The case
UK non-doms size up European tax breaks in hunt for fiscal advantage.
The commentary
The impending abolition of the UK’s non-domicile (non-dom) tax status has sparked a significant shift among wealthy residents, prompting them to explore alternative tax-friendly countries across Europe. The perk, which allows UK residents whose permanent home is abroad to avoid paying British taxes on foreign income and capital gains for up to 15 years, is set to be scrapped by 2025 under the new Labour government.
In response, wealthy individuals are eyeing potential fiscal havens such as Portugal and Switzerland, which offer competitive tax regimes. Portugal, with its Non-Habitual Resident (NHR) regime, and Switzerland, known for its lump-sum taxation, are among the popular choices. These locations, in addition to their favorable tax conditions, also offer lifestyle advantages, making them attractive alternatives to London, despite the city’s renowned social scene.