Choosing the Right Tax Support for Cross-Border Financial Planning
Expats living abroad face different tax challenges than they did in their home country. This is especially true for U.S. expats working overseas, who must navigate two tax jurisdictions and more complex reporting requirements. In many cases, working with international tax firms or a qualified tax adviser can help simplify compliance and improve long-term planning.
For example, expats who plan to retire abroad and have lived in multiple countries may hold pensions in different jurisdictions. A tax adviser can help structure and transfer these savings in a tax-efficient way, ensuring they support your retirement goals in your chosen destination. Here’s how to identify and select the best international tax consultant for your needs.
Yes, if you are a U.S. citizen living outside the United States, your worldwide income is subject to US income tax, no matter where you live.
Do US Citizens Have to File a US Tax Return if They Live Abroad?
If your worldwide income exceeds the filing threshold (which varies by filing status), you must file a US Federal Tax Return each year. Income includes wages/salary from U.S. and non-U.S. sources, rental income, income from your business (self-employed income), and more.
Are There Any Deductions for US Taxpayers Living and Working Abroad?
Yes, there are tax deductions for U.S. citizens living and working abroad and receiving income from outside of the U.S. Some widespread tax exclusions to avoid double taxation on the same income for U.S. taxpayers include:
Foreign Earned Income Exclusion
Foreign Tax Credit
Foreign Housing Exclusion
There are specific criteria to be met for these exclusions to be in force, and a qualified tax advisor will be able to advise you in more detail about each of the above.
Income Tax Treaties (Also Known as Double Taxation Agreements)
Income tax treaties, also called Double Taxation Agreements, or DTAs, help prevent double taxation for Americans living in foreign countries by reducing or eliminating US taxes on certain types of income. Currently, the US has tax treaties with 68 countries.
Because tax breaks vary by country, expats should review the treaty with their host country to determine how they’ll be taxed.
However, tax treaties can be complex and challenging to understand. If you’re uncertain which rules apply to you, be sure to consult an accountant or tax advisor.
How to Identify the Best International Tax Firm
The main thing to look for in your tax advisor or an international tax firm is the tax advisor’s ability to provide counsel and personal service.
Tax advice is not only about filling out your tax returns on your behalf and helping with accounting; for international tax firms catering to expats, the service must go beyond that. The specialist should consider your plans, including your relocation.
This is crucial, as, besides income tax, and the ability to advise you on how to best mitigate this liability, there are other taxes you may want to get help with, such as rental income tax, if you buy a property overseas or even manage your home while you are abroad.
Other taxes expats should consider getting counsel on include: inheritance tax, capital gains tax, pension distribution tax, etc.
These taxes don’t necessarily have to concern you, but depending on where you live and work abroad, they might, and it is something to be aware of.
Top 10 International Tax Firms for Expats
The following leading international tax firms specialize in helping expats navigate complex cross-border tax requirements.
Bright!Tax
Founded by an entrepreneur with venture capital backing, Bright!Tax is an option for taxpayers living outside of the United States.
The firm began operations in the 2010 tax year, and almost exclusively employs Virtual Tax Preparers that are CPAs (and no “Enrolled Agents”).
They offer a secure client interface and a flat fee for basic expat tax returns. It has customers in over 190 countries and has won multiple awards.
Beacon Hill Wealth Management Ltd
At Beacon Hill Wealth Management Ltd, Phil Hogan, CPA, CA, CPA (CO), assists clients in navigating their cross-border Canadian and US investment and tax issues.
Phil has extensive experience in helping cross-border clients plan for their US and Canadian investments while ensuring their situation is as tax-efficient as possible.
Online Taxman
Online Taxman specializes in assisting U.S. taxpayers working or living abroad, American entrepreneurs living outside the United States, government or military contractors, and citizens of overseas countries who invest in the United States.
The company also focuses on helping digital nomads and uses a secure, encrypted online portal for those concerned about uploading their private documents.
Protax Consulting
Protax Consulting is the world’s leading US individual international tax firm, specializing in the delivery of professional services in the US expat tax, foreign National/ U.S. Nonresident Alien tax, and the U.S. taxation of High Net Worth individuals.
They understand that US citizens and US green card holders (resident aliens) have unique filing obligations, unlike the citizens of other tax jurisdictions.
The team of accountants and tax advisors at Protax, based in the United States, can help US taxpayers achieve the most tax-efficient solutions.
Expat Tax Professionals
Expat Tax Professionals opened in 2012. They specialize in assisting US taxpayers in getting caught up on late tax returns.
The company utilizes security measures (256-bit SSL and 256-bit AES encryption) for uploading tax documents and other supporting information, so you don’t have to worry about privacy and security.
Expat Tax Professionals also offer simple, competitive pricing. In addition, you can find detailed information on their website about filing requirements and late-filing options, which can be very helpful.
Expat US Tax
Expat US Tax is a team of experienced expat tax professionals helping Americans, Green Card Holders, Canadians, and Australians minimize their tax wherever they choose to call home.
They have offices in the US, Canada, Australia, and the United Arab Emirates. Expat US Tax is a small team of former Ernst & Young, PwC, and other large multinational firm employees.
American International Tax Advisers (AITA)
AITA is Asia’s best US tax firm. They focus on assisting expats with US tax planning, consulting, and return preparation.
With offices in Bangkok, Thailand; Hong Kong; Phnom Penh, Cambodia; Kuala Lumpur, Malaysia; São Paulo, Brazil; Sydney, Australia; the Philippines; and the U.S., they help their clients navigate even the most complex situations.
Expat CPA
If you’re seeking a CPA firm with international knowledge and experience that helps American expats with taxes – from virtually anywhere in the world – look no further than Expat CPA.
The firm offers a range of tax services – from federal, state, and business returns to U.S. expat tax planning and a streamlined process for expats behind on their taxes.
Greenback Tax Services
Greenback Tax Services is another tax consultancy focusing on US expats. With a transparent pricing model on their website, you know exactly what services you are paying for, including simple tax advice, federal tax filing, and late tax return filing services.
Taxes for Expats (TFX)
Since the early 2000s, TFX has evolved into an online-only service, focusing on the US expat market.
They provide tax advice, planning, and compliance services for individuals, partnerships, corporations, trusts, and estates, subject to US tax law, wherever they live or operate in the world.
TFX also offers transparent pricing and responsive, helpful customer service.
International Citizens Insurance has an experienced team of authors, including expatriates and world travelers, providing curated guidance for our clients.
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