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“I may be gone for some time” – tax implications of moving abroad

Numerous tax advantages can be gained if someone switches to being subject to the tax laws of another country (i.e. changes his tax residency). Although the country in which a private individual has residence is not a matter of choice, with careful planning of his personal circumstances it is possible to influence where he is taxed. And this affects anyone who takes on work abroad, whether for a short or a longer period.

Nowadays many of our compatriots are trying their luck abroad, and it’s also at least as common for foreign citizens to settle for relatively long periods in Hungary. Everybody has a different attitude to staying abroad: some are already planning their return home as they pack their suitcase, some get homesick later during their stay, while others really do settle in to live their life abroad for the long haul. But all these circumstances can have a major impact on your tax payment obligations: it certainly makes a difference whether somebody’s income is subject to the 45% tax burden of the United Kingdom, the 15% rate applied in Hungary, or the 0% of Dubai.

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