Following on from the announcement in the Spring Budget in March 2024 that the UK’s preferential tax regime for non-UK domiciled individuals (“non-doms“) will change from 6 April 2025 (for more information on which, see here), many affected UK resident non-doms (“RNDs“) will be reconsidering their residency plans for the immediate future. The new non-dom rules are still being finalised by the government but, for long-term RNDs, they will likely mean that the individual’s foreign income and capital gains will, from 6 April 2025, be fully within the scope of UK tax, in the same way as for any UK domiciled individual who is resident in the UK. Further, for RNDs who have been tax resident in the UK for at least ten tax years, their worldwide estates will be subject to UK inheritance tax (“IHT“) (at a main rate of 40%) and will remain so for a “tail” period of ten years after leaving the UK. Relocation before then, if not sooner, is an option that RNDs may be considering.
Various jurisdictions offer “golden visa” immigration schemes for relocating high-net-worth non-doms in return for investment, along with a preferential tax regime for their foreign income and assets. The table below indicates what the tax and immigration rules can be in some jurisdictions that offer golden visas.
Pre-departure planning
Once a decision has been made to leave the UK, there are areas that require analysis and planning from a UK tax and legal perspective prior to relocation: to ensure UK tax affairs are in order and any unexpected UK tax charges following departure are mitigated. Some of these planning areas are as follows.
- UK tax residency – analysis of the UK’s residency rules to ensure the individual is non-UK resident from the relevant date (which may not be the date of departure) and remains so whilst living outside the UK.
- UK tax administration – finalising UK tax affairs with HM Revenue & Customs.
- IHT planning – for any retained UK assets and worldwide assets within scope.
- Capital gains tax (“CGT”) – analysis of the rules which can clawback CGT on disposals made during a period of temporary non-UK residence.
- UK home – planning and advice whether the home is to be sold or let out, including managing the UK tax exposure.
- Directorships of UK companies – advice on whether a director’s relocation may impact the residence status and UK tax liability of the company.
- Succession – having an English Will to deal with succession issues for retained UK assets.
- Trusts and asset holding structures – analysis and potential restructuring, dependent on how such structures are treated for tax purposes in the relocation jurisdiction and future family plans.
Jurisdictional immigration and tax comparison table
| DUBAI | GREECE | IRELAND | ITALY | PORTUGAL | |
| Type of visa | Golden visa for HNWs | Golden visa for HNWs | Golden visa for HNWs | Golden visa for HNWs | Golden visa for HNWs |
| Visa conditions | Investment of: •AED*2m in UAE company plus AED250,000 to Tax Authority; • AED2m with UAE bank; or • UAE property worth AED 2m or AED1m depending on duration of benefits. Potentially no minimum stay requirements **. | Investment of: • €800,000, or €400,000 depending on location, in Greek property; • €800,000 in Greek listed shares/ corporate bonds or €400,000 in Greek government bonds; or • €500,000 with Greek bank. No minimum stay requirements **. | • Net worth €2m+; • Investment options from €500,000; and • Spend minimum of one day in Ireland per year**. | Investment options include: • €500,000 in local company; • €250,000 in Italian start-up; • €2m in government bonds; or • €1m charity donation. No minimum stay requirements **. | Investment options start at: • €250,000 (or €200,000 in low-density areas) in cultural projects; or • €500,000 for venture capital funds. Spend seven days on average in Portugal per year**. |
| Duration of residence benefits | 5 or 10 years depending on level of investment renewable | 15 years | 5 years with option for Irish citizenship thereafter | 2 years but renewable and option for long term residency from 5 years+ | 5 years with option for Portuguese citizenship thereafter |
| Preferential tax treatment for visa holders | No personal taxes imposed on any assets whether in Dubai or abroad | Foreign income and assets generally exempt from Greek tax • Annual charge: €100,000 • Duration: 15 years max. | Foreign income and gains only subject to tax if remitted to Ireland • No annual charge • No duration cap | Foreign income and assets generally exempt from tax •Non-resident for 9/10 years prior to arrival • Annual charge: €200,000 • Duration: 15 years max. | No tax on foreign income if in Portugal <183 days per year Proposed new 20% flat tax regime for Portuguese employment income (but not pensions) and tax exemption on foreign income for up to 10 years |
| Additional features | Visa extendable to spouse and children | Visa extendable to spouse, children under 21 and dependent older children or parents | Visa extendable to spouse and dependent children under 24 | Tax benefits extendable to family members for additional charge | Visa extendable to spouse and dependants |
| Other points to note | The absence of personal taxation and limited physical presence requirements make Dubai stand out for many | • No visa required on entry for EEA/Swiss/UK citizens • Annual tax on certain luxury assets may apply | • No visa required on entry for EEA/Swiss/ UK citizens • Irish inheritance tax can apply after 5 years | • No visa required on entry for EEA/Swiss/UK citizens • Annual wealth tax may apply once tax benefits lapse | • No visa required on entry for EEA/Swiss/ UK citizens • Annual property tax may apply |
* AED: UAE dirham
** Note that the number of days presence in the country required to keep the visa active is different (and generally considerably less) than that required to become a tax resident of the country.
The table above is an indication of what the immigration and tax rules may be in the jurisdictions concerned. This information is not exhaustive. Wedlake Bell LLP provides legal and tax advice on the law relating to England only. Whilst every effort has been made to ensure the accuracy of the information contained in the table as at the date of publication, this should not be treated as legal advice, nor relied on as a substitute for taking advice in the relevant jurisdiction tailored to your specific circumstances. Please note that the laws applicable to immigration and tax regimes may change from time to time, including without notice or retrospectively.
How we can help
Wedlake Bell’s Private Client team can provide relocation planning advice to non-doms who are considering their residency options. Coordinated cross-border advice is essential in these situations and we have strong links with lawyers in all key jurisdictions with whom we can liaise to ensure tax and estate planning is streamlined prior to departure and on an ongoing basis.