Dual tax residency occurs when you meet the residence criteria of two countries simultaneously. Key implications include:
- Potential double taxation on global income
- Complex tax reporting requirements
- Need to apply tax treaty tie-breaker rules
In 2025, managing dual residency requires careful planning. The tie-breaker rules in tax treaties typically consider factors like permanent home, center of vital interests, and nationality to determine your primary tax residence. It’s essential to maintain detailed records and seek professional advice to optimize your tax position and ensure compliance with both jurisdictions.