In a world of information exchange (FATCA and CRS), fiscally challenged governments (United States and other Western Democracies) and expanding notions of taxation (GILTI, France Digital Tax, etc.), your “tax residency” matters. In fact, in the 21st Century the most interesting thing about a person is his tax residency (or residencies).
At the same time, we are living in a world of increased Global Mobility. There are more and more opportunities for residency and citizenship. As people and capital have become more global, tax authorities have worried more and more about how human migration impacts their their tax bases. For example, people are severing tax residency with high tax states like New York and California. The level of (and form) of taxation impacts investment and migration decisions.
Taxation matters. Tax residency matters. People must keep track of both their “citizenship” and “tax residency” portfolios. It’s important to understand how the concepts of “citizenship”, “nationality”, “domicile”, “deemed residency”, “actual residency” and “tax residency” relate.
I recently came across the following article that explores these concepts. Please note that the article uses the term “fiscal residency” as synonymous with “tax residency”.
The following post was authored by Marios S. Kalochoritis, Managing Partner of Loggerhead Partners. We are reproducing this with the full permission of Loggerhead Partners.
Loggerhead Partners is a provider of “multi-family office” services including, estate planning, transaction advisory, corporate structuring and tax planning.
Loggerhead Corporate Services is the Dubai-based specialized entity of Loggerhead Partners that optimizes tax and preserves the wealth of its clients, through tailor-made, corporate structuring solutions with a focus in the UAE