Resident

Economic companies that are incorporated in a specific country are considered resident. We also use this term for individuals who have their place of residence or fixed residence in the country whose money you use.

Companies and individuals can also be considered foreign currency domestic or otherwise resident. Enterprises are domestic in resident if they are incorporated in that country. Individuals can be considered foreign exchange residents if their place of residence or fixed residence is in the country.

However, the legislation usually gives a broader interpretation than this, as they do not link the status of resident to citizenship. According to this, a resident is a person who has a place of residence or residence in the given country. Therefore, if someone is not a citizen of the country whose currency he uses (does not have a local document), but has a residence permit in that country and is registered somewhere (i.e. has established a place of residence), he can be a resident in the same way as the citizens of that country. 

Who is a resident and who is not is important mainly in terms of in taxation. In the EU, according to the main rule, resident are taxed according to the local tax system. This is why, for example, the foreign bank does not deduct withholding tax on interest on the interest earned on our bank account held abroad, but reports the interest income to the tax authorities of the country whose citizen is the owner of the invoice. 

Domestic resident status is also important in banking practice. In most countries, the majority of bank credit schemes are only available to foreign exchange residents. It also happens that certain tenders do not apply to non-residents, but only to residents.