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79

Logistics of borrowing in a different country aside, financially if the reason the interest rates are higher is because inflation is expected to be higher, you might be trading smaller interest payments for the depreciation of your mortgage payment in the foreign country. So let's look at this scenario: the balance on the mortgage is 10,000,000 XYZ (where ...


30

I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%. Do you know what you are allowed to use that money for? A mortgage for a home in Germany? Different purposes cause different interest rates and conditions, e.g. a mortgage is cheaper than a consumer credit, which in turn is cheaper than a ...


23

The big risk is that there is a major shift in exchange rates. As pointed out in D Stanly's answer exchange rates can shift in the long term due to differing inflation rates in the two countries but more importantly for you they can also shift rapidly and unpredictably in the short term due to political/economic events. So suppose there is an event that ...


11

The short answer is that there is no US tax due if all you are doing is moving assets held abroad to the US. Whether you are a "returning" US citizen (or will continue your residence in the Philippines) is not relevant to this. The long answer is that you may be liable for a lot of other fines and taxes if you have not been doing any of several things ...


9

I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%. Generally a Bank in Germany not give you a mortgage for property outside of the country as it becomes difficult to foreclose if delinquent. The Bank may still give you a personal loan or loan against collateral. They may ask for certain ...


5

Assuming you're a US citizen/tax resident filing a form 1040, it is. Unless your country has a tax treaty with the US to say otherwise. Most countries that do have a tax treaty with the US, have a special clause that discusses this type of income, however not every country has a tax treaty with the US (most don't, in fact), and not every country that does ...


5

You won't be subject to any UK tax on this, no matter how large the gift. Most importantly, there's no gift tax in the UK. The UK does have inheritance tax which also applies to gifts from the living if the donor dies within 7 years of making the gift. However it applies to the donor not the recipient, so since the donor is not in the UK, it's not relevant....


5

I got historical data for GBP/ZAR here, going back to 2000 (you need to register to download it). I then divided the closing price on each day by the average closing price for the whole month. I don't know if it's statistically significant, but there does seem to be a very small effect with higher rates (i.e. more ZAR for 1 GBP) at the end of the month: on ...


4

Taxability does not depending on transfer of money to NRO. It depending on your tax status in India. Assuming you have spent more than 182 days outside India for the financial year 1 April 2015 to 31 March 2016, you would be NRI. I am transferring money from my Maldives saving account to my Indian Saving account(NRO). Will it be taxable in India? ...


4

In the end, I filled out the form with a foreign TIN (my UK National Insurance Number) on line 6, as well as a short sentence detailing my claim for 0% tax withholding according to the relevant section of the UK-US tax treaty. It looks like this was good enough; the prize money arrived in my account a few days ago, and it seems that no tax was withheld!


4

If you read a bit further down, you'd see the explanation, as well as one alternative. FEIE can only reduce your taxes by the amount of your foreign earned income, up to a cap (a bit over $100k). So if you have earned income of $109k in the example, that would be taxed at around $11k; $100k would be taxed at around $9k, leaving $2k tax bill remaining. If ...


4

First, the SSN isn't an issue. She will need to apply for an ITIN together with tax filing, in order to file taxes as Married Filing Jointly anyway. I think you (or both of you in the joint case) probably qualify for the Foreign Earned Income Exclusion, if you've been outside the US for almost the whole year, in which cases both of you should have all of ...


4

I would guess that a large deposit appeared in his bank account and that information was shared with the IRS. Such sharing of information deemed relevant is now automatic. As for who is applicable, the FATCA reporting start date applies to all accounts and investments in existence at 30/06/2014, and all of these relevant accounts are to be reported to ...


4

US Citizens need to file taxes on all worldwide income, regardless of their residence. They may be able to obtain reduction on their net US taxes actually owed through effectively one of two methods: (1) Calculation of their 'foreign tax credit' [essentially foreign taxes paid on the same income stream]; or (2) the Foreign Earned Income Exclusion, which ...


3

You usually have to pay tax on your UK income even if you’re not a UK resident and wages are included on which you have to pay tax. Malta has a double taxation agreement with UK so you don't have to pay tax in both places. So you can pay your taxes in UK and that covers all. If in doubt you can visit a tax adviser or contact HMRC for any further ...


3

You will need to file your tax return (form 1040) with the form 2555/2555-EZ attached to it. Usually, retail tax preparation services, especially on-line websites, are not tailored for such a unique need and people working there are likely not train to understand what it is that you're talking about. If you're up to doing the research yourself you can use ...


3

I have not had any contact with UK tax authorities so far, and I’m not even sure if they are aware of my existence or residence. If you're employed as a postdoc with a university, the university HR will have informed HMRC (the UK tax authority) of this fact. They will likely have put you on Pay-as-you-earn (PAYE), meaning that tax for your UK income gets ...


3

It's not definitive, but it's a similar situation to the one I posted about in my question here. As you can see from my own answer, when I rang HMRC the guidance was to declare the additional value of the money in the "any additional information" box at the end of the tax return. That is what I did and nothing ever came of it - they never asked for more tax. ...


3

You're at the wrong page to check for eligibility to claim the Foreign Earned Income Exclusion. The full eligibility test says that if you do not meet the Bona Fide Resident test, you can claim the exemption if you meet the test of physical presence in a foreign country. The full physical presence test is described here, but the gist is that if you were not ...


3

The linked article mentions that Boris Johnson has renounced his American citizenship. This is the usual way of saying, "Boris Johnson has persuaded the US Government to stop considering him to be a US citizen". In order to have the US government take this step, one must file and pay US income tax for a number of years before the date of renouncement. All ...


3

You are generally only eligible to apply for a Social Security Number if you currently have a status that authorizes you to work in the US. You don't have such a status, so you cannot apply for a Social Security Number. If you have never gotten a Social Security Number, and you need to file US taxes, you will need to get an ITIN. Depending on the amount of ...


3

First of all, you need to determine whether you will be a tax resident of France. You are considered to be a tax resident if most of your income comes from France. You are also a tax resident if a significant part of your income comes from France and you reside for more than 183 days a year in France. If you reside outside of France most of the year and ...


2

Yes, you do. Since you've been a green card holder since the beginning of the year - your whole worldwide income for the whole year is taxable in the US. You can take credit for the taxes paid in the UK (use form 1116) to reduce your US tax liability.


2

Is it liable for taxation in India? Taxation does not depend on whether to transfer money to India or keep it in GCC. It depends on your tax status. In a given Financial year; 1st April to 31st March, if you are outside of India for more than 182 days, your are Non-Resident Indian, NRI for tax purposes. If you are NRI, income earned outside of India is ...


2

Same situation here - I'm from Brazil, moved to the U.S. under an L1-B visa, and I've had this issue many, many times. My tax consultants (PwC) explained to me very clearly that, because of the "Substantial Presence Test" (ie, add the days you've been in the US on the previous, plus the year before that divided by whatever, etc), I'm considered a US ...


2

No you won't. Germany taxes income, not bank accounts. Note that this changes immediately when your bank account makes interest - you will owe taxes on this interest. However, chances are you won't get a bank account. Without residency or income, typically the banks wouldn't give you an account. Feel free to try, though.


2

This link suggests the different rates are for: 12.5% : normal income. 25% : passive income (e.g. dividends, royalties, etc.) So both your Irish and Italian client income should be taxed at 12.5%, unless you are charging royalties as part of your service.


2

I've not filled out the form, but I can quote some IRS instructions. Form 8938 Instructions, starting with "Reporting Period" (most emphasis in the original, my emphasis in bold italic): Reporting Period Unless an exception applies, the reporting period for Form 8938 is your tax year. Exception for partial tax years of specified individuals. ...


2

What discrepancy? You enter all the earned income on Line 7 and get to reduce it by the FEIE which you enter as a negative number on Line 21. So your AGI is the total of earned income less the FEIE amount plus the dividends, capital gains etc. Thus, dividends, capital gains etc are subject to US tax and only the foreign earned income is excluded from US ...


2

@KurtPeek Article 14 of the treaty deals with personal income taxes, not selfemployment and welfare, which is unfortunately subject to double taxation if there is no totalization agreement between the countries. Luckily there is one dated back 1949, so you should be able to elect your entity (INPS or SSA) via the form dave_thompson_85 pointed to. For self-...


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