Glossary/Worldwide taxation

Relocation glossary

Worldwide taxation

A tax system that taxes a resident's income from everywhere — local and foreign alike — once they become tax-resident.

Most high-income countries tax worldwide income: once you're a tax resident, your salary, foreign clients, overseas rental income, and investment gains are all potentially in scope, wherever they arise. The United States goes furthest, taxing its citizens on worldwide income even when they live abroad.

Worldwide systems usually offer relief from double taxation through foreign tax credits or exclusions, and through tax treaties. But the default is broad: moving to a worldwide-tax country generally means that country wants a share of everything you earn globally.

Why it matters for your move

If you earn meaningfully from foreign sources, moving into a worldwide-tax country can quietly raise your total tax bill even if local rates look reasonable. It's the flip side of the territorial advantage.

Related terms

Territorial taxationTax treatyForeign Earned Income Exclusion (FEIE)Tax residency

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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