Moving to a foreign country often entails leaving one tax jurisdiction and entering into another, completely different tax system and requires careful planning. Assets owned and income earned in the country of origin after the move become subject to different tax rules in the country of destination, with potential tax benefits or unfavorable tax burdens. The termination of the original tax residency and acquisition of new tax residency should be planned and executed in a consistent manner, to avoid potential double taxation or unfavorable tax consequences. New reporting rules in the country of destination create additional or different filing obligations of which client must be aware to stay in compliance with applicable tax laws.
Assets with unrealized, built in gains held in the country of origin, non vested or non exercised stock options, deferred compensation, pension plans and the like require proper tax planning to make sure that the proper tax treatment applies upon the taxpayer in the new country of residence. Converesely, the taxation of those same assets ands related income in the country of origin after the change of status from tax residenct to non resident, may be become more burdensome without proper planning.
In this area, we provide pre-immigration and pre-expatriation tax planning services for individuals moving across border and being exposed to different and potentially conflicting or overlapping tax regimes, including international tax filing, reporting and compliance support.