Question Does 183 days-rule matter for new residence?

[ads11]

Does the 183 days-rule really matter for your new country of residence?

I don't think so, and I don't understand why people worry about that.

It might look like a stupid question, but many people are worried about it.

If you leave and cut your ties with your country for good, and then you go live in a country with 183 days-rule, you are not forced to live there for 183 days.

Yes, you need to pay rent, but that's it; I don't think that the tax authorities of that country will come after you to see if you respect those days; why should they do that? To lose you as a new taxpayer?

You are free to travel and live wherever you want, and if you are an EU citizen, you can also live in another EU state for more than 183 days without paying taxes there; it's almost impossible for them to track you, thanks to the single market.

What do you think about that?

 

[FlipnShip]

I am new here, though having grinded through a lot of thread recently, I would say it is not about the new country, it is about previous one/ the one that you are a citiziens of and the authorities over there trying to potentially squezzietaxes out of you.

 

[ads11]

I am new here, though having grinding through a lot of thread recently, I would say it is not about the new country, it is about previous one/ the one that you are a citiziens of and the authorities over there trying to potentially squezzing taxes out of you.

Yes that's the only thing you should worry about

 

[countryfree]

The 183-day rule certainly matters in countries where they stamp your passport at entry or exit.
Within the Schengen area, the tax people talk about the country where you have your domicile, or where you have your "habitual abode".

 

[ads11]

The 183-day rule certainly matters in countries where they stamp your passport at entry or exit.
Within the Schengen area, the tax people talk about the country where you have your domicile, or where you have your "habitual abode".

yes, that is true, I had to specify that my post is more for EU people.

You are right also for the second point, but once you are clean in your country of origin (you cut your ties for good) they cannot tax you because you don't stay all the 183 days in the new country, and you spend your tax year traveling around the world.

 

[JohnnyDoe]

the most basic and strongest evidence for tax residency is how much time you spent in a country during the year. Since 1 year=365 days, by proving that you lived for 183 days in a country you/the taxman prove that you are liable to taxation in that country. You can use this in your favor, or the taxman can use this to f**k you, depending on the circumstances.

 

[ads11]

the most basic and strongest evidence for tax residency is how much time you spent in a country during the year. Since 1 year=365 days, by proving that you lived for 183 days in a country you/the taxman prove that you are liable to taxation in that country. You can use this in your favor, or the taxman can use this to f**k you, depending on the circumstances.

that is something that we should consider, but they can use this to try to f**k you only if you have other elements that link you to your country of origin.

If I spend 90 days in my new country of residency and the rest of the year in other countries after I cut all my ties with my original home, I don't think they have the power to make me pay taxes there.

This is my personal view based on common sense, but I appreciate other opinions on the matter.

 

[Sols]

Very few tax authorities will refuse tax payments so you can start declaring income and paying taxes as soon as you cross the border. But tax residence certificates are harder to come by. For that, you may need to demonstrate that you meet the qualifications. And those certificates are becoming increasingly necessary for international business.

 

[Konstanz]

Usually it's always about those 183 days. Taxmen try to prove you stayed in home country 183 more or less days and say you still live in a country + have other ties. It's always easiest to prove in courts and etc.
If they cannot prove days, then they can try to compare "ties" to country. If you own real estate , have wife and kids in home country. Everything matters. But if you cut ties and don't stay 180+ days in home country you should be fine.
Most people get in trouble by tax men because of those 183 days. Other things are more difficult to prove.

 

[ads11]

Very few tax authorities will refuse tax payments so you can start declaring income and paying taxes as soon as you cross the border. But tax residence certificates are harder to come by. For that, you may need to demonstrate that you meet the qualifications. And those certificates are becoming increasingly necessary for international business.

Yes, but I think that for EU citizens who move to another EU state and they open a company there, you won't have any problem, especially if you also register as an employee of your company and you obviously rent a place for the whole year.
There aren't any logical explanations for the new authorities to make your life harder as a new taxpayer (client).

Usually it's always about those 183 days. Taxmen try to prove you stayed in home country 183 more or less days and say you still live in a country + have other ties. It's always easiest to prove in courts and etc.
If they cannot prove days, then they can try to compare "ties" to country. If you own real estate , have wife and kids in home country. Everything matters. But if you cut ties and don't stay 180+ days in home country you should be fine.
Most people get in trouble by tax men because of those 183 days. Other things are more difficult to prove.

exactly the only thing is your situation with your old country, that's why I was saying that those things like non-dom resident and 60 days rules don't really matter, they aren't really necessary if you want to be a kind of digital nomad.

 

[Sols]

Yes, but I think that for EU citizens who move to another EU state and they open a company there, you won't have any problem, especially if you also register as an employee of your company and you obviously rent a place for the whole year.
There aren't any logical explanations for the new authorities to make your life harder as a new taxpayer (client).

The problem (if one were to appear) would be in or with the EU citizen's previous country of residence. If you leave for example Finland, Germany, or one of the other most aggressive jurisdictions to some lower tax EU state like Malta or Cyprus, failure to show a certificate of tax residence in the new country can be a problem. Even if you stay 365 days of the year outside of Germany or Finland, you can still be considered tax resident there. But if you have document to show that you are clearly tax resident somewhere else now, that can make it much easier to avoid any such headaches.

 

[ads11]

The problem (if one were to appear) would be in or with the EU citizen's previous country of residence. If you leave for example Finland, Germany, or one of the other most aggressive jurisdictions to some lower tax EU state like Malta or Cyprus, failure to show a certificate of tax residence in the new country can be a problem. Even if you stay 365 days of the year outside of Germany or Finland, you can still be considered tax resident there. But if you have document to show that you are clearly tax resident somewhere else now, that can make it much easier to avoid any such headaches.

yes, but I said that you should become officially a tax resident there.

 

[Konstanz]

Nomadic and tax residents are more complicated case. You have to build enough substance in country B to be considered tax resident by home country. If you just have residence in country B and travel all the time, it can be problematic to convince home country that you are tax resident in country B

 

[lacomaco]

You asked: Does the 183 days-rule really matter for your new country of residence?

It definitely could matter for your previous country. Also, there are countries within the EU (such as Spain) which might tax new residents not only on the base of time spent but on the center of life and economic interest

You also wrote: you can also live in another EU state for more than 183 days without paying taxes there; it's almost impossible for them to track you.
By definition you could be breaking the law by spending more than half of the year and not paying taxes there, and claiming that authorities will not be able to get the information I think is just dangerous. But up to you

 

[FPW]

you might land yourself into a deep shithole if you get stopped and searched and if they find anything that can link you to overstaying such as a ticket to the zoo or whatever -

Make sure you do not keep anything that can link you to overstaying or make sure you have a bulletproof excuse!

you might also learn a lot by watching those police and custom programs on the tv!



"I read somewhere on the internet that I should not trust everything I read online!"

 

[cuno]

"I read somewhere on the internet that I should not trust everything I read online!"

that's totally true, never do that. You should use it as inspiration and information purpose only.