What does the status "tax non-resident" mean?
Tax Residency
When moving to a new country to work, you are generally liable for tax from day one. This status is termed “tax non-resident” and in most countries means that for the first 183 days of work, you are taxed only on your locally-sourced income.
Once you go over the 183 days, and in some cases this can be in one tax year or cumulative over 2 tax years, your status changes to “tax resident”. This change means that you become potentially liable for tax on your worldwide income.
For most people this will actually mean no change if the locally-sourced income is the same as the worldwide income, but those with other sources of income will need to be aware of the potential tax implications this creates.
Having the status of tax non-resident does not mean that you can work without paying tax, unless you are working in a country that is zero tax rated.
Tax residency is complicated and the rules vary from country to country. For more information, consult our International Tax Guides, our FAQ section on Tax Residency, or contact us directly for advice.