Media type · The legal link that gives a country the right to tax worldwide income.
Tax residency
The status that decides which country can tax your worldwide income.
Key facts
| What it is | The legal link that gives a country the right to tax worldwide income. |
|---|---|
| Who sets or charges it | Each destination sets its own tests; treaties resolve conflicts between two countries. |
| Check before accepting | The day count, the tie-break rules and the position for the first and final year. |
The first year is the difficult year
Residency tests can be triggered by days present, a home, a family or habitual abode. A move late in the year can create residence in both countries under domestic law, leaving a treaty tie-break to decide. Payroll may withhold on one basis while the final return uses another.
Keep a day count, the lease and the travel records. Ask a tax adviser for a written view covering the arrival year and the departure year, including any split-year rule. The answer affects not only salary tax but also investment income, capital gains and reporting duties.
Frequently asked questions
Does a work permit make me tax resident?
Not automatically. Immigration status and tax residency are separate tests, although one can be evidence for the other.
Can I be resident in two countries?
Domestic law can produce that result. A treaty tie-break usually decides which country has the primary taxing right.