Best Countries with Non-Dom Status for UK Residents to Explore

After more than 100 years of allowing non-domiciled residents to avoid paying tax on foreign-sourced income, the United Kingdom is abandoning its non-dom taxation status. 

As of April 6, 2025, new non-domiciled residents will pay no tax on foreign-sourced income and gains for the first four years only, provided they have not been a UK tax resident in any of the previous 10 years. 

Meanwhile, existing non-doms have been granted a two-year transition phase, after which they’ll be taxed on all worldwide income. During this transition phase, existing non-doms are expected to adjust their financial arrangements.

This is one of many changes to the UK’s tax rules and their impact has been seismic in Britain.

High earners are leaving the country in record numbers, with more than 10,000 millionaires giving up UK residence in 2024 rather than compromise on tax efficiency.

Indeed, most wealthy investors and entrepreneurs know that they have options overseas and don’t need to settle for tax hikes that target them.

But choosing where to pitch up camp is complicated and you need to consider options than can range from golden visas and residency permits to permanent homes.

So, the Nomad Capitalist team has put together this in-depth guide to nations that still offer enticing non-dom schemes. If you’re currently enjoying non-dom status in the UK, you might want to explore these options and seek professional advice on how best to proceed. Learn more about our holistic plans here.  

What is Non-Dom Tax?

‘Non-domiciled (non-dom)’ tax status is a special regime that benefits tax residents of a country who are domiciled overseas. These individuals typically aren’t taxed on foreign-sourced income or gains, although some non-dom countries tax remitted income.   

The scheme allowed individuals who live in the UK but are officially ‘domiciled’ in another country to avoid paying UK tax on their foreign income and gains, as long as they did not remit (bring) those funds into the UK.

Your domicile is based on the country where someone has the strongest personal and economic ties. Different countries have different methods for determining an individual’s domicile. 

In the UK, your domicile is mostly determined by where you were born and where your father is from.

Pros and Cons of Non-Dom Taxation

Qualifying for non-dom status can be a great way to legally avoid paying tax. However, it also comes with potential downsides, some of which are highlighted below.

Pros:

• Dramatically lower your tax bill: If your main source of income is earned overseas, you’ll pay little to no tax in a non-dom country.
• Boost your investment and estate planning: Non-dom status also typically applies to capital gains tax, inheritance tax and gift taxes.
• Business-friendly surroundings: Countries with non-dom taxation schemes tend to attract successful business owners and wealthy investors, creating more opportunities and networking possibilities.

Cons:

• It can be difficult to qualify: It’s not always simple to move to a foreign country while maintaining a domicile elsewhere. 
• It doesn’t last forever: Many non-dom schemes have time limits. In Cyprus, your non-dom status will only last 17 years. In Greece, it’s 15 years, and the UK is reducing its duration to four years.
• Remittance rules can be restrictive: Some non-dom countries will still tax you on foreign-earned income remitted to their shores.

Do Other Countries Have Non-Dom Status?

Although the UK is scrapping its non-dom taxation scheme, a handful of countries in Europe still offer non-dom status. 

Ireland

Ireland has developed a reputation as one of the EU’s most business-friendly countries, thanks in part to its low corporate taxes and its non-dom taxation regime.

Through this scheme, income sourced in or remitted to Ireland is taxed, but all other foreign-sourced income is tax-free.

Ireland determines domicile in the same way as the UK. But, unlike the UK, there’s no time limit on your non-dom status in Ireland, meaning you can potentially benefit from this tax break forever.

UK citizens can live, work and study in Ireland without any form of visa thanks to the Common Travel Agreement (CTA). Citizens of other EU countries won’t need a visa either. 

For everyone else, there’s the Passive Income Residence Permit, which offers a route to residency if you can show up to €50,000 of annual income from investments or shareholdings. 

Malta

Malta has been an attractive base for high-earning foreigners for some time.

There’s no inheritance tax, no gift tax and no wealth tax here. It has a huge range of corporate tax breaks and incentives for investors. 

The Malta Permanent Residency Program (MPRP) is a way for non-EU nationals to gain permanent residence in Malta with no physical presence requirements. 

Maltese citizenship is available after six years through this program, but the Maltese Exceptional Investor Naturalisation (MEIN) program could provide citizenship in one year. 

On top of that, its non-dom taxation scheme ensures you won’t be taxed on foreign-earned income that isn’t remitted to the island. 

You’ll be committed to paying a minimum tax of €5,000 a year on remitted income, though, so you may as well remit some money.   

There’s no time limit on this scheme. To claim non-dom status, you must demonstrate substantial ties to another country and an intention to return there one day. 

If you’re a non-EU citizen who doesn’t want to gain residency by making a substantial investment in Malta, you can do so through its Self-Sufficiency Visa, provided you can demonstrate capital of at least €50,000 to sustain yourself on the island.

Cyprus

Cyprus is another Mediterranean island with low corporate tax rates and a non-dom tax regime. 

You’ll gain tax residency by either: 

• Staying on the island for 183 days a year 
• Staying there for 60 days a year without becoming a tax resident of any other country (by remaining in another single jurisdiction for 183 days, for example).

This short physical presence requirement makes Cyprus a valuable destination for frequent travellers who want to benefit from non-dom taxation status. It would make a good component of our Trifecta strategy for those who don’t want to be tied to one place. 

The simplest way to gain residency in Cyprus is via its ‘Pink Slip’ scheme. This is available to non-EU citizens who buy or rent real estate on the island and can show they have enough funds to sustain themselves for a year (around €15,000-€20,000 for a three-person family). 

Your non-dom status in Cyprus can last a maximum of 17 years, but you’ll need to prove significant ties to another country to be granted it.

Greece

Greece also has a ‘non-dom’ taxation scheme, but there are more conditions tied to it than other programs. 

In fact, this program is more reminiscent of a lump-sum tax system, like you’ll find in Italy or Switzerland.

For starters, you’ll still owe a lump sum of €100,000 on foreign-sourced income each year, plus €20,000 for each of your adult dependents. 

You’ll also have to make and maintain at least €500,000 worth of qualifying investment in the Greek economy, although this requirement is waived if you’ve already invested via its golden visa program. 

So, this one is only likely to suit ultra-wealthy individuals with a specific interest in Greece. With that said, there’s no physical presence requirement associated with this scheme.

Non-dom status in Greece can be held for a total of 15 years. 

Other Alternatives to UK Non-Dom Taxation

While non-domicile status as a formal concept is somewhat rare, many countries with territorial tax systems achieve the same effect by only taxing local income or remitted foreign income.

With that in mind, here are a few other options you could consider when transitioning away from UK non-domicile status.

Territorial Tax Systems

Countries with a territorial tax system don’t tax residents on any foreign-sourced income. 

Although exceptions can apply, this is the case regardless of their domicile. It’s also the case for corporations, not just individuals. 

Asian business hubs like Hong Kong, Singapore and Malaysia only tax foreign-earned income on a remittance basis. 

Panama does the same, and it offers extremely affordable residency with its Friendly Nations Visa. 

Paraguay won’t tax your foreign-earned income and only requires 120 days of physical presence to become a tax resident. Uruguay also has a territorial tax system, although only for the first 11 years of an individual’s tax residency.

There are other countries that allow tax residents to pay a lump sum regardless of their domicile. Switzerland and Italy are arguably the most famous of these. 

However, British territories like Jersey (as little as £145,000 per year) and Gibraltar (as little as £22,000 per year) also have lump-sum taxation schemes. These might appeal if you’re hoping to retain some British culture in your daily lifestyle. 

Tax-Free Countries

If you’re interested in paying no income tax or corporate tax regardless of its source, some countries permit this. 

Monaco and the Bahamas are arguably the most famous of these tax havens. We’ve listed more in our full guide on zero-tax countries.  

Non-Dom Countries: FAQs

Go Where You’re Treated Best

The exodus of millionaires from the UK is further evidence that the wealthy and successful are tired of governments targeting them.

More investors and entrepreneurs are realising they have options and are now acting upon them. 

However, it can be complicated to secure non-dom status in a new country, especially if you already have a few ties that make governments suspicious about your intentions. 

Finding the best jurisdiction to suit your situation requires careful planning, which is where Nomad Capitalist comes in. 

We’ve helped 2,000+ high-net-worth individuals to ‘go where they’re treated best’, whether that’s by moving their business offshore, relocating to a tax-friendly country or pursuing a second citizenship. 

Our clients are paired with experts in tax, investment strategy, asset protection and immigration to create and execute a holistic plan as unique as their goals. To learn more about how we can help you, get in touch today.