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The 183 Day Rule

In most countries, if you stay more than 183 days, then you will considered tax-resident and liable for tax on your worldwide income and gains.

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What is the 183 day rule?

The so-called '183 day rule' relating to tax liabilities rarely exists as a clear-cut rule but is used as a guideline in some circumstances.

In many countries, if you stay less than 183 days you may be considered tax non-resident if certain other criteria are also met. However even as a non-resident you should normally still be paying tax on revenue and gains generated in that country.

In most countries, if you stay more than 183 days, then you will considered tax-resident and liable for tax on your worldwide income and gains, i.e. revenue from your work, bank interest, dividends etc.

The ‘183 day rule’ does NOT automatically mean that you can work for 183 days in a new country without paying tax or becoming tax-resident. However in most situations, particularly if a double taxation avoidance treaty exists between your country of work and your home country, you will not have to pay tax on the same income twice - you may however pay some tax in one country and the balance in another.

The 183 day criterion is usually one of several used to determine where tax should be paid but rules vary widely; to find out more about how it may apply to your personal situation.

Contact Us

For more information and advice simply request a call back or contact one of our advisors on 0161 703 2549. Alternatively please email us on info@championcontractors.co.uk.

Disclaimer: Please note, the above rules are complicated and the correct course of any action will be dependent on the personal/bespoke needs of each individual. The above information does not constitute professional advice, only general information.