Residency programs may bring unexpected tax consequences. Understanding the local tax regime is essential before relocating or applying for a new residency.
Types of Tax Systems
- Worldwide taxation (e.g., USA): Tax on global income
- Territorial systems (e.g., Singapore): Tax only on local income
- Remittance-based systems (e.g., UK non-dom): Tax foreign income only if brought into the country
Key Tax Considerations
- Personal income tax rate
- Wealth and inheritance taxes
- Exit tax or emigration tax
- Double tax treaties
Common Mistakes
- Assuming “residency” means tax residency
- Ignoring reporting requirements in home country
- Overlooking estate tax rules in new jurisdiction
FAQ:
Q1: Can I be tax resident in more than one country?
A: Yes, but double taxation agreements can help avoid double tax.
Q2: Is a golden visa always tax-free?
A: No. You may trigger local tax status depending on time spent and income sourced.
User Comments:
“I almost triggered tax residency in two countries—thanks to expert advice I avoided it.” — Lee R.
“Singapore’s tax simplicity helped me plan long term.” — Marta A.
Editor’s Note:
Residency is legal; taxation is financial. Never assume both align—get professional advice.
Tags: residency-tax, global-taxation, relocation-planning, non-dom-status