The General Financial Directorate has issued a new methodological information for specifying the tax residence of individuals. The information systematically explains how family, property and work ties and relations, length of stay or place of business are assessed when determining the residence. It also substantially addresses the so-called split-year tax residence during one tax period, i.e. situations where a person’s tax residence changes during the year, and provides more specific guidelines for providing evidence to the tax administrator.

The methodology should increase legal certainty for taxpayers and employers, and it unifies the approach of the financial administration in practically complex cross-border issues and situations. It will be particularly important for employees working remotely, people moving between countries and companies employing foreign workers.

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