Media type · National tax law
Tax residency
The legal test that decides which country may tax your worldwide income.
Key facts
| Defined by | National tax law |
|---|---|
| Common tests | Days, home, family, work, habitual abode |
| Citizenship | Not the same test in most countries |
| Treaty role | Decides a tie between two claims |
| Check with | Tax authority or local adviser |
Why the label matters
Residents are usually taxed on worldwide income, while non-residents are taxed on local-source income and may face withholding. The label also decides which reliefs, allowances and filing duties apply.
Because the consequences are large, the tests are factual. A person can intend to be resident somewhere and still fail the test, or intend to leave and still meet it.
Frequently asked questions
Is tax residency the same as immigration residency?
No. Immigration status and tax status are decided under separate rules, and holding a residence permit does not automatically make someone a tax resident.
Can someone be resident in two countries at once?
Yes, under national rules. A treaty may then apply tie-breakers, and without a treaty both countries can assert a claim.