what is Expatriate (Expat)

**An expatriate, often referred to as an expat, is an individual who relocates to another country for an extended period, maintaining ties to their home country.** This term encompasses a broad range of individuals, including professionals, retirees, students, and others who choose to live abroad for various reasons such as work, education, or a better quality of life.

1. **Characteristics of Expatriates**:
- Expatriates are typically individuals who have not renounced their citizenship of their home country and are subject to the tax laws of both their home country and the country where they reside.
- They may be employed by a company, a university, a government, or a non-governmental organization, and are often provided with incentives such as higher pay, relocation assistance, and housing allowances, especially if moving to a country with high living costs.
- The adjustment to a new culture and work environment can be challenging, leading to higher compensation offers to facilitate the transition.
2. **Types of Expatriates**:
- **Mobile Workers**: Increasingly, expatriates are mobile workers who can work from anywhere using the internet, often for companies with a global presence.
- **Retirees**: A growing number of U.S. retirees are choosing to live overseas, often in countries where living costs are substantially lower, motivated by a desire for a more relaxed lifestyle and access to different climates and environments.
- **Skilled Workers**: Professional and skilled workers may relocate for job opportunities, either independently or as part of a work assignment from their employer.
3. **Legal and Tax Considerations**:
- Expatriates must obtain the appropriate residency or work permits in the country they live in and are subject to the tax laws of both their home country and the country of residence.
- The U.S. is unique in taxing the income of its citizens who live and work overseas, which can lead to serious tax consequences for expatriates if they are not aware of and manage their tax obligations appropriately.

In conclusion, expatriates are individuals who live and work outside their home country, often for professional, educational, or retirement reasons, and are subject to the legal and tax regulations of both their home country and the country of residence.