Residency Glossary

The terms you will meet in residency rules, in one place.

183-day rule

A day-count threshold (183 days) used by many domestic residency laws and, separately, by tax treaties to allocate taxing rights over employment income.

Centre of vital interests

The country with which your personal and economic relations are closer; step 2 of the treaty tie-breaker ladder.

Closer connection exception

A US rule letting some people who meet the Substantial Presence Test be treated as non-residents (IRS Form 8840).

Deemed resident

A person treated as resident by a specific rule rather than by facts — e.g. Canada's 183-day sojourning rule or India's deemed residency for high-income citizens.

Departure (exit) tax

Tax on deemed disposal of assets when you cease residency in some countries, such as Canada.

Domicile

Your permanent home in law; it persists until you establish a new one. Central to UK inheritance tax and US state residency.

Habitual abode

Where you stay regularly; step 3 of the tie-breaker ladder and a German residency concept (stays over six months).

Permanent establishment

A fixed place of business that can expose a company to tax in another country — a risk when employees work remotely abroad.

Permanent home

Accommodation continuously available to you; step 1 of the tie-breaker ladder.

RNOR

Resident but Not Ordinarily Resident — an Indian status that generally keeps foreign income outside Indian tax.

Rolling window

A measuring period that moves day by day (any 12 months, or Schengen's 180 days) instead of resetting on a fixed date.

Schengen 90/180

Short-stay limit of 90 days in any rolling 180-day period across the Schengen Area for non-EU visitors.

Split-year treatment

UK rule that divides an arrival or departure year into UK and overseas parts.

Statutory Residence Test (SRT)

The UK's framework of automatic tests and a sufficient-ties table for deciding residency.

Substantial Presence Test (SPT)

The US test: 31 days this year and 183 weighted days over three years.

Tax residency certificate

An official document confirming your tax residence in a country, used to claim treaty benefits.

Tie-breaker

The treaty rule that assigns a dual resident to one country for treaty purposes.

Territorial taxation

A system that taxes mainly income sourced in the country (e.g. Hong Kong, Panama).