
🦊 Expat Tax Tip #2 - Residency Rules Explained





One of the biggest mistakes expats make is thinking citizenship and tax residency are the same thing. They’re not.
Some countries impose an “exit tax” when you leave and give up tax residency. This is essentially a capital gains tax on your unrealised gains at the time of departure.
Leaving your home country doesn’t mean leaving tax behind! Many tax offices apply departure tax or capital gains rules when you give up residency. These rules often treat you as though you sold certain assets the day before you leave.
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Many expats assume that inheritance, estate, or gift taxes won’t apply if they live overseas. Unfortunately, multiple countries may claim taxing rights — both your home country and your host country. That’s why it’s critical to know the rules where you live and where your assets or heirs are located.
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