While living abroad can prove an emotional hardship, many Americans find it immensely rewarding, financially. Companies often provide expatriates with housing allowances, hardship pay, additional vacation time and other financial perks. Meanwhile, the U.S. government often kicks in the most generous benefit of all tax breaks that can save some citizens tens of thousands of dollars annually. I tell all my students, when you graduate, try to get a job overseas. Everybody deserves a chance to make a lot of money at one time in their life.
Companies provide financial benefits for overseas work for a simple reason.
It's hard to persuade people to leave friends and family behind to work in an unknown land. And living conditions in some countries are not exactly luxurious. Employers typically pay premium wages that are 10 percent to 20 percent higher than what they pay to domestic workers. In addition, they may provide free housing, transportation and extra paid vacation time, says Edward Watson, partner in the International Executive Tax practice at KPMG Peat Marwick in Los Angeles. The tax rewards of overseas work are a little harder to explain.