Contact

News & Insights

Tax Treaties for Residency Status and Cross-Border Tax Planning

Treaty Tie-Breakers

If, for the purposes of a tax treaty, you are resident of one country but also a resident of the United States you will need to use tie-breaker rules to work out a single country of residence. The 2006 US Model Treaty states that this should be achieved by examining the following factors in the following order:

  • The location of your permanent home: You have a permanent home in the US if you can be said to reside in it, have a room continuously available, use it to store personal property, have an office in the home or use it as an address for the purposes of a driving licence or insurance. Certain treaties consider the question of the individual’s family life in order to answer this question.
  • The centre of your vital interests: This is answered by looking at the location of your major personal, economic and community interests.
  • Your habitual abode: This is answered by looking at where you spend most of your time during the calendar year.
  • Your nationality: This is determined by your citizenship or state of nationality.

Blacktower, for cross-border tax planning

The specialist financial advisors at Blacktower can help you with all aspects of your cross-border tax planning, including issues relating to your residency status, FATCA, FBAR and your pensions and retirement accounts.

For more information contact us today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Around Half of All Savers Face Retirement Income Shortfall

How you choose to manage your retirement savings is one of the biggest decisions you will ever make. Whatever retirement planning strategy you put in place will not only play a key part in your financial future, it may also decide the future of your spouse or partner as well as your beneficiaries and their dependents.

But this question is one that is too frequently overlooked. New data from the U.S. Federal Reserve’s Survey of Consumer Finances has revealed that around half of all working-age households believe they will be unable to enjoy their current level of lifestyle once they reach retirement.

This would indicate that there is a crisis brewing. Life expectancy is rising concurrently with the demise of the kinds of generous pension plans available in the late twentieth century and, in the absence of state-level solutions, it is now more important than ever before for retirement savers to act in order to stave off the possibility of financial hardship later in life.

Read More

TOP TIPS – Wealth Management Resolutions for a New Decade

The turn of the new decade is the perfect time to review your wealth management strategy, including your retirement accounts, tax and estate plans and, of course, the status and suitability of your cross-border assets.

Here we provide our top tips for getting your wealth management in order for the 2020s.

Read More

Get in touch for more information

To contact us about this or any other news, please complete the form below

"*" indicates required fields

Name*
Hidden
Hidden
Hidden
Hidden

Select your country

Please select your country of residence so we can provide you with the most relevant information: