15 Financial Tips before Becoming an Expat

5. Know Tax Obligations before Moving

Another big financial planning consideration before moving overseas to work as an expat is how exactly your taxes are going to work. Each situation varies a bit depending on where one is a citizen and any applicable tax treaties with the destination country. A common issue faced by Americans living and working overseas is not realizing that even if they qualify for the Foreign Earned Income Exclusion, they still must file taxes each year. Similarly, for American citizens, if foreign tax is paid on income made while living overseas, it can often be deducted from the U.S. taxes as a foreign tax credit. No matter what, simply understanding the tax landscape when it comes to making and sticking to a budget is a key component to being a successful expat.