Tax Residency
The jurisdiction (or jurisdictions) where a person is legally considered resident for tax purposes, which generally determines where and how their income and gains are taxed.
Tax residency is the legal determination of which jurisdiction (or sometimes more than one) a person is considered resident in for tax purposes, generally based on factors such as days physically present in a country, the location of a permanent home, or the center of their economic and personal life.
Tax residency generally determines which country has the primary right to tax a person's worldwide income and gains, including crypto gains — a genuinely important, often overlooked starting question before any country-specific crypto tax rule can even apply. See the relevant country-specific guide in Kaavon's crypto tax section for how residency is determined in that jurisdiction.
Examples
- Someone who splits their time across multiple countries may need to carefully establish which single jurisdiction actually holds primary tax-residency claim over them.
- Tax residency, not citizenship, is generally the determining factor for which country has the primary right to tax a person's worldwide income in most tax systems.
Learn more
Understanding Taxable Events in Crypto
Read the full guide
Double Taxation Agreement
Read the Double Taxation Agreement glossary definition
Permanent Establishment
Read the Permanent Establishment glossary definition
Exit Tax
Read the Exit Tax glossary definition
FATCA
Read the FATCA glossary definition