Reviewing the tax residency rules of other countries is of vital importance when undertaking any form of international tax planning for individuals. Below we have prepared a very basic summary of the residency rules of a number of countries just as an illustration as to some of the factors to consider if you were to change residency. This is of particular importance for any individual planning to move to Gibraltar as a Category 2 resident from any of these countries.
The tables are just a brief overview of the tax residency rules, if you need further help or formal tax advice with regards to your country of residency please do not hesitate to contact us: info@category2.com.
United Kingdom (UK)
-
Tax Year: 6 April – following 5 April
-
Residency Rules:
-
Resident if present 183 days or more in the tax year; or
-
If under 183 days, “Statutory Residency Test (SRT)” factors apply, including ties to the UK.
-
-
Tax Liability of Residents: Worldwide income and gains
-
Tax Liability of Non-Residents: UK-sourced income only; CGT generally excluded
-
Double Tax Treaties: Extensive network
Ireland
-
Tax Year: 1 January – 31 December
-
Residency Rules:
-
Resident if present 183 days or more in the tax year; or
-
280 days or more over the current and preceding tax year combined.
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: Irish-source income only
-
Double Tax Treaties: Extensive network
France
-
Tax Year: 1 January – 31 December
-
Residency Rules: Resident if:
-
Home or principal abode in France
-
Employment or professional activities performed in France (unless ancillary)
-
Centre of economic interests located in France
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: French-source income only
-
Double Tax Treaties: Extensive network
Italy
-
Tax Year: 1 January – 31 December
-
Residency Rules: Resident if:
-
Registered in the Italian civil registry; or
-
Habitual residence or domicile (centre of vital interests) in Italy
-
Italian nationals moving to blacklisted jurisdictions must prove non-residency
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: Italian-source income only
-
Double Tax Treaties: Extensive network
Germany
-
Tax Year: 1 January – 31 December
-
Residency Rules: Resident if:
-
Habitual abode in Germany (six months or more)
-
Long-term dwelling or domicile maintained in Germany
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: German-source income only
-
Double Tax Treaties: Extensive network
Netherlands (Holland)
-
Tax Year: 1 January – 31 December
-
Residency Rules: Resident if:
-
Permanent home in the Netherlands; or
-
Centre of personal interests (spouse/children)
-
Centre of economic interests (employment or business in the Netherlands)
-
Special rule: If leaving without establishing residence elsewhere, returning within one year retains Dutch residency for the whole period
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: Dutch-source income only
-
Double Tax Treaties: Extensive network
Sweden
-
Tax Year: 1 January – 31 December
-
Residency Rules: Resident if:
-
Present in Sweden 6 consecutive months or more
-
Principal home in Sweden
-
Swedish nationals or long-term residents moving abroad may remain deemed resident for up to 5 years unless they can prove lack of essential connections
-
-
Tax Liability of Residents: Worldwide income
-
Tax Liability of Non-Residents: Swedish-source income only
-
Double Tax Treaties: Extensive network
Notes and Recommendations
-
This overview is for illustrative purposes only and may not cover every nuance of each country’s tax code.
-
Cross-border moves can trigger obligations in multiple jurisdictions, particularly for individuals seeking Gibraltar Category 2 residency.
-
Always seek professional advice regarding your personal circumstances and consider the impact of double taxation agreement (or lack of one) between Gibraltar and your home country.