The Money with Katie Show A Year of Travel...and $17,000 in Tax Savings?
Apr 24, 2024
CPA Katelynn Minott and Chartered Wealth Manager Alex Ingram discuss the complexities of relocating abroad, including tax implications, retirement accounts, and cultural considerations. Topics covered include Foreign Earned Income Exclusion, visa limitations for digital nomads, and financial strategies for international moves.
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Geo-Arbitrage Has Real Local Costs
- Geo-arbitrage can improve individual quality of life but often raises local prices and displaces residents, creating transnational gentrification.
- Rapid influxes of higher-paid foreigners can spark local backlash, protests, and policy rollbacks.
Check Local Visas And Tax Residency
- Check visa and local tax residency rules before working abroad; tourist visas often prohibit working and many countries trigger tax residency after ~183 days.
- Consider legal digital nomad visas where available to work legally and avoid unintended local tax obligations.
Citizenship-Based Taxation Surprises Expats
- Many U.S. citizens living abroad only later realize they must still file U.S. taxes because the U.S. uses citizenship-based taxation.
- Some long-term residents eventually renounce U.S. citizenship to escape tax obligations.