Sponsored Listings. It determines how you are treated with regard to taxation in a particular country. Where do you have a place with available accommodation? They claim a closer connection to a foreign country; or; They take advantage of the effect of tax treaties for the definition of tax residence. A Tax Guide That Saves You Money ! I’ve told numerous stories before in which a guy left something as simple as a surfboard behind and the western government determined that it was enough of a connection to consider him a tax resident. We’ve recently found through some tax research on Mexico that, in theory, there are certain people who wouldn’t have to pay taxes even if they are spending the majority of their time in the country. He bought a home in the Cayman Islands and now spends a substantial amount of time there along with his wife and child, while they barely spend any time in Canada. Each country has its own definition of tax residence, yet: you will usually be considered tax-resident in the country where you spend more than 6 months a year. Ideally, the tax residence you gain will be in a country that doesn’t interfere with the lifestyle you want to live. I can visit and enjoy the country without paying taxes. You have a home there, family, a car, and dozens of other connections to the country. Where else are you liable to pay tax? I personally wouldn't opt to store my wealth in the same country as my tax residency. From my experience of exactly this (I am a UK citizen who moved to the US for a few years and had rental income from the UK), you will pay tax on your UK rental income in the UK. This means that you may need to sell your primary residence, for example, or spend a certain number of days (or nights) outside the country. Some countries are more suitable for you than others. But it hopefully shows how important it is to factor in both where you’re going and where you’re leaving when it comes to setting up a tax residence.It is legal to get citizenship by investment in a country like St. Lucia and get a second passport out of the deal. So, let me reiterate this one last time: unless you make the decision to renounce your US citizenship, you’re going to be a US tax resident.Citizens of other western nations have a little more flexibility. For many people, this easiest step is to open an offshore company to lower or remove the tax burden that their company – and also their primary source of income – faces. There is little if any obligation in those years to visit or live in Portugal for any part of the year in order to maintain that status.Going through the Golden Visa program allows you to create a situation where you could potentially reduce your income tax to zero.While capital gains from the sale of securities will be taxed as well as income from a blacklisted tax haven that doesn’t have a tax treaty with Portugal, there is a substantial list of income types the government won’t touch. And if your purpose in moving abroad is to reduce your tax burden, you will need tax residence in a country that will tax youhere are plenty of ways to do that. And if your purpose in moving abroad is to reduce your tax burden, you will need tax residence in a country that will tax you just a little (if at all). 4 attorney answers. This will get you in a lot of trouble.I’m not saying I’m in favor of the CRS or high-tax countries forcing their agendas; I’m saying that they do and that measures like FATCA and CRS are already in place. Tax residence (also known as fiscal residency, residence for tax purposes, or other, similar terms) is an important concept for all tax payers living and working abroad. In years past, that easiest thing would have been to open an offshore bank account in their own name, and then funnel some of their income into it, out of sight of authorities. The other part of this subject that creates a lot of confusion for people is what exactly makes them a tax resident. Your ‘tax residence’ helps determine the scope of your tax liability in the UK. The country /jurisdiction of residence means the jurisdiction in which the FI is treated as a resident for income tax purposes (for example, the place of incorporation or place of principal management and control). If your taxable income exceeds the personal allowance, you only pay tax on the excess. Belgium is considered to be one of the highest tax countries in the world, so this is not an obvious move to make. At that level, I understand why people might make such a life changing decision.It is for this reason that your personal situation needs to be closely assessed.