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.
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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.

 

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• • An Australian expat → check the Australia Expat Tax Guide for superannuation rules.

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  • A Canadian expat → see the Canada Expat Tax Guide for RRSP and TFSA rules.

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  • For more insights, browse the full Expat Tax Tips & Insights.