Relocation has major tax consequences. If you are considering relocating, you must understand that your newly acquired status could affect your exposure to tax liabilities, as it is possible that you could become liable to pay taxes in more than one country. You will need to carry out careful tax planning if you have, or plan to have, an income or gains outside of your home country. Pre-relocation planning can greatly reduce the financial impact of the consequences of your relocation.
Your tax obligations to a country are based on your “tax residency” status. Therefore, to determine whether you are liable for tax, you will need to know your residency status before you can find out what your tax responsibilities and filing requirements are. Although different jurisdictions have different rules to determine tax residence, it is important to understand that you do not need to be physically in a country to be a tax resident, and that you can be a tax resident in more than one country. In general, you could be a dual or multiple taxpayer if you are:
An individual with a second home in another country
Living in one country, but operating a business in another country
Relocated to another country, but returning after a number of years
Temporarily relocated to another country for a job assignment
Your tax residency status is determined on a case-by-case basis and a number of factors will be taken into consideration. These include the tax laws and treaties of the relevant countries, your whole situation and all of the relevant facts (such as your ties in particular countries), your intent, the purpose of your presence (physically or non-physically) and the regularity and length of your stay. Pre-relocation planning looks at the whole picture and raises awareness of issues about your new tax residency status. It also helps you to minimize your tax liabilities by employing a variety of strategies, structures and protective measures.
Our team of professionals, who are trained experts in pre-relocation planning, provide individualized solutions that reduce your taxation as a temporary or permanent non-citizen, and ensure that succession, privacy and protection concerns are tax efficient. Our services include:
Determining your tax residency status
Reviewing your current asset structure
Advising on the tax consequences of the disposal of your assets
Developing a tax-efficient structure
Putting in place any protective measures
Dealing with all the compliance issues
Filing applications with the appropriate authorities