Tax Residency

Tax residency decides which country gets to tax you, and it is the single most misunderstood part of moving abroad. It has almost nothing to do with your passport and only a little to do with your visa: a country generally taxes you as a resident once you live there long enough or move the centre of your life there.

Most countries start with a day count — commonly the 183-day rule — but days are only the first test. If the day count is inconclusive, tax authorities look at where your permanent home, family and economic interests sit (your centre of vital interests). That is how people end up tax-resident in a country they thought they were only “visiting” for work.

The catch that surprises nomads most: you can be tax-resident in two countries at once. When that happens, a double taxation treaty between them decides who wins, so you are not taxed twice on the same income. And leaving your old country is not automatic — many states keep taxing you until you can show you have genuinely become resident elsewhere.

This is general information, not tax advice — residency rules turn on small details, so confirm your own case with the tax authority or an accountant. To see where a move is likely to land you, run the free tax residency checker.

Where you’ll meet this

• Filling in your first tax return after a move, when both countries may ask for one
• “Certificate of residence” requests from banks, brokers and employers
• Any conversation about non-dom status, the 183-day rule or a tax treaty