When Absence Doesn’t Break Residency

Leaving a country does not automatically mean you stop being a tax resident. In this episode, we explain why tax residency is a legal status, not a travel diary—and why long periods of absence can still leave you fully taxable on your worldwide income.

🔎 The Core Principle

Tax residency is determined by legal tests, not by where you happen to be on any given day.

While physical presence matters, it is rarely decisive on its own.

Many individuals assume that time spent abroad equals non-residency. Tax authorities often disagree.

🔍 Why Absence Is Often Not Enough

Even during extended absences, you may remain tax resident if you retain “significant and enduring ties” to a jurisdiction. Authorities assess the totality of your circumstances, commonly referred to as:

• The ties test

• Vital interests analysis

• Centre of life assessment

🧩 The Key Factors Authorities Examine

Tax authorities typically look at a combination of the following:

1️⃣ Permanent Home

Do you maintain a dwelling—owned or leased—that remains available for your use?

2️⃣ Family and Social Ties

Does your spouse, partner, or dependent children continue to live in the country?

3️⃣ Economic Ties

Do you retain:

• Bank accounts or credit cards

• Investments or pensions

• Business interests or directorships

4️⃣ Administrative Ties

Are you still connected through:

• A driver’s licence

• Voter registration

• Professional or regulatory memberships

5️⃣ Intent and Pattern of Life

Do your belongings, health insurance, lifestyle choices, and behaviour suggest a temporary absence or an intention to return?

⚠️ Temporary Absence vs Genuine Departure

Where these ties remain strong, tax authorities often treat absence as:

• Temporary work placement

• Travel or education

• Short-term mobility

—not as a genuine severing of tax residency.

This can result in continued liability for worldwide income, even while physically abroad.

🎯 Key Takeaway

You don’t cease to be tax resident just because you leave.

Residency ends only when your centre of life actually moves—in substance, not just on paper.

For internationally mobile individuals, digital nomads, and executives, understanding this distinction is critical to avoiding unexpected tax exposure.