Soon I will be relocating from US (H1B visa) to UK. I am not a citizen of these two countries.

Since both of these two countries have progressive tax system I have come to conclusion that it would be beneficial for me to relocate at the middle of the tax year (opposed to when tax year just starts or ends. I know that there is slight difference between US (Jan 1st-Dec 31st) and UK (Apr 6th-Apr 5th) tax years).

However, this has made me curios - isn't this really an elegant way to dodge progressive income tax if you change your tax residency country at the middle of each tax year so that annual income is distributed between two countries?

  • You'd have to really look hard at the residency requirements for each country, and the country in which you're a citizen.
    – quid
    Mar 8, 2016 at 22:54
  • @quid can you give an example (besides US) where paying attention to my citizenship country would matter? I know that US is exception, but how about EU countries?
    – john1234
    Mar 12, 2016 at 22:33
  • Some countries require citizens to pay taxes on all worldwide income regardless of taxes paid in the countries the income was earned. I don't know specifics, I just know that from a taxation standpoint, your citizenship will matter.
    – quid
    Mar 14, 2016 at 16:53


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