Living abroad can be exciting — but expat tax rules are full of hidden pitfalls that can cost you big if overlooked. From bank accounts to residency days, the little details matter. Here are five quick reminders every Aussie or Canadian expat should keep top of mind:

 

1. It’s Not Just About Interest

Even if your overseas account pays little (or no) interest, many tax offices require you to declare the balance itself.

 

• • Australia: The ATO expects you to report all worldwide income, including foreign bank interest. ATO – Foreign Income

• • Canada: Once your foreign holdings exceed CAD 100,000, you may need to file Form T1135. CRA – T1135

 

2. Reporting Thresholds Vary

Every country sets its own rules:

 

• • U.S. expats: FBAR (FinCEN Form 114) required if balances exceed USD 10,000. IRS – FBAR

• • Canada: Foreign income verification via T1135 (as above).

• • Australia: No threshold — everything is reportable.

 

3. Penalties Can Be Brutal

Failure to report can mean thousands in penalties per year. Some countries even impose criminal liability for repeated non-disclosure.

 

4. Tax Treaties Won’t Save You

Treaties help avoid double taxation, but they don’t excuse you from reporting obligations.

 

 

Bottom line: Don’t treat foreign bank accounts like “out of sight, out of mind.” Reporting is just as important as paying your tax.

 

External Source: OECD – Automatic Exchange of Information (Common Reporting Standard)

 

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  • An Australian expat → check the Australia Expat Tax Guide for superannuation rules.

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  • A Canadian expat → see the Canada Expat Tax Guide for RRSP and TFSA rules.

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  • For more insights, browse the full Expat Tax Tips & Insights.