(1) For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State, a "Land" and any political subdivision or local authority of a State or of a "Land". This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

(2) Where by reason of the provisions of paragraph (1), an individual is a resident of both Contracting States, then his status shall be determined as follows:

• (a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
• (b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
• (c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
• (d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

(3) Where by reason of the provisions of paragraph (1), a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

(4) Where a legal person has its place of effective management in a cross-border economic area and the common border between the Contracting States runs through the fixed place of business in which the place of effective management is situated and it is not possible to determine clearly in which of the Contracting States the legal person has its place of effective management, the legal person shall be deemed to be a resident only of the State that is the location of the larger part of the floor area used by the enterprise in the building where the effective management of the enterprise is exercised. More detailed rules for determining in which of the Contracting States the legal person shall be deemed to be a resident are listed in the Annex to this Convention.