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    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.