183-dayrule

In plain words

The 183-day rule is the main criterion of tax residence. The logic is simple: if you have spent 183 days or more in a country in 12 months, it as a rule regards you as its tax resident and is entitled to tax your income. It is the most visible and often the first indicator used to determine where you pay tax.

But days are not the only thing that is looked at. If a simple count is not enough, or you are “between” countries, other ties come into play: where your permanent home is, where your family lives, where your main business and centre of vital interests are. That is why leaving for exactly 183 days without severing ties is not always enough to change residence.

It is important not to confuse this with citizenship: a passport of Grenada or another country does not by itself make you its tax resident. Residence is determined by actual presence and ties, not by a document.

Where it matters

What is taken into account besides days

How the rule is applied

1. 01Counting days in the country
2. 02Checking ties (home, family)
3. 03Determining residence
4. 04In a dispute — the double tax treaty
5. 05One country of residence

What you need to know

• 183 days is the main, but not the only, criterion
• Home, family and centre of vital interests are taken into account
• Citizenship and tax residence are different things
• Leaving for 183 days without severing ties is often not enough
• With dual residence, the dispute is settled by the double tax treaty

Common mistakes

• ✕Assuming it is enough to leave for exactly 183 days
• ✕Forgetting home and family as ties
• ✕Thinking a second passport changes residence
• ✕Not taking account of counting over a rolling 12 months
• ✕Ending up resident in two countries at once without a plan

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