Will I have to pay tax in my new country of residence/citizenship?

In most cases, the answer to this question is “only if you spend the majority of your time there”.

Different countries fall into one of three tax-categories:

  • Residential taxation, the most common type of tax policy, means that a country will only require that you pay tax there (on worldwide income) if it is your main home. In practice, this usually means that you spend more than half the year there. It’s a little more complicated, but that’s the gist of it. Consult a tax lawyer for more detailed information on this.
  • Territorial taxation, the type of tax policy applied by most CIP-jurisdictions, means that a country will only require that you pay tax on income you make in – or remit to – that country, regardless of how much time you spend there.
  • Citizenship-based taxation, the most draconian form of tax policy, applies only to citizens of the United States and Eritrea. This type of tax policy will require that you pay tax on your worldwide income to your country of citizenship, regardless of whether or not you live there or make money there.