Common Expat Tax Mistakes You Should Avoid

 

From double taxation to missed deadlines, expats often face tax headaches that could be avoided with a bit of planning.

Mistake 1 – Ignoring Tax Residency Rules

Many expats assume that simply living abroad means they are no longer a tax resident of their home country. In reality, residency rules depend on days spent, ties maintained, and sometimes your intentions.

Fix: Check both countries’ rules (and any tax treaty) before you move.

Mistake 2 – Missing Deadlines

Different countries have different tax years and filing deadlines. Missing one can mean penalties, interest, or lost refunds.

Fix: Keep a calendar of both countries’ deadlines.

Mistake 3 – Double Taxation

Without proper planning, you might be taxed twice on the same income—once in your home country and again in your host country.

Fix: Learn about foreign tax credits, exemptions, and treaty benefits.

Mistake 4 – Not Reporting Foreign Assets

Many countries require you to declare overseas bank accounts, investments, and even property.

Fix: Find out your reporting obligations before tax season.

Mistake 5 – Poor Record-Keeping

No receipts or proof means no deductions and no defence if audited.

Fix: Keep digital and paper copies of income, expenses, and travel records.

Felix’s Quick Tips

 

• • Understand your residency status before tax season starts.

• • Use a checklist to track deadlines in both countries.

• • Don’t assume “no news is good news” with tax authorities—check your obligations.

• • Store receipts, travel logs, and bank statements safely for at least 5 years.

 

Next Step

Avoid these pitfalls with the right knowledge—browse our Library for ebooks and self-paced courses designed for expats.