Expatriation
Moving the centre of one's life outside one's home country and, in a narrow legal sense, giving up citizenship or tax residency upon moving abroad.
Expatriation means moving the centre of one's life outside one's home country and, in a narrower legal sense, giving up citizenship or ending tax-resident status upon moving abroad. Colloquially, an 'expat' is someone who lives and works abroad, regardless of any change of citizenship.
In tax law, expatriation carries particular weight: several states attach special consequences to those who renounce citizenship or long-term residence. For certain categories, for instance, an 'exit tax' on notional gains in the value of assets may apply; the specific rules, thresholds and exemptions depend on the country's legislation.
Expatriation is considered together with second citizenship, tax residency and renunciation of citizenship, as these are closely linked in planning international living. Because of the legal and tax consequences, such decisions usually call for prior professional advice.
“Expatriation is a tax event as much as a paperwork one. Some obligations outlive the departure, and the date that counts is the formal one on file, not the day you packed up and left.”
Sergey Bolotin — Head of LegalFAQ
Is an 'expat' the same thing as expatriation?
Colloquially an 'expat' is simply someone living abroad. Expatriation in the legal sense means giving up citizenship or ending tax residency when you move the centre of your life elsewhere.
Is moving abroad enough to end tax residency at home?
Not always. Residency ends under that country's domestic rules, which weigh days present, a home kept available, family and business ties, and sometimes a formal deregistration. Relocating without cutting those ties may leave the status intact.
Does expatriation always trigger an exit tax?
No. Whether such a charge applies, and to whom, depends on the country: some have no special rules, while others tax a deemed disposal of assets when residence or citizenship ends.
Must I renounce my current citizenship to take a second one?
That depends on the law of both states: some permit multiple citizenship, others require renunciation of the former. Verify the rules currently in force at home and in the programme country.
Do obligations to my former country end once I renounce?
Not automatically. Liabilities for earlier periods, reporting already triggered and taxes on assets located there can survive renunciation, and the exit procedure itself may require proof that obligations are settled.