What Is an Expatriate?
Expatriate refers to a person living outside the country of citizenship or former residence, a general mobility term which some tax laws define more narrowly.
Also known as: Expat, Expatriate Worker.
How Expatriate works
Expatriate status in everyday usage describes a person who relocates abroad for work or lifestyle, yet tax consequences never follow from the label itself: residence rules, citizenship and treaty provisions in each country decide where the expatriate is taxed and on which income. United States law gives the term a technical meaning, as Internal Revenue Code section 877A defines an expatriate as a citizen who relinquishes citizenship or a long-term resident who ceases to be a lawful permanent resident. A long-term resident is a lawful permanent resident in at least eight of the fifteen taxable years ending with the year of the triggering event. Employers also use the word for staff on international assignments, where tax equalisation and payroll arrangements often apply.
Expatriate vs Non-Resident
Unlike Non-Resident, which is a legal tax status set by statutory residence tests, Expatriate is generally a descriptive label, except in United States tax law, where the term covers former citizens and long-term residents.
Example
Illustrative example: A Country A citizen moves to Country B on a long-term contract and is described as an expatriate. Country A may still tax the person if domestic residence ties remain or if Country A taxes by citizenship, while Country B taxes local income once residence rules are met, with any overlap addressed by a treaty.
Common misconception
Myth: Becoming an expatriate automatically ends tax obligations in the home country.
Reality: Home-country obligations end only when that country's residence, domicile or citizenship-based rules cease to apply, which the expatriate label does not determine.
Frequently asked questions
What does expatriate mean in tax terms?
In most tax systems, Expatriate is a descriptive label with no legal effect; under United States law, however, an expatriate is a citizen who relinquishes citizenship or a long-term resident who ceases to be a lawful permanent resident.
Do expatriates pay tax in their home country?
An Expatriate pays home-country tax where residence, domicile or citizenship-based rules still apply, for example through remaining ties or United States citizenship; otherwise home-country tax generally covers only income sourced there, subject to treaties.
Related terms
- Non-Resident — Most confused: legal status versus descriptive label
- Expatriation — Act of giving up citizenship or residence
- Covered Expatriate — US expatriate subject to exit taxation
- Citizenship-Based Taxation — Keeps expatriate citizens taxable at home
- Expatriate Tax Equalisation — Employer policy for assigned expatriates
Related guides
- Digital nomad tax setups guide — How residence choices shape tax for people abroad
- US expat tax reform debate — US expatriate tax context
Sources
- 26 U.S.C. 877A (2024 edition, subject to later amendments), govinfo.gov
- 26 U.S.C. 877 (2024 edition, subject to later amendments), govinfo.gov
- IRS: Expatriation tax
Last verified: 2026-10-08. This entry is general information, not tax or legal advice; rules vary by country and change over time.
