I guess I think of "expat" as a possibly-temporary state where full assimilation is not the goal. American expats also pay American taxes unless they give up US citizenship.
> American expats also pay American taxes unless they give up US citizenship.
Practically, they barely pay anything significant.
The lower net salary in Europe / Asia associated with rather high local tax means that most Americans citizens oversea barely own anything significant back to the state.
However it does remain an annoyance to fill the tax declaration every year: I know several American who chose to give up their citizenahip just to avoid this specific issue.
I'm not sure I follow. I am a US citizen and have never lived abroad, but my understanding is that US Citizens living abroad must still pay the US a full federal income tax. It's graduated/progressive, of course, so the actual percentage may vary, but it should probably be between 15% and 40% of income. Not what I would call small. I don't think they can deduct local taxes, can they?
I guess I think of "expat" as a possibly-temporary state where full assimilation is not the goal. American expats also pay American taxes unless they give up US citizenship.
Technically of course you are right.
> American expats also pay American taxes unless they give up US citizenship.
Practically, they barely pay anything significant.
The lower net salary in Europe / Asia associated with rather high local tax means that most Americans citizens oversea barely own anything significant back to the state.
However it does remain an annoyance to fill the tax declaration every year: I know several American who chose to give up their citizenahip just to avoid this specific issue.
I'm not sure I follow. I am a US citizen and have never lived abroad, but my understanding is that US Citizens living abroad must still pay the US a full federal income tax. It's graduated/progressive, of course, so the actual percentage may vary, but it should probably be between 15% and 40% of income. Not what I would call small. I don't think they can deduct local taxes, can they?
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if you're living where you were born, how can you be an expat?