How to structure a remote business after changing tax residency

1. Separate personal residency from business structure

Changing your personal tax residency does not automatically change the tax residency of your company. Many founders assume that moving countries “moves” the business with them. In most cases, it does not.

Key questions to clarify:

• Where is the company incorporated?
• Where is the place of effective management?
• Where are key decisions actually made?

If you continue to manage the company from a different country than before, this can unintentionally create a permanent establishment or shift the company’s tax residency. Documenting where and how decisions are made becomes critical once you operate remotely.

2. Redefine management and decision-making

Tax authorities care less about Slack messages and more about control. Board meetings, strategic decisions, contract approvals, and financial oversight matter.

Practical steps:
- Formalize board or management meetings and their locations.
- Keep written resolutions and meeting minutes.
- Delegate operational decisions where appropriate.

If you want the company to remain tax-resident in its original jurisdiction, ensure that strategic control is genuinely exercised there, not just on paper.

3. Review contracts and client relationships

After a residency change, existing contracts may no longer reflect reality.

Review in particular:
- Service agreements signed in your personal name.
- IP ownership clauses.
- Client billing entities and jurisdictions.

In many cases, founders should shift from personal contracting to company-to-client contracts, or update clauses to reflect the new tax residency and governing law.

4. Align compensation with your new residency

How you pay yourself matters more after a move.

Common options include:
- Salary
- Dividends
- Management fees
- Hybrid structures

Each option is taxed differently depending on your new country of residence and any applicable double tax treaties. A structure that was optimal before the move can become inefficient or even non-compliant afterward.

5. Reassess substance and economic reality

Many jurisdictions now apply substance requirements. This means tax outcomes should reflect where real economic activity happens.

Consider:
- Where work is actually performed.
- Where core value is created.
- Whether the company has local staff, offices, or contractors.

If everything happens remotely, you still need a coherent explanation of where the business truly operates.

6. Update accounting, reporting, and compliance flows

A new residency often means new reporting obligations, even if the company itself does not move.

Typical changes include:
- Additional personal tax filings.
- New disclosure requirements for foreign companies.
- Adjusted VAT or sales tax registrations.

Set up a calendar that covers both personal and corporate deadlines across jurisdictions to avoid costly oversights.

7. Design your remote setup intentionally

A remote business after a residency change should be structured by design, not by accident.

Best practices:
- Clear separation between personal and corporate finances.
- Well-defined roles and responsibilities.
- Written policies for decision-making, spending, and approvals.

This not only helps with taxes, but also improves scalability and reduces risk as the business grows.

Final thoughts

Changing tax residency can unlock flexibility and efficiency, but only if your business structure keeps up. Treat the move as a trigger to audit how your company actually works, not just where you live. When legal form, operational reality, and tax position align, a remote business becomes both resilient and compliant.