Tax residency

Tax residency is like having a home for taxes. Just like how you live in a home with your family, when you live in a country for a certain amount of time, that country becomes your tax home.

When you live in a country, you have to pay taxes to the government of that country. This is because the government provides you with services that help you live in that country, like roads, schools, and hospitals.

If you spend most of your time living in one country, that country is going to want you to pay taxes to them. That is because you are benefiting from their services and resources.

But if you spend part of your time living in different countries, it can be a bit more complicated. You might have to pay taxes in both or all of the countries where you live. This is where tax residency becomes important.

Tax residency means that you have an official home for taxes. It helps the government know which country's taxes you need to pay.

Usually, the country where you spend the most time living is going to be your tax home, but there are also other factors that can affect it. For example, some countries have special rules that allow you to be a tax resident even if you don't spend a lot of time there.

It's important to figure out your tax residency so that you can make sure you are paying the right amount of taxes to the right government. This can be complicated, so it's a good idea to talk to a tax professional if you have questions or if you live in more than one country.