Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Business Management & Operations
  • Global Business, International Law & Relations

Expatriate - Explained

What is an Expat?

Written by Jason Gordon

Updated at July 22nd, 2021

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is an Expatriate?What is an Expatriation Tax?

What is an Expatriate?

An expatriate, or Ex-Pat, refers to an individual residing in a country different from his or her country of citizenship, usually temporarily and for the purpose of work. An expatriate can also be someone who relinquished citizenship in their home country to become another country's citizen.

Back to: INTERNATIONAL BUSINESS, LAW, & RELATIONS

What is an Expatriation Tax?

Someone who already renounced their home country's citizenship and migrates to another is also termed an expatriate for the purpose of tax. The expatriate is mandated to pay an exit tax, also referred to as expatriation tax. 

According to the Internal Revenue Service (IRS), the provisions of expatriation tax apply to U.S. citizens who already renounced their citizenship as well as long-term residents who already terminated their residency mainly because of tax if one of the major reasons of the action is U.S. tax evasion. This emigration tax applies to people who:

  • Possessing a net worth of at least $2 million on the expatriation date or date of residency termination
  • Have an average annual net income tax liability which is greater than $162,000 (as of 2017) during the 5 years which would end before the date of residency termination or expatriation.
  • Don't (or can't) demonstrate five years of U.S. tax compliance for the 5 years before the date of residency termination or expatriation.


expat expatriation

Was this article helpful?

Yes
No

Related Articles

  • What US laws prohibit business practices in foreign countries?
  • Report on the Observance of Standards and Codes - Explained
  • European Committee for Standardization (CEN) - Explained
  • Commonwealth of Independent States - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand