What the 183-day rule is and whether it’s enough?

After spending more than 183 days in a country during the tax year, you are almost universally considered a tax resident there and are required to declare your worldwide income. But the rule only works in reverse to a limited extent: even if you spent fewer than 183 days in the country, you may still be deemed a resident based on your centre of vital interests — where your family lives, where your primary home is, where your assets and economic ties are concentrated. So ’not staying 183 days’ does not resolve the question on its own.

What to do in the case of dual tax residency?

A situation where two countries each consider you their resident is resolved by the double taxation treaty between them, if one is in force. The treaty sets out a sequence of criteria: permanent home, then centre of vital interests, then habitual abode, then citizenship. This needs to be sorted out before the end of the tax year, not after receiving a demand from the tax authority.

How much does monthly accounting support cost?

For Spain, the base monthly fee for managing autónomo registration and companies starts from 150 € per month; the exact amount depends on volume — number of transactions, whether you have employees, and whether there is any outstanding reporting from prior periods. One-time autónomo registration is a flat 350 €. All prices are final and include VAT.

SVOY LEGAL/Bookkeeping and company

Practice area · Business and taxes

Company, accounting and taxes

Registering a company is the easy part. The more costly question is where you are a tax resident, and it is almost always asked too late.

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In brief: first establish your tax residency, then choose your structure. A company in a low-rate country does not help if you are yourself a resident of another country: it will tax your worldwide income, and sometimes recognise your foreign company as its own tax resident — based on the place of actual management.

The most expensive question

Residency is not determined by where the company is registered, but the one where you live.

183 days

More than 183 days in a country during a tax year — in almost every jurisdiction you become its tax resident and declare worldwide income. Days are counted in total, not consecutively, and entries and exits are visible from stamps.

Centre of vital interests

Even with fewer days, you may still be recognized as a resident: where the family lives, where the main home is, where assets and economic ties. That is why ’not spending 183 days’ on its own does not resolve the matter on its own.

Dual residency

When both countries consider you their own, the dispute is resolved by treaty on the avoidance of double taxation — following the sequence of criteria: housing, centre of interests, habitual residence, citizenship. This needs to be sorted out before the end of the year.

A separate pitfall is the tax residency of the company itself. If the firm registered in one country while decisions are made from another, the second country may recognise you as its tax resident based on the place of actual management. This cancels out all the benefit of choosing jurisdiction.

Company structures by country

Check timelines and requirements for the year of registration: the minimum capital and ownership rules change frequently.

Spain

S.L. — sociedad limitada

The standard structure for small and medium-sized businesses. Since the 2022 reform, the minimum share capital has been reduced to a nominal amount, but companies with capital below the previous threshold face stricter profit-reservation requirements. The founder does not need a Spanish residence permit, but does need a NIE; a non-resident director should be aware that managing the company from abroad raises questions about the company’s own tax residency.

NIE required
A notary is required

UAE

FZE / FZ-LLC in a free zone, LLC on the mainland

The choice between a free zone and the mainland determines who you can work with: a free zone is suited for export-oriented work and provides visa quotas, while mainland is required for working with the local market. Since 2021, 100% foreign ownership on the mainland has been permitted for many types of activity. Costs vary significantly depending on the specific free zone and the number of visas.

Free zone vs mainland
Issues visas

Mexico

S. de R.L. / S.A.

Equivalents of an LLC and a joint-stock company. Registration requires name approval, articles of association notarised, and registration with the tax authority (RFC). A foreign founder is possible, but obtaining an RFC and signing documents almost always requires a local representative or your own resident status.

RFC is mandatory
Need a representative

Georgia

LLC + small business status

The fastest registration on the list — usually a matter of days. An added reason to choose Georgia is the small business regime for sole traders, with a reduced rate on turnover up to a set threshold. The threshold and rate are defined by law; check the figures in force for the year of registration.

Registration in days
Preferential sole-trader regime

Serbia

d.o.o.

A limited liability company with minimal capital. Often used as a basis for a residence permit through one’s own company — but this only works with genuine business activity: a dormant company raises questions at renewal.

May grant a residence permit
Activity is required

Portugal

Lda. / atividade aberta

A company or registered sole-trader activity. For a freelancer, opening an atividade is often more advantageous than incorporating a company: less reporting and lower administration costs. The choice depends on turnover and whether expenses need to be deducted.

A sole trader structure is often more advantageous

When Sole proprietor more beneficial than a company

For a one-person operation with no employees, a company is often more expensive in maintenance than it saves on tax.

Autónomo in Spain

Self-employment with social security contributions on a scale tied to declared income. New autónomo registrants benefit from a reduced contribution rate in the first months — the terms and duration of the benefit are set annually, so check current figures. The threshold at which a company structure becomes more advantageous than sole tradership is calculated individually: it depends not only on turnover but also on the expense structure.

Sole proprietorship in Georgia

Registration is quick, and small-business status means a reduced turnover tax rate up to the statutory threshold. This is one of the simplest structures for a remote worker — but it does not resolve the question of where you are actually tax-resident based on where you live.

Freelancer permit in the UAE

A permit for independent activity without incorporating a company, typically through a free zone. It provides the basis for a residency visa and suits those working for clients abroad. The list of permitted activities is limited and varies by free zone.

Accounting support: what is filed and when

Regular reporting — not one annual return, but several forms with different filing frequencies. The composition depends on the business structure and countries, but the logic is the same everywhere:

Quarterly — VAT and advance payments on income tax. This is what people most often forget in the first year.
Monthly — payroll reporting and contributions, if you have employees, and in some cases VAT above certain turnover.
Once a year — annual declaration, financial company reporting, filing reports with the registry.
By event — property transactions, operations with non-residents, changes in the composition of participants.

The overstay penalty costs more than the tax itselfA fine for a form not submitted on time is charged regardless of whether whether tax was due: a nil return not filed on time, is also penalised. Fines accrue separately and keep adding up. Catching up past periods always cost more than managing current ones.

Personal taxes for expats

Moving creates obligations that people usually discover only at the first tax obligations at your new location:

Declaring foreign accounts and assets. Many some countries require you to separately report accounts, real estate and securities held abroad — this is a separate personal obligation, unrelated to tax payment. In Spain this is a separate form on foreign assets with their own thresholds.
Property and ownership tax. Not available everywhere, but where it exists, it is calculated on the value of assets, not on of income, and residents are taxed on worldwide assets.
Income from the country of origin. Rental income, dividends, sales apartments, a ’home’ — all of this is income that the new resident declares on its side. A credit for tax already paid is possible if an agreement between the countries is in force, but the credit must be claimed.
Year of relocation. The most confusing period: part of the year you resident of one country, part — of another. Sometimes shifting the date shifting the date of relocation by a few weeks can noticeably change the tax for the whole year.

About the figures in this sectionRates, thresholds and preferential regimes are revised almost every year in all the listed countries. We deliberately provide formulas and logic, while the specific figures we give you are based on your situation in the year of filing — an outdated rate in the text is worse than no rate at all.

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Autónomo registration

Full autónomo registration: sign-up, social security enrolment, and tax authority connection. Fixed price, no hidden fees. Legal consultation — 80 € credited toward the full service fee. The service provider is a partner agency in Valencia, CIF B26637637.

350 €Learn more →

Bookkeeping services

Monthly bookkeeping: preparation and submission of reports, tax calculation and payment, deadline and penalty monitoring. For autónomo and companies alike. Legal consultation — €80, credited toward the cost of ongoing support. The service provider is a partner agency in Valencia, CIF B26637637.

from €150/mo.Learn more →

Tax returns

Preparing and filing tax returns for tax residents and non-residents in Spain: data collection, preparation, and submission to the tax authorities. Non-resident property declarations handled separately. Legal consultation — 80 € credited toward the full service fee.

from €85Learn more →