{"id":7800,"date":"2024-03-13T19:42:10","date_gmt":"2024-03-13T18:42:10","guid":{"rendered":"https:\/\/thenomadtax.com\/?p=7800"},"modified":"2024-03-13T19:42:12","modified_gmt":"2024-03-13T18:42:12","slug":"change-tax-residency","status":"publish","type":"post","link":"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/","title":{"rendered":"HOW TO CHANGE TAX RESIDENCY WITHOUT MAKING MISTAKES IN 2024?"},"content":{"rendered":"\n<p>If you&#8217;re considering whether to change tax residency in 2024, you need to know that at this historical moment, adapting is not an option, it&#8217;s a necessity. Some major economies are staggering, and in other places, like Spain, besides staggering, they <strong>hit you with taxes<\/strong> for every breath you take.<\/p>\n\n\n\n<p>Staying in a country with no future could be signing your own stagnation sentence. That&#8217;s why you might be toying with the idea of moving to a country with a broader horizon, and on our channel, you know, you have plenty of options.<\/p>\n\n\n\n<p>But let&#8217;s get down to business, we want to help you examine your options to plan your <strong>&#8216;PLAN B&#8217;<\/strong> with eyes wide open to avoid surprises that could spoil your journey. So, let&#8217;s dive in!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Indice del art\u00edculo<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#What-is-Tax-Residency\" >What is Tax Residency?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#Advantages-and-Disadvantages-of-Choosing-Your-Tax-Residency\" >Advantages and Disadvantages of Choosing Your Tax Residency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#Change-Tax-Residency-Digital-Nomad\" >Change Tax Residency: Digital Nomad<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#Common-Mistakes-When-Changing-Tax-Residency\" >Common Mistakes When Changing Tax Residency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#Factors-to-Consider-When-Changing-Your-Tax-Residency\" >Factors to Consider When Changing Your Tax Residency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/thenomadtax.com\/en\/2024\/03\/change-tax-residency\/#Double-Taxation-How-Does-it-Affect-Your-Change-of-Tax-Residency\" >Double Taxation: How Does it Affect Your Change of Tax Residency?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-Tax-Residency\"><\/span>What is Tax Residency?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You&#8217;ve probably heard about <strong>tax residency<\/strong>, but it&#8217;s important to remember that it&#8217;s not simply a temporary procedure or just any permit. Nor is it the same as nationality or belonging as a resident to a state.<\/p>\n\n\n\n<p>Tax residency relates to <strong>how much you owe in taxes<\/strong> to the tax authorities, and this can vary depending on the country and each individual&#8217;s personal situation.<\/p>\n\n\n\n<p>Choosing where to establish your tax residency is perhaps one of the most important decisions of your life because i<strong>t directly affects your wallet <\/strong>and your freedom. Depending on where you anchor yourself fiscally, you may have to fork out more or less money and deal with more or fewer paperwork. Additionally, it may open or close doors to<strong> certain social benefits,<\/strong> such as healthcare or education.<\/p>\n\n\n\n<p>Tax residency <strong>basically refers to the country where you reside and pay your taxes.<\/strong> In contrast, your fiscal domicile is where the tax authorities can find you (to send notifications or communications). However, the fiscal domicile usually coincides with the tax residency.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized is-style-rounded\"><img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-10.jpg\" alt=\"Cambiar de residencia fiscal en 2024 | Change tax residency in 2024\" class=\"wp-image-7678\" style=\"width:541px;height:auto\" srcset=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-10.jpg 900w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-10-300x200.jpg 300w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-10-768x512.jpg 768w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-10-600x400.jpg 600w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\"><strong><em>Are you ready to change your tax residence this year 2024? Book your call <a href=\"https:\/\/thenomadtax.com\/en\/international-tax-consulting\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/thenomadtax.com\/en\/international-tax-consulting\/\" rel=\"noreferrer noopener\">here<\/a>.<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages-and-Disadvantages-of-Choosing-Your-Tax-Residency\"><\/span>Advantages and Disadvantages of Choosing Your Tax Residency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Depending on where you locate or register your tax residency, it will determine how much you spend annually paying taxes to the tax authorities and <strong>complying with more or fewer requirements <\/strong>and procedures throughout the fiscal year.<\/p>\n\n\n\n<p>You might think that establishing a new tax residency is unnecessary, or even dangerous due <strong>to the legal conditions it entails<\/strong>, and you might settle for working for the state and surrendering over 50% of your income, considering it acceptable.<\/p>\n\n\n\n<p>Or perhaps you believe that having a high income will not affect you. Or even that the redistribution of wealth resulting from tax collection is fair and justifies paying large amounts of taxes <strong>because of the services you receive.<\/strong><\/p>\n\n\n\n<p>However, you&#8217;ll be surprised to know that, in countries like <a href=\"https:\/\/www.petitesuitcase.com\/seville-travel-guide\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.petitesuitcase.com\/seville-travel-guide\/\" rel=\"noreferrer noopener\">Spain<\/a>, <strong>politicians depend on people like you <\/strong>to maintain their high standards of living, making you vulnerable and causing you to lose money every day, affecting yourself and your loved ones.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Change-Tax-Residency-Digital-Nomad\"><\/span>Change Tax Residency: Digital Nomad<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Today, many people work remotely. However, due to poor choices in their tax residency, they end up<strong> paying much more taxes <\/strong>than they should if they chose a different destination.<\/p>\n\n\n\n<p>Let me tell you the story of one of our advised clients, whom we&#8217;ll call Mar\u00eda. Mar\u00eda, a business savvy individual in the digital field, left Spain for Panama in search of paying fewer taxes.<\/p>\n\n\n\n<p>However, she was surprised to discover that in Panama, they also consider other factors, such as <strong>owning property in the country or being employed here<\/strong>, when determining tax residency.<\/p>\n\n\n\n<p>Just when she thought she had it all figured out, she realized she needed to establish stronger ties with Panama to achieve her goal.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized is-style-rounded\"><img decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-11.jpg\" alt=\"Errores comunes al cambiar la residencia fiscal | Common mistakes when changing tax residence\" class=\"wp-image-7681\" style=\"width:526px;height:auto\" srcset=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-11.jpg 900w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-11-300x200.jpg 300w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-11-768x512.jpg 768w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/03\/Diseno-sin-titulo-11-600x400.jpg 600w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\"><strong><em>Would you like to avoid making mistakes when changing your tax residence?<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common-Mistakes-When-Changing-Tax-Residency\"><\/span>Common Mistakes When Changing Tax Residency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the main mistakes when deciding to change tax residency is wanting things to happen quickly. It&#8217;s important to understand that this process of changing tax residency, depending on the jurisdiction, <strong>can be a lengthy process that may take several months<\/strong> if we want the approval to be favorable, of course.<\/p>\n\n\n\n<p>However, countries like <a href=\"https:\/\/www.wewillnomad.com\/destination\/cyprus\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.wewillnomad.com\/destination\/cyprus\" rel=\"noreferrer noopener\">Cyprus<\/a>, <a href=\"https:\/\/www.theblondeabroad.com\/ultimate-malta-travel-guide\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.theblondeabroad.com\/ultimate-malta-travel-guide\/\" rel=\"noreferrer noopener\">Malta<\/a>, <a href=\"https:\/\/shetravelledtheworld.com\/weekend-in-tallinn-estonia-travel-guide\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/shetravelledtheworld.com\/weekend-in-tallinn-estonia-travel-guide\/\" rel=\"noreferrer noopener\">Estonia<\/a>, <a href=\"https:\/\/www.ricksteves.com\/europe\/portugal\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.ricksteves.com\/europe\/portugal\" rel=\"noreferrer noopener\">Portugal<\/a>, among many others, often have a fairly quick and favorable jurisdiction change process, so depending on your needs and family situation, you need to find the country that truly suits you.<\/p>\n\n\n\n<p>Jurisdictions like the United States, <a href=\"https:\/\/www.showaround.com\/locals\/georgia\/tbilisi\" data-type=\"link\" data-id=\"https:\/\/www.showaround.com\/locals\/georgia\/tbilisi\" target=\"_blank\" rel=\"noopener\">Georgia<\/a>, England, Germany, <a href=\"https:\/\/fullsuitcase.com\/switzerland\/\" data-type=\"link\" data-id=\"https:\/\/fullsuitcase.com\/switzerland\/\" target=\"_blank\" rel=\"noopener\">Switzerland<\/a>, among many others, tend to have certain additional requirements that you must meet before making your move, which can lead to the process taking longer than expected. Therefore, we recommend that before starting the tax residency change process, <strong>you seek advice from us<\/strong>.<\/p>\n\n\n\n<p>In the story we told you earlier, <strong>what was Mar\u00eda&#8217;s mistake?<\/strong> Unfortunately, Mar\u00eda went through the tax residency change process alone, so she didn&#8217;t document anything before starting the process and didn&#8217;t receive any kind of advice.<\/p>\n\n\n\n<p>She tried to establish her tax residency in <a href=\"https:\/\/thenomadtax.com\/en\/tax-residency-in-panama\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/thenomadtax.com\/en\/tax-residency-in-panama\/\" rel=\"noreferrer noopener\">Panama<\/a>; however, she didn&#8217;t anticipate that, to change tax residency, <strong>she needed to establish strong ties with the destination jurisdiction in advance.<\/strong><\/p>\n\n\n\n<p>By ties, we mean housing or financial assets. Therefore, Mar\u00eda came to us already in <a href=\"https:\/\/thenomadtax.com\/en\/tax-residency-in-panama\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/thenomadtax.com\/en\/tax-residency-in-panama\/\" rel=\"noreferrer noopener\">Panama<\/a>, in a legal situation quite complicated as she had entered the country as a tourist and her days were running out to resolve her legal situation.<\/p>\n\n\n\n<p>With our help, Mar\u00eda managed to properly relocate and finally establish her tax residency.<\/p>\n\n\n\n<p>Once Mar\u00eda knew how to obtain tax residency in her new home country, she also concluded that s<strong>he had to file for fiscal divorce from Spain.<\/strong> With this story, I want to open your eyes: in Spain, it&#8217;s not enough to just say &#8220;I&#8217;m leaving&#8221; and expect the tax authorities to forget about you.<\/p>\n\n\n\n<p>You need to sever ties with this country as much as possible because in the future you may have to prove that you are playing by the rules in your new country, and having properties or economic or personal ties in your new destination can be an asset.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized is-style-rounded\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28-1024x576.jpg\" alt=\"residencia fiscal con Nomad Tax | Fiscal residency with Nomad Tax\" class=\"wp-image-6465\" style=\"width:542px;height:auto\" srcset=\"https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28-1024x576.jpg 1024w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28-300x169.jpg 300w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28-768x432.jpg 768w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28-600x338.jpg 600w, https:\/\/thenomadtax.com\/wp-content\/uploads\/2024\/01\/Diseno-sin-titulo-28.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><strong><em>Don&#8217;t think twice and do things right\u2026<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors-to-Consider-When-Changing-Your-Tax-Residency\"><\/span>Factors to Consider When Changing Your Tax Residency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the factors you must consider when changing tax residency is that, in many cases, <strong>having a habitual or primary residence<\/strong> is a crucial factor for successfully completing the process.<\/p>\n\n\n\n<p>Therefore, if you already have a home in your home country, the advice I can give you is <strong>to rent it out or implement another mechanism<\/strong> to demonstrate that your lifestyle is in this country.<\/p>\n\n\n\n<p>Another important aspect in some countries <strong>is the need to demonstrate expenses.<\/strong> Therefore, keep all the receipts you can, especially those related to basic daily needs, such as gym membership payments or any other lifestyle-related services.<\/p>\n\n\n\n<p>An essential document is the <strong>tax residency certificate.<\/strong> If you&#8217;ve never heard of this document, it&#8217;s important to obtain it in the country where you wish to establish your tax residency. This will facilitate the process, especially in regions with <strong>high taxes like Spain<\/strong>, where there is a census of individuals who contribute fiscally.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Double-Taxation-How-Does-it-Affect-Your-Change-of-Tax-Residency\"><\/span>Double Taxation: How Does it Affect Your Change of Tax Residency?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If it&#8217;s your first time changing tax residency, it&#8217;s extremely important that you seek proper advice. Because when making this change, it&#8217;s advisable to opt for a jurisdiction that has signed the double taxation treaty.<\/p>\n\n\n\n<p><strong>What is double taxation?<\/strong> It refers to the situation in which an individual is considered a tax resident in two different countries.<\/p>\n\n\n\n<p>Therefore, if an individual has their habitual residence in Spain and also resides in another country for more than 183 days during the fiscal year, they will have to pay taxes on their worldwide income in Spain, according to the regulations.<\/p>\n\n\n\n<p>However, if both countries have a double taxation agreement, they can apply tie-breaker rules to avoid or reduce double taxation.<\/p>\n\n\n\n<p>Taking all this into consideration, if you are going to change tax residency, it&#8217;s very important to have <strong>advice that ensures a successful transition<\/strong>. At Nomad Tax, we are available 24\/7, 365 days a year to assist you with any questions or concerns.<a href=\"https:\/\/thenomadtax.com\/en\/international-tax-consulting\/\" data-type=\"link\" data-id=\"https:\/\/thenomadtax.com\/en\/international-tax-consulting\/\" target=\"_blank\" rel=\"noreferrer noopener\"> Contact us.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re considering whether to change tax residency in 2024, you need to know that at this historical moment, adapting is not an option, it&#8217;s a necessity. Some major economies are staggering, and in other places, like Spain, besides staggering, they hit you with taxes for every breath you take. Staying in a country with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":["post-7800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/posts\/7800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/comments?post=7800"}],"version-history":[{"count":1,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/posts\/7800\/revisions"}],"predecessor-version":[{"id":7801,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/posts\/7800\/revisions\/7801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/media\/7793"}],"wp:attachment":[{"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/media?parent=7800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/categories?post=7800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenomadtax.com\/en\/wp-json\/wp\/v2\/tags?post=7800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}