Tax Considerations for Immigration

When deciding on an immigration destination, most people focus on factors such as the environment, living conditions, welfare, education, and visa-free access to other countries. However, one critical factor often overlooked is taxation.

For young individuals, tax implications are often ignored because their income and assets are relatively modest, and any additional tax burden may seem negligible. High-net-worth individuals (HNWIs), on the other hand, prioritize the safety of their assets over tax implications. However, as young individuals accumulate more wealth over time, and HNWIs realize the immense tax costs only after securing new citizenship or residency, it may already be too late.

Acquiring a passport or permanent residency not only grants rights such as access to welfare but also imposes obligations, including tax responsibilities. Unfortunately, tax issues don’t manifest immediately after immigration, making them easy to neglect. Taxation is one of the largest expenses in a person’s lifetime, and immigration can significantly impact future tax liabilities. This article analyzes various tax considerations for immigration from an international tax perspective.