Where do you pay tax - in your home country or the place you live in case of a long-term stay abroad?


(Alise ) #1

Hi! I am an EU citizen living in another EU country now. I still pay taxes in my home country and I don’t have problems with that. But I am not sure if it is a correct approach in terms of tax law. What is your experience? Should I move my self-employment to the country I currently live?

(Graham) #2

The general criteria for tax residency is the amount of time spent in the country and, if you spend more than 6 months outside your home country, you should become a tax resident in the country you live in. However, there are also other criteria concerning your “centre of life”/ “centre of vital interests”, for example, where is your permanent address, where are you employed, where does you family live, where do you have a real estate, where are you children educated etc.
You can read more here: https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/index_en.htm
And you can always consult with your local tax authority! It is in their interests that you keep paying taxes in your home country after all!

(Alise ) #4

Thanks a lot, @Graham! It is really helpful and could work in my case.