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. That's because you get these breaks only when you work in certain countries. Assuming you maintain your U.S. citizenship, you need to file a U.S. tax return. For most people, that means they won't owe any U.S. tax.
Expatriates are subject to taxes in the countries where they reside, however.
Co. In most of Europe including England, Austria, Belgium, Finland, France, Germany, Italy, The Netherlands, Spain and Sweden income tax rates exceed those in the United States. But those who work in the Middle East and many less-developed countries can cash in. Income taxes in these countries are low or nonexistent. Syndicated columnist Kathy Kristof appears regularly in The Detroit News Business section. Distributed by the Los Angeles Times Syndicate.