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ZayarH
ZayarH,
Category: International Tax
Satisfied Customers: 0
Experience:  Expert
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I am a UK tax resident (from the EU) and have been living in

Customer Question

Hi, I am a UK tax resident (from the EU) and have been living in Mexico for 6 months. If I go over the 183 days would I be subject to being taxed in Mexico? I also own a UK based Ltd and will be starting a C corp in the USA while here
Submitted: 11 days ago.
Category: International Tax
Expert:  ZayarH replied 11 days ago.
You will be treated as UK resident unless you spend fewer than 16 days in the UK
Expert:  ZayarH replied 11 days ago.
If you were UK resident for one or more of the previous 3 tax years, then if you spend fewer than 16 days in UK in the current tax year, you will be treated as overseas resident.
Customer: replied 11 days ago.
the double taxation exemption with Mexico is indefinite, provided that witin a calendar year I'm at least 16 days in the UK?
Expert:  ZayarH replied 11 days ago.
Please elaborate
Expert:  ZayarH replied 11 days ago.
I assume you are not in full time employment in Mexico. Please explain
Expert:  ZayarH replied 11 days ago.
If you are working full time overseas Without significant break from overseas employment and you spend fewer than 91 days In the UK, Then you will be treated as overseas resident for the tax year.
Customer: replied 11 days ago.
I own a UK based LTD and I'm on PAYE with my own company. I'm renting a flat in London but for the last 2 years I've been subletting it and have been a digital nomad outside of the UK. Now I'd like to spend more time in Mexico than my 6 months but I don't want to be subject to paying corporation tax / dividend tax here. I know there's a double taxation exemption with Mexico/UK but not sure if it counts for >6 months
Expert:  ZayarH replied 11 days ago.
The double tax treaty follows domestic residency rules. If under UK domestic rule, you are regarded as UK tax resident, then you are subject to UK tax.
Expert:  ZayarH replied 11 days ago.
Based on your current circumstances Mexico cannot treat you as resident there because under tie breaker clause, you will be deemed as UK resident
Customer: replied 11 days ago.
Thank you. That makes sense - Would I still need to be present for 16 days in the UK?
Expert:  ZayarH replied 11 days ago.
You don’t need to
Customer: replied 11 days ago.
Perfect, thank youCustomer
Expert:  ZayarH replied 11 days ago.
If you want to be overseas resident, you either need to be working full time overseas without significant break, or you don’t spend more than 15 days in that tax year. Hope that helps.
Expert:  ZayarH replied 11 days ago.
Please let me know if you have any further queries.
Customer: replied 11 days ago.
I see so I have to proactively apply to be a non-resident to ever even run into these issues. Thank you!
Expert:  ZayarH replied 11 days ago.
Under your current circumstances, yes. Because you were resident in UK in the last 3 years.
Customer: replied 11 days ago.
Wonderful, thank you Zayar. I'll just come back to Mexico. Love this place!
Expert:  ZayarH replied 11 days ago.
Please let me know if you have any further queries
Customer: replied 11 days ago.
I will do, thanks Zayar!
Expert:  ZayarH replied 11 days ago.
Thanks. I look forward to assist you! Please feel free to provide feedback or rating to enable us to improve customer service! Best wishes Z
Expert:  ZayarH replied 10 days ago.

Thanks.