# New to site. American RN looking for English speaking countries to work/live.



## TaxAbusedUSNurse (Feb 22, 2014)

Looking for advice on best tax arrangements - how to make and keep the most money.


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## Bevdeforges (Nov 16, 2007)

The main problem you are likely to find is that nursing qualifications don't automatically transfer to other countries. There are local requirements that may mean anything from sitting the national nursing examinations to re-taking a certain amount of course work in order to get your qualification recognized.

Only then can you worry about the specific taxation regime you will be under.
Cheers,
Bev


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## TaxAbusedUSNurse (Feb 22, 2014)

Bevdeforges said:


> The main problem you are likely to find is that nursing qualifications don't automatically transfer to other countries. There are local requirements that may mean anything from sitting the national nursing examinations to re-taking a certain amount of course work in order to get your qualification recognized. Only then can you worry about the specific taxation regime you will be under. Cheers, Bev


Thanks Bev!

Being an RN who travels I was pretty much expecting that - the re-licensing steps. I was just hoping there may be some nurses on this site who may have advice on which countries are best to work for and which to avoid - conditions, pay, etc - before I bothered re-licensing for the wrong country. At one point I was talking to a few Costa Rican located ex pats. Any on here? 

Tracie


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## DavidMcKeegan (Aug 27, 2012)

Just be careful when planning which country to move too... Remember that as an American, you still must file a US tax return every year (even if you are living somewhere else, and paying taxes somewhere else). So always factor that in when deciding on a country to move to.

Now, just because you have to file twice, does not necessarily mean you have to pay twice. Fortunately there are a number of credits and exclusions in place that you can use to eliminate dual taxation in most circumstances (FEIE, Foreign Tax Credit-lots of information on these in this forum). However, there are some situations which result in US taxes being owed.

So for example, it may seem like a good idea to move to the UAE to take advantage of their zero income tax rate. However as an American, you could still end up owing tax to the US, especially if you earn a high income.

Lots of things to consider, good luck!


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## TaxAbusedUSNurse (Feb 22, 2014)

DavidMcKeegan said:


> Just be careful when planning which country to move too... Remember that as an American, you still must file a US tax return every year (even if you are living somewhere else, and paying taxes somewhere else). So always factor that in when deciding on a country to move to. Now, just because you have to file twice, does not necessarily mean you have to pay twice. Fortunately there are a number of credits and exclusions in place that you can use to eliminate dual taxation in most circumstances (FEIE, Foreign Tax Credit-lots of information on these in this forum). However, there are some situations which result in US taxes being owed. So for example, it may seem like a good idea to move to the UAE to take advantage of their zero income tax rate. However as an American, you could still end up owing tax to the US, especially if you earn a high income. Lots of things to consider, good luck!


Thanks David.

From what I can tell on the US side, anything earned outside the US under $97k is tax free. However, like you mentioned - Need to consider what each country requires tax wise. There are nursing or healthcare staffing agencies that place nurses in foreign countries - trouble shooting travel, residence and international nursing license requirements. This may be the route to go but they are most often recruiting for the Middle East.... Hmmmm,
Pay is good though - could pocket that $97k tax free.

Was just hoping to run into other international travelers with good advice for non-Mid East countries.

Tracie


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## BBCWatcher (Dec 28, 2012)

TaxAbusedUSNurse said:


> From what I can tell on the US side, anything earned outside the US under $97k is tax free.


That's much too broad a generalization.

You're describing the Foreign Earned Income Exclusion which:

1. Only relates to U.S. income tax. You may still owe self employment tax on that income.
2. Only relates to income from work, not income from other sources.
3. Only relates to foreign income. Working on a U.S. military base overseas, for example, is not considered foreign income.
4. Only applies when you pass a FEIE qualification test. Working on a fishing boat with a base in the U.S., or spending "too much time" inside the U.S., can mean you don't qualify, as examples.
5. Has limits that vary with filing status (a spouse can get his/her own exclusion), inflation (the limit adjusts every year), and housing expenses.
6. Requires filing to claim.
7. Limits or eliminates your ability to take advantage of certain U.S. tax preferences (e.g. IRAs).
8. May not be the best exclusion to claim if you live in a comparatively high tax jurisdiction.


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## Bevdeforges (Nov 16, 2007)

TaxAbusedUSNurse said:


> Was just hoping to run into other international travelers with good advice for non-Mid East countries.
> 
> Tracie


Tracie, if you read through some of the threads in this section, you'll find a variety of advice for Americans living outside the US. And, as mentioned, that $97K exclusion applies only to "earned income" - i.e. salary income. Interest and other "passive" income is fully taxable by the IRS, no matter where you are resident - though the Foreign Tax Credit can give you some relief from double taxation. 

The other "trick" to making the FEIE vs. FTC decision (though you can use a combination of the two, also) is to understand the tax system of the country where you are (or will be) living. Although some countries are considered "high tax rate" countries, they may provide more generous allowances and deductions in computing one's income taxes - or they may levy other sorts of taxes, which the IRS will not allow you to take as credits against your US income taxes.

Once you start to narrow down your list of countries, you probably want to take a look at the tax treaty (if there is one) with the US:
United States Income Tax Treaties - A to Z

Not really "fun" reading, but it can be worthwhile. Mostly, the tax treaty items involve such categories as pensions, government benefits, income from real estate (rentals, property development, etc.) and other non-salary type items.

In general, the old rule they taught us in business school still applies - you should never take any decision based solely on the tax effects. There are lots of other factors to making a good decision.
Cheers,
Bev


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## DavidMcKeegan (Aug 27, 2012)

Bev and BBCWatcher are right, there is quite a bit of small print associated with the FEIE...but if you plan ahead, and structure your employment contract and time abroad accordingly, then qualifying for the FEIE shouldn't be a problem. We have many clients who moved to the UAE just to take advantage of the tax savings (not saying that it is for everyone, but an option).

Good luck, hopefully there will be some travelers (in similar situations) that you can get some advice from.

Cheers,

David


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## TaxAbusedUSNurse (Feb 22, 2014)

BBCWatcher said:


> That's much too broad a generalization. You're describing the Foreign Earned Income Exclusion which: 1. Only relates to U.S. income tax. You may still owe self employment tax on that income. 2. Only relates to income from work, not income from other sources. 3. Only relates to foreign income. Working on a U.S. military base overseas, for example, is not considered foreign income. 4. Only applies when you pass a FEIE qualification test. Working on a fishing boat with a base in the U.S., or spending "too much time" inside the U.S., can mean you don't qualify, as examples. 5. Has limits that vary with filing status (a spouse can get his/her own exclusion), inflation (the limit adjusts every year), and housing expenses. 6. Requires filing to claim. 7. Limits or eliminates your ability to take advantage of certain U.S. tax preferences (e.g. IRAs). 8. May not be the best exclusion to claim if you live in a comparatively high tax jurisdiction.


Yes, you are correct - that is a very broad statement. I did read the FEIE to get this information to begin with and I saw that you all post frequently about the FEIE so I didn't bother clarifying the details - learned audience and all. I do meet most of the requirements and nurses in foreign assignments now (Mid East), do report actually saving tremendously - all being earned income. These are not military/US owned locations - agree: US is US wherever it's located. If that were not the case I would pick US Virgin Islands and work 3 shifts, swing from a hammock the rest of the week. That being an even broader statement...


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