Breaking ties with home country

[jkk]

Hello,

When moving from your home country to a tax haven, it is often recommended to break ties with your home country.

Is 183 days not always enough?

For example, I move from my EU country to Monaco (where I rent) and actually spend, lets say 7-8 months there, however I do own a couple of rental apartments and a personal house in my home country. Would this be enough for my home country to argue that I have to pay taxes in my home country?

 

[Almouk]

Yes, In my opinion, your country could tax you related to your center vital of interests because of that property and this income generated in your home country by your rental apartments. This applies as general rule, but I don't know in case of Monaco specifically could be different.

 

[Silvio]

Depends on the country you are fleeing from. Some will require you to sever multiple or all ties (move your kids, wife, "not have a toothbrush at your parent's house") and some countries don't care at all or don't have the budget to check.
Some countries will demand you leave completely and don't spend more than 5-7 days back at your old country in a year or they will claim you are still a resident.

In general the wealthier the country the more of a tax gestapo you will face.

 

[KJK]

Hi, your nickname is almost the same as mine and your problem is almost the same as mine. lol.

183 days is not enough, you can actually be a resident in two (or three... or eleven, whatever) countries and be in an even worse situation than before.

You can read more e.g. here:
OECD – Updates to “Resident” Commentary, Comments ("habitual abode", "permanent home")
Centre of Vital Interests - Dual Residents - Community Forum - GOV.UK ("centre of vital interests")
First define the two countries you're interested in, then download the DTA agreement they have, then research how exactly these terms are defined by both countries.

You should sell your house. If you have kids going to a local school, you can just forget this. Also remember if you are French, this does not work with Monaco.

 

[Romanov]

Pretty sure in almost every country, if you have revenue earning entities (e.g. rental homes) you have to pay taxes in that country, no matter where you live.


Also most EU countries ask you to show that you are paying taxes somewhere else before they let you go. ( if you are a citizen)

 

[Konstanz]

Yes, rental incomes would still be taxed in the country where property is located.
For Monaco, you can live there, but you need minimum 500k to deposit to bank account ant freeze it, also you need to buy/rent expensive real estate.