Does a person with multiple citizenship have to pay the taxes for all of their countries, even if they don't live there?
Let's say that a person has 4 citizenships. Does that person have to pay the taxes for all of the countries they have citizenship of(even if they don't live there), or are they free from taxation?
- 11 months agoFavorite Answer
I technically have four citizenships although I only have three passports, the fourth is not of interest to me (South Africa).
The rule for all countries except the USA is that you only pay tax on your worldwide income if you are considered resident for tax purposes which depends on the number of days you spend in the country. Your citizenship is not relevant; you live there, you pay there.
You are also always taxed on income arising in a country no matter what citizenship you hold and how many days you spend there. So (for example) if you have a holiday home in Italy and rent it out when you are not using it, that income is taxable in Italy.
Only the US has a crazy rule that says you have to file a tax return whether you set foot in the country or not. Whether tax is actually due in the US will depend on your income and the tax rules in the country where you reside.
- jamesLv 711 months ago
Were I live the law is I pay tax's on all money I make here. On all money I make overseas in other Countries that is tax free. But you are free to spend it here. So all money I make in the U.S. I pay U.S. tax on & all money I make here I must pay U.S. tax on as income. But on money made here I must also pay tax's on it here as income. So the U.S. double tax's you on money made oversea's.
- MaxiLv 711 months ago
No, most countries are not like the USA who require their citizens to file taxes regardless of if they live there or not
- Anonymous11 months ago
Only a few people I know have 3 citizenships, I’ve not heard of 4. I had to declare myself a non resident of Canada to not pay Canadian income tax on my US earnings. If I decide to go back to Canada I have to do the same thing. Now the exception is pension, if I get Canadian pension in the US I pay US tax on it, if I get US pension in Canada then I pay Canadian taxes on it.
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- StephenWeinsteinLv 711 months ago
If they fill out the paperwork correctly, then they shouldn't have to pay more taxes than with only one citizenship. For example, the U.S. has a "foreign earned income exclusion" and allows a credit for "foreign taxes paid" so you can avoid double taxation.
However, if you just ignore the laws and don't even bother to fill out the paperwork, then you have to pay the taxes, plus penalties and fines and interest.
- Lisa ALv 711 months ago
It depends which countries. For the US, all citizens must file/pay taxes.
- BertstaLv 711 months ago
You would be expected to pay taxes in a country on any earnings you made there. Whether you are a citizen or on a work visa.
- ibu guruLv 711 months ago
Depends on the countries of their citizenship, tax laws of those countries & the one where they legally reside. E.g. US taxes ALL income from all sources worldwide regardless where you reside. Applies to all US citizens, legal permanent residents, temporary residents, those working in US, and other "US persons" as defined in law.
Most countries do not tax their citizens on foreign income IF they legally reside outside that country of citizenship for the entire calendar year (or tax-year). So, say a UK citizen takes a job abroad on a 3-year assignment & holds employment visa. No UK taxes on their earnings from that country once they are out of UK for a year or more. They only pay taxes according to the laws of the country where they reside & work on the employment visa.
- Anonymous11 months ago
I don't think so, that's why rich people move out of high tax countries like England and France.
- tentofieldLv 711 months ago
You only have to pay taxes in the country you are living and earning money in.