What Can Make or Break an Expat's First Job Abroad?

Expat life can be exciting but getting started can be tricky. This applies to all life-changing events, so there’s no reason to worry. As long as you know where you’re headed, things are bound to work out.

We’ll hereby provide expert tips on setting up your expat life on the right track from scratch.

Let’s get started!

 

Connect with Visionary Communities

To find visionary communities, expats don’t necessarily need to go any further than their laptops. Nowadays, there are specialized virtual networking spots designed with expats in mind, so look them up.

Of course, there’s nothing wrong with meeting people in person, but there’s no other way to reach like-minded people who live half a world away than online.

Networking can help expats polish their skills or find a new job. People looking for high salaries should definitely look for specific networking events and raise their chances of landing one on the spot.

 

Fit Into the Team

Feeling like part of the team is an important link to a fulfilling expat life. Many employers make an effort to provide fun summer swag to new hires, so make sure to thank the employer for the effort.

Getting to know your colleagues and socializing with people you like is important even for remote workers. There are many virtual events businesses organize nowadays, so don’t skip them.

 

Prevent Burnout

Burnouts can be difficult to handle, so the best remedy is not burning out.

The expat life is not all about the work. Get out and see the sights. Mingle with the locals. Try out local dishes. Discover your favorite spot to unwind. Go on a tourist trip. There are so many options that burnout should be impossible to materialize.

 

Stick to Regular Breaks

Of course, a job won’t get you anywhere even if you do. Expats need to master time management skills more than other employees.

Create a schedule and make sure to include regular breaks. Next on, stick to them. No matter the deadline or the hysteria, you absolutely must not skip breaks.

A well-balanced schedule should be able to address even the most hectic of situations, so mix in a lunch break that will see you go to your new favorite restaurant.

In addition to lunch breaks, add a couple of recreational ones. Five minutes a day can do wonders for your health. Take a walk. Stretch your muscles. Meditate. Anything goes as long as it helps your body get a break.

 

Don’t Let Taxes Throw You Off Balance

The dangers of expats filing late taxes are real. There are so many horror stories about this topic that it would be wrong to not do everything in your power to avoid this scenario.

We’ll go through a couple of important points so that you know what to expect and where to turn to in case you’re lost.

 

Do All Expats Need to Pay State Taxes?

The simple answer is no. The more complex one is that all US expats who are considered US citizens need to pay state taxes. Even residents need to pay taxes if they have income in the state.

An expat is a U.S. citizen if:

        They lived in the state for any duration during the tax year        They have a permanent place of residence in the state        They have immediate family that lives in the state while they’re abroad        They keep their voting rights, ID card, or driver’s license in the state (any of these)

An expat has income in the state if:

        They earn income in the state regardless of where they live        They get pensions, retirement income, or any other government benefit in the state

The U.S. states that don’t apply state income taxes to expats are Alaska, Florida, Nevada, South Dakota, Texas, Washington State and Wyoming. New Hampshire and Tennessee apply income tax on dividends and interest income only.

California, South Carolina, New Mexico, and Virginia apply state income taxes to American expats who:

        They own a property in the state        They own a bank or investment account in the state        They hold an ID card, a driving license, or a voter registration in the state        They have a mailing address in the state or if their relatives do        They have dependents in the state

 

Preventing Double Taxation

There are three ways to prevent double taxation for US expats. Typically, every expat can qualify for one of the programs, so if you qualify for more, compare benefits as you can choose only one.

The options are: tax treaties, The Foreign Earned Income Exclusion (FEIE) and The Foreign Tax Credit (FTC).

 

Tax Treaties

The U.S. has tax treaties with 70 countries. If you establish a business in a country that has a tax treaty with the U.S., you qualify for this program. Look up the list of countries the U.S. has tax treaties with.

 

The Foreign Earned Income Exclusion (FEIE)

If you can pass either the Bona Fide Residency Test or the Physical Presence Test, you qualify for the FEIE. This program allows the exclusion of up to $107,620 of your foreign-earned income in a tax year.

 

The Foreign Tax Credit (FTC)

The FTC allows American expats to claim a dollar-for-dollar credit on foreign income taxes. To qualify, they should obtain a foreign tax liability.

Finally, there is a housing exclusion and a foreign tax credit to consider.

 

Keep Deadlines in Mind

Expats who miss tax deadlines may face penalties, interest costs, and even potential criminal charges.

Further, a failure to file taxes in a timely manner will result in IRS adding anywhere from 5% to 25% of the monthly fine to the unpaid taxes. A failure to pay the penalty will result in IRS adding anywhere from 0.5% to 25% of the monthly fine to the unpaid taxes.

If there’s an objective reason why you missed tax deadlines, turn to streamlined tax filing procedures.

 

Streamlined Tax Filing Procedures

Streamlined Filing Procedures (SFP) are an alternative to IRS procedures. They help expats keep up with the missed taxes and provide certain tax returns.

To qualify for the program, an expat should:

        Demonstrate that the reason for not filing taxes in the past was that you didn’t know you were required to        Have lived outside the US for at least 330 full days during one or more of the three most recent tax years        Not have had an abode in the US for one or more of the three most recent tax years        Fill in a signed statement (Form 14653) certifying the abovementioned

There are plenty of things to keep in mind when living abroad, aren’t there? Still, if make sure to adhere to the tips explained hereby you should be able to enjoy the lifestyle to the fullest.