Understanding how tax residency rules affect your income and investments is crucial for strategic planning.
Tax residency determines where you pay income tax. Many HNWIs mistakenly assume that living part‑time abroad changes obligations—this isn’t always true.
- Most countries use day‑count tests (e.g., 183 days)
- Some have “center of vital interests” rules
- Dual residency risks double taxation without proper treaties Planning ahead with advisors can ensure your chosen residency aligns with your business and lifestyle. Countries like UAE, Monaco, and Bahamas offer zero or low tax for non‑domiciled residents.
FAQ:
Q: Can I have more than one tax residency?
A: Technically yes, but tax treaties determine which country takes precedence.
Q: How do I prove tax residency?
A: Through residence permits, utility bills, or tax certificates from local authorities.
User Comments:
- “Our advisor helped us avoid double taxation when moving to UAE.”
- “Knowing the rules upfront saved us legal headaches.”
Editor's Note:
Tax residency is a legal anchor—plan carefully before shifting your center of life.
Tags: tax residency, wealth management, relocation planning, double taxation
(Editors: admin)