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Tax free personal allowance dual tax residency. (alien.top)

submitted 11 months ago by idpro1984@alien.top to c/digitalnomad@expats.zone

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Hello everyone,

I'm curious about how the tax-free personal allowance functions in situations involving double taxation agreements.

For instance, if I'm self-employed in the UK for part of the year within the tax-free personal allowance and then work self-employed in another EU country, would the EU country expect me to pay full local tax on my UK earnings, considering I haven't paid tax there due to being within the tax-free allowance?

I have read sources that say that earnings within the tax free personal allowance is still actually taxable income at the rate of 20% or so but the personal allowance just means you don’t have to pay it.

Thank you all in advance

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[–] nicholas4488@alien.top 1 points 11 months ago

If you're tax resident in two countries the tax free allowance in the other country doesn't matter. Unless a tax treaty changed how the taxes are distributed.