Which factor influences tax residency?

The duration of residence in a jurisdiction is a crucial factor in determining tax residency because it directly relates to how much time a taxpayer spends within a specific location. Tax authorities typically establish residency criteria based on the number of days an individual is physically present in the jurisdiction over a tax year. For example, many countries outline that being present for more than a certain number of days (often 183 days) in a calendar year may result in being classified as a tax resident, thereby subjecting the individual to local tax laws and obligations.

Factors like the number of properties owned, income level, or age of the taxpayer may have certain implications regarding tax benefits, obligations, or exemptions, but they do not directly determine the residency status as clearly as the duration of residence. The primary emphasis on time spent in a jurisdiction underscores the importance of physical presence in establishing where an individual is considered a resident for tax purposes.