How does a tax treaty work?

Principle

A tax treaty determines which country has the first taxing right on each type of income, and requires a credit/exemption for tax paid.

rules

  • Income from work: the country where the work is performed
  • Dividend/interest: reduced rate
  • Capital gain: usually country of residence
  • Real estate: the state of the property

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.