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."

BREAKING DOWN '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.

  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 Earned Income Exclusion

    The amount of income earned from a foreign source that is excludable ...
  4. Taxable Income

    The amount of income that is used to calculate an individual's ...
  5. Foreign Tax Deduction

    One of the itemized deductions that may be taken for taxes paid ...
  6. Skinny Down Distribution

    Skinny down distribution is corporate practice of slimming down ...
Related Articles
  1. Retirement

    What Does It Cost to Retire in Ecuador?

    Discover why Ecuador is one of the most senior-citizen-friendly countries in the world, where a retired couple can retire on as little as $800 a month.
  2. Retirement

    What Does It Cost to Retire in Panama?

    Learn how much it costs to retire comfortably in Panama, and why it has become one of the most popular retirement destinations in the world.
  3. Retirement

    4 Reasons Why Americans Retire in Ecuador

    Understand why Latin America is a popular retirement destination for Americans. Learn about the top four reasons why Americans are retiring to Ecuador.
  4. Retirement

    6 Reasons Why Americans Retire in Panama

    Understand why more and more Americans are retiring to Latin America. Learn why Panama is a popular retirement destination for Americans.
  5. Retirement

    4 Reasons Why Americans Retire in Colombia

    Learn about the top four reasons why Americans are retiring to Colombia.
  6. Insurance

    Investing Beyond Your Borders

    Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
  7. 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.
  8. 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!
  9. Options & Futures

    Offset Risk Without Investing Abroad

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

    2016 Tax Code Changes Add Some Wiggle Room

    It's never too early to prepare for tax season. Next year features a host of tax law changes. Check our handy list to see which ones apply to you.
  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. Can the IRS take your house?

    The Internal Revenue Service (IRS) is an agency in the United States that enforces the collection of personal and corporate ... Read Full Answer >>
  4. Can the IRS garnish your tax refund?

    Federal law states that only state and federal agencies, such as the Internal Revenue Service (IRS), are allowed to garnish ... Read Full Answer >>
  5. What are some of the arguments against a value added tax (VAT)?

    Critics of the value-added tax, or VAT, system say that not only is it costlier to implement compared to the ad valorem system, ... Read Full Answer >>
  6. What are the differences between regressive, proportional and progressive taxes?

    Tax systems fall into three main categories within the tax code: regressive, proportional and progressive taxes. Regressive ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  2. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  5. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  6. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
Trading Center