How do I determine my tax residency if I live in more than one country?

If you live in more than one country, you may be considered a tax resident of multiple jurisdictions under their domestic tax laws. In these situations, a tax treaty between Canada and the other country helps determine which country has the primary right to tax your income.

Tax treaties use tie-breaker rules to determine your residency status and help prevent double taxation. The factors generally considered include:

• Permanent home: The country where you have a permanent home may have the primary claim to your tax residency.
• Centre of vital interests: If you have a permanent home in both countries, your personal and economic connections are reviewed to determine where your strongest ties exist.
• Habitual place of living: If your centre of vital interests cannot be determined, the country where you regularly live may be considered.
• Citizenship: If other factors do not provide a clear answer, your citizenship may be considered.
• Mutual agreement: If residency remains unclear, the tax authorities of both countries may resolve the issue through mutual agreement.