Tax Residency

Tax residency is the status that determines in which country an individual is liable to pay taxes on their income and assets. Most countries determine tax residency based on the number of days spent in the country per year, commonly 183 days, though other factors such as the location of a permanent home or centre of vital interests may also apply. Tax residency is distinct from immigration residency; it is possible to be a tax resident somewhere without holding a residency visa, or vice versa. Establishing tax residency in a low-tax jurisdiction is a key component of international tax planning.