Exit Strategies for UK Non-Doms
I’m Leaving the UK… But Where Shall I Go?
The looming changes to non-dom tax has sparked a rise in departures from the UK
The future for non-doms in the UK is uncertain. With the UK under a new Labour government, we can expect to see fundamental changes to the taxation of non-doms. It is important now more than ever, for non-doms to understand their position in the UK market. An estimated 30% of non-doms are considering departing the UK ahead of any policy changes .
But where can they go?…Destinations such as Italy, Portugal, Switzerland and the UAE are becoming key contenders for non-doms relocating away from the UK on the back off the impending rule changes.
Discover a new destination
Italy
Inheritance and Gift Tax
The exemption of inheritance or gift tax on assets located outside Italy is a highly attractive benefit for wealthy individuals with significant foreign holdings.
Expatriates Regime
Italy offers Tax Breaks for professionals such as employees, researchers, and university professors. Individuals moving to Italy can benefit from a 50% to 90% reduction in their taxable income for up to five years, which can be extendable to ten years under certain conditions. Similar reductions also apply to Self-Employment and Business Income, making Italy an attractive option for entrepreneurial non-doms.
Property Taxes
Individuals can find relatively lower property taxes throughout Italy compared to other European countries, depending on the property type and location.
United Arab Emirates (UAE)
United Arab Emirates (UAE)
Capital Gains Tax (CGT)
There is no capital gains tax on the sale of investments, including real estate and securities, making it advantageous for wealthy individuals with substantial investment portfolios.
Inheritance Tax (IHT)
There is no IHT or Estate tax levied in the UAE. Wealth can be passed on without incurring taxes, offering a substantial benefit for estate planning and wealth preservation.
Corporation Tax
Corporate tax is limited to certain sectors such as oil and gas and foreign banks. The new corporate tax law which came into effect in 2023, introduced a 9% tax on business profits exceeding AED 375,000.
Free Zones
The UAE’s numerous free zones offer significant corporate tax benefits, including exemptions from corporate taxes for up to 50 years, full repatriation of profits, and no import/export duties.
Residency
The UAE offers long-term residency options for investors, entrepreneurs, and skilled professionals. The program allows for 5 to 10-year renewable visas. Unlike many other countries, the UAE does not have a quota system for residency permits, making it easier for individuals to obtain long-term residency.
Portugal
Capital Gains Tax (CGT)
Capital gains on the sale of foreign assets are generally exempt from Portuguese tax for NHRs. A reduced capital gains tax rates is also available on the sale of Portuguese properties or investments.
Inheritance Tax (IHT)
Portugal does not have inheritance or gift tax on transfers to direct family members, such as spouses, children, and parents. A low stamp duty tax of 10% applies on assets transferred to other beneficiaries.
Wealth Tax
Portugal does not impose a wealth tax, which is advantageous for individuals with significant global assets.
Residency
Portugal offers residency to non-EU citizens who make qualifying investments, such as real estate purchases, capital transfers, or job creation. After five years of residency, individuals can apply for Portuguese citizenship.
Switzerland
Switzerland
Capital Gains Tax (CGT)
Generally, there is no capital gains tax on the sale of privately held movable assets, such as shares, bonds, or other securities.
Inheritance Tax (IHT)
Inheritance and gift taxes are levied at the cantonal and communal levels, with many cantons offering favourable regimes, particularly for direct descendants.
Wealth Tax
Wealth tax is levied at the cantonal and communal levels, with rates and exemptions varying widely. Some cantons offer very favourable rates for high-net-worth individuals.
Residency and Citizenship
Various permits are available, including the B permit (residence permit) and C permit (settlement permit), offering flexibility for long-term residency. After 10 years of residency, individuals can apply for Swiss citizenship, with some cantons offering faster routes under certain conditions.
We can help with planning your move from the UK
Exit Strategies for UK Non-Doms
If you are considering moving abroad certain aspects need to be thoroughly reviewed and mapped out. Our advisors can help with planning for your big move and provide the relevant tax advice.
We can offer advice within the following areas:
With the future of non-dom’s in the UK up in the air, it is important to seek professional advice. Engaging a consultant allows you to gain a clearer insight into all of your assets and assess your options on exiting the UK as tax efficiently as possible. Don’t wait, it is vital to act now to safeguard your financial future. Discover more on residency and domicile tax advice here.
Arrange a callback
We’d love to hear from you!
Whether you simply have a quick question, or were seeking a more formal conversation to discuss your tax needs, drop your details here and we will be in touch! Alternatively, you can contact us on +44 (0)20 3468 0000.