What are the differences between citizenship-based and residency-based taxation? As you consider relocation options for you or your enterprise, you must take the implications on your tax burden into consideration. Depending on your country of citizenship or residency, specific markets may be more primed for a move of this nature. Here’s what you need to know. But first, let’s define citizenship-based taxation and residency-based taxation The difference between these two regimes, as we previously stated, is crucial. Citizenship-based taxation is a system that imposes taxes on all citizens and residents of a country, regardless of where you are living. What are the citizenship-based taxation system countries? There is only one country that follows a strict citizenship-based taxation regime, even though there are two countries
