Tax residence for expatriates and posted workers

10 February, 2021

Do you know where you may be considered tax–resident, and therefore taxable? If you stay abroad for more than 6 months do you have to pay taxes in your home country?

Even if you maintain your permanent address in your home country and your personal and economic ties with that country are stronger your host country may still tax you.

Your local employer may, for instance, deduct taxes from your salary at the time of payment.

In addition, whether or not you continue to be resident in your home country, that country may tax income (for instance from property) arising there.

In these cases, be aware that there are solutions to double taxation and make sure that your income is not taxed twice if it doesn't need to be.

In case of dual residence, two countries could consider you a tax-resident at the same time, and both could require you to pay taxes on your total worldwide income. Fortunately, many countries have double tax agreements, which usually provide rules to determine which of the two countries can treat you as a resident.