DoubleTaxationPermanent home in a tax treaty
When two countries both treat you as resident, the treaty decides with a sequence of tests. The first is the permanent home: you are resident where you have a permanent home available to you.
Order of the tests
Permanent home → centre of vital interests → habitual abode → nationality → agreement between the tax authorities. The tests apply only if both countries treat you as resident under their own law, and only for the period when that happens (for example, from the date of a move).
What counts
- any home: a house or flat you own or rent, even a rented furnished room;
- it must be kept for your permanent use and available to you at all times continuously;
- it is not a place for a stay that is clearly short — travel, a business trip, a course.
What does not count
- a home you own but have let to an unrelated tenant, so that you can no longer stay there;
- hotels and short-term rentals for a trip;
- moving from one hotel to another — then there is no permanent home at all and the habitual abode test applies.
Common mistakes
- Thinking only an owned home counts.
- Treating a let-out flat as available.
- Applying the tie-breaker when only one country treats you as resident.
- Testing the whole year when the conflict covers only part of it.
When to see a professional
- You keep homes in both countries, have let your former home, or moved during the year.
- Both tax authorities claim you; a certificate of residence or a mutual agreement procedure may be needed.
Sources
- OECD Model Tax Convention 2025 (Full Version): Art. 4(2) and Commentary, paras 10–14
- OECD Model Tax Convention: Condensed Version 2017
Sources checked: 10/11/2026. General information, not legal advice. Treaties and national laws can differ from the OECD Model; always check the treaty that applies to you.