DoubleTaxationCentre of vital interests and habitual abode
If you have a permanent home in both countries, the treaty looks at where your personal and economic relations are closer — the centre of vital interests. If that cannot be decided, or you have a home in neither, it looks at your habitual abode.
Centre of vital interests
The OECD Commentary lists: family and social relations, occupation, political, cultural and other activities, place of business, and the place from which you manage your property. The circumstances are examined as a whole, with special attention to your own personal acts.
Example from the Commentary: a person sets up a second home in another country but keeps the first one where they have always lived, worked and have family and possessions — this, with other facts, can show the centre stayed in the first country.
Habitual abode
- applies when the centre of vital interests cannot be determined, or when you have no permanent home in either country;
- all stays in the country count, not only at your home;
- it is not "more days wins": what matters is the frequency, duration and regularity of stays that are part of the settled routine of your life;
- you can have a habitual abode in both countries — then nationality decides, and if that does not help, the tax authorities agree;
- the period examined has no fixed length; it should be long enough and avoid times of major change (such as a divorce or a move).
Common mistakes
- Going straight to the centre of vital interests without checking for a permanent home in both countries.
- Looking only at where the salary comes from, or only at family.
- Treating habitual abode as a simple day count.
- Assuming every country applies the OECD Commentary in the same way — some, such as Hungary, give more weight to days.
When to see a professional
- Family and work are in different countries, or you have homes in both.
- Both tax authorities claim you, or an audit or court case is pending.
Sources
- OECD Model Tax Convention 2025 (Full Version): Art. 4(2) and Commentary, paras 14–20
- OECD Model Tax Convention: Condensed Version 2017
Sources checked: 2026-11-10. General information, not legal advice. Treaties and national laws can differ from the OECD Model; always check the treaty that applies to you.