183 Days Myth (Tax Residency Misconception)

When talking about tax residency many people think that the 183-day rule is the golden standard, and this is the amount of time you need to spend in a country in order to become a tax resident.

Is this really the case? Do you automatically become a tax resident when you spend 183 days in a country? Can you become a tax resident even if you spent less time? Are there other criteria that may be more important when the country determines whether you're a tax resident or not?

Today we are debunking the 183 days myth about tax residency.

Terms that we will be covering:
-Residency
-Tax Residency
-Tax Residency Certificate
-Tax Return
-Taxable income
-183 days
-Tax Status

Who are we and what do we do?

We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.

We have lots of interesting articles on different topics, we have relevant information up to date.

Author: Michael Rosmer

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[Jack-bbwj]

Nice, definitely love this type of "this is the law but this is practice in reality" content!
Keep it up!

[lankstephens]

'Glad I discovered your informative videos! I've subscribed and will no doubt make my way through them. Question: as a tourist, if I were to split every year's residency 60/40 between the Republic of Georgia and say Vietnam (or elsewhere in SEA), do you think any government would approach me for taxes? I'd be spending slightly more than 183 days in Georgia. From what I understand, Georgia will not come after you for taxes even if you live there year round as long as your income is not Georgia-derived (true?). And I've never heard of perpetual tourists in Vietnam (doing visa runs as needed) who have ever paid taxes to Vietnam regarding their laptop-derived income from elsewhere. Thanks.

[kylemikesh]

Have you done a video specifically on a US citizen working remotely in Spain?

[stevenjustice]

i know for a fact if you are in Columbia for 186 days or more you must file a tax return and pay income tax.

[stevenlawrence]

If I'm American working in the USA 180 days and I depart America and my passport shows I'm out of the country of America for 185 days living


Does The United States IRS give me a tax break / tax reduction since I was outside of America for 185 days??


I already know the state of New York gives a state tax reduction but does the IRS government also offer a tax reduction???


Your opinion is greatly appreciated.


Thank You

[LorneCrofts]

Regarding Thai and U K agreement, it appears Article 4 is about where you have a home property and provided income which determines where you are resident. I saw nothing regarding amount of days. In Thailand I have to achieve yearly visas and are therefore not a resident. If the Thai gov wish to cancel the agreement it appears a significant period of notification should be provided to the U K gov.

[jisraelg]

When does the 183 days rule don’t apply to you after leaving the country ?

[longgamma]

Michael, does that mean that if I want to get a tax return, I can go and stay in any low or zero tax country for a **little** while, say, a month in a hotel or airbnb...

then file a tax return, insisting that "I want to pay some tax here (could be a zero tax too, right?)"

and then use that tax return to my advantage in other places whenever there'll be a need?

[forgotmyname]

What if i have my centre of all vital interests in one country (house, car, memberships, perhaps family etc) but my main source of income is from working physically in another country (through self employment or ltd company), with zero ties? In neither country do i stay physically more than 150 days a year. This is where it gets complicated...

[stevepovey]

Very interesting. I am currently doing short term contract work in the UK via an umbrella company. I'm wondering if I could buy a property in Europe in a country with lower taxation and work between the two countries. Are you aware of any international umbrella companies that would support a client in the UK but pay me in another country? (I don't know if the client would pay a business set up in another country)

[michaelthibodeau]

Any thoughts on St. Kitts and Nevis bring tax free havens, have you done a video on this? Thx Michael, great work as usual!

[Nickspizza]

What do you think about Hungary? I hear theres a 15% flat tax for crypto.

[scrillathekid]

Another good video. I was surprised to see that I wasn’t subscribed, became a SUBSCRIBER. IMHO there’s no one size fits all, as you said. The rule of thumb I follow is not to spend over 6 months in a country that I don’t have tax residence. In the US a lot of people confuse green card rules with tax regulations. It’s not a green card, it’s a “resident alien permit.”As the name says, you have to be resident. I’m not sure how USCIS defines residence in terms of how much time you are required to spend in the US. Lots of people think as long as they pay US taxes, but live outside of the US with their greensand then they are OK. Def not the case, 2 separate agencies in the US that don’t necessarily communicate. Just an opinion.

[onakangarooisland]

How do you know if a country will make you tax residence (and that is not something you are looking for)?Is it a rule thing or more of a practical thing?

[hellophoenix]

Do you know if Portugal apply the 183 day rule ?

[WiresNStuffs]

Hey,
For UK and a european country if I stay more than 183 days as a UK citizen is a tax residency change a requirement? I hold a resident permit in Bulgaria. My concern is that if my tax residency changes do I pay tax from day 184 or do I have to pay the last 183 days tax in Bulgaria.

[anmusic]

Great content yet again! Thanks for sharing!!!!

[PK-pkwq]

Is this 183 days is consecutive days in a year ?

[vikinggeorge]

I mean, wouldn't it be better to be tax resident nowhere so that you don't pay taxes 😂

Seriously I don't get people sometimes.

[TomJamesOfficial]

I have a weird question. I have been in the Philippines for over 2 years now. Yet the tax office here still won't recognise me as a tax resident just because I'm on a tourist visa. Any ideas on how to fix this? Else I don't know where else to be a tax resident.