Glossary/Tax treaty

Relocation glossary

Tax treaty

Also known as: double taxation agreement, DTA

A bilateral agreement between two countries that stops the same income being taxed twice and sets rules for which country taxes what.

When you have ties to two countries, both might claim the right to tax the same income. A tax treaty divides up those rights: it assigns taxing authority for different income types (employment, pensions, dividends, royalties), sets reduced withholding rates, and provides tie-breaker rules for who counts as a resident.

Treaties don't eliminate tax — they prevent double tax and clarify the rules. Whether one helps you depends on the specific countries involved and the type of income; two countries may have no treaty at all, in which case you rely on each country's own double-tax relief.

Why it matters for your move

If you keep income, property, or a pension in one country while living in another, the treaty between them often determines your real tax outcome. It's worth checking before you assume a move is tax-neutral.

Related terms

Worldwide taxationTax residencyForeign Earned Income Exclusion (FEIE)

General information, not legal or tax advice. Rules change — verify current rules with official sources or a qualified professional before you act. Updated 2026-06.

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