Cross‑Border Tax & Residency Lawyers

What is the difference between tax residency & citizenship?

Citizenship grants you a passport & political rights. Tax residency is a legal status that gives a country the right to tax your worldwide income; it is determined by factors like your physical presence & personal ties, not your passport.

How can I become a tax resident in two countries at once?

This “dual residency” occurs when you meet the domestic tax residency tests of two different countries in the same year. This is a common and high-risk situation for globally mobile individuals, often leading to double taxation.

What is the role of a tax treaty?

A tax treaty is a bilateral agreement between two countries. Its primary roles are to prevent double taxation, provide “tie-breaker” rules to resolve dual residency conflicts, and reduce cross-border withholding taxes.

What is an international holding company?

It is a company, typically in a premier, tax-efficient jurisdiction, created to hold shares in your operating businesses or investment assets across different countries. It is a foundational tool for a tax-efficient global structure.

Why is pre-immigration tax planning so important?

Planning before you move is critical because it allows you to legally structure your assets to shield them from your new country’s tax system. Once you become a tax resident, it is often too late to implement these protective measures.

What is an “exit tax”?

An exit tax is a tax levied by some countries on the unrealised capital gains of your assets when you cease to be a tax resident. It is a significant financial risk that requires proactive planning to legally mitigate.

What is Permanent Establishment (PE) risk?

PE risk is the risk that your personal activities in a foreign country could unintentionally make your business liable for local corporate taxes, even if it has no office there. It is a major risk for global founders.

What are Controlled Foreign Company (CFC) rules?

CFC rules are domestic laws that can allow your home country to tax the profits of your foreign companies, even if the profits haven’t been brought home. A sophisticated corporate structure is needed to navigate these rules.

Does my personal tax residency affect my company?

Yes, profoundly. Your personal tax residency can determine how your foreign companies are taxed under CFC rules. An integrated strategy that aligns both is essential.

What is a “tax-efficient” jurisdiction?

It is a country with a stable legal system, a broad tax treaty network, and a favourable corporate tax regime. The goal is to find a premier, reputable jurisdiction that offers long-term tax neutrality, not just a zero-tax rate.

Can my family’s location affect my tax residency?

Yes. The location of your spouse and children is a primary factor in determining your “centre of vital interests,” which is a key test used in tax treaties to resolve dual residency disputes.

What is the first step in creating a global tax strategy?

The first step is a comprehensive audit of your entire global footprint. This includes your personal travel, your family’s locations, your business operations, and the current legal ownership of all your assets.

How do I choose the right structure for my business?

The right structure depends on your long-term goals, where you live, where your customers are, and how profits will flow. It requires aligning legal, tax, and operational considerations into one coherent strategy.