ABSTRACT

And American expatriates often pay twice when it comes to income taxes thanks to U.S. tax regulations. Specifically, American expatriates typically pay income tax to the foreign country where they are posted based on their locally earned salary as well as U.S. income tax on anything over roughly $90,000 earned abroad. This hits well-paid American expatriates especially hard in countries where local income taxes are relatively low (e.g., Singapore, Russia), but less so in high-tax countries (e.g., Germany) where amounts paid can be credited against U.S. tax liabilities.