tax residency
Coverage of tax residency in the Nexus archive.
- The 183-Day Trap: How Tax Residency Works Across Latin America
In most Latin American countries, staying more than 183 days in a year can classify an individual as a tax resident, requiring them to declare worldwide income. Some countries also consider factors like having a home or center of economic life to determine residency.
- Mexico’s Tightening Tax Net: How Long Stays Can Make You a Tax Resident
Mexico’s tax authority, SAT, is using immigration records to identify foreigners who have become tax residents. Tax residency is determined by one's main home and center of life, not just days spent in the country, and Mexican tax residents are taxed on worldwide income.
- Tax Residency in Panama: The 183-Day Rule
Panama's tax residency is determined by the 183-day rule, where spending over 183 days in the country annually or establishing Panama as a primary residence can trigger tax residency. Panama employs a territorial taxation system, taxing only income sourced within Panama, meaning tax residents generally avoid Panamanian taxes on foreign income.