Understanding your tax residency is the #1 step to getting expat taxes right. Residency decides which country can tax you and on what income.
What Is Tax Residency?
Tax residency is a legal status based on your ties and presence in a country—not your passport or visa type.
Common Tests Countries Use
- Days in-country (e.g., 183‑day rules) – presence for part of the year can trigger residency.
- Home & ties – where you keep a permanent home, spouse/children, belongings.
- Centre of life/economic interests – where you work, bank, vote, run a business.
- Intention – evidence you plan to live there or have ceased living there.
- Why Residency Matters
- Scope of tax: Residents usually report worldwide income; non‑residents report only local‑source income.
- Treaty relief: If two countries claim you, a tax treaty can break the tie.
- Split years: The year you arrive/leave may be split between resident and non‑resident periods.
Common Expat Scenarios
- Move mid‑year for work and keep a home/family in your old country.
- Work remotely abroad but payroll remains in your old country.
- Keep significant ties (home, spouse, bank accounts) after moving.
Mistakes to Avoid
- Relying only on the 183‑day rule—ties can outweigh days.
- Assuming a visa decides tax status (it doesn’t).
- Ignoring tax treaty tie‑breaker rules when two countries claim you.
- Not keeping evidence (travel log, lease, job contract, school records).
Felix’s Quick Tips
- Keep a travel diary and proof of days in/out.
- Document homes, leases, family, employment—these prove ties.
- Read the relevant tax treaty before moving.
- Consider a short residency ruling or professional advice if your situation is borderline.
Next Step
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