared first on Bright!Tax Expat Tax Services.

As US expat tax experts, we’re well-versed in the intricacies of international tax law and can even provide in-house expertise to advise on Canadian tax matters. Below, we’ll go over how to determine whether or not you qualify as a Canadian tax resident, what income is considered taxable income in Canada, how to navigate Canadian tax filing, and more.

Determining your tax status in Canada

So, who exactly is a tax resident in Canada? While the answer isn’t always 100% clear-cut, Canadian tax residents are generally defined as individuals with “a continuing relationship” with Canada. The following factors typically indicate somebody has a continuing relationship with Canada and therefore is considered a tax resident:

• Staying in Canada for 183 days or more in a tax year
• Maintaining a home in Canada
• Having a spouse and/or dependents living in Canada

Secondary factors that may also influence tax resident classification include:

• Social and business ties in Canada
• Maintaining personal property in Canada
• Owning a Canadian driver’s license or other official IDs
• Having a vehicle registered in Canada
• Being registered for Canadian medical insurance

Types of income that may qualify you as a Canadian tax resident

There are various types of income types and streams to consider when determining your Canadian residency status for tax purposes.

Employment income

Employment income refers to income earned as an employee. This includes:

• Salary
• Wages
• Commissions
• Bonuses
• Tips
• Gratuities
• Honoraria (i.e., voluntary payments for services that are traditionally not paid)²

Self-employment income

Self-employment income refers to income earned from a business, profession, commission, farming, or fishing. In this context, business income is defined as income from activities carried out with a reasonable expectation of profit. This includes anything you earn as a(n):

• Sole proprietor
• Freelancer
• Small business owner
• Independent contractor

Rental income

Rental income refers to the income you get from renting out property, such as houses, apartments, rooms, office space, etc.⁴

Capital gains

Capital gains income is income derived from the sale or transfer of capital property, such as land, buildings, shares, bonds, and fund and trust units.

Note: You can find the full list of all types of taxable income on the Canadian Revenue Agency’s website.

Navigating taxes in Canada

Personal income taxes in Canada are generally levied at marginal tax rates between 15% and 33%, depending on how much you earn.⁵

Canada 2023 Federal Income Tax Rates

There are also provincial and territorial taxes on income. These provincial and territorial tax rates can range from as little as 4% in Nunavut for the lowest income tax bracket to as much as 25.75% in Quebec for the highest income tax bracket.⁶

Related: US Taxes for American Expats in Quebec City – Everything You Need to Know

However, there are certain exceptions to the way income is taxed. For example:

• Typically, only 50% of capital gains income is subject to taxation
• Most gifts and inheritances are not taxed⁷
• Some types of income are eligible for tax credits and other relief

And remember, income taxes aren’t the only kinds of taxes you’re on the hook for — you may also be subject to social security taxes, GST and HST, unemployment insurance taxes, and others, depending on your unique situation.

While most Canadian tax residents end up having to file annual tax returns, there are certain exceptions.⁸ However, given the complexity of this topic, it’s often best to work with a tax professional to understand what your tax and reporting obligations are and how you can minimize your tax liability.

Nonresident taxes in Canada

So far, we’ve discussed tax rates for Canadian tax residents. But nonresidents earning income sourced in Canada — like Americans who live in the US, but own and rent out property in Canada — may be subject to different tax rates.

Nonresidents are taxed at the same federal and provincial tax rates as residents on their employment and business income associated with a permanent establishment in one province or territory. Nonresidents are subject to a surtax of 48% of federal tax if income taxable in Canada is not earned in a province or territory. This surtax is paid instead of a provincial or territorial income tax. 

They also face a 25% tax on certain types of income, such as:

• Dividends
• Rental income
• Royalty payments
• Pension payments
• Annuity payments

US-Canada income tax treaty

The US has a tax treaty with Canada that contains some benefits for American expats living in Canada. One of the noteworthy provisions is the presence of “tie-breaker rules,” which allow Americans with ties to both the US and Canada to claim tax residence in the US alone as long as that’s where they have stronger ties.⁹

The treaty also covers double taxation with regard to income tax and capital gains tax — at least in theory. In practice, however, the Savings Clause limits the benefits that American expats can receive. Often, you’re better off claiming a US tax break rather than trying to utilize the tax treaty, which we’ll dive into below.

Totalization agreement

The US and Canada have a totalization agreement that prevents American expats in Canada from making social security payments to both countries. Generally, the country to which you’ll make social security payments will depend on how long you intend to stay there:

• 5 years or less: Pay social security taxes to the US
• More than 5 years:  Pay social security taxes to Canada

US taxes for US expats in Canada

For US citizens working in Canada, navigating the tax system can be like maneuvering a maze. However, there are several strategies that Americans living in Canada can employ to reduce their US tax bill, often down to zero. Below, we explore some of the tax benefits to maximize US tax benefits for American expats in Canada.

Leveraging the Foreign Tax Credit (FTC)

The FTC allows you to deduct foreign taxes paid from your US tax liability. Expats who pay higher income tax in Canada than they would in the US can apply any excess tax credits to future returns. To claim the FTC, expats must submit Form 1116 along with their federal tax return.

Learn more in our comprehensive Foreign Tax Credit guide.

Exploring the Foreign Earned Income Exclusion (FEIE)

The FEIE allows expats to exclude a portion of their earned income from taxation. For the 2023 tax year (taxes due in 2024), this exclusion is $120,000.

Under the FEIE, you may also qualify for deductions on certain foreign housing expenses through the Foreign Housing Exclusion (FHE) or Foreign Housing Deduction (FHD). To be eligible for the FEIE, you must meet either the Physical Presence Test or the Bona Fide Residence Test.

Explore more in our comprehensive guide to the Foreign Earned Income Exclusion.

The Child Tax Credit (CTC)

The Child Tax Credit offers US taxpayers a partially refundable credit of up to $2,000 per qualifying child. However, for expat parents filing for the 2023 tax year in 2024, the CTC is typically refundable up to $1,600 per qualifying child due to international tax filing circumstances.

Understanding eligibility and retroactive claims for the CTC can be complex. We cover all of this and more in our comprehensive Child Tax Credit guide.

Related: Filing Taxes in Canada: The Ultimate US Expat Guide

Tax implications of renting out your US residence while in Canada

Renting out your US residence while residing in Canada requires you to report the associated income and expenses under Part I of Form 1040.

Do I need to report a US rental property to Canada?

Yes, all Canadian tax residents must declare their worldwide income, including rental income from properties located outside of Canada.

Which country taxes my rental property income?

If you’re a tax resident of both Canada and the US, your rental income may be subject to taxation in both countries. However, utilizing the tax credits mentioned above can often help avoid double taxation.

FBAR reporting for US expats in Canada

Americans with over $10,000 in total foreign financial accounts must file FinCEN Form 114, also known as a Foreign Bank Account Report (FBAR). The Supreme Court recently provided clarification on the limits of penalties for non-willful non-compliance with FBAR filing, but it’s advisable to handle this filing correctly from the start to prevent potential issues.

Catching up on US taxes while living in Canada

All US citizens and permanent residents, even if they reside abroad, must file a return for the year if they meet the minimum reporting threshold. The Canadian government shares Canadian tax information and bank account balances with the IRS, enabling them to identify individuals with outstanding tax obligations. The Canadian government can also collect fines and penalties on behalf of the IRS. To avoid significant fines and penalties, it’s crucial to catch up on back taxes as soon as possible.

Streamlined Procedure for Catching Up on US Taxes

Fortunately, the IRS offers the Streamlined Procedure, an amnesty program that allows expats behind on their US taxes (due to unawareness of the requirement while living abroad) to get up to date without facing penalties, provided they do so before the IRS contacts them about it.

Receive US & Canadian tax guidance when you partner with Bright!Tax.

For 10+ years, our team of certified US expat tax professionals has helped US expat taxpayers make their taxes more efficient. Connect with us today to optimize your taxes and stay on top of US reporting obligations.

Get Started

References

1. Canada – Individual – Residence
2. Honorarium: Definition and Tax Treatment
3. Lines 13499 to 14300 – Self-employment income
4. Lines 12599 and 12600 – Rental income
5. Income tax rates for individuals
6. Canada – Individual – Other taxes
7. Filing taxes in Canada
8. Canada – US Tie breaker rule
9. Texas hold ’em or taxes hold ’em? Taxes and gambling in Canada

The post What is Considered Taxable Income in Canada? appeared first on Bright!Tax Expat Tax Services.

But who’s eligible for this visa, how do you apply for it, and what’s life in Australia like? We’ll cover all of those topics and more below.

Snapshot of expat life in Australia

Population: 25.69 million

Capital city: Canberra

Currency: Australian Dollar (AUD)

Primary Language(s): English

What to know about the Australia working holiday visa 

The Australia working holiday visa is a short-term visa for those who want to temporarily work and live in Australia. There are two types of working holiday visas: subclass 462 and subclass 417. The one that Americans (as well as people from 23 other countries) are eligible for is subclass 462.

Some people confuse the working holiday visa for a digital nomad visa, but the two aren’t quite the same. Digital nomad visas are specifically for remote workers who can do their jobs anywhere in the world thanks to technology. They often come with tax benefits or other incentives and sometimes even offer a pathway to permanent residency.

Working holiday visas, on the other hand, allow holders to apply for any type of local job, whether that’s part-time, full-time, shift work, or volunteering in the country that issues the visa. Young people most frequently find work in the tourism, service, and agricultural industries. However, you don’t have to only work in these sectors — you can work in any industry you like.

Requirements and application process for the working holiday visa in Australia

Application eligibility

The working holiday subclass 462 visa requirements are fairly lax — you have to:

• Have a passport from an eligible country
• Be 18 to 30 years old (with some exceptions; see note below)
• Have at least a high school degree or equivalent
• Apply from outside Australia
• Not bring along dependent children or family members

Permitted activities and work restrictions

As we mentioned above, those who hold a working holiday visa can work part-time or full-time as well as do shift work, casual work, or volunteer in any role and industry they choose.

That being said, there are a few types of work — mainly in the tourism, hospitality, and agricultural industries — that will allow you to apply for a second and even third working holiday visa, including:

• Tourism or hospitality in northern, “remote, and very remote Australia”
• Plant and animal cultivation in northern Australia and other select regions
• Construction in northern Australia and other select regions
• Fishing and pearling in Northern Australia
• Tree farming and felling in Northern Australia
• Certain types of disaster recovery work (e.g. wildfire or flood recovery)²

You may also study while holding the visa for up to four months. Keep in mind, though, that if your primary goal is to study or permanently work in Australia, you should apply for dedicated study or work visas instead.

Application materials

Australia’s working holiday visa application requires you to gather the following documents:

• A valid passport
• A copy of your birth certificate showing both of your parents’ names (if you don’t have one, certain other documents may serve as an alternative)
• A passport-sized photo
• Proof of your educational background
• Proof of your ability to financially support yourself in Australia, typically AUD5,000 (~$3,170) in your bank account plus the cost of your departure from Australia.
• Proof that you’ve bought a ticket back home OR have the financial means to do so

You may need to supply additional documents depending on your circumstances or upon request.

Application process

• Confirm that applications are open for your country
• Gather the required documents
• Submit your application online or in person at your nearest Australian consulate/embassy (you may need an appointment beforehand)
• Pay the application fee of AUD510 (~$325) or AUD590 (~$375) for non-internet applications
• Receive approval (typically within 14 days)
• Collect your visa and head to Australia!³

Visa duration

Australia’s working holiday visa lasts for 12 months. Upon expiration, working holiday visa holders may be able to apply for a second and even third working holiday visa — details below.

Renewal rules and process

Those who have engaged in three months of specified work may apply for a second 12-month working holiday visa. After performing six months of specified work on their second working holiday visa, they may apply for a third and final 12-month working holiday visa.⁴

To stay in Australia longer than that, you’ll need to apply for another type of visa, such as a:

Student Visa

For those who wish to study in Australia. Lasts up to five years, depending on the duration of your studies.

Training Visa

For those who wish to complete a workplace-based or professional development training program. Lasts up to two years.

Partner Visa

For partners of Australians who wish to live with them. Eligible applicants can become permanent residents.

Skilled Worker Visa

For highly-skilled individuals in areas facing worker shortages. Duration varies depending on specific visa subclass but often provides a pathway to permanent residency.

As an alternative, you may choose to apply for a working holiday visa in another country — such as New Zealand, Singapore, Ireland, or South Korea — if you meet their eligibility requirements.

Common places to live on a working holiday in Australia

Although the best place to live while on a working holiday in Australia will depend on individual preferences, there are a few locations that tend to be quite popular with the working holiday crowd across the board.

📍 Northern Australia

Northern Australia, typically defined as anywhere north of the Tropic of Capricorn, is a prime region for agricultural jobs — which qualify as specified work, thereby allowing you to apply for another working holiday visa if you choose. Cities like Darwin, Cairns, and Broome offer a good mixture of work opportunities and entertainment.

📍 The Sunshine Coast 

The Sunshine Coast, which includes a 37-mile stretch of coastline along South East Queensland, is one of the hottest tourist destinations in all of Australia. Known for its stunning vistas, charming beach towns, and world-class surfing, there are plenty of jobs in hostels, restaurants, and even farms.

📍 Sydney

Those looking for office work often head to Sydney, the business capital of Australia. There are plenty of white-collar jobs available in industries like finance, technology, healthcare, and more, alongside jobs in hospitality and construction. In your spare time, you can check out famous attractions like the Sydney Opera House, head to a nearby beach, and explore the many restaurants, bars, and cultural institutions the city has to offer.

Related: Bali Digital Nomad Visa – The Complete Guide 

Moving to Australia

Before making the leap and applying for a working holiday visa in Australia, make sure you cross the following off of your to-do list:

• Gather all of your important documents (passport, visa, etc.)
• Set up a doctor’s appointment to get any vaccines or medications you might need
• Buy tickets for your flights both into and out of the country
• Book accommodations for your arrival
• Research what to bring, create a list, and pack your bags
• Flag your travel plans to your bank so they don’t mark purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Connect with other digital nomads in Australia for advice on sites like Reddit or Facebook

Life in Australia as an expat

For many, Australia is a once-in-a-lifetime experience. Below, we’ve rounded up some can’t-miss items to add to your list of things to do in Australia.

5 things that should be on your Australia bucket list

There are plenty of exciting things to do in Australia, but these five items should take priority:

1. Climb the Harbour Bridge (with a safety harness, of course!) in Sydney
2. Go snorkeling or scuba diving around the Great Barrier Reef
3. Explore the outback to see stunning red rock formations, visit Aboriginal cultural centers, and go stargazing
4. Take a surfing lesson in a beach town like Byron Bay, Bondi Beach, or Noosa Heads
5. See a professional rugby game

Most common jobs for working holiday visa holders

While a working holiday visa allows you to engage in any work, a few industries like agriculture, hospitality, and tourism are particularly popular. Some of the most common jobs for working holiday visa holders include:

• WWOOFer
• Fruit picker
• Server at a restaurant
• Desk clerk at a hostel or hotel
• Tour guide
• Retail employee
• Customer service representative
• Bartender

Working holiday visa taxes in Australia

Holders of the working holiday visa get a special income tax break — the Australian government taxes income up to AUD45,000 (~$28,600) at a marginal rate of just 15%.⁵ They tax anything above that, however, at ordinary marginal rates ranging from 32.5% to 45%, depending on how much you earn.⁶ To pay these taxes, you’ll need to apply for a tax file number (TFN).

If your income was $45,000 or under and entirely derived from salary and wages (rather than tips, commission, etc.) and you don’t plan on claiming any deductions, you won’t have to file a tax return with the Australian government.⁷ In all other circumstances, you will need to file a return with the Australian Tax Office.

US taxes when living in Australia on a working holiday visa

America’s tax system requires all citizens and permanent residents to file a federal tax return (provided that they meet the minimum income reporting threshold) regardless of where in the world they live.

It’s also worth noting that moving to Australia on a working holiday visa can be tax advantageous, as Americans abroad have a number of different tax breaks available to them that stateside citizens and residents don’t have. This can be especially helpful if you have just graduated or are still paying off student loans (more on that later).

Expat tax provisions for Americans filing US taxes in Australia

Moving abroad may complicate your taxes and can feel overwhelming to navigate. Fortunately, we’re here to break it down for you. Below are some of the additional reporting obligations and tax breaks expats should read up on.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($112,000 for tax year 2022, $120,000 for tax year 2023). To be eligible, you need to pass one of two tests: the Physical Presence Test or the Bona Fide Residence Test. 

Foreign Tax Credit (FTC)

The Foreign Tax Credit (FTC) essentially allows you to subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes. This credit will be useful for those who are paying tax to Australian tax authorities during their working holiday, to eliminate double taxation.

Foreign Bank Account Report (FBAR)

If you have $10,000 or more in aggregate in foreign bank accounts at any point in the year, you’ll need to report the contents of those accounts to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114. This is purely an administrative process, and yet the penalties for not doing so can be severe.

This is highly applicable to US citizens living abroad on a working holiday visa, as your employer will likely pay you into a local Australian account. 

Related: FBAR Filing Online in 2023: A Guide for Expats

Foreign Account Tax Compliance Act (FATCA)

If you have over $200,000 in foreign assets by the last day of the tax year, or over $300,000 in foreign assets at any point during the tax year, FATCA requires you to file Form 8938.

Enjoy total freedom from US tax stress while on your Australia working holiday.

For over 10 years, our team of certified US expat tax professionals has been helping US taxpayers all over the world. Connect with us today to optimize your taxes and easily navigate your US reporting obligations.

Get Started

References 

1. Australia Reopens to Working Holiday Makers
2. First Work and Holiday visa
3. Specified Work for Work and Holiday visa
4. First Work and Holiday visa – Step by Step
5. Work and Holiday Visa (subclass 462)
6. Working Holiday Makers | Australian Taxation Office
7. Australia – Individual – Taxes on personal income
8. Australia 462 Visa – Everything You Need To Know Before Applying

The post Australia Working Holiday Visa for Adventurous Expats appeared first on Bright!Tax Expat Tax Services.

Historically a haven for American retirees, Panama is now emerging as a budding hub for digital nomads, thanks to its safety, proximity to the US, and the recent boom in remote work. But before you pack your bags and laptop, let’s dive into eligibility, requirements, and the application process for this enticing location to call your home away from home. 

Ready to embark on this tropical journey?

Snapshot of expat life in Panama

• Population: 4.35 million
• Capital city: Panama City
• Currency: Panamanian Balboa, US Dollar
• Official language(s): Spanish
• Approximate number of American expats: 20,000-30,000

Navigating Panama digital nomad visa options for US remote workers

Whether you’re looking for a short-term escapade or considering a more permanent move, Panama offers a range of visa options tailored to your needs. Let’s delve into the two most popular choices for digital nomads.

Short-Stay Visa for Remote Workers: Your temporary tropical office

The Short-Stay Visa for Remote Workers, popularly known as the digital nomad visa, is the prime choice for American expats eyeing a stint in Panama. Designed to promote tourism while accommodating the telecommuting wave, this visa is a short-term solution, ensuring you soak in Panama’s beauty without the commitment of long-term immigration.

Friendly Nations Visa: A step closer to permanent paradise

For those envisioning a longer stay, the Friendly Nations Visa emerges as a compelling option. Tailored for residents of 50 countries, including the US, with whom Panama shares robust ties, this business visa not only allows you to work but also paves the way for permanent residence. However, it does come with its prerequisites. To qualify, one must either invest in Panamanian real estate with a value of $200,000 USD or more or secure a legal work contract with a Panama-based company.

Related: Retire in Panama: Visas, Healthcare, Taxes, & More

Your step-by-step guide to become a digital nomad in Panama

It’s an ironic truth that for all the whimsy and spontaneity inherent in travel, there’s also a significant amount of administrative organization. Below we dive into everything you need to know for a successful application for the Panama digital nomad visa.

Are you the right fit? Checking your application eligibility

Initial requirements include that you:

• Earn at least $36,000 USD annually (or $3,000 monthly).
• Have the capability to work remotely.
• Hold a valid contract with a foreign entity (not based in Panama).

Permitted activities and work restrictions

With the digital nomad visa, you can bask in Panama’s beauty while working remotely. However, there are a couple of permitted activities and work restrictions to keep in mind:

• No working for Panamanian companies. (For that, consider the Friendly Nations Visa).
• This visa is a solo journey; no dependents are allowed.
• It’s a temporary stay; no direct path to permanent residency.

Application materials 

Embarking on your Panamanian digital nomad journey requires a bit of paperwork. Here’s your comprehensive checklist to ensure you’re well-prepared:

• Passport: Ensure it’s valid for at least six months beyond your application date.
• Photos: Have three passport-sized photos ready.
• Application Form: Fill out the Short Stay Visa application form.
• Background Check: A clean slate is essential. Head to your local police station to get an apostilled criminal background check. 
• Health Check: A health certificate from a doctor, confirming you’re fit for the adventure.
• Insurance: Secure a health insurance policy covering your entire stay in Panama.
• Company Verification: Proof of your association with a foreign company.
• Income Proof: Two options here:
  • An apostilled bank certification letter detailing your income sources.
  • The last two months of bank statements, stamped, sealed, and apostilled.
• Employment Proof: Depending on your work status:
  • Employees: A letter from your employer detailing your role, responsibilities, income, and remote work capability.
  • Self-Employed: A notarized affidavit outlining client details, services, and earnings.
• Work Declaration: Secure an affidavit confirming your commitment to not accepting any local jobs in Panama. Typically, you can obtain this “Affidavit of Non-Acceptance of Jobs in Panama” from your local courtroom. This document emphasizes that your professional endeavors are tied exclusively to foreign entities outside of Panama’s borders.
• Legal Representation: An application form and a notarized power of attorney form.
• Fees: Ready $250 for the application and an additional $50 for visa issuance.

Remember, while the list might seem extensive, each document is a step closer to your tropical remote work dream in Panama.

Application process

To apply for Panama’s digital nomad visa, you must:

• Embassy or Consulate Appointment: Begin your journey by scheduling an appointment with the nearest Panamanian embassy or consulate. 
• Document Preparation: Assemble all the necessary documents as outlined in the “Application Materials” section. 
• In-Person Submission: Attend your scheduled appointment, where you’ll need to physically submit the relevant documents. 
• Fee Payment: At this stage, you’ll pay the $250 application fee to the National Immigration Agency and the $50 Visa Card fee. 
• Anticipate Approval: Typically, the approval process takes around 30 days. However, this duration might vary based on the completeness of your application and the volume of applications the agency is handling.
• Pack Your Bags: Once you receive the green light, it’s time to pack up and embark on your Panamanian adventure!

Visa duration

Panama’s digital nomad visa lasts for nine months and may be extended once for a total of 18 months.

Where to live in Panama

There are plenty of great places for American expats to live in Panama. While some of these were originally known as retirement destinations, the recent influx of young professionals has made them great options for digital nomads who are active in their careers as well. 

Here’s our pick for the top three locations for digital nomads:

📍 Panama City: The urban pulse

For those who thrive in the heartbeat of a metropolis, Panama City is the place to be. This vibrant city is a melting pot of cultures, where sleek skyscrapers rub shoulders with historic quarters and bustling markets. The juxtaposition of the old and the new creates a dynamic atmosphere that’s hard to resist. And when the sun sets, the city comes alive with its eclectic nightlife, gourmet eateries, and rhythmic dance floors. 

📍 Bocas del Toro: The Caribbean dream

Those looking for a tropical getaway may be interested in Bocas del Toro, a laid-back, bohemian paradise off Panama’s Caribbean coast. With beaches, islands, and turquoise blue waters as far as the eye can see, you’ll have no shortage of spots to sunbathe, swim, and snorkel. Whether you’re exploring the charming Caribbean architecture, rocking out to Panamanian reggaetón at a beach club, or hiking through the rainforest, adventure is just around the corner.

📍 Boquete: The highland haven

Nature lovers in search of an idyllic, serene retreat may want to consider Boquete, a town located in the lush highlands of Panama. The warm, welcoming residents composed of both expats and locals make newcomers instantly feel at home, while the cool, mountainous climate and stunning natural landscapes create a peaceful escape from urban life. But don’t be fooled — Boquete is far from dull, with some of the top attractions including coffee plantations, birdwatching areas, and wildlife sanctuaries.

Related: Buying Property in Panama: A Guide for US Retirees & Expats

Moving to Panama: Your prep guide

So, you’ve set your sights on Panama. Before you swap your office chair for a hammock by the beach, there’s a checklist to tackle. 

Here’s your ultimate pre-departure rundown to ensure a seamless transition:

• Organize your important documents (passport, visa, etc.)
• Set up a doctor’s appointment to get any vaccines or medications you might need
• Buy tickets for your flights both into and out of Panama
• Book accommodations for your arrival
• Research what to bring, create a list, and pack your bags
• Highlight your travel plans for your bank so they don’t flag purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Connect with other digital nomads in Panama on sites like Reddit or Facebook for tips and advice

Life in Panama as an expat

Living in Panama is a dream for many Americans, including unforgettable experiences and friendships. Below, we look at some must-dos while in Panama, as well as the logistics of making friends abroad.

5 things that should be on your Panama bucket list

While Panama brims with adventures at every corner, there are some experiences that are simply non-negotiable. Here’s your ultimate bucket list:

1. Panama Canal: Stand in awe of this engineering marvel, where ships dance and history flows.
2. Casco Viejo: Meander through Panama City’s historic heart, where cobblestones whisper tales of yesteryears.
3. San Blas Islands: Surrender to the allure of these untouched islands. Think azure waters, powdery sands, and a hammock with your name on it.
4. Boquete: Lace up your hiking boots and chase the ethereal beauty of the Lost Waterfalls.
5. Monkey Island: Witness the playful antics of Panama’s adorable simians.

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Expat community in Panama: How to find your people

It’s normal to feel unsure and even a little lonely when you move to Panama. Panama’s vibrant expat scene ensures you’re never alone. A few ideas to make friends as you’re getting settled:

• Move into a co-living space
• Work from a co-working space
• Stay in a social hostel
• Take classes (e.g. chocolate making, salsa dancing, etc.)
• Attend events on Meetup & Couchsurfing
• Join local expat groups on Facebook
• Attend a language exchange or use a language exchange app
• Volunteer in your community

Related: Costa Rica Digital Nomad Visa: The Ultimate Guide

Do digital nomads pay taxes in Panama?

For digital nomads, moving to Panama isn’t just the adventure of a lifetime — it can also be a major tax boon. Panama’s territorial tax system means that in most cases, income derived from non-Panamanian sources is not subject to income taxes at all.

US expats who do bring in Panamanian-sourced income, on the other hand — such as holders of the Friendly Nations Visa who have Panamanian clients — are only taxed at a flat rate of either 15% or 25%, depending on their overall income.

VAT in Panama

The value-added tax (VAT) in Panama — aka the tax placed on the sale of most goods and services — is known locally as the Impuesto de Transferencia de Bienes Muebles y Prestación de Servicios (ITBMS). Typically, it is levied at a rate of 7%, although certain items are taxed at a higher rate, such as alcohol and hotel accommodations (10%) and tobacco products (15%).

Related: US Expat Tax Guide for Americans Working in Panama

US taxes for US digital nomads in Panama

America’s tax system requires all citizens and permanent residents to file a federal tax return (provided that they meet the minimum income reporting threshold) regardless of where in the world they live and whether there’s a Tax Treaty in place. However, with the right tax strategy, US citizens living abroad may not necessarily end up owing US taxes.

Expat tax provisions for Americans filing US taxes in Panama

Moving abroad may complicate your taxes and can feel overwhelming to navigate. Fortunately, we’re here to break it down for you. Below are some of the additional reporting obligations and tax breaks expats should read up on.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($120,000 for tax year 2023). 

To be eligible, you need to pass either the Physical Presence Test or Bona Fide Residence Test. If you qualify, you’re also eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The FTC essentially allows you to subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes if those taxes were driven by foreign-sourced income. With this in mind, the FTC only applies to expats utilizing the Friendly Nations visa – not short-stay remote workers. 

Foreign Bank Account Report (FBAR)

If you have $10,000 or more in foreign bank accounts at any point in the year, you’ll need to report the contents of those accounts to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Expat life in Panama is brighter with Bright!Tax by your side

Digital nomads love Panama because of the beach and overall quality of life – don’t let US taxes interrupt you! With 10+ years of experience working with US expats worldwide, we can handle expat tax filings with ease.

Meet Your Dedicated CPA

References

1. American expats find opportunity in Panama, despite the pandemic
2. Weather in Panama
3. How to Obtain Permanent Panama Residency & Visa
4. VISA PARA NÓMADAS DIGITALES
5. Personal Income Tax for expats in Panama
6. Panama – Corporate – Other taxes

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The post The Panama Digital Nomad Visa: Your Gateway to Tropical Remote Work appeared first on Bright!Tax Expat Tax Services.

But what are the eligibility criteria for the Malaysian digital nomad visa? How can you navigate the application process? And what’s daily life like in this captivating country? We’ll unravel all these queries and more in the sections below.

Snapshot of expat life in Malaysia

• Population: 33.5 million 
• Capital city: Kuala Lumpur
• Currency: Malaysian Ringgit 
• Official language(s): Malay
• Approximate number of American expats: Over 30,000

The Malaysia nomad visa, AKA the DE Rantau Nomad Pass

What sets Malaysia’s digital nomad visa apart from the rest is its generous package of benefits. Beyond granting you the freedom to live and work in this vibrant country, the DE Rantau Nomad Pass opens doors to a wide array of enticing perks. The Malaysian government has collaborated with various businesses to provide pass holders access to “nomad-ready hubs” and a collection of meticulously curated services and facilities. This encompasses exclusive offers and discounts on accommodation, co-working spaces, gourmet dining deliveries, immersive tours, and much more.

Malaysia digital nomad visa targets digital marketers, IT professionals, and content creators 

Launched in October of 2022, Malaysia’s DE Rantau Nomad Pass — commonly called the digital nomad visa — is tailored to attract individuals thriving in the digital and IT domains. 

This includes digital freelancers, independent contractors, and remote workers in IT and digital professions, such as software engineers and backend engineers, as well as those who work in:

• UX/UI
• Cloud technologies
• Cybersecurity
• Blockchain technology
• AI
• Machine learning
• Data-related fields
• Digital marketing
• Digital creative content
• Digital content development

Requirements and process to become a digital nomad in Malaysia

Looking to make Malaysia your next digital nomad destination? Here’s what you need to know to secure the DE Rantau Nomad Pass:

Application eligibility

To be eligible for Malaysia’s digital nomad visa, you must:

• Be able to work remotely in another country in one of the fields listed above
• Be at least 18 years old
• Earn at least $24,000 USD per year

Permitted activities and work restrictions

Malaysia’s digital nomad visa holders are allowed to reside and work in peninsular Malaysia. Additionally, they can bring immediate family members, such as spouses, common-law partners, and minor or disabled children/stepchildren. However, it’s important to note the following restrictions:

• The DE Rantau Nomad Pass is valid only for stays in Peninsular Malaysia. Travel to Sabah and Sarawak requires a separate tourist visa.
• Dependents are not eligible for work permits in Malaysia.
• Registering dependent children in local schools can be challenging due to varying requirements. In such cases, international schools often provide the best education solution for families.

Application materials

The necessary materials for applying for the Malaysia digital nomad visa include:

• A valid passport with a minimum of 14 months of validity after the initial application and at least six blank pages.
• Your CV.
• The last three months of your bank statements.
• The last three months of your income statements or tax returns.
• The last three months of your payslips (applicable to remote employees).
• Either a valid project contract lasting at least three months (for freelancers) or an employment contract with a non-Malaysian employer lasting at least three months (for remote employees).
• A personal bond document.
• A completed and notarized letter of good conduct.
• Higher education certificates.
• A medical insurance enrollment certificate for both yourself and any dependents accompanying you.
• Inland Revenue Board of Malaysia tax registration slip.​​²

The application process

All in all, the application for the digital nomad visa in Malaysia will look something like this:

• Gather the required documents outlined in the “application materials” section. Ensure all documents are in English, saved as PDFs, and do not exceed 20 MB in size.
• Register & complete the online application form.
• Upload your necessary documents as per the specifications.
• Pay your application fees, which include:
  • RM1,060 (~$226)* for the main applicant
  • RM530 (~$113)* for each dependent
  • An immigration pass fee for each applicant of RM90 (~$19) for 3 months or RM360 (~$77) for a full year
  • A security bond of RM2,000 (~$426), unless you can find a visa sponsor
• Await approval; visa applications typically take six to eight weeks to process.
• Based on your acceptance letter, apply for an eVisa or visit your designated embassy or consulate.
• Collect your pass and prepare for your journey to Malaysia.

*Fee subject to SST tax of 6%

Visa duration

Once granted, the visa will last between 3 months and 1 year. Upon expiration, you can renew the digital nomad visa once more for a maximum stay of 24 months.

Moving to Malaysia

As you prepare for this journey, there are some key steps and considerations to make your transition into life in this captivating Southeast Asian country as smooth as possible. 

Your potential pre-move checklist

Before making the leap to becoming a digital nomad in Malaysia, make sure you cross the following off of your to-do list:

• Set up a doctor’s appointment to get any vaccines or medications you might need
• Buy tickets for your flights both into and out of Malaysia
• Book accommodations for your arrival
• Research what to bring, create a list, and pack your bags
• Flag your travel plans to your bank so they don’t mark purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Connect with other digital nomads in Malaysia for advice on sites like Reddit or Facebook 

Where to live in Malaysia

There are many great places to live in Malaysia, but the following three locations stand out as top choices:

📍 Kuala Lampur

Kuala Lumpur, Malaysia’s capital, is a vibrant blend of modernity and tradition. Here, towering skyscrapers coexist with centuries-old temples, creating a unique and captivating atmosphere. The city’s multicultural population contributes to its diverse and welcoming vibe, with people from various backgrounds coming together to work, live, and explore. Whether you’re sampling street food, indulging in high-end shopping, or experiencing the vibrant nightlife, Kuala Lumpur offers endless entertainment options.

📍 Penang Island

For those who prefer island living, Penang is a dream destination. This serene island boasts a laid-back lifestyle while providing plenty of excitement. With beautiful beaches, lush rainforests, lively street markets, captivating murals, and frequent local festivals, Penang offers a perpetual sense of adventure and relaxation.

📍 Johor

Located in the southern part of Malaysia, Johor offers the best of both worlds: urban living and natural beauty. Johor Bahru, the capital city, exudes a trendy, dynamic energy, while the picturesque coastal towns provide peaceful retreats. Additionally, Johor’s proximity to the city-state of Singapore, just south of the border, makes it convenient for quick getaways, whether for a weekend escape or an extended stay.

Related reading: Bali Digital Nomad Visa – The Complete Guide

Life in Malaysia as an expat

Beyond the realm of work, Malaysia offers an abundance of cultural treasures, natural wonders, and opportunities to connect with fellow nomads. Let’s delve into the enriching aspects of life in Malaysia and uncover the top experiences awaiting you on this vibrant Southeast Asian canvas.

5 things that should be on your Malaysia bucket list

Even if you stay in Malaysia for the full two years that the digital nomad visa allows, you’re unlikely to run out of things to do and places to explore. Among all the country has to offer, these five activities should take top priority:

1. Batu Caves Exploration: Discover the Batu Caves, a network of caves and cave temples adorned with flora, fauna, and breathtaking natural formations.
2. Gunung Berembun Cameron Highlands Hike: Embark on a hike in the Gunung Berembun Cameron Highlands for unparalleled views of the rainforest, a Hindu temple, scenic tea plantations, and more.
3. Sepilok Orangutan Rehabilitation Center Visit: Get up close to these incredible primates in a safe and ethical manner by visiting the Sepilok Orangutan Rehabilitation Center.
4. Perhentian Islands Adventure: Experience the pristine beauty of Malaysia’s most exquisite beaches on the Perhentian Islands.
5. Melaka’s Architectural Marvels: Explore the wonders of Melaka, a historic port city renowned for its stunning architecture.

Related reading: The Top 7 Countries For Digital Nomad Visas in 2023

Digital nomad community in Malaysia: How to find your people

It’s normal to feel unsure and even a little lonely when you move overseas. Fortunately, Malaysia is bursting with opportunities to get out and meet new people — you’ll be making new friends in no time. 

A few ideas to get you started:

• Move into a co-living space
• Work from a co-working space
• Stay in a social hostel
• Take classes (e.g. cooking, stand-up paddleboarding, batik bag painting, etc.)
• Attend events on Meetup & Couchsurfing
• Join local expat groups on Facebook
• Attend a language exchange or use a language exchange app
• Volunteer in your community

Understanding taxes as a digital nomad in Malaysia

Malaysia’s tax system can feel complex (and sometimes unclear), but let’s simplify it. To start, digital nomads in Malaysia fall into two categories:

• Tax Residents: If you spend 182 days or more in Malaysia during a tax year, you’re considered a tax resident. Residents pay taxes on their income, with rates ranging from 1% to 30% based on their earnings.
• Non-Residents: If you don’t meet the 182-day threshold, you’re a non-resident and subject to a flat 30% tax rate on any income earned in Malaysia.

Exemptions & clarifications

The government often exempts foreign-sourced income from taxation. Because of this, some sources claim that digital nomads will only be subject to taxation on Malaysian-sourced income. 

One caveat, however, the DE Rantau Pass FAQs do not explicitly mention this. From their official website, however, one can seemingly glean that:

• Freelancers will receive a reduced tax rate on Malaysian-sourced income for the first 182 days of their stay.
• Remote employees will not have to pay taxes unless they stay in the country beyond 60 days.

Keep in mind that although Malaysia doesn’t have a tax treaty with the US, there are some tax provisions available to Americans living abroad that often eliminate the risk of double taxation entirely (more on that later).

VAT in Malaysia

Malaysia’s sales and service tax (SST) — the value-added/consumption tax on most goods and services — is typically 6%.

Related reading: US Expat Taxes for Americans Living in Malaysia – What You Need to Know

Do American digital nomads in Malaysia have to pay US taxes?

America’s tax system requires all citizens and permanent residents to file a federal tax return (provided that they meet the minimum income reporting threshold) regardless of where in the world they live and whether or not there’s a tax treaty in place. However, US citizens living abroad may not necessarily owe US taxes thanks to the following provisions.

Expat tax provisions for Americans filing US taxes in Malaysia

Moving abroad may complicate your taxes and can feel overwhelming to navigate. Fortunately, we’re here to break it down for you a bit. Below are some of the additional reporting obligations and tax breaks expats should read up on.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($120,000 for tax year 2023). 

To be eligible, you need to pass either the Physical Presence Test or Bona Fide Residence Test. If you qualify, you’re also eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The FTC allows you to essentially subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes, as long as those taxes are on foreign-sourced income.

Foreign Bank Account Report (FBAR)

If you have $10,000 or more in foreign bank accounts at any point in the year, you’ll need to report the contents of those accounts to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Related: Digital Nomad Taxes: A Complete Guide for US Nomads

Optimize Your Malaysian Experience with Bright!Tax

We're your trusted US expat tax partner, with 10+ years of global expertise to ensure a seamless tax filing for you and your business.

Meet Your Dedicated CPA

References

1. Malaysia’s New Digital Nomad Visa Is Now The Easiest To Qualify For In Asia
2. DE Rantau – Foreign
3. DE Rantau Pass – Frequently Asked Questions
4. Malaysia – Individual – Residence
5. Malaysia – Individual – Taxes on personal income
6. Malaysia – Individual – Income determination
7. Malaysia Digital Nomad Visa Options
8. Malaysia – Individual – Other taxes

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The post The Malaysia Digital Nomad Visa: Your Comprehensive Guide appeared first on Bright!Tax Expat Tax Services.

For potential expats, Dubai offers more than just glitz and glamour. There’s a thriving job market, an attractive tax system, safety, and a cost of living that often beats major U.S. cities. That’s why an increasing number of Americans are making the move.

But before you pack your bags, you need the right information. This guide covers the essentials, from securing a Dubai visa for U.S. citizens to understanding life in Dubai and its tax system. Get ready to embark on your Dubai journey.

Snapshot of expat life in Dubai

• Population: Over 3 million 
• Currency: United Arab Emirates Dirham (AED)
• Official language(s): Arabic
• Approximate number of American expats: Around 40,000

Why do freelancers move to Dubai? 

Dubai has become a hotspot for freelancers in recent years. At the heart of this allure is the country’s remarkable tax system, or more accurately, the lack thereof.

The United Arab Emirates, home to Dubai, doesn’t burden its residents with personal income tax. This tax-free haven extends its generosity to cover passive income sources, from investments to cryptocurrency ventures. Even more astonishing, there are no taxes on inheritances, gifts, or estates.

While the UAE recently introduced taxes for various businesses, the overall tax environment remains business-friendly. This has attracted startups and investors, creating a bustling ecosystem teeming with job opportunities, networking events, and professional growth prospects. Dubai sweetens the deal with its numerous free zones, such as the Dubai Airport Free Zone, each offering special regulations that benefit businesses and investors.

Combine these elements, and you have an exhilarating, entrepreneurially charged atmosphere that’s irresistible to freelancers. The UAE even offers a dedicated freelance visa, simplifying your journey to realizing your Dubai dream.

Dubai Visas for US Citizens: Your Options

If you only plan on staying in Dubai for 180 days or less, you can apply for a Visa on Arrival (VoA). It’s crucial to note that working on these visas is illegal. Violators may face fines and deportation. 

There are four different kinds of VoAs available:

• 30 days
• 90 days
• 180 days
• 14 days (only available for Indian nationals)

Indian nationals holding US green cards can secure longer stays by applying for an extended visa on arrival. For stays of 180 days or more, explore the long-term residence visa options detailed below. 

Below are details on and requirements of the most common visas freelancers use to work and live in Dubai long-term.

Green Visa (Freelance Visa)

• Who it’s for: Designed for freelancers, independent contractors, and self-employed individuals.
• Duration: The green visa allows holders to live and work in the UAE for five years, after which it can be renewed indefinitely. Holders may be eligible to apply for permanent residency after five to ten years of living in the country.
• Dependents: A spouse, children, and parents can accompany you, provided they meet residence visa requirements.
• Requirements: Obtain a freelance permit from the Dubai Development Authority, possess a bachelor’s degree or equivalent, and earn a minimum of 360,000 AED (~ $98,015) annually.

Golden Visa

• Who it’s for: Suited for investors, entrepreneurs, highly-skilled individuals, and exceptional students.
• Duration: The golden visa allows holders to live and work in the UAE for five to ten years (depending on which visa category they fall into), after which point it can be renewed indefinitely. After five to ten years of living in the country, holders may be eligible to apply for permanent residency.
• Dependents: A spouse, children, and parents can join you if they meet residence visa criteria.
• Requirements: Golden visa requirements vary by category, encompassing investors, real estate investors, outstanding talent in various fields, exceptional students, humanitarian pioneers, and specific frontline healthcare workers.

Dubai visa options for US green card holders

US green card and visa holders are eligible for UAE visas on arrival for short-term visits and long-term residence visas. However, if you hold citizenship from a country with a visa ban, the process may become complex.

If you’re a citizen of a country on the visa ban list and possess a US green card, it’s advisable to consult with an immigration attorney experienced in Dubai visa applications to navigate the bureaucratic complexities effectively.

Can an American have dual citizenship in the UAE?

Yes. While there was previously a ban on dual citizenship, the ban has since been reversed. It’s worth noting, however, that it takes an exceptionally long time of living in the UAE to qualify for citizenship by naturalization — typically 30 years.

Living in Dubai as a US expat

Dubai is renowned for its futuristic city design and architecture. However, before you can immerse yourself in exploring your new city of residence, you’ll need to find somewhere to live. 

How to find accommodation in Dubai

If you’re only planning on living in Dubai on a short-term basis, your best bet is a platform like Airbnb, Booking.com, or Hostel World (for budget stays). If you’re comfortable spending more for a fully-furnished apartment during a short-term stay, you can look into local companies like Blueground.

Those with a freelance visa in Dubai who plan on settling there long-term may want to check out Dubizzle, Property Finder, or Bayut. You could also look into a co-living space such as Hive Coliv.

Popular neighborhoods for expats include the Dubai marina, downtown, and the Jumeira Beach Residence (JBR). 

Like anywhere else in the world, there are housing scams in Dubai. Before you sign a lease, do your due diligence, such as checking it out in person or looking up the building on a review site.

How to open a bank account in Dubai

Opening a bank account as a foreigner in Dubai is relatively straightforward. Most banks will require you to open your account in person. Bring along the following documents for seamless setup:

• Passport & a copy
• Your visa
• Work contract
• Emirates ID card (or Emirates ID registration form if you haven’t yet received your card)

If you’re a non-resident, you may be asked for additional documents like:

• Utility bill
• Reference letter from your previous bank
• Bank statements from the past six months
• Additional information on where your income comes from

Best Dubai banks for expats

As a global banking hub, Dubai has plenty of banking options, and most have worked with foreigners before. Some of the top choices for banks for expats in Dubai include:

• Emirates NBD
• First Abu Dhabi Bank (FAB)
• HSBC Middle East
• Standard Chartered
• Mashreq
• Abu Dhabi Commercial Bank (ADCB)
• Citibank UAE

Considerations when transferring large sums of money between the US and Dubai

Whether you’re topping up living funds or purchasing a property, transferring money is essential when moving overseas. Using a regulated money transfer provider can be a great option for making payments. 

Money transfer providers offer personalized support and can keep you updated with currency movements. In today’s market, even a small movement in the exchange rate can make a big difference to the amount you’re receiving. Specialist providers such as Clear Currency offer services that are not available through your bank and can be more readily tailored to your needs. They offer:

• Excellent exchange rates with the ability to transfer over the phone or online.
• Access to a dedicated currency specialist who can offer recommendations, book currency transactions, and make sure your money arrives hassle-free.
• Assistance mitigating the impact of currency risk by securing favorable exchange rates.
• Fully regulated and client-segregated accounts, ensuring the safety and security of your funds.

Many expats are moving to online banking for day-to-day transactions

Online banking often provides increased options for US expats, which may be why there is a rising preference for services such as Starling Bank, Monzo, and Monese. Money transfer services, like Wise, make it easy to transfer cash from your US to online bank accounts, get paid, and make payments to others.

Social and cultural logistics of living in Dubai as an expat

The UAE is considered relatively progressive and tolerant compared to neighboring countries. Dubai, in particular, is known for being more welcoming due in part to its diversity — expats and immigrants make up 88.52% of the city’s population. Still, the culture is very different from that of the US.

When contemplating life in Dubai, it’s essential to be mindful of the following norms:

• Public Displays of Affection: While public displays of affection are not universally prohibited, it’s prudent to exercise restraint, as these displays may not always be well-received.
• Cohabitation Rules: Unmarried couples are not permitted to cohabit, whether on a short-term or long-term basis, in accordance with local laws and customs.
• Modesty in Dress: Dubai expects foreigners to dress modestly and adhere to strict gender-specific clothing norms in public areas.
• Language and Behavior: Using offensive language or engaging in disorderly conduct in public spaces is discouraged and could lead to legal consequences.
• Photography Etiquette: Taking photos of individuals without their consent is considered illegal and intrusive.
• Ramadan Observance: During the holy month of Ramadan, most restaurants close during fasting hours.

While these cultural and legal norms may not always be stringently enforced, they are essential aspects of Dubai’s social fabric. Respecting these customs not only ensures a harmonious stay but also demonstrates appreciation for the local culture. By adhering to these norms, expatriates contribute to the cultural diversity that makes Dubai such an exceptional place to live.

Understanding foreign tax implications for US expats moving to Dubai

As mentioned earlier, the UAE, by and large, does not require individuals to pay taxes on income. But in some cases, freelance work may be taxed:

• Natural persons face a 9% tax on earned income derived from business activities exceeding 1 million AED (~ $272,257)
  • Income from investments is excluded
• Freelancers who own businesses face a 9% tax on earned income exceeding 375,000 AED (~ $102,095) unless they are considered a Qualifying Free Zone Person (QFZP)

Expat freelancers will generally not be expected to pay UAE Social Security or unemployment insurance taxes either, as long as they are considered non-GCC Nationals.

A few taxes you may encounter in Dubai, though, include:

• VAT: The UAE has a tax of 5% on most goods and services (with exceptions in a few very specific cases)
• Property tax: 5% for both property owners and tenants
• Registration tax: 4% on transfers of land or property
• Hotel & tourism tax: A fee ranging from 7 AED (~ $2) to 20 AED (~ $5.50) per night for hotel guests and tenants. Hotel sales (e.g. food, beverages, services) are also subject to a 7% municipality fee.

UAE tax obligations

While you won’t have to file a personal tax return to the UAE government, you may need to file one for your business. Freelancers earning 375,000 AED or more must register for VAT, levy a 5% VAT on their services, file quarterly tax returns, and make VAT payments. VAT tax returns and payments are due no more than 28 days after the end of your tax period and may be submitted online.

US tax obligations

All US citizens and permanent residents — even those living in Dubai — are subject to taxation on their worldwide income as long as they meet the minimum income thresholds. 

There are tax breaks that can offer relief for expats, however, in addition to general requirements. 

Some tax requirements and breaks that expats should know include: 

• Foreign Earned Income Exclusion (FEIE): Allows you to exclude up to $120,000 (for tax year 2023) of foreign-earned income from taxation and write off qualified housing expenses via the Foreign Housing Exclusion.
• Foreign Tax Credit (FTC): Allows you to subtract what you’ve paid in foreign income taxes from what you owe the US government.
• Foreign Bank Account Report (FBAR): Requires anyone with over $10,000 in aggregate in foreign accounts to file FinCEN Report 114.
• Child Tax Credit (CTC): Allows you to claim up to $1,500 in partially refundable credits for each of your qualifying dependents.
• Foreign Account Tax Compliance Act (FATCA): Requires anyone with over $200,000 in foreign assets on the last day of the tax year — or over $300,000 at any point in the year — to file Form 8938. (These thresholds vary for those residing in the US.)

Related reading: Taxes in Dubai and the UAE for US Expats

Maximize Your Tax Benefits in Dubai

Unlock your financial potential with Bright!Tax CPAs. Our experts specialize in optimizing your tax strategy to leverage the IRS's best provisions and credits tailored to your unique situation.

Meet Your Dedicated CPA

References

1. United Arab Emirates – Individual – Taxes on personal income
2. Do you need an entry permit/visa to enter the UAE?
3. Residence visa for working in the UAE
4. How to open a bank account in the UAE
5. Best Banks in Dubai for Expats – Updated List for 2023
6. Best Banks in UAE (and Dubai) for Expats
7. Dubai Travel Guide
8. United Arab Emirates – Individual – Other taxes
9. How to register VAT for a freelancer in the UAE
10. Why Lindsay Lohan Moved To Dubai (And Isn’t Coming Back To The United States)

The post How to Move to Dubai from the USA: Visa Options for Freelancers appeared first on Bright!Tax Expat Tax Services.

When considering this question, it’s important to research beyond income taxes. There’s much to consider, including sales and property tax differences between the countries.

It can feel daunting to try and analyze different tax systems to ascertain how to position yourself financially. That’s why we’ve created this article.

When you’re ready to crunch some numbers, this guide will help you calculate your total tax picture when you leave the US for the UK.

Understanding the British tax system

The British tax system applies to all countries in the UK: England, Scotland, Wales, and Northern Ireland. While there are certain nuances within the specific tax codes and regulations of each country (much like how the tax codes of US states may vary), there are overarching governing aspects of the British tax system. 

Federal taxes 

Before we get into tax rates, it’s worth mentioning the UK’s employee personal allowance. This is the amount of income that UK residents do not need to pay taxes on (similar to the US Standard Deduction).

For the 2024-2025 UK tax year, which starts on April 6th, 2024, and ends on April 5th, 2025, the employee personal allowance is:

• £242 per week
• £1,048 per month
• £12,570 per year

In some situations, you may be able to claim a greater allowance or additional allowances. Examples of potential scenarios include if you’re married, blind, self-employed, or earning income from renting out property.

For most workers, anything above those thresholds is subject to Pay as You Earn (PAYE). These tax rates fluctuate based on how much you make, as well as where you live.

UK PAYE Tax Rates and Thresholds, 2024-2025

Provincial taxes

Fortunately, there are no local or provincial taxes on personal income in the UK.

Municipal taxes

There are municipal taxes in the UK, however, they are not based on personal income. Instead, they’re placed on businesses at a rate determined by the regional government.

In many cases, these taxes can be deductible.

Council Taxes

Property owners and renters in the UK may be subject to a council tax, which is similar to the US property tax. You can calculate this tax based on: 

• The valuation band for your home in England and Wales or in Scotland
• How much your local council charges for that band
• Whether you can get a discount or exemption from the total bill

UK vs. US tax rates

So, how do British and US tax rates compare? 

In order to compare US vs. UK income taxes, compare the below tables to the UK PAYE table described above. Note that the tables illustrate the tax rate depending on your filing status, so review according to your own.

US income tax rates for single filers

US income taxes for married taxpayers filing jointly

At a state level, single filers may face income taxes as low as 0% in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Conversely, they may be as high as 13.3% for the top income tax bracket in California (when factoring in the state’s wealth tax). 

Very few local US governments charge income taxes, but those that do top out at 4%.

US vs. UK capital gains taxes

Differences in capital gains taxes can play a huge role in how US expats approach moving to another country. While specific questions such as whether you should sell your home in the US prior to moving abroad, or rent or buy your UK residence are best put to experts in US and UK tax, understanding the baseline tax brackets is a helpful starting point. 

Related: Moving to the UK from the USA: Everything US Expats Need to Know

US capital gains tax rates

Short-term capital gains (i.e., profits on the sale of assets held for a year or less) are taxed the same as regular income according to the tables above.

The profit on the sale of assets held for more than a year, however, falls into the more favorable long-term capital gains rate.

UK capital gains tax rates

* Note: Primary homes tend to be exempt from capital gains taxation

Important note: Even if your income falls into the basic tax rate in the UK, it may not fall into the basic tax rate for capital gains purposes. To calculate which rate you fall into, you must:

• Calculate taxable income (total income minus personal allowance and any income tax relief you can claim)
• Calculate your total taxable gains
• Subtract your tax-free allowance from your total taxable gains
• Add this to your taxable income

If this income is within the basic tax band, you’ll fall into the basic capital gains tax bracket. If it falls into the higher tax bracket, you’ll fall into the higher capital gains tax bracket.

Regardless of which bracket you fall into, you’ll be able to claim a personal allowance of £1,000 for dividends and £6,000 for property and other personal assets.

US vs. UK corporate taxes

US corporate taxes

Ever since the Tax Cuts and Jobs Act of 2017, the US corporate tax rate has been a flat 21%. (This rate only applies to C-Corporations, not S-Corps, LLCs, or partnerships.)

UK corporate taxes

In the UK, corporate taxes are currently 25%. Businesses whose profits are £50,000 or below are also subject to a 19% small profits rate. If a corporation’s income comes from patents, however, the tax rate may be as low as 10%. Diverted profits, meanwhile, are taxed at a rate of 31%.⁴

There are separate taxation schemes for: 

• Oil and gas companies
• Life insurance companies
• Companies that operate ships
• Companies in the banking industry
• Real estate investment trusts
• Qualifying asset-holding companies
• Residential property developers

US vs. UK VAT rates

US VAT rate

The US does not have a federal value-added tax (VAT). Instead, it’s charged at the state level (where it’s referred to as a sales tax), and sometimes at the local level.

The highest state sales tax rate is California (9.25%). The lowest is a five-way tie between Alaska, Delaware, Montana, New Hampshire, and Oregon (all 0%).

UK VAT rate

The standard UK VAT rate is 20%, while the reduced rate is 5% and is applied only to some goods and services, like children’s car seats and home energy.

There’s also a 0% rate for certain items like food and children’s clothing.

While tax rates are generally higher in the UK, they certainly aren’t the only factor to consider when looking at the overall tax burden in a country. Some countries may offer more public benefits and services than others — for example, UK taxpayers are entitled to public health care.

Property tax: UK vs. US

There are many considerations that come into play when considering whether to keep or sell your US property, and whether to buy or rent a property abroad. 

Below is a general overview of some property tax comparison points to consider, however, bear in mind that the best course of action for you as an individual will likely come after a personal consultation with a professional who can offer you expert guidance. 

US property tax rate

In the USA, property taxes are imposed at the local level, i.e. each state establishes its own guidelines for how the local government in your specific jurisdiction can tax its residents. 

The tax range is broad, from 0.31% (Hawaii) to 2.13% (New Jersey). 

Additionally, property owners must consider factors such as applicable sales taxes, capital gains, and inheritance or estate taxes. These also vary by state and will likely influence the best course of action for you.

Property taxes in the UK

Those who own property in England and Northern Ireland pay the Stamp Duty Land Tax (SDLT).9 Tax rates differ depending on the value of the property:

Stamp Duty Land Tax Rates, 2024-2025

• 0% on properties worth up to £250,000
• 5% on the next £675,000 (the portion from £250,001 to £925,000)
• 10% on the next £575,000 (the portion from £925,001 to £1.5 million)
• 12% on the remaining amount (the portion above £1.5 million)

Note that if you buy property in Scotland or Wales, you won’t be subject to SDLT. 

In Scotland, you’ll pay the Land & Buildings Transaction Tax (LBTT)11 to Revenue Scotland. In Wales, you’ll pay the Land Transaction Tax (LTT)12 to the Welsh Revenue Authority.

Key tax issues for Americans living in the UK

When living in the UK, there is a lot to keep track of. As a US expat, it can feel especially difficult, so we’ve rounded up the most important items to consider when navigating two tax seasons.

Understanding the US filing requirement

All US citizens and permanent residents (Green Card holders) are required to file a federal tax return as long as they meet the minimum filing threshold. This requirement does not change if you live outside the US.

For single individuals under 65, the minimum income that triggers an obligatory US tax filing is $12,950, although the rate varies based on marital status, age, and other factors.

For self-employment income, however, the threshold is just $400.

Related: Filing US Taxes in the UK: A Complete Expat Tax Guide

The potential for double taxation

It’s common for questions to arise based on the misconception that where your income is sourced determines where you pay your taxes e.g., many US citizens often wrongly (though, understandably) think that living in the UK and working for a US company means they only owe taxes to the US.

In fact, Americans living in the UK whose visas and employment situations require them to pay UK taxes are protected from double taxation by the US/UK income tax treaty established in 2003. Other situations, such as the one described previously, typically depend on tax residency. Ascertaining tax residency is a crucial step to being able to file your tax return(s) as advantageously as possible. It is also something that can be strategically planned so that you are set up for financial success before your first expat tax season comes around.

Additionally, there are several different tax breaks available to Americans living abroad, which can be applied to ensure your tax return is as efficient as possible.

Organizing pension plans

Participation in foreign pension plans can pose a significant tax burden in many countries, but thankfully, Article 17 of the US and UK’s tax treaty allows US expats to both make tax-deferred contributions to UK pension plans and avoid double taxation when receiving UK pension payouts in retirement.

Totalization Agreement

Since 1985, the US and the UK have had a Totalization Agreement. These agreements are a type of tax treaty specifically designed to protect US citizens from taxation with regard to Social Security and Medicare taxes in the United States.

Key tax breaks and reporting requirements for Americans living in the UK

As mentioned above, there are a number of tax provisions that can help you avoid double taxation when living abroad:

• Foreign Earned Income Exclusion (FEIE): Allows those who qualify to exclude up to $120,000 of foreign-earned income (for tax year 2023) from taxation
• Foreign Tax Credit (FTC): Allows those who qualify to deduct what they have paid in foreign income taxes from what they owe the US. Note that it is not possible to eliminate the US Net Investment Income Tax using this provision.
• Foreign Bank Account Report (FBAR): Requires those with $10,000 or more in foreign accounts to file FinCEN Report 114
• Child Tax Credit (CTC): Allows parents to claim up to $1,500 in partially refundable credits per qualifying dependent
• Foreign Account Tax Compliance Act (FATCA): Requires those with over $200,000 in foreign assets on the last day of the tax year (or over $300,000 at any point in the tax year) to file Form 8938. (Thresholds for filing Form 8938 are much lower for those who reside in the US).

Receive expert guidance from US and UK tax experts when you partner with Bright!Tax.

We're pleased to provide US expats living in the UK assistance with both US and UK taxes, guaranteeing a seamless experience with double the ease and convenience.

Meet Your US/UK Tax Team

References

1. Rates and thresholds for employers 2023 to 2024
2. Income Tax rates and Personal Allowances
3. Income Tax rates and Personal Allowances: Income over £100,000
4. United Kingdom – Corporate – Taxes on corporate income
5. United Kingdom – Corporate – Other taxes
6. How Council Tax Works – Working Out Your Council Tax
7. Inflation boosted the 2023 federal income tax brackets. Here’s how your taxes may compare to 2022
8. State Individual Income Tax Rates and Brackets for 2023
9. Local Income Taxes: A Primer
10. Capital Gains Tax: 2022-2023 Tax Rates and Calculator
11. Capital Gains Tax: what you pay it on, rates and allowances
12. Tax on dividends
13. Capital Gains Tax: what you pay it on, rates and allowances
14. IRS Corporate Tax Rate Schedule
15. United States – Corporate – Taxes on corporate income
16. State and Local Sales Tax Rates, Midyear 2023
17. VAT rates

The post Taxes in the UK vs. US: The Full Breakdown appeared first on Bright!Tax Expat Tax Services.

Moving to Italy from the United States might seem like a complex endeavor, but just imagine for a moment the simplicity of what you actually want. You’ve left the hustle and grind culture of the US behind and now take daily strolls along cobblestone streets in a charming Italian village. The rich scent of espresso and the sound of Italian chatter fill the air.

You may be imagining this while currently living in the US, but we’re here to help you understand exactly how you can make this dream a reality. 

Below, we dive into various visas accessible to Americans and suggest locations where you might be happy living in Italy as an American. For a comprehensive picture of what it takes to move to Italy as an American, we also touch on the cost of living and tax implications, as well as how to navigate them. 

Let’s dig in!

Snapshot of Expat Life in Italy

Population: 59 million

Capital city: Rome

Currency: Euro

Official language(s): Italian 

Top cities for expats: Rome and Milan

Approximate number of American expats: Less than 20,000

School-year calendar: September to June

How to move to Italy from the USA: Types of visas

To stay in Italy for more than 90 days, you’ll need a Long-Stay Visa (aka a National Visa/D-Visa). Depending on your circumstances, one of the common visas below may be right for you.

Student Visa

Who it’s for: Prospective students at an Italian educational institution

Overview: This visa lasts for the duration of your studies, up to one year. If your studies will exceed one year, you can renew the visa annually. Students interested in finding a job may obtain a work permit for up to 20 hours a week.¹

Requirements: You must be 18+ (or 14+ if participating in an exchange program); enrolled in an eligible Italian educational institution; and have pre-arranged lodging, sufficient funds, and health insurance for the duration of your stay.²

Work visa

Who it’s for: Those who have secured a job in Italy

Overview: This employer-sponsored visa allows holders to legally live and work in Italy for either one year (for time-limited contracts) or two years (for indefinite contracts). Those who continue to meet requirements may renew it for up to five years.³ 

Requirements: Applicants must have a job contract (contratto di soggiorno per lavoro) and entry clearance (nulla osta) from an employer willing to sponsor their visa.⁴ They may also need to provide a residence contract as well as information on lodging, flights, and other details.⁵

Self-employed visa

Who it’s for: Independent contractors, freelancers, entrepreneurs, etc. 

Overview: This visa allows self-employed individuals to legally live and work in Italy for up to one year. Those who a) continue to meet requirements and b) haven’t spent more than six months outside of Italy may renew it for up to five years.⁶

Requirements: Applicants must work within an eligible category, earn at least €8,500 per year, have at least €14,000 in existing assets, apply for the permits/licenses/certificates necessary to conduct their business, submit an entry clearance, and have pre-arranged lodging.⁷

Elective Residence Visa

Who it’s for: Retirees and others with significant existing assets/passive income⁸

Overview: The elective residence visa allows holders to reside in Italy (but not work there) for one year. Those who continue to meet the requirements may renew it for up to five years.

Requirements: To be eligible for the elective residence visa in Italy, you must be 18+ and have pre-arranged lodging, a guaranteed passive monthly income of at least $3,800 USD, and insurance covering emergency evacuation and repatriation for the duration of your stay.⁹

Investor Visa (aka Golden Visa)

Who it’s for: Those who make a significant financial investment in Italy

Overview: This visa allows investors to live and work in Italy for up to two years. It may be renewed again for three more years.

Requirements: To qualify, applicants must either:

• Purchase at least €2,000,000 in Italian government bonds, OR
• Hold at least €500,000 in shares in an existing Italian company (reduced to €250,000 when investing in innovative Italian startups), OR
• Donate at least €1,000,000 to a project of public interest in Italy¹⁰

Dual Citizenship Jure Sanguinis

Who it’s for: Those with Italian heritage

Overview: Eligible Italian descendants can apply for dual American/Italian citizenship. If granted, they gain all of the same rights as a natural-born Italian citizen. 

Requirements: You must prove that you are blood-related to an Italian citizen (or someone who had the right to claim Italian citizenship) through official documentation. Some technicalities (e.g. matrilineal heritage, forfeiting nationality) may preclude certain individuals, so make sure to verify your eligibility.¹¹

A final note on Italian visa types: Most visas (besides student visas) allow you to apply for permanent residence after legally living and working in Italy for five years. After ten years, you can apply for Italian citizenship. 

How to apply for an Italian visa

While the process varies from visa to visa, you generally must:

Gather the required documents

This will likely include:

• A valid passport
• A completed visa application form
• A passport-sized photo
• A pre-paid self-addressed envelope (to mail the visa to you)
• Documents specific to your visa (e.g. enrollment letter for student visas, job contract for work visas)

Other requirements may include:

• Proof of lodging, sufficient funds, and health insurance
• An entry clearance
• A clear criminal background check

Submit your application

You’ll need to schedule an appointment at your designated Italian consulate, submit your application in person, and pay the visa fee (typically $54.30 USD for student visas or $126.30 USD for other long-term visas).¹³

Receive your visa

If approved, you’ll usually receive your visa within two to three weeks — allowing you to leave for Italy.

Apply for residence permits

Within eight days of arrival in Italy, you must apply for a permit of stay (permesso di soggiorno) at a national post office. Within 20 days of receiving that permit, you must apply for a certificate of residence (Certificato di Residenza) at your local civil registry (Anagrafe).

Related: Moving to Portugal: Visa Options Explained

Planning for a long-term move as an American moving to Italy

It’s natural to be excited about moving to Italy, but don’t forget to think about the practical aspects.

Banking

To open a bank account in Italy, you’ll need to bring the following documents to your local branch in person:

• ID
• Proof of address
• Codice fiscale (tax number)
• Proof of employment/studies¹⁴

Popular banks in Italy include Banco Nazionale del Lavoro (BNL), Intesa Sanpaolo, and Fineco Bank.

Be advised, however, that the added regulatory burden of the Foreign Account Tax Compliance Act (FATCA) makes some foreign financial institutions hesitant to work with potential American clients. If you encounter this firsthand, consider:

• Opening an online bank account (e.g. Wise, N26, Revolut)
• Opening an account at a bank headquartered in another country with branches in Italy (e.g. Deutsche Bank, ING, or Crédit Agricole)

Phone plans

While prepaid SIM cards and travel eSIMs are good for short trips to Italy, a contract usually makes more sense in the long run. Some popular Italian providers include Wind Tre, TIM Italy, Vodafone Italy, and Iliad.

Typically, you must set up a contract in person. Be sure to bring your ID, codice fiscale (tax number), and IBAN (bank number).

Where to live in Italy

One of the most alluring aspects of Italy is its broad appeal to all different sorts of people. Whether you prefer a glamorous, cosmopolitan city lifestyle, or a laidback, rustic pace of life in the countryside, Italy delights across a range of regions and cities.

Milan

Milan, a global fashion icon and economic powerhouse, is where haute couture meets innovation. The city’s iconic cathedral, the Duomo, stands tall amid designer boutiques and cutting-edge architecture. It’s a bustling center for finance, fashion, and industry, and attracting professionals and entrepreneurs alike. Milan also boasts top-notch universities, making it an ideal destination for students pursuing careers in business, fashion, or design. It offers a cosmopolitan lifestyle for students with a taste for luxury and opportunity. 

Rome

Rome, the heart of Italy, whispers tales of empires and legends. It’s a living museum, where the Colosseum stands proudly, and the Vatican City guards spiritual treasures. In its bustling streets, history intertwines with gelato shops, offering a blend of ancient grandeur and modern flair. Rome is a hub for art, history, and tourism. Additionally, Rome is home to several prestigious universities, making it an attractive city for students seeking a unique blend of history, global affairs, and education.

Florence

Florence, the cradle of the Renaissance, is an open-air gallery. The Uffizi Gallery and Michelangelo’s David beckon art enthusiasts, while medieval streets reveal artisan workshops, making Florence an artistic haven.

Bergamo

Bergamo, a hidden gem in Lombardy, boasts a walled old town, Città Alta with breathtaking vistas throughout the city. Bergamo’s tranquil atmosphere makes it a charming option for retirement or a peaceful escape from city life.

Moving incentives

Outside of the major Italian expat destinations, you may want to consider a place that offers new residents a financial incentive, such as:

• Calabria: Up to €28,000
• Presicce-Acquarica: Up to €30,000
• Sardinia: Up to €15,000¹⁵
• Mantua: €150/month¹⁶

Understanding the tax implications of moving to Italy from the USA

All US citizens and permanent residents — even those living in Italy — are subject to taxation on their worldwide income, as long as they meet the minimum income thresholds. 

There are tax breaks that can offer relief for expats, however, in addition to general requirements. 

Some tax requirements and breaks that expats should know include: 

• Foreign Earned Income Exclusion (FEIE): Allows you to exclude up to $120,000 (for tax year 2023) of foreign-earned income from taxation and write off qualified housing expenses via the Foreign Housing Exclusion.
• Foreign Tax Credit (FTC): Allows you to subtract what you’ve paid in foreign income taxes from what you owe the US government.
• Foreign Bank Account Report (FBAR): Requires anyone with over $10,000 in foreign accounts to file FinCEN Report 114.
• Foreign Account Tax Compliance Act (FATCA): Requires anyone with over $200,000 in foreign assets on the last day of the tax year — or over $300,000 at any point in the year — to file Form 8938. (These thresholds vary for those residing in the US.)

Preparing your expat tax strategy

One significant advantage for Americans living in Italy is the US-Italy tax treaty. This treaty ensures that you won’t face double taxation on your income. Depending on your circumstances you’ll only have to pay income tax in one country – either the US or Italy. It does not, however, prevent you from having to file a US tax return when you move to Italy.

This tax agreement simplifies financial matters when you consult with an expat tax professional prior to the US tax season. Essentially, being proactive provides peace of mind as you embark on your Italian adventure. 

Be sure to consult a tax professional specializing in US taxes for Americans living abroad for specific details and guidance to make the most of this beneficial arrangement.

Coordinate your US taxes with Bright!Tax, experts in expat taxes.

The expert CPAs at Bright!Tax have guided thousands of Americans through overseas filing requirements. We’re proud to serve the American community in Italy by minimizing their US tax liability.

Meet Your CPA

References 

1. Italy – Student Visa
2. Italian National Visa for Study
3. Work Visa Italy
4. Subordinate Work Visa Requirements
5. Italy – Employed Worker Visa
6. Self-employment visa for freelancers
7. Self-Employment Visa
8. Southern Italy has Never Been More Appealing as a Retirement Destination — Here’s Why
9. Elective Residency
10. Italy Residence by Investment
11. Citizenship by descent (iure sanguinis)
12. Italy Digital Nomad Visa 2023 Launch: What We Know So Far
13. Handling Fees for Visa Applications
14. How to open a bank account in Italy
15. Want to get paid to move to Italy or Spain? Here are all the towns in need of new residents
16. This Culture-Filled Italian City Will Pay You $160 A Month To Live There

The post How to Move to Italy as an American appeared first on Bright!Tax Expat Tax Services.