Go on a jet plane
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Go on a jet plane


Introduction

The recent announcements of tax increases in the October 2024 budget continued to arouse an increase in the number of information requests that we receive from people who plan to move abroad.

One of the questions that customers are often asked by customers looking for advice is what are the favorite destinations, or seem to be, for people who wish to leave the United Kingdom.

Let’s take a look….

While European countries, such as Portugal and Spain, have traditionally been at the top of the list, following the abolition of the tax regime of non -habit residents (NHR) (which was officially interrupted by the government Portuguese in 2023). Popularity of Portugal as a destination of choice.

Unfortunately, Spain, which has proven to be popular with customers, seems to follow the prosecution following the announcement that the Golden Visa program (an immigration program which allows individuals to win a residence in a country in making an eligible investment), which was the preferred route to the residence in Spain, must also be abolished by Spain on 3RD April 2025.

Indeed, it seems that even staying in the United Kingdom, but living part of the year in Spain may not be an option now either, after the announcement of the Spanish government (13th January 2025) that it plans to introduce a tax up to 100% on the properties purchased by non-residents outside the EU. [1]

So what options remain to those who wish to leave the United Kingdom?

In a recent survey of professional advisers with highly high and international net value customers, the main destinations for those who leave the United Kingdom were Dubai (no income tax – what could be more to say !!), in Italy (which, as well as having a relatively attractive tax regime is a lot to encourage foreign investment and resettlement[2]), and the “old favorites” like Malta, Cyprus, the island of Man and the Anglo-Norman Islands. We also note that we are talking to a number of customers interested in moving to Barbados (well if the low tax rates are not sufficiently attractive, the palm trees and the beaches will certainly be!).

A quick Google suggests a number of different countries at the top of the list, such as Australia, the United States and France. However, with many customers, we are talking about being motivated by a desire, not for cultural or lifestyle changes, but to reduce their overall tax burden, these countries are unlikely to be the United States have one of the most complex and global tax regimes in all countries in the world !!).

Although it is not our work to advise customers on which country could meet their needs (whether cultural, family, lifestyle or tax / financial), we find ourselves regular conversations with customers who know That they want to leave the United Kingdom but are open to the place where they go and can help present to customers advisers from other countries who can advise them on the local tax position.

How we can help

Those who move themselves or their businesses face abroad are faced with unique tax challenges.

At etc tax, we have specialists in global mobility tax problems who can advise employees, employers and / or business owners on their tax post in the United Kingdom when leaving the United Kingdom as well as To advise you on their obligations of compliance and current declaration.

Our advice cover key areas such as residence, home[3]Rental income from British properties or other income from the United Kingdom and non-resident capital gains. We also specialize in the advisor of non-domiciled individuals of the United Kingdom on their British tax position and the planning of funding funds from funds to the United Kingdom.

Finally, we can also provide support for British income declarations for people with aspects abroad to their tax affairs, their complaints on the basis of versions and their requests for relief abroad.

Following steps

Whether you are an individual who sails cross -border tax problems, an internationally operating company or a professional advisor helping customers in these problems, do not hesitate to contact us to discuss things in more detail.


[1] Although the finest details on the implementation of this policy or the calendar are not clear, it is compared to the policies that are already in place in Canada and Denmark.

[2] Italy deployed the incitement little known in 2017, which proved to be particularly attractive for high net numbers and the great value at high. The incitement means that in exchange for paying annual fees of € 100,000 (£ 87,000), those who live in Italy are fully exempt from paying income tax generated abroad.

[3] We can also advise the future changes to existing domicile rules (from April 6, 2025) and provide advice and planning concerning these changes.



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