183 Day Rule: What It Means for Property Investors and Buyers

When you own property abroad, the 183 day rule, a tax threshold that determines residency status based on days spent in a country. Also known as the substantial presence test, it doesn’t just apply to tourists—it directly affects anyone buying, renting, or investing in real estate across borders. If you spend more than 183 days in a country within a 12-month period, you may be classified as a tax resident, which changes how your property income, capital gains, and even personal expenses are taxed.

This rule isn’t unique to India. Countries like Australia, the UK, the US, and Canada all have their own versions. In India, if you’re a non-resident buying property and later spend over 183 days here in a year, you could suddenly owe taxes on global income, including rental earnings from properties overseas. On the flip side, if you’re an expat living in India and own property back home, staying past 183 days might mean you now have to declare that foreign income to Indian authorities. It’s not about where you sleep—it’s about how long you’re legally considered present.

Many investors don’t realize that the 183 day rule isn’t just about physical presence. Some countries count partial days, include travel days, or allow exceptions for medical or work-related stays. Others, like Australia, combine this with the tax residency, legal status that determines which country has the right to tax your worldwide income. Also known as residency for tax purposes, it often overlaps with the 183 day rule but can be triggered by family ties, bank accounts, or even where your main home is registered. If you’re renting out a property in India while living abroad, you might think you’re safe as long as you’re not there long—but if you’re visiting frequently for maintenance, inspections, or meetings, those days add up fast.

What about commercial property? The same rule applies. If you’re a foreign investor managing a commercial building in Mumbai and you’re on-site 15 days a month, you’re hitting 180 days in under a year. That’s close enough to trigger scrutiny. Lenders, accountants, and even real estate agents rarely warn you about this—because it’s not about the property, it’s about you.

There’s no official checklist to avoid crossing the line, but smart investors track their days using apps or spreadsheets. They plan trips around visa limits. They consult cross-border tax experts before signing leases or closing deals. And they never assume that owning property means they’re exempt from residency rules.

The posts below cover real-world cases where the 183 day rule caught people off guard—from landlords in Virginia who didn’t know their US rental income became taxable after extended stays, to investors in Australia who suddenly faced capital gains tax after spending too many winter months in Sydney. You’ll also find guides on how to structure ownership to stay under the radar, how to prove non-residency, and what documents to keep when you’re moving between countries.