First introduced in 1799 as part of Britain’s wartime fiscal strategy, the non-dom system allowed individuals residing in the UK but officially domiciled elsewhere to avoid taxation on foreign income and gains, provided those funds were not remitted to the UK. Over time, it evolved into a powerful tool for global entrepreneurs, international investors, and high-net-worth individuals seeking to enjoy UK residency while shielding offshore wealth.
For decades, this regime offered flexibility and strategic advantages to globally mobile individuals. However, its abolition—effective from April 2025—is poised to reshape the landscape for international wealth planning. Under the new rules, individuals who have been tax resident in the UK for more than four years will be subject to UK tax on their worldwide income and gains. While newcomers will benefit from a four-year exemption on foreign income and gains, even if remitted to the UK, the remittance basis itself will be abolished—removing a once-complex but powerful advantage. A transitional relief, including a 50% reduction on tax for foreign income in the 2025–26 tax year, will soften the blow temporarily. But after that, all long-term UK residents, regardless of domicile, will be taxed alike.
With these changes on the horizon, many internationally mobile individuals are now asking a critical question: where can I go next? While the UK may be stepping back from non-dom privileges, a number of countries in Europe continue to offer similar tax-friendly regimes that are worth considering. Here are four notable jurisdictions that maintain attractive alternatives:
Ireland
Ireland continues to offer a familiar structure for those accustomed to the UK’s non-dom setup. Non-domiciled residents in Ireland are taxed on their foreign income and gains only when those funds are brought into the country. This remittance basis of taxation appeals particularly to wealthy individuals with offshore investments. However, Irish-source income is fully taxable, and anti-avoidance measures apply, meaning careful structuring remains essential.
Cyprus
Cyprus has established itself as a leading destination for international tax residents. The Cyprus non-dom regime, introduced in 2015, provides significant exemptions: individuals who become tax resident and have not been domiciled in Cyprus for at least 17 of the past 20 years can benefit from a 17-year exemption on dividend and interest income. This makes it an exceptionally attractive jurisdiction for investors, entrepreneurs, and retirees seeking tax efficiency alongside a favorable Mediterranean lifestyle.
Malta
Malta offers a refined, remittance-based taxation model for residents who are not domiciled in the country. Foreign income is only taxed when remitted, while foreign capital gains are entirely exempt, even if brought into Malta. Combined with a variety of residency schemes and Malta’s strategic EU location, the country continues to be a top choice for globally minded individuals aiming to preserve wealth across borders.
Greece
Greece has taken a more segmented approach to attracting foreign residents, offering tailored tax incentives rather than a blanket non-dom regime. Notably, foreign pensioners can benefit from a flat 7% tax rate on their overseas income, while skilled professionals relocating to Greece may receive a 50% income tax exemption. These incentives are time-bound and conditional, but they represent an increasingly competitive offering in Southern Europe for select profiles.
Conclusion
As the UK closes a historic chapter in international tax planning, a new era emerges—one where globally mobile individuals must look beyond British shores to optimize their financial and residency strategies. While no regime is identical to the UK’s former non-dom status, countries like Cyprus, Malta, Ireland, and Greece offer compelling alternatives for those seeking flexibility, tax efficiency, and global access.
Each destination presents unique benefits and eligibility requirements, and the right choice will depend on your personal objectives, residency plans, and long-term vision.
