Can I be a non-resident & tax resident in same country?

ozymandias

Offshore Agent
I have recently moved to a country in the Middle East. I intend to spend less than 180 days per year here as I travel a lot for work. However, I wish to conduct some remote consultancy work while in-country using my UK LLP. I also wish to obey the laws here!

My understanding is that non-resident employees working in-country for a period not exceeding six months per fiscal year pay a flat rate of 20% of their gross locally-sourced income.

  1. Would my home (EU country) consider me resident in the Middle East, even if I don't have a residence permit here?
  2. Am I going to be tax resident in the Middle East now, if I am paying this 20% tax only on locally-sourced income?
Thanks!
 

xzars

Trusted Member
Business Angel
Short:

Answer to title question: no. If you're a tax resident, you're also a resident, whether registered or not.
 

xzars

Trusted Member
Business Angel
1. Would my home (EU country) consider me resident in the Middle East, even if I don't have a residence permit here?

The EU country absolutely does not care if you're a resident in one or more other places. If your ties with the EU home country remain in tact, you remain a tax resident in that country even if you spend very little or no time there. You can be a dual resident, triple resident, or a resident in all countries of the world.

Typical aspects tax offices consider for determining tax residency:

- Family ties: Location of wife and kids (but also location of DOG or CAT in the U.S.A!)
- Family ties: Availability of a permanent home (where?)
- Financial ties: Location of assets
- Financial ties: Source(s) and proportion(s) of income

2. Am I going to be tax resident in the Middle East now, if I am paying this 20% tax only on locally-sourced income?

Check local residency rules in that middle eastern country. 18X-days rules are just one way of getting stamped as the milking cow for taxing purpose. If the days-spent test is the only test, then the answer is no.
 

Martin Everson

Offshore Consultant
Business Angel
The EU country absolutely does not care if you're a resident in one or more other places. If your ties with the EU home country remain in tact, you remain a tax resident in that country even if you spend very little or no time there. You can be a dual resident, triple resident, or a resident in all countries of the world.
Very very true thu&¤#

i.e you can live in Qatar but if you have a house in London and spend 30 days in the year in it you are UK tax resident period!!!!!. If you have family or make regular visits to UK and have substantial ties you are a resident period!!! Across EU it is the same BS. You can be actually considered tax resident in multiple countries as xzars says.

Bottom line is you want to cut ties with your home EU country and ensure your center of your life and activity is not there.
 

ozymandias

Offshore Agent
Very very true thu&¤#

i.e you can live in Qatar but if you have a house in London and spend 30 days in the year in it you are UK tax resident period!!!!!. If you have family or make regular visits to UK and have substantial ties you are a resident period!!! Across EU it is the same BS. You can be actually considered tax resident in multiple countries as xzars says.

Bottom line is you want to cut ties with your home EU country and ensure your center of your life and activity is not there.
OK, this doesn't sound too bad, and is in line with what I was expecting. I do not have property in the EU and I have been non-resident there for the past two years (i.e. established residency in a non-EU country and paid taxes there). I have also been non-resident in EU for 7 of the last 10 years. Had no issues with my tax returns thus far. I do not conduct business in the EU and spend less than 30 days per year in my "home" (passport) country. I have family there, but not wife and children family (just parent and siblings). Presumably this is less significant?

How big an issue is it if I continue to use bank accounts and credit cards issued in my "home" EU country?
 

ozymandias

Offshore Agent
Yes



Depends what address is on the bank account and cards. Where the cards are issued or bank is based is irrelevant...its all about address.
OK, so I should be sure to change my correspondence / home address with the banks and credit card providers to my new non-EU location? Won't a lot of them simply close my account, as many of these services tend to be for EU residents only?
 

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