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. 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 ...
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

    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!
  6. 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 ...
  7. Economics

    EU Probes Tax Laws To Catch Corporate Cheaters

    Recently, the EU has launched an investigation into tax deals between Amazon and the country of Luxembourg.
  8. Personal Finance

    What's a Marginal Tax Rate?

    The marginal tax rate is based on a progressive tax system, where tax rates for an individual will increase as income rises. This method of taxation aims to fairly tax individuals based upon ...
  9. Investing Basics

    New 2015 Contribution Limits: Advisors Take Heed

    The Internal Revenue Service's new 2015 contribution limits for tax-deferred savings plans are higher; here's what you and your clients should know.
  10. Taxes

    The Most Helpful Tools On The IRS.gov Website

    Don’t waste your time wading through the slew of private and corporate tax websites out there. Go straight to the source: IRS.gov.

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center