Understanding the 90-Day Rule for Expats
Navigating the complexities of international living can be challenging for expats. One of the most important aspects to understand is the 90-day rule, which governs the length of stay for individuals in a foreign country without a residency permit. In this article, we discuss the intricacies of the 90-day rule, the difference between residency, tax residency, and citizenship, and the steps expats need to take to fully enjoy their overseas property and business endeavors.
The 90-Day Rule Explained
The 90-day rule, as clarified by ProACT Partnership, is a short stay regulation that limits or stops longer stays in a foreign country without a residency permit. Electronic Travel Authorities (ETAs) help enforce these restrictions, ensuring that expats comply with the regulations of their host country. The rule is commonly applied in many countries to control the influx of foreign visitors and maintain order within their borders.
Residency vs. Tax Residency vs. Citizenship
It is crucial for expats to understand the distinctions between residency, tax residency, and citizenship. Residency refers to the legal status of living in a foreign country, often granted through a residency permit. Tax residency, on the other hand, determines an individual's tax obligations based on their ties to a particular country. Citizenship is a more permanent status that grants an individual the full rights and responsibilities of being a national of that country.
Navigating the 90-Day Rule
Expats living and working abroad must carefully navigate the 90-day rule to avoid complications with their overseas property and business ventures. Some of the essential steps include:
Familiarise yourself with the host country's regulations: Research and understand the rules governing the length of stay, residency permits, and tax obligations in your host country.
Apply for a residency permit if necessary: If you plan to stay in the country for an extended period or conduct business, consider applying for a residency permit to ensure compliance with local regulations.
Be aware of your tax obligations: Understand your tax residency status and comply with the tax laws of both your home and host countries. Consult a tax professional if necessary to avoid double taxation and other tax-related complications.
Keep track of your travel history: Maintain a record of your travel dates and durations to avoid overstaying the 90-day limit. Remember that the 90-day rule is often calculated on a rolling basis, meaning that your stay should not exceed 90 days within any 180-day period.
Plan your travels accordingly: Schedule your trips to comply with the 90-day rule and avoid any potential legal issues with immigration authorities.
ETIAS & the 90 Day Rule
The European Travel Information and Authorization System (ETIAS) is a visa waiver program implemented by the European Union for travelers visiting countries within the Schengen Area. ETIAS fits into the 90-day rule as it is designed to track and monitor short-term stays of non-EU nationals who do not require a visa for entry into Schengen countries.
How ETIAS Works
ETIAS requires eligible traveler’s to complete an online application before their trip, providing personal information, travel details, and answering questions related to security and health. Once approved, the ETIAS authorisation is valid for three years or until the applicant's passport expires, whichever comes first. During this period, travellers can enter Schengen countries multiple times, provided they adhere to the 90-day rule.
The primary purpose of ETIAS is to enhance security and streamline border control within the Schengen Area. By pre-screening travellers, authorities can identify potential security threats and manage migration more effectively. In addition, ETIAS helps enforce the 90-day rule by monitoring travellers' entry and exit dates, ensuring that they do not overstay their allowed duration.
For expats planning to live or work in a Schengen country, understanding the role of ETIAS and its relationship with the 90-day rule is crucial. While ETIAS authorisation facilitates entry for short-term stays, it does not grant residency or tax residency rights. Expats who intend to reside in a Schengen country for an extended period or work there should apply for the appropriate visa or residency permit to comply with local regulations and avoid potential legal issues.
In conclusion, ETIAS plays a vital role in maintaining the integrity of the 90-day rule within the Schengen Area by providing a more robust and efficient border control system. Expats should be aware of the limitations of ETIAS authorisation and ensure they acquire the necessary visas or permits for longer stays or work-related purposes. By doing so, they can enjoy a smooth and hassle-free experience while living and working abroad.
You can read more about the EU, Schengen Zone & the upcoming ETIAS here.
Expats living and working abroad must be vigilant about understanding and complying with the 90-day rule, as well as the distinctions between residency, tax residency, and citizenship. By taking the necessary steps to navigate these complexities, expats can enjoy their overseas property and business ventures without facing legal complications or unexpected hurdles.