Expat Tax Residency Checklist: 20 Steps

Phase 1: Before You Leave (2-6 months ahead)

1. Research Tax Rules

• [ ] Home country: How to cease residence
• [ ] New country: How to establish residence
• [ ] Tax treaty between countries
• [ ] Exit tax rules (if any)

2. Calculate Tax Impact

• [ ] Final year in home country (partial)
• [ ] First year in new country (partial)
• [ ] Potential double taxation period
• [ ] Exit taxes on assets

3. Optimize Timing

• [ ] Choose departure date strategically
• [ ] Consider realizing gains before/after
• [ ] Timing of income receipts
• [ ] Estimated tax in both countries

4. Update Estate Planning

• [ ] Review will validity in new country
• [ ] Update beneficiaries
• [ ] Consider inheritance tax implications
• [ ] Powers of attorney

5. Business Structure Review

• [ ] How will business be taxed?
• [ ] Permanent establishment risk?
• [ ] Need new entity in new country?
• [ ] VAT/GST implications

Phase 2: The Move (Month of departure)

6. Establish Clear Departure Date

• [ ] Document exact date
• [ ] Keep travel receipts
• [ ] Note final day in home country
• [ ] First day in new country

7. Close/Maintain Accounts

• [ ] Bank accounts: Close or keep?
• [ ] Investment accounts: Relocate or maintain?
• [ ] Credit cards: Update address
• [ ] Loyalty programs: Update

8. Property Decisions

• [ ] Sell or rent home country property?
• [ ] Implications of keeping property
• [ ] Does it maintain tax residence?
• [ ] Rental income taxation

9. Notify Relevant Parties

• [ ] Employer (if employed)
• [ ] Banks
• [ ] Investment firms
• [ ] Insurance companies
• [ ] Pension providers

10. Keep Evidence

• [ ] Flight tickets
• [ ] Moving company receipts
• [ ] Final utility bills
• [ ] Deregistration documents

Phase 3: Establishing New Residence (First 6 months)

11. Get Residence Permit

• [ ] Apply for visa/residence card
• [ ] Provide proof of address
• [ ] Register with local authorities
• [ ] Get residence certificate

12. Establish Local Presence

• [ ] Open local bank account
• [ ] Get local phone number
• [ ] Rent/buy property
• [ ] Sign utilities in your name

13. Register for Tax

• [ ] Get tax ID number
• [ ] Register as tax resident
• [ ] Understand filing requirements
• [ ] Set up for advance payments if needed

14. Build Evidence of Residence

• [ ] Lease agreement
• [ ] Utility bills
• [ ] Bank statements
• [ ] Employment contract
• [ ] Medical registration

15. Social Security

• [ ] Register for local healthcare
• [ ] Understand pension implications
• [ ] Totalization agreements
• [ ] Continued coverage from home country

Phase 4: Severing Old Ties (First year)

16. Home Country Exit Process

• [ ] File departure form (P85, 8854, etc.)
• [ ] Notify tax authority of departure date
• [ ] Request tax residence certificate from new country
• [ ] File final tax return

17. Cut Significant Ties

• [ ] Driver's license: Surrender or update
• [ ] Voter registration: Update
• [ ] Health insurance: Cancel/update
• [ ] Professional licenses: Update
• [ ] Club memberships: Cancel

18. Manage Remaining Assets

• [ ] How is pension taxed?
• [ ] Investment account location
• [ ] Rental property management
• [ ] Business interests

19. Understand Treaty Position

• [ ] Which country has primary taxation right?
• [ ] What income is exempt where?
• [ ] How to claim treaty benefits?
• [ ] Required forms and certificates

20. Set Up Ongoing Compliance

• [ ] Calendar reminders for filing deadlines
• [ ] Both countries' requirements
• [ ] Foreign account reporting (FBAR, etc.)
• [ ] Estimated tax payments
• [ ] Annual wealth declarations

Ongoing: Evidence Maintenance

Keep Forever

• Residence permit documents
• All tax returns filed
• Proof of tax paid
• Entry/exit records
• Major receipts (property, moving)

Keep for 7 Years

• Bank statements
• Utility bills
• Travel records
• Investment statements
• Income records

Country-Specific Considerations

US Citizens

• [ ] You remain US tax resident as a citizen
• [ ] Must file worldwide income forever
• [ ] FBAR for foreign accounts >$10k
• [ ] FATCA reporting
• [ ] Foreign Earned Income Exclusion
• [ ] Foreign Tax Credits
• [ ] Consider expatriation (serious step)

UK Citizens

• [ ] Complete P85 form
• [ ] Get split-year treatment if eligible
• [ ] Understand statutory residence test
• [ ] 183-day count
• [ ] Ties test (property, family, work, days)

Australians

• [ ] No departure form, but keep evidence
• [ ] ATO may challenge non-residency
• [ ] Domicile very important
• [ ] Strong evidence needed
• [ ] CGT on departure for some assets

Canadians

• [ ] File departure return
• [ ] Deemed disposition of assets
• [ ] Keep RRSP/TFSA
• [ ] Provincial ties matter
• [ ] Keep Canadian bank account

Red Flags that Maintain Old Residence

Strong Ties

• Spouse/children remain in home country
• Property available for your use
• Active business management
• Frequent returns (100+ days/year)
• Major bank accounts maintained

Weak New Residence

• Short-term lease only
• No local employment
• No local social connections
• Continuing home country income
• "Temporary" language in documents

Professional Help

Consider hiring experts if:

• Income over $150k
• Complex investments
• Business ownership
• Multiple countries involved
• US citizen
• Exit taxes apply
• Dispute with tax authority

Types of Advisors

1. Cross-border tax accountant: Essential
2. Immigration lawyer: For visa/residence
3. Financial advisor: For investments
4. Estate planner: For will/inheritance

Common Mistakes

Mistake 1: Incomplete Severance

Keeping too many home country ties

Mistake 2: Poor Documentation

Not keeping evidence of residence

Mistake 3: Wrong Timing

Leaving mid-tax-year without planning

Mistake 4: Forgetting Foreign Reporting

FBAR, FATCA, wealth declarations

Mistake 5: No Professional Advice

DIY on complex situations

Bottom Line

Changing tax residence is a significant legal process requiring careful planning and documentation. It's not just about where you physically are - it's about demonstrating clear intent and severing old ties while establishing new ones.

The checklist above is comprehensive, but every situation is unique. When in doubt, get professional advice. The cost of good advice is far less than the cost of getting it wrong.