Expatriate

AAA

DEFINITION of 'Expatriate'

An individual living in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another. If your employer sends you from your job in its New York office to work for an extended period in its London office, once you are in London, you would be considered an expatriate or "expat."

INVESTOPEDIA EXPLAINS 'Expatriate'

In addition to salary, businesses sometimes give their expatriate employees benefits such as relocation assistance and a housing allowance. Living as an expatriate can be exciting and present a great opportunity for career advancement, but it can also be an emotionally difficult transition that involves separation from friends and family, and adjusting to an unfamiliar culture and work environment. For Americans working abroad as expatriates, complying with United States income tax regulations is an added challenge and financial burden because the U.S. taxes its citizens on income earned abroad.

RELATED TERMS
  1. Worldwide Income

    The aggregation of a taxpayer's domestic and foreign income. ...
  2. Foreign Tax Credit

    A non-refundable tax credit for income taxes paid to a foreign ...
  3. Foreign Tax Deduction

    One of the itemized deductions that may be taken for taxes paid ...
  4. Taxable Income

    The amount of income that is used to calculate an individual's ...
  5. Foreign Earned Income Exclusion

    The amount of income earned from a foreign source that is excludable ...
  6. Section 7702

    The section of the United States Internal Revenue Code that defines ...
RELATED FAQS
  1. Which developed markets have the greatest exposure to financial services?

    The developed countries with the greatest exposure to the financial services sector are the United States and the United ... Read Full Answer >>
  2. What should I consider financially when choosing to work abroad?

    Globalization has made working abroad an option for many skilled workers, and the benefits of working abroad can be very ... Read Full Answer >>
  3. Is the marginal tax rate a progressive tax?

    The marginal tax rate is a type of progressive tax system that imposes a higher income tax rate on people with higher incomes, ... Read Full Answer >>
  4. What's the difference between the marginal tax rate system and a flat tax?

    In modern economics, there are two main types of tax systems: marginal tax rate and flat tax rate. Under a marginal system, ... Read Full Answer >>
  5. Are marginal tax rate schemes more fair than flat taxes?

    The proper framing of the question should be, "To whom is a marginal tax rate fairer," as progressive, marginal, and flat ... Read Full Answer >>
  6. What deductions, credits and exemptions depend on gross income calculations?

    The greatest challenge in determining your total tax liability stems from an incomplete understanding of what income figure ... Read Full Answer >>
Related Articles
  1. Insurance

    Investing Beyond Your Borders

    Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
  2. Credit & Loans

    4 Tips For Using Credit Cards Overseas

    Overseas travel can be both confusing and expensive, so here are some ways to minimize the cost of spending abroad.
  3. Credit & Loans

    You CAN Afford To Study Abroad

    Before you jump on the plane, understand the rules and regulations in place. Then, enjoy your time studying aborad!
  4. Options & Futures

    Offset Risk Without Investing Abroad

    With a little know-how, you can keep risk from topling your portfolio of domestic equities.
  5. Taxes

    What is Withholding Tax?

    Withholding tax is the income tax federal and state governments require employers to withhold from employee paychecks.
  6. Taxes

    What To Do If You Lost Your W-2

    There's no need to panic if you don't have your Form W-2 to file taxes, there are easy ways to gain access to the missing form or file without it.
  7. Taxes

    What is the Effective Tax Rate?

    The effective tax rate is the average rate at which an individual or corporation is taxed per year.
  8. Investing

    Deferred Tax Liability

    Deferred tax liability is a tax that has been assessed or is due for the current period, but has not yet been paid. The deferral arises because of timing differences between the accrual of the ...
  9. Taxes

    3 Last-Minute Moves To Lower Your 2014 Tax Bill

    The 2014 tax year may be over, but it's still not too late to find some last-minute deductions. Act now!
  10. Personal Finance

    Value-Added Tax (VAT)

    Value-added tax, or VAT, is a tax on the added value of a good as it moves through the supply chain to the end consumer. In effect, the tax is levied on the gross margin at each point in the ...

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center