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the country with which the individual has the closest connection and is therefore granted the right of taxation. The current version of the OECD model treaty makes the following provisions for an individual who is considered to be a tax resident in two countries with double tax treaties:

      1. He shall be deemed to be a resident only of the country in which he has a permanent home available to him; if he has a permanent home available to him in both countries, he shall be deemed to be a resident only of the country with which his personal and economic relations are closer (centre of vital interests)

      2. If the country in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either country, he shall be deemed to be a resident only of the country in which he has a habitual residence

      3. If he has a habitual residence in both countries, or in neither of them, he shall be deemed to be a resident only of the country of which he is a citizen

      4. If he is a citizen of both countries or of neither of them, the competent authorities of both countries shall settle the question by mutual agreement

      In reality, mutual settlements between countries are rare and a solution is usually found earlier, either with the tax authorities in the country where the dispute about tax residence has arisen, or in the courts of that country if no agreement could be reached with the tax authorities.

      Acquisition of real estate

      To acquire property in attractive locations and in particular in the new country of residence contributes to the quality of life, satisfies prestige needs, and to some extent also constitutes an investment. It is, however, a good idea to consider renting before purchasing a property as this is the best way to become familiar with an area before committing to a purchase. Obviously, there are many factors to take into account when acquiring property, besides tax and legal issues. It is usually advisable to appoint qualified professionals to assist with the acquisition and to navigate through the pitfalls of buying in a foreign country. Also, consideration needs to be given whether to own the property directly or through a structure, and how easy it may be to sell again in the future.

      Although most countries, including Canada, the UK and the US, do not impose any restrictions on acquisition of real estate, there are countries such as Austria, Croatia, Greece and Switzerland⁵ that restrict foreign persons from buying property there. It is imperative to check that there are no restrictions applicable that will pose a problem or that could affect resale.⁶

      Timing

      As generally in life, timing is important also in the context of tax and estate planning, and in particular regarding residence planning.

      Specifically, the discrepancies between the tax systems of different countries can sometimes be used in the course of changing residence. Indeed, an important element in cross-border planning is to synchronize the timing of the tax events and the taxpayer. For example, the tax treatment of income derived from activities performed before or after a person gives up his residence, and the different qualification of such income in different countries, may yield tax savings through the carefully chosen timing of a change of residence. The same goes for vesting of shares and share options, the receipt of commissions, proceeds from the sale of certain assets such as the main family home, where in many countries special tax exemptions apply, the date of signing of agreements which have significant value, the timing regarding the establishment of trusts and foundations, and so on.

      Health insurance

      Arranging adequate health insurance is an important element in international residence planning – yet it is often overlooked. If someone moves abroad, their current health insurance policy will normally expire. One is then usually left with a choice of finding another local insurer in the new country of residence or turning to an international health insurer. It is highly advisable to take out an appropriate health plan at a younger age and before the first signs of ill health manifest. Even if you are very wealthy and think you do not need health insurance at all, you need to think again: a private health policy with an internationally recognized insurer and arranged through a competent specialized consultant,⁷ which gives you access to a 24 hour assistance service and a kind of medical family office can be extremely useful. It can even be critical if you have an accident in a remote part of the world and if the closest adequate hospital needs to be found in an instant, or to help you find and select the best doctor or clinic for a particular medical problem. Indeed, one of the first steps in a planned change of residence should be to obtain worldwide health cover which ensures the necessary international flexibility.

      Checklist: Moving to another country

      The following table provides an overview of some of the questions to ask when moving to another country.

Infrastructure
Transport and accessibility	How good is general accessibility in the country including public transportation, train connections, domestic air travel, and condition of the roads? How good are the travel connections by road, air, rail or sea to other countries?
Utilities	Are the cost, access, quality and reliability of electricity, gas, water and waste services satisfactory? Is public water clean/safe to drink?
Telecommunications, IT, Internet	Are the telephone systems, mobile phone networks, broadband internet access up to date? Are the quality and availability of IT-support services acceptable?
Access to services	How good is access to standard services such as local banks, post office, grocery stores, shopping malls, etc.?
Medical facilities	Are there reliable and modern hospital facilities? Is there free access to medical services? Are there any waiting times? What is the access to medical specialists? Are private medical facilities available and is access restricted?
Social security	Is there a mandatory social insurance scheme? What is the contribution level and is it in fact an additional tax? Is there a mandatory health insurance scheme?
Civic facilities	Are there civic facilities such as parks, playgrounds, city halls or public libraries available?
Entertainment	What entertainment, cultural, sport and outdoor activities are available? Is there a good choice of cinemas, restaurants, bars, clubs etc.? Are there recreational clubs such as golf, sailing, polo and tennis?
Education	What is the reputation of local schools and universities? Is private education readily available? Are there international schools? How do the education system and the schools rank globally?
Child care	Are there good public day nurseries/after-school care facilities? Are private nannies and au-pairs easily available?

Physical Environment
Geographic location	Is your new home centrally located in the region; is there a larger city in the vicinity? If your home is in a large city, are green spaces and recreational areas easily accessible? Are there any issues/problems with neighboring countries that could lead to conflict or war?
Climate	Is the climate to your liking? Number of sunshine hours per year? Average temperatures (summer/winter)? Is the area prone to winds and changeable weather?
Pollution	How clean is the environment and what are the levels of pollution of air, water, soil etc.?
Natural hazards	Is the place susceptible to flooding, hurricanes, tornadoes or other storms, earthquakes, heat waves, avalanches, landslides or heavy snow?
Industrial hazards	Are there any nuclear power or chemical plants in your area? Are there other factories or production sites that may affect you? (Industrial smells, dust, hazardous products etc.) Is your new home located in the flight paths of nearby airports?

Business and Economy
Currency and capital restrictions	Stability of local currency, exchange controls? Are there export-of-capital restrictions?
Government and political stability	Is there a stable government and political environment? What is the political culture like? Are there frequent protests? Strikes?
Cost of living	What is the cost of living? Are import duty exemptions possible?
Banking and financial services	Are high-level banking services easily available? Can the local banking and financial services industry support your personal investment and business requirements?
Trade restrictions	Are there trade restrictions that could hamper international business dealings (i.e. repatriation of capital restrictions)?
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