ARTICLE 4
Resident
(1) For the purpose of this Convention the term "resident of a Contracting State" shall mean a person who, under the laws of that State, is subject to taxation therein by reason of his domicile, place of effective management, permanent place of residence or any other criterion of a similar nature, in the case of the Federal Republic of Germany, its state. However, this term shall not include any person who is subject to taxation in that Contracting State merely in respect of income or capital from sources situated in that State.
(2) Where, in accordance with the provisions of paragraph (1) of this Article, an individual is a resident of both Contracting States, his status shall be determined in the following manner:
- (a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests);
- (b) if it cannot be determined in which State his centre of vital interests is situated, or if he does not have a permanent home in either of the States, he shall be deemed to be a resident of the State in which he has a habitual abode;
- (c) if he has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
- (d) if he is not a national of either of the States, then the competent authorities of the Contracting States shall settle the question by mutual agreement.
(3) Where by reasons of the provisions of paragraph (1) of this Article, a person other than an individual, is a resident of both Contracting States, such person shall be deemed to be a resident of the State in which its place of effective management is situated.