For individuals who are dual citizens of the U.S. and another country, the U.S. imposes taxes on its citizens for income earned anywhere in the world. If you are living in your country of dual residence that is not the U.S., you may owe taxes both to the U.S. government and to the country where the income was earned.

Do US citizens abroad pay double taxes?

United States citizens who live abroad can exempt themselves from paying taxes on the income they earn in other countries if they qualify for the Foreign-Earned Income Exemption, allowing them to avoid double taxation.

Can a dual citizen be taxed in Australia?

Dr Alpert said many dual citizens had been shocked to discover that they were liable for US tax on their Australian incomes. “By complying with FATCA, Australia has exposed these accounts to potential US taxation,” said Dr Alpert, a former US citizen who renounced her citizenship nearly two years ago.

What kind of tax do I have to pay as an American citizen in Australia?

As a high-income earner, Martin realised he could be liable for US tax on his income in Australia, as well as his superannuation under the US grantor tax rule. He might also have to pay capital gains tax on Australian property he has sold over the years.

Do you have to pay capital gains tax if you have dual citizenship?

Depending on your dual citizenship, you could be obliged to pay tax on your income, capital gains tax when you sell your principal property and investment properties, plus tax on the earnings from your self-managed superannuation fund (SMSF). Australians don’t have to pay inheritance tax but other countries aren’t so lenient.

Is there a transition tax for US citizens in Australia?

The transition tax “absolutely punishes many US citizens living abroad”, said Alexander Marino, a tax lawyer who heads the expatriation group with Moodys Gartner tax law firm. His group is holding seminars in Australia on how dual citizens can renounce citizenship and manage their tax obligations.