If you earn income from outside the country where you live, a non-domiciled (non-dom) tax regime could shield that foreign income from local taxation. For decades, the United Kingdom offered one of the world’s most generous versions of this arrangement. That era ended on April 6, 2025.
The UK’s abolition of its historic non-dom system has reshaped the tax planning options available to internationally mobile individuals. But the concept itself has not disappeared. Several European countries still offer non-dom or non-dom-style regimes, each with distinct rules, costs, and trade-offs.
Understanding how they work can help you decide whether relocating your tax residence makes sense for your situation.
What Non-Dom Status Means
Non-domiciled status separates where you live from where your permanent home is considered to be. Your domicile is typically your country of origin or the place you intend to return to permanently. If you reside in a country but maintain domicile elsewhere, you may qualify for non-dom treatment.
You pay tax only on income generated within your country of residence. Foreign income stays outside the local tax net, either entirely or until you bring it into the country.
This distinction matters if you hold investments abroad, receive foreign dividends, or run businesses outside your country of residence. Under ordinary tax rules, most countries would tax all of this. Non-dom regimes create an exception.
Two main approaches exist.
- Remittance-based systems tax foreign income only when you transfer it into the country.
- Territorial systems exempt foreign income regardless of whether you bring it in.
The former UK model followed the remittance basis. Countries like Singapore and Panama operate territorial systems.
The UK’s New Reality
The United Kingdom operated its non-dom regime for over 200 years. Wealthy expatriates could avoid UK taxes on overseas income and capital gains for up to 15 years, provided they did not bring those funds into the country.
That system no longer exists for new arrivals. The UK replaced it with the Foreign Income and Gains (FIG) regime, which took effect in April 2025.
Under the new rules, individuals who have not been UK tax residents for at least ten years immediately before applying can claim a four-year exemption on foreign income and gains. After that window closes, the UK taxes your worldwide income at standard rates.
The shift triggered a mass departure. According to data from the Henley Wealth Migration Dashboard, the UK lost 10,800 millionaires in 2024 alone. Between October 2024 and July 2025, nearly 3,800 company directors moved their official residence abroad, representing a 40% increase from the same period the previous year.
Jimmy Sexton, Founder and CEO of Esquire Group, believes the UK is “making every wrong financial decision possible.” He argues the changes have weakened the country’s ability to attract global capital.
If you already established UK tax residence under the old rules before April 2025, transitional provisions may apply. New arrivals face stricter conditions.
Ireland Preserves the Original Model
Ireland operates a non-dom regime that closely resembles what the UK once offered. If you are tax resident in Ireland but maintain domicile elsewhere, foreign income faces taxation only when you remit it to Ireland.
Several features make Ireland’s version more attractive than the former UK system.
There is no time limit. The UK imposed deemed-domicile rules after 15 years, forcing long-term residents onto worldwide taxation. Ireland has no such cutoff. You can use the remittance basis indefinitely, as long as you do not acquire Irish domicile.
There is no annual fee. The UK charged £30,000 or £60,000 per year for non-doms who had been resident for seven or more years. Ireland imposes no equivalent charge.
There is no formal application process. You qualify based on your circumstances, not through an approval procedure.
The rules governing what constitutes a remittance are extensive and technical. Using a foreign credit card for purchases in Ireland, withdrawing cash from foreign accounts at Irish ATMs, or transferring funds to Irish bank accounts can all trigger tax liability. Planning ahead is essential.
For those who structure their affairs carefully, Ireland offers the possibility of near-zero taxation on foreign income while maintaining full EU residency.
Italy’s Flat Tax Reaches €300,000
Italy takes a different approach. Rather than exempting foreign income entirely, the country offers a lump-sum tax that replaces ordinary taxation on non-Italian earnings.
On December 30, 2025, Italy officially raised this flat tax to €300,000 per year. Family members can be included for an additional €50,000 each. The regime lasts up to 15 years.
This marks the second increase in two years. The government set the original rate at €100,000 when the program launched in 2017, then doubled it to €200,000 in 2024.
The higher threshold filters for ultra-high-net-worth individuals. If you earn €1.5 million or more annually from foreign sources, the math still works in your favor.
Top marginal rates in most European countries exceed 45%, often combined with wealth taxes, inheritance taxes, and extensive reporting obligations. Italy’s flat tax eliminates all of that for qualifying foreign income.
You also gain exemption from Italian gift and inheritance tax on foreign assets. This benefit appeals to families engaged in intergenerational wealth planning. Italy also offers additional special tax regimes for specific situations.
To qualify, you must not have been an Italian tax resident for at least nine of the previous ten years. The regime applies only to foreign-sourced income. Any money you earn within Italy faces standard Italian rates.
Timing matters. Italy has respected grandfathering principles in both rate increases. If you established residence before December 30, 2025, you can continue paying the €200,000 rate for the full 15-year period.
Greece Offers Two Paths
Greece introduced its own non-dom programs in 2019 and 2020, targeting different profiles.
The investor regime requires a minimum €500,000 investment in Greek assets. In return, you pay a flat €100,000 per year on all foreign income, regardless of the amount. The program runs for up to 15 years. Family members can be added for €20,000 each.
Foreign income under this arrangement is entirely exempt from Greek taxation. You are not required to declare it. Assets held abroad face no Greek wealth taxes. Income generated within Greece, by contrast, falls under standard rates.
Malta and Cyprus
Malta operates a remittance-based system similar to Ireland’s. If you are tax resident but not domiciled in Malta, foreign income kept abroad remains untaxed. The minimum annual charge is €5,000, well below what the UK used to require.
There is no deemed-domicile rule. You can maintain non-dom status indefinitely without being forced onto worldwide taxation after a set number of years.
Cyprus doesn’t use a remittance system. Instead, it taxes individuals on worldwide income once you’re tax resident there. However, if you’re tax resident but not domiciled in Cyprus, you can be exempt from the Special Defence Contribution (SDC) on dividends and most passive interest for up to 17 years. This means these types of income aren’t subject to SDC whether they’re earned abroad or in Cyprus; the exemption isn’t based on remitting funds into the country.
High earners in Cyprus also enjoy a 50% tax exemption on employment income above €55,000 annually.
Choosing the Right Regime
Each non-dom option involves trade-offs. Ireland offers the most generous terms but requires careful planning around remittance rules. Italy provides certainty through its flat tax but at a higher cost.
Greece combines investment requirements with straightforward exemptions. Malta and Cyprus balance EU access with favorable tax treatment.
Your decision depends on factors including the size and sources of your foreign income, how long you plan to stay, whether you need EU residency, and your tolerance for complexity.
The UK’s exit from the non-dom market has not eliminated opportunities. It has simply shifted them to countries willing to compete for internationally mobile wealth. For those prepared to relocate, the options remain substantial.
