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Have you ever come across the “183-day rule” and wondered what it's all about? In this video, I dispel the myths and misunderstandings surrounding this rule.
As an international tax expert, I explain that many people confuse tax and immigration law, even though the two areas have different rules for the number of days you have to spend in a country. For example, you have to be present in Switzerland for 183 days per year to keep your residence status, but after just 90 days you are liable to pay tax there.
I also clarify that even with taxes, there are several confusing rules. Many double taxation treaties state that employees who are temporarily posted abroad remain taxable in their home country as long as they do not spend more than 183 days a year in the posting country. Some people mistakenly think that if you spend less than 183 days in a country, you automatically become liable for tax. However, this is not the case. In the USA, for example, you become a tax resident if you spend more than 120 days in the country in a 3-year period.
I also compare the rules in different countries such as Germany and Spain. Watch the video to finally get clarity on the 183-day rule and other time-based tax rules!
00:00 - Wait another 183 days before you can pay (no) taxes
00:35 - Taxable from day one!
02:34 - Big confusion about minimum presence
03:31 - Example: Paraguay - residence before taxes
05:04 - Example: Switzerland - Taxes before residence
06:30 - Focus on tax law
07:17 - Taxable - From when?
07:58 - The 183-day rule times (at least) two!
11:56 - Place of habitual residence
13:39 - Example: Malta - A small, subtle difference
15:50 - Example: Spain - All clear with the Spanish
18:20 - Example: UK - Everything happened overnight
19:12 - Example: USA - Substantial presence
23:34 - The 183-day rule is complex
= Background =
👉 USA Substantial Presence Test
www.irs.gov/individuals/inter...
👉 USA Closer Connection Exception to the Substantial Presence Test
www.irs.gov/individuals/inter...
👉 DBA Germany USA / Dependent work
datenbank.nwb.de/Dokument/951...
👉 Spain 183 days regulation
www.fgs.de/news-and-insights/...
👉 UK Statutory residency
assets.kpmg.com/content/dam/k...
= Our websites =
www.perspektiveausland.com/
www.wohnsitzausland.com/
uskanzlei.com/
www.auslandsunternehmen.com/
stmatthew.de/
www.nullsteuer.llc/
www.malta1.de/
www.nullsteuer.llc/
www.assetprotection.plus/
= About Perspektive Ausland (perspective abroad) =
Anyone who wants to move as an entrepreneur or freelancer from German-speaking countries to (tax-efficient) foreign countries or become a digital nomad has a lot of tax and legal questions.
Country selection, international tax law, setting up a company abroad, exit tax, visas, capital investments and asset protection - these are just some of the topics that you now have to deal with.
Perspektive Ausland (perspective abroad) is a German podcast from London that deals with exactly such questions. No matter what your motivation for moving abroad is - less taxes, more freedom or a higher quality of life - you've come to the right place.