Tax residency,
in plain English.
32 terms cross-linked to in-depth guides and calculators. From abode to Wohnsitz.
183-day rule
The most common tax-residency threshold worldwide: spending more than half a year in a country typically triggers tax residency.
Most countries use a version of the 183-day rule to determine tax residency. Spending more than 183 days (the smallest whole-day majority of a 365-day year) in a country in a calendar year typically makes you a tax resident, subject to tax on worldwide income. Each jurisdiction defines a 'day' differently — some count any portion of a day, others require midnight presence. The UK uses 6 April – 5 April rather than the calendar year. The US Substantial Presence Test uses a 3-year weighted version. Schengen uses a rolling 90/180-day window.
Abode (permanent place of)
A dwelling permanently maintained by a taxpayer, suitable for year-round use. Triggers statutory residence in many US states (NY, NJ, MA, CT, PA).
A 'permanent place of abode' is a dwelling place permanently maintained by you that is suitable for year-round use. You don't need to own it. You don't need to live there. You don't need to use it. An apartment you rent year-round in NYC, even if you never sleep there, qualifies. A summer-only beach house with no winter heat does not. The concept is central to NY's 184-day rule and similar statutory residence tests in NJ, MA, CT, and PA.
See also:NY 184-day rule guideBona Fide Residence Test
An IRS test for the Foreign Earned Income Exclusion: bona fide residence in a foreign country for an uninterrupted tax year.
One of two paths to qualify for the Foreign Earned Income Exclusion (FEIE). To pass the Bona Fide Residence Test, you must be a bona fide resident of a foreign country (or countries) for an uninterrupted period that includes a full tax year. It's qualitative — based on facts and circumstances — and harder to prove than the Physical Presence Test for short-term expats but easier for long-term ones.
See also:Expat day counter guideCasa habitación
Mexican tax-residency concept: a home maintained in Mexico that triggers residency, broader than 'principal residence'.
Under Article 9 of Mexico's Federal Tax Code, you are a Mexican tax resident if you have a 'casa habitación' (home) in Mexico. The concept is broader than 'principal residence' — a long-term rental in CDMX or Tulum can qualify. If you have a casa habitación in Mexico and another country, your center of vital interests determines residency.
See also:Mexico 183-day ruleCenter of vital interests
A tax-treaty tie-breaker step: where your personal and economic ties are stronger when both countries claim you.
When you're a tax resident of two countries simultaneously, the relevant tax treaty's tie-breaker decides which country has primary taxing rights. The OECD model tie-breaker examines, in order: (1) permanent home, (2) center of vital interests, (3) habitual abode, (4) citizenship, (5) mutual agreement. 'Center of vital interests' looks at family location, principal source of income, social and cultural ties, voter registration, and where bank accounts are concentrated.
See also:Treaty tie-breaker rulesCloser connection exception
An exception to the US Substantial Presence Test for non-citizens with stronger ties to a foreign country. Filed via Form 8840.
Even if you meet the Substantial Presence Test, you can avoid US tax-resident status by claiming the closer-connection exception on Form 8840. Eligibility requires: (1) US presence under 183 days in the current year, (2) a foreign tax home for the entire year, (3) a closer connection to that foreign country than to the US, and (4) no application for or holding of a green card. The IRS examines more than 20 factors and routinely audits closer-connection claims.
Contact period (Ohio)
Ohio-specific residency unit: a portion of two consecutive days during which you were in Ohio overnight.
Ohio uses 'contact periods' instead of days for its bright-line residency test. A contact period is any portion of two consecutive days during which you were in Ohio overnight. To establish irrebuttable non-residency in Ohio, you need fewer than 213 contact periods in the tax year and a filed Form IT NRS declaring non-Ohio domicile.
See also:Ohio residencyContemporaneous records
Records created at or near the time of the events they describe. Far more credible to auditors than reconstructions.
Auditors distinguish contemporaneous records (created at the time, dated by independent systems) from reconstructed records (assembled later from indirect evidence). Examples of contemporaneous records: timestamped boarding passes, hotel reservation emails, credit card transactions with merchant locations, cell phone billing records with cell-tower data, EZ-Pass histories, social media posts with geotags. A daily trip log entered as you traveled is also contemporaneous; a spreadsheet you compiled at tax time is not.
Convenience of employer rule
A state rule that taxes non-resident remote workers as if their work were performed in the employer's state. Used by NY, NJ, NE, PA, DE, AR, OR, and (in scenarios) CT.
If your employer is in New York and you work from Florida 'for your convenience' (rather than because the employer required it), New York can tax you as if you'd been physically in New York. The same applies in NJ, NE, PA, DE, AR, OR, and CT under various conditions. The only workaround is documented employer requirement that work be performed outside the state — typically supported by an employer-issued letter establishing a 'bona fide employer office' outside the state.
See also:Remote worker multi-state tax guideDeclaration of Domicile
A sworn statement filed with a Florida county clerk declaring Florida as your permanent home. ~$10, dated public record, central to FL domicile defenses.
Florida-specific. A Declaration of Domicile is a sworn statement filed with the county clerk where your Florida home is located, declaring Florida as your permanent home. It costs around $10 and creates a dated public record of your intent to make Florida your domicile. Combined with surrendering your old state's driver's license, registering to vote in Florida, filing for the homestead exemption, and the rest of the action checklist, it's the cornerstone of any FL-domicile defense against an old-state audit.
See also:Florida domicile guideDeparture tax (exit tax)
Tax on certain unrealized gains imposed when you cease to be a tax resident. Used by Canada, Australia, France (within EU), Japan, and others.
When you cease to be a tax resident, some countries treat you as having sold most non-real-property assets at fair market value. Capital gains are realized and taxable in your final return. Canada's departure tax applies to stocks, mutual funds, crypto, and most other capital property (Canadian real property, RRSPs, and certain personal-use property are excluded). Australia, France (transfers outside EU/EEA), Japan, and other countries have similar regimes. The US has its own version under IRC § 877A for 'covered expatriates.'
See also:Canada residency days and tiesDomicile
Your true, fixed, and permanent home — the place where, when absent, you intend to return. Not the same as residency.
Domicile is a long-term legal concept distinct from residency. You can have only one domicile. Changing domicile requires (1) physical relocation to the new location, (2) intent to make it your permanent home, and (3) abandonment of the old domicile. States like California and Illinois lean heavily on domicile in their residency tests. NY, NJ, MA, CT, and PA combine domicile with a statutory-residence (abode + day-count) test.
FEIE (Foreign Earned Income Exclusion)
An IRS exclusion of up to ~$130K (2026) of foreign earned income for Americans abroad. Requires either Bona Fide Residence or Physical Presence (330-day) qualification.
The Foreign Earned Income Exclusion lets US citizens and resident aliens exclude up to roughly $130,000 of foreign earned income (2026) from US taxation. To qualify, you must meet either the Bona Fide Residence Test (a full uninterrupted tax year as a bona fide foreign resident) or the Physical Presence Test (330 full days in a foreign country during any 12-month period). Day counts matter for the Physical Presence Test — miss 330 by one day, lose the entire exclusion for that year.
See also:Expat day counter guideFoyer
French tax-residency concept: the habitual home of you or your family. Triggers French residency without requiring 183 days.
Foyer is the French term for habitual residence under Article 4 B of the General Tax Code. France considers you a tax resident if you have a foyer in France. If your spouse and minor children live in France, you have a foyer in France even if you work abroad. If you're single and your only home is in France, that's a foyer. France's residency test combines foyer with principal-place-of-stay, professional activity, and center-of-economic-interests tests — meeting any one is enough.
See also:France 183-day ruleGewöhnlicher Aufenthalt
German tax-residency concept: habitual abode established by 6+ consecutive months of presence in Germany.
Under § 9 of the German Fiscal Code, you're a German tax resident if you have a habitual abode (gewöhnlicher Aufenthalt) in Germany — defined as a continuous stay of more than 6 months. Short interruptions don't break the count. This is Germany's closest equivalent to a 183-day rule. It works alongside the Wohnsitz (domicile) test, where maintaining a German dwelling can trigger residency without crossing 183 days.
See also:Germany 183-day ruleHabitual abode
A tax-treaty tie-breaker step: the country where you usually live. Decided primarily by day counts.
When two countries claim you and the permanent home and center of vital interests tests don't decide, the OECD model tax treaty asks which country is your habitual abode — where do you usually live? Day counts are the primary evidence. A multi-year contemporaneous log is far more credible than a reconstruction.
See also:Treaty tie-breaker rulesHomestead exemption
A property-tax reduction for owner-occupied primary residences. Filing for it in your new state is part of every domicile-change checklist.
Most US states offer a homestead exemption that reduces property tax on owner-occupied primary residences. Florida's exemption is among the most generous (~$50K of assessed value plus the 'Save Our Homes' annual cap). Filing for homestead in your new state is a key piece of evidence supporting domicile change — and dropping the homestead exemption in your old state cuts your tie there. Most states require you to claim only one homestead at a time.
Impatriate regime (Italy)
Italian tax break: 50–60% reduction in taxable employment income for qualifying inbound workers, for 5 years (extendable to 10).
The regime impatriati is an Italian tax incentive for workers who become Italian tax residents. Recent reforms reduced the benefit but it still meaningfully cuts tax: a 50% reduction in taxable Italian-source employment income (60% for southern regions), capped at €600,000 of income, for 5 years (extendable to 10 with conditions). Eligibility requires no Italian residence in the prior 3 years and a long-term commitment to Italy.
See also:Italy 183-day ruleLump-sum taxation (forfait fiscal)
Swiss regime that taxes qualifying foreigners on a deemed lifestyle expense rather than actual income.
Switzerland's lump-sum taxation (forfait fiscal) calculates tax on a deemed lifestyle expense rather than actual income. To qualify: foreign citizen, first-time Swiss resident or returning after 10-year absence, no paid employment in Switzerland, and a federal-level minimum base of CHF 400,000 plus cantonal minimums. Some cantons (Zurich, Basel-Stadt, Schaffhausen) have abolished cantonal lump-sum taxation; most others retain it. Popular with retirees, family-office principals, and high-net-worth foreigners with primarily foreign income.
See also:Switzerland tax residencyMillionaire's Tax
Massachusetts 4% surtax on personal income over $1 million, effective 2023. On top of the 5% base rate.
Since 2023, Massachusetts imposes a 4% surtax on personal income above $1 million per year. Combined with the 5% base rate, the marginal rate above $1M is 9%. The surtax applies to MA-resident income and to MA-source income for non-residents. The surtax has driven a wave of departures, and the MA Department of Revenue has expanded its residency-audit program in response.
See also:Massachusetts 183-day ruleNHR (Non-Habitual Resident, Portugal)
Portugal's preferential tax regime for inbound residents, offering 10 years of favorable treatment. Closed to new applicants in 2024 but with grandfathering.
Portugal's NHR regime provided 10 years of preferential tax treatment: a 20% flat rate on qualifying Portuguese-source high-skill income and exemption on most foreign income. New NHR applications closed at the end of 2024, replaced by the narrower IFICI (Tax Incentive for Scientific Research and Innovation) regime. Existing NHR registrants who qualified under transitional rules continue to benefit for the full 10-year period.
See also:Portugal NHR days guideOrdinary residence (Ireland)
Irish concept: a stickier 3-year residency status. Continues for 3 years after departing Ireland.
If you've been an Irish tax resident for 3 consecutive years, you become 'ordinarily resident' in Ireland. Ordinary residence persists for 3 consecutive years after you cease to be tax resident. Ordinary residents face slightly broader Irish tax exposure on certain foreign income and gains. The concept is an additional layer alongside Irish residency (day-count based) and domicile (long-term).
See also:Ireland tax residency rulesPhysical Presence Test
An IRS test for the FEIE: 330 full days of foreign-country presence during any 12-month period.
One of two paths to qualify for the Foreign Earned Income Exclusion. To pass the Physical Presence Test, you must be physically present in foreign countries for at least 330 full days during any 12-month period. Days in the US, in international airspace, or on the high seas don't count as 'foreign country' days. Strict liability — miss 330 by one day and the entire exclusion is forfeited for that year.
See also:Expat day counter guidePPA (Permanent Place of Abode)
Abbreviated form of 'permanent place of abode' — a year-round dwelling that triggers statutory residence under New York's 184-day rule.
PPA is the standard abbreviation in NY-residency-audit practice. A PPA is a dwelling place permanently maintained, suitable for year-round use. Combined with 184+ NY days, a PPA makes you a NY statutory resident regardless of domicile. The Court of Appeals in Matter of Gaied (2014) narrowed the rule somewhat — the abode must be 'actually used as a residence' — but the burden of proof remains on the taxpayer.
See also:NY 184-day rule guideRemittance basis
Tax regime in Ireland and (historically) the UK where foreign income is taxed only when remitted to the country.
The remittance basis taxes foreign-source income and gains only when remitted to the country of residence. Ireland's remittance basis is available to non-Irish-domiciled tax residents and is broader than the UK's post-reform regime. The UK's old 'non-dom' remittance basis was significantly narrowed by 2025 reforms. Japan applies a similar concept under its 'non-permanent resident' classification — foreign income is Japan-taxable only when remitted, until you've been resident for 5 of the last 10 years.
Schengen Area
A 29-country passport-free zone in Europe. Non-EU citizens can spend at most 90 days in any 180-day rolling window.
The Schengen Area covers 29 European countries with no internal passport controls. Once you enter any of them, your day count starts. Crossing from France to Italy by train or flying from Spain to Greece happens within the same Schengen window. Not every EU country is in Schengen (Ireland is in the EU but not Schengen) and not every Schengen country is in the EU (Switzerland is in Schengen but not the EU). Non-EU citizens (including Americans, Brits, Canadians, Australians) are limited to 90 days in any 180-day rolling window.
SPT (Substantial Presence Test)
IRS day-count test for non-citizen US tax residency. 3-year weighted formula: current + 1/3 prior + 1/6 two-years-prior ≥ 183.
The Substantial Presence Test determines US tax residency for non-citizens. You meet the SPT if (1) you were present in the US for at least 31 days in the current year, AND (2) the weighted total — current-year days + (1/3 × prior-year days) + (1/6 × two-years-prior days) — is at least 183. The 3-year weighting catches non-citizens who cycle through the US year after year. Meeting the SPT triggers worldwide income taxation, unless you qualify for the closer-connection exception or apply a treaty tie-breaker.
SRT (UK Statutory Residence Test)
The UK's three-stage residency test: automatic non-resident tests, automatic resident tests, then a sufficient-ties test.
Since 2013, the SRT has been the UK's residency framework. It applies in three stages: (1) automatic non-resident tests — if any apply, you're definitely non-resident; (2) automatic resident tests — including spending 183+ days in the UK in the tax year (6 April – 5 April); (3) sufficient-ties test — count UK ties (family, accommodation, work, 90-day, country) and compare against your UK day count using a published matrix. The SRT is among the most complex day-count residency tests in the world.
See also:UK SRT explainedStatutory residence
Tax residency triggered by a fixed day-count threshold (often combined with an abode test), independent of domicile.
Statutory residence is a residency status that doesn't depend on domicile. NY, NJ, MA, CT, and PA use a statutory-residence rule: maintaining a permanent place of abode AND spending more than 183 days in the state makes you a statutory resident, taxable on worldwide income for the entire year, even if your domicile is elsewhere. The UK SRT has automatic-resident tests that work similarly. Statutory residence is the trap that catches departing residents who keep an old-state home.
Tax home
Your principal place of business, employment, or post of duty. Required for the closer-connection exception and FEIE qualification.
Tax home is the general area of your main place of business, employment, or post of duty — regardless of where you maintain your family home. If you don't have a regular place of business, your tax home is where you regularly live. The concept is central to the IRS closer-connection exception (Form 8840) and to FEIE eligibility. Maintaining a tax home in a foreign country is a prerequisite for both.
Tie-breaker rule
Tax-treaty provision that decides residency when both countries claim you as a resident under their domestic rules.
Most modern tax treaties include a tie-breaker provision in the residency article (typically Article 4). The OECD model tie-breaker applies in this strict order: (1) permanent home, (2) center of vital interests, (3) habitual abode, (4) citizenship, (5) mutual agreement. Each step requires evidence; day counts feed every step. The tie-breaker only applies if you're a tax resident of both countries under their domestic laws AND the two countries have a tax treaty.
See also:Treaty tie-breaker rulesWohnsitz
German tax-residency concept: a dwelling maintained in Germany under circumstances suggesting intent to keep using it.
Under § 8 of the German Fiscal Code, you have a Wohnsitz in Germany if you maintain a dwelling there under circumstances that indicate you'll keep and use it. Renting a Berlin apartment for a year and using it occasionally can establish Wohnsitz — even with under 183 days. Wohnsitz triggers German tax residency independently of the gewöhnlicher Aufenthalt (habitual abode) 6-month rule.
See also:Germany 183-day rule