Where to Move so you do not Need to Pay ANY Income Tax
The American polymath Benjamin Franklin memorably stated there is 'nothing specific but death and taxes' - however there are a couple of places on the planet where you can avoid paying income tax.
The super-rich have long capitalized this, but more people are being tempted by the lure of lower-tax jurisdictions for long-term wealth preservation.
Yet off-shore relocation is no longer the protect of the ultra-wealthy.
' Remote work, double citizenship, global employing patterns - they have actually all decreased the barriers,' states Nigel Green, CEO of deVere Group, a monetary advisory and property management firm. 'If [enthusiastic individuals] are not being rewarded in your home, they're increasingly comfortable checking out alternatives abroad.'
In the UK, recent fiscal grenades consist of the end of non-dom regime and estate tax breaks on properties held in abroad trusts, plus a freeze on earnings tax limits that has pressed more individuals into higher tax brackets until at least 2028. Meanwhile, the strategy to include pensions as part of inheritance tax from April 2027 is presently in the proposal phase.
The result? The UK has lost more billionaires in the past year than at any other time in history.
Some will aim to nations such as Italy, Greece or Switzerland using flat-tax regimes, while others will think about low-tax jurisdictions such as Barbados or Cyprus.
But where will you pay no individual earnings tax at all? Here are 6 of the best locations to consider:
UNITED ARAB EMIRATES
If you don't desire flashy Dubai there's the calmer Emirati capital Abu Dhabi with its fast-developing cultural island, Saadiyat
Banks, worldwide schools, building, hospitality, healthcare and engineering are all drawing in a wave of British expats - an estimated 240,000 live there now
Job opportunities, terrific environment and more skyscraper-lined vistas you can shake a selfie-stick at, the UAE is really much in demand for its way of life and tax advantages.
There is no individual income tax on salaries, investments, or rental income earned within the nation, there is no capital gains tax (CGT), inheritance tax, wealth tax or annual tax on around the world properties.
If you do not desire glitzy Dubai there's the calmer Emirati capital Abu Dhabi with its fast-developing cultural island, Saadiyat, however they both provide beaches, classy infrastructure, health care and education.
The UAE can give business owners what they are stopping working to discover in the UK: security, economic growth, a pro-business environment and regulatory certainty.
Establishing a business is an easy path to residency, consisting of in one of Free Zones, where expats can have 100 percent ownership without the requirement for a regional partner or investor.
There are also abundant visa choices including the 10-year golden visa that requires you to invest or buy a residential or commercial property for a minimum of AED 2million (₤ 439,000), digital nomad and freelance visas.
Banks, international schools, building, hospitality, healthcare and engineering are all bring in a wave of British expats - an approximated 240,000 live there now.
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Major deterrents consist of the high cost of housing - leas can be more than in the UK, although the UAE average cost of living is 15 per cent less than the UK - plus severe summer season temperatures, traffic jams and UAE's stringent laws and cultural customs will not fit everyone.
BAHAMAS.
Much closer to Florida than South America, the Bahamas offers a far more dynamic environment than the quintessential Caribbean islands - and no income, capital gains or estate tax.
The Bahamas uses a stable economy integrated with remote pink-sand beaches, coral reefs and excellent cruising
Britons like it too - around 4,100 live there (there's a direct eight-hour flight to the UK), and numerous have actually established in Nassau on the island of New Providence
This Atlantic Ocean island chain, with an American twist, uses a steady economy combined with remote pink-sand beaches, coral reefs and superb sailing.
Privacy, security and lifestyle make it a favourite location for many North American billionaires. But start-ups, crypto and fintech financiers are also being drawn to its capital, Nassau.
Together with the international jet set, multinational brands and conveniences have gotten here: Nobu, Starbucks, Amazon deliveries, Michelin-starred restaurants - and it's just a half-hour flight to many more in Miami.
But Britons like it too - around 4,100 live there (there's a direct eight-hour flight to the UK), many have set up in Nassau on the island of New Providence - the expat hub with the majority of the global schools and cultural institutions. Or Freeport on Grand Bahama is more laid-back.
Those who invest a minimum of $1million (₤ 741,000) on a home, economic contribution or financial investment in a vital sector can protect permanent residency - it's hard to get a work authorization otherwise. Perhaps the simplest alternative? The 1 year Bahamas digital wanderer visa (BEATS), which, abnormally for such schemes, features no minimum income requirement.
Aside from the danger of typhoons - 2019's Dorian ravaged the Abaco islands and Grand Bahama - the greatest disadvantage is the high cost of living, which is 27 percent more than in the UK according to numbeo.com, with lease costs that are 30 percent greater than the UK.
You'll pay $3,200 (₤ 2,371) a month for a modest two-bedroom house on among New Providence's gated communities.
MONACO.
A favoured base for lots of sports stars, worldwide business people and F1 chauffeurs, Monaco is the tiny tax haven that's simply a seven-minute helicopter trip from Nice Airport on the French Riviera.
The summer play areas of Cap-Ferrat, Cannes and Saint-Tropez are all within simple reach by supercar or one's yacht moored in Port Hercule, below the Monegasque cityscape of high-rises.
A favoured base for lots of stars, global business owners and F1 drivers, Monaco is the tiny tax haven that's just a seven-minute helicopter ride from Nice Airport
From high-end shopping to Michelin-starred restaurants, gambling establishments and beach clubs, the principality has more millionaires per square metre than anywhere else (and prominent people like its high security and rigorous privacy laws). More than 2,800 Britons call it home.
Naturally they all love it's the lack of income tax, wealth tax and capital gains tax, and the reality that when passing on properties, partners and kids do not pay inheritance or present tax.
To get long-term residency in Monaco you'll require to deposit at least EUR500,000 (₤ 421,000) into one of its banks and purchase or rent residential or commercial property in Monaco. Non-EU nationals need to get a French long-stay visa before requesting a Monaco residency license.
These benefits do not come inexpensive. The expense of living is 127 percent higher than in the UK, groceries are 70 percent more, dining establishments 50 percent pricier and lease is an eye-watering 705 per cent more, according to numbeo.com.
You can discover a little apartment to purchase for around EUR1million (₤ 842,000), but that's all you require for your tax-base - numerous deep-pocketed brand-new arrivals are likewise buying a bigger residential or commercial property over the border with France, according to Cote d'Azur Sotheby's International Real estate.
SAUDI ARABIA.
In the run-up to Saudi hosting the FIFA World Cup in 2034, and as part of its Vision 2030 to transform its economy, Saudi Arabia is opening up to foreign investment.
If you are comfortable about its human rights record, rigorous laws (alcohol is banned) and social conservatism, not to point out the searing heat, then a tax-free high salary for a number of years may be a big enough pull.
Yes, there's absolutely no personal income tax, but you won't find the beach clubs or bottomless-brunch culture that you would in Dubai.
In the run-up to Saudi hosting the FIFA World Cup in 2034, and as part of its Vision 2030 strategy to transform its economy, Saudi Arabia is opening up to foreign investment
Around 26,000-30,000 Britons live in the Kingdom, mainly in substances in Riyadh and Jeddah
Estate representatives report that numerous expats are moving from Dubai to Saudi for wages that are 25 percent more than its GCC (Gulf Cooperation Council) neighbour - and there's strong demand for engineering, building, IT and healthcare employees.
An essential aspect of this is that the Saudi government is making it easier for foreigners to purchase residential or commercial property - a new Freehold Law is being drafted that will unlock to purchase off-plan residential or commercial properties.
In 2015, Saudi Arabia expanded its own version of a 'golden visa' - its Premium Residency plan - that can offer residency if you are not sponsored by a company. This is open to those with unique talents, investors and entrepreneurs. You can also invest more than SAR 4million (₤ 790,000) in a residential or commercial property, or make a one-off payment of SAR 800,000 (₤ 158,000).
Around 26,000-30,000 Britons reside in the Kingdom, primarily in compounds in Riyadh and Jeddah, however new holiday resort-style advancements have been built, although rental rates can be high. In Sedra, a popular community in Riyadh by ROSHN Group, a five-bedroom villa is being marketed at SAR 160,000 each year (₤ 31,600).
The cost of living is around 35 per cent lower than in the UK, according to numbeo.com, but many expats get generous housing and personal health care bundles. The worldwide schools are expanding fast, with Sherborne School Jeddah (a branch of the UK independent school) opening this year.
BERMUDA
If you do not want the searing heat of the Middle East and prefer the unwinded pace of a Caribbean island, Bermuda is a long-time favourite for British expats
The high cost of living will absorb some of the tax benefits. A two-bed townhouse in Paget may cost $7,800 (₤ 5,785) a month to rent
If you do not want the searing heat of the Middle East and choose the relaxed pace of a Caribbean island, Bermuda - a long-time favourite with British expats - might be for you.
Britons are the greatest group of non-Bermudians in the Territory, numbering 3,942, according to the last census. While families gravitate to Hamilton for the worldwide schools, the main parish of Paget uses homes a short stroll from pink-sand beaches
Security, safety and a high standard of life are the pulls - plus the enticement of no earnings tax or capital gains tax. Life revolves around the beach, barbecues and weekend boat celebrations - and it's only 2 hours to New york city for a weekend culture repair.
Less appealing are the high customizeds responsibilities that makes purchasing goods expensive, the restrictions of small-island life (some discover it boring) - and high cost of living.
You can check out Bermuda without a visa for approximately 180 days in any 12-month duration, but if you wish to operate in Bermuda, you must get a task deal and work allow before you get in the country. There are specific opportunities for business owners and fintech businesses. There's also a 1 year 'Work from Bermuda' digital wanderer visa, however work chances on the island are limited.
Britons are the most significant group of non-Bermudians in the British Overseas Territory, numbering 3,942, according to the last census
Foreigners can just purchase residential or commercial properties valued above a minimum Annual Rental Value (ARV), so only higher-value residential or commercial properties. The existing ARV is $126,000 (₤ 93,453) for houses - however is due to be examined on July 1 this year. This amount equates to around $3million (₤ 2.2 million) for homes and $600,000 (₤ 445,000) for apartments, according to Sotheby's International Real estate. Foreigners must get a licence to buy.
The high cost of living will soak up some of that tax benefit. A two-bed townhouse in Paget may cost $7,800 (₤ 5,785) a month to lease - rents are 215 percent higher than the UK, according to numbeo.com, although general cost of living is just 97 percent more.
CAYMAN ISLANDS
Like Bermuda, the Cayman Islands also has tax advantages: no corporation, income, capital gains or inheritance taxes
Like Bermuda, the Cayman Islands is a British Overseas Territory offering a tax-free and beachside way of life just 90 minutes south of Miami.
A high standard of living combined with low crime rate and Caribbean climate means an expat way of life focusing on breakfasts, boat parties and barbecues, with much of this centred around Seven-Mile Beach and west of George Town, the most significant town and company center of the three Cayman Islands.
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Why choose Cayman over Bermuda? Some say Cayman's scenery is less outstanding however the Cayman way of life is much better, specifically the foodie scene centred about Grand Cayman. Others state that while the cost of living is high in Cayman (it's still 41 per cent more than in the UK) it's lower than Bermuda.
It also has tax benefits: no corporation, earnings, capital gains or inheritance taxes.
Britons can stay up to 180 days without a visa then there are various routes to residency including a work authorization from a company or the digital nomad visa, the Global Citizen Concierge Program, which needs a minimum wage of $100,000 (₤ 74,242) but lasts 2 years.
There are other paths through significant forms of financial investment including a Certificate of Direct Investment (minimum KYD 1million/ ₤ 906,000). Or costs at least KYD 2million (₤ 1.8 million) on a residential or commercial property offers you long-term residency (plus independent funds) however not the right to work.
Foreigners can buy residential or commercial property however stamp duty at 7.5 percent is high. You can purchase a clever two-bedroom home for ₤ 350,000-₤ 400,000 around George Town or rent a one-bedroom condominium for around ₤ 2,300 a month.
Downsides include small-island mentality, few work alternatives and high electricity and home insurance expenses - all that stated, the hurricane danger is low.
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