How do I become a Tax Resident?
Tax Residency
Becoming tax-resident may be easier than you think.
When you move to a new country you can usually remain tax non-resident for a short stay, but you will almost certainly become tax-resident for longer stays (after 183 days in many countries).
The point to note is that tax is usually due where income is earned i.e. from the first day of work in your new country of work unless you have a pre-arranged exemption. If you simply carry on paying tax in your home country, “for simplicity’s sake” or because tax is lower there or because your contract is expected to be short-term, you are potentially creating problems for yourself.
Unless the assignment is short (and not extended), the local authorities will usually tax you from the first day of work and it will be up to you to try to reclaim tax paid elsewhere, which can be a very time-consuming process.
In short, it’s worth getting your tax affairs clean and correct from the start. In every case, make sure you obtain professional advice before you start a new contract.
