There are some countries who tax rule says if you are working in their country for certain days, you have to pay income tax to them. Meaning you are a tax resident.
My question is, how does the country know I am becoming a tax resident? If one forgets to pay it voluntarily after staying for a certain period and attempts to leave the country, it’s not like their border officer will catch you at the departure kiosk and charge you the tax, right?
For example, one can enter the country as a tourist and then stay/travel/working long enough to become a tax resident and not overstay. Does the border office somehow notify the government of his entry and then the timer starts ticking?
Does it work on a honor system in general? How do they enforce it?
When I was working remotely in Spain, I learned a lot about how countries identify tax residency. It’s not just about counting the days you’re in the country, but also about your economic ties and where your life is centered. In my case, I had to declare my status, and the local tax authority cross-referenced my information with my visa and entry/exit dates. It’s not just an honor system; countries have ways to track your stay, especially if you’re there on a specific visa.
While border officers might not catch you for tax issues when you leave, not complying with tax laws can lead to problems if you ever want to return or deal with local authorities in the future. Each country has its own rules, so it’s best to check local laws and maybe consult a tax professional.
And on a lighter note, when staying in different countries, I’ve used Rebookify for hotel bookings. It’s been helpful in finding great deals, which is a relief, especially when you’re figuring out tax stuff in a new country!