The UK recently announced plans to end its non-dom status, a tax relief that has long attracted wealthy foreigners by allowing them to avoid taxes on overseas income for up to 15 years. This move is part of a broader trend in Western countries where the growing wealth gap is prompting tighter controls on tax and citizenship perks for expats. For example, Portugal also declared it would phase out its non-habitual resident program, which offered foreigners reduced taxes for a decade.
So, with these changes, where can expats look to safeguard their wealth? Here are five countries that still offer attractive benefits:
Antigua and Barbuda - Since 2016, neither residents nor non-residents are taxed on local or foreign income, making these islands a magnet for wealthy investors. There are no wealth or inheritance taxes either. Moreover, for a minimum investment of $100,000, foreigners can obtain citizenship that allows visa-free travel to 154 countries, although the EU is pressuring to limit this benefit.
UAE - Dubai and other emirates are a hotspot for financial professionals due to no taxes on personal income, capital gains, inheritance, gifts, or properties, along with a low corporate tax rate of 9%. The UAE has also broadened eligibility for long-term visas to include entrepreneurs and engineers. However, Dubai’s popularity has significantly driven up living costs.
Italy - Since introducing favorable tax rules for foreigners in 2017, Italy has seen a surge in expats, particularly in Milan. Newcomers can opt to pay a flat fee of €100,000 annually and avoid taxes on foreign income. These incentives have doubled the expat population in Milan since 2021, increasing local living costs and causing some tensions.
Singapore - This city-state presents a complex scenario. While it has attracted businesses moving from Hong Kong, recent increases in property taxes for foreigners have dampened its appeal somewhat. The personal income tax rate remains low, but high taxes on expensive property purchases make it less attractive compared to other global cities.
Monaco - Continues to attract the ultra-wealthy with its high-end lifestyle, no taxes on property, personal income, or capital gains, and a relatively simple path to residency with an investment of over €1 million. Despite having the world’s priciest real estate, it remains a favorite haven for millionaires.
On the flip side, if you're curious about countries with higher taxes but also high-quality public services, France, Belgium, Denmark, and Japan are notable. These countries offer excellent quality of life but come with some of the highest tax rates in the world.