Plain English
The substantial presence test makes a non-US person a US tax resident if they spend enough days in the country: 31 days in the current year AND a weighted sum across the prior three years that totals 183 days (current year × 1 + prior year × 1/3 + two years prior × 1/6).
How it actually works
Being a US resident under SPT means worldwide income taxation, FBAR/FATCA filings, and the full US tax compliance regime. Common exceptions: closer-connection exception (you can show stronger ties to a foreign country), tax-treaty tie-breaker, exempt individual status (students, teachers, diplomats). Days are counted by calendar — partial days count fully.
What it means for you
For non-US HNW principals investing in or visiting the US, SPT is the line you do not want to cross unintentionally. Track presence days meticulously, especially across multi-year periods. The closer-connection exception requires Form 8840; the treaty tie-breaker requires Form 8833. Pre-plan with cross-border tax counsel before establishing patterns that could trigger SPT.
Will this information be valuable to you?
Already a member? Send this term to your coach inside the community and tell them exactly what you need help with — we will build a plan around it.
New here? Join the membership, become a student, or sit in on the community. Your starting point is one short call.
Educational content only. Not investment, tax, or legal advice.