Nationality vs Residency

Nationality vs Residency

The question of nationality, domicile and residency is one which many expatriates are not clear on. An individual’s status will depend on their particular circumstances and determining them can be complex. For those countries with a death or inheritance tax, failing to realise that they remain domiciled in their home country, even if they have lived abroad for many years, can result in a large, unexpected tax bill for their beneficiaries.

In some countries Inheritance tax, often also referred to as death duty, is tax paid on an estate when the owner of that estate dies. Depending on certain criteria, the tax may also be payable on gifts or trusts made during that person’s lifetime. Alternatively, the recipient of a legacy may be taxed in some territories as a result of the transfer of an asset.  Your resident and domicile status defines your tax liability.

Your nationality is the country you come from, usually the issuer of your passport.

Your residency is where you have made your permanent home and where you intend to remain.

Your domicile is a legal concept.  Every individual has a domicile, which they originally acquire at birth; it is not necessarily the country that you were born in, or are currently living in. It is only possible to have one country of domicile at any given time. You can be domiciled in a different country from where you are resident or ordinarily resident.  It is important that you understand where you are domiciled as it can affect your tax liability, however for death tax purposes your domicile will only be determined at your death.

 

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Testimonials

"For various reasons, my situation turned out to be quite complicated and I needed two wills (as advised by UK...

Jenny Pearson, Consultant, Cambodia

2018-06-05T07:59:04+00:00

Jenny Pearson, Consultant, Cambodia

"For various reasons, my situation turned out to be quite complicated and I needed two wills (as advised by UK tax specialist) to keep my English and Cambodian assets completely separate. Cindy was able to work through all of that with me and I am confident that I now have everything properly covered."
"Cindy is knowledgeable, approachable, incredibly helpful, and highly professional. She helped me to understand the implications of my requests and...

Jayne Hilton, Engineer, UK

2018-06-05T08:30:28+00:00

Jayne Hilton, Engineer, UK

"Cindy is knowledgeable, approachable, incredibly helpful, and highly professional. She helped me to understand the implications of my requests and was always on hand to offer guidance and support. All in all an excellent service."
"It was a pleasure to work with Cindy and her team! Even though planning for one’s own death is a...

Jim Swander, CEO, Cambodia

2018-06-05T08:37:50+00:00

Jim Swander, CEO, Cambodia

"It was a pleasure to work with Cindy and her team! Even though planning for one’s own death is a project we all can easily put off, it removed an area of stress in my life. I no longer had to wonder if certain people would be taken care of, or where my money would go. Cindy and I worked through the process and she asked a lot of thought provoking questions. The first draft helped me think a second layer down, and made the will more complete. We finalised with her lawyer, signed, witnessed and put away in a safe place, letting my executor know exactly where to find it. I do not hesitate to recommend Cindy’s services."
"Cindy made the process of making a Will painless and efficient which we really appreciated. She was sensitive to avoid...

Moray Iles, Vietnam

2018-06-05T08:42:23+00:00

Moray Iles, Vietnam

"Cindy made the process of making a Will painless and efficient which we really appreciated. She was sensitive to avoid putting pressure or hassle to complete the Will quickly which allowed us to consider everything in our own time. Best of all, Cindy's professional support and thorough and clear explanation of the laws pertaining to our situation were very helpful. We would look forward to working with Cindy again on documents personal to our family."
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