Which Countries Have Non-Domicile Regimes?

When it comes to tax planning in the world of business, one term that often pops up is “non-domicile”, most commonly referred to as “non-dom”, status. For some, it sounds like something complicated and reserved for high-net-worth individuals with teams of accountants – essentially, an idea totally inaccessible to most normal people.

While that’s partly true, the concept is fairly straightforward once you break it down. That is, a non-domicile regime is a set of rules that allow people who live in a country but are not legally considered “domiciled” there to be taxed in a more favourable way, often on foreign income.

But first, what does domiciled mean? Being domiciled means that a person is legally recognised as having their permanent home in a particular country, regardless of where they are currently living.

Now, non-these regimes exist in several countries around the world and are designed to attract wealthy individuals, entrepreneurs and investors. By offering an alternative tax treatment, they encourage people to base themselves in that country while keeping their global wealth relatively sheltered.

However, the idea of a non-domicile regime (and its attractiveness) is one thing, but in reality, there are only a few countries in the world that actually operate in this way.

 

What Is a Non-Domicile Regime? More Detail 

 

We’ve got the basics, but there’s a lot more to the idea of a non-dom regime than just the basics that we’ve outlined.

So, first and foremost, a person’s domicile is their legal home. Importantly, it’s not the same as residency, which is simply where you live for a certain number of days in a year. Your domicile, on the other hand, is usually the country you consider your permanent home or where you intend to return to indefinitely.

In a non-domicile regime, people who are resident in a country but have their permanent home elsewhere may be allowed to pay tax only on income earned within that country. In some cases, they can choose to pay tax on foreign income only if it is brought into the country. This is often referred to as the “remittance basis” of taxation.

It’s not just about paying less tax, although that is the obvious attraction, especially for business owners and other high earners. Rather, it’s more about flexibility. These regimes are particularly appealing for individuals with complex international finances, investments or business interests that are spread across several countries.

 

The UK’s Famous Non-Dom Regime: Non-Dom No Longer?

 

One of the most well-known examples of a non-dom regime is the United Kingdom – well, it was up until the issue became controversial among politicians in the lead-up to the most recent election. And, while the UK non-dom regime has been around for over a century and has attracted thousands of wealthy individuals over the years, it was officially ended in April 2024.

Before this, however, non-doms in the UK could choose to be taxed on a remittance basis – this means that they only pay UK tax on income and gains that arise in the UK or are brought into the UK. This benefit didn’t come for free, though. After being a resident for a certain number of years, individuals were expected to pay an annual charge to continue claiming the status.

The Labour Government recently made changes to the UK’s non-dom status, stating that, from 6 April 2025, the previous rules for non-UK domiciled individuals would end, and the concept of domicile as a relevant connecting factor in the tax system would be replaced by a system based on tax residence.

However, the practical applications of this aren’t as simple as the UK’s historic non-dom regime suddenly ending from the 5th of April to the 6th. In reality, the new regulations state that UK residents with existing non-dom status would have three years to transition out of this phase and into paying tax on all earnings, while anybody moving to the UK after April 2025 would not pay tax on money earned overseas for the first four years, after which they would be taxed on everything.

For all intents and purposes, even if everything goes according to these plans, it’ll only be after three years that the UK’s changing non-dom status will actually have any real effect. And in reality, a lot could change before then, so it remains to be seen whether there will actually be any real shift.

 

 

Other Countries with Non-Domicile Regimes

 

While the UK may have popularised the idea, it’s definitely not the only country with these kinds of rules. Here are some other jurisdictions with non-domicile or similar preferential tax systems, with Ireland, Malta and Cyprus as the three best known:

 

Ireland

 

Ireland offers a non-dom regime very similar to the UK’s, using the remittance basis for foreign income and capital gains. This makes it attractive for those who want access to the EU market while keeping their global tax liabilities under control.

In practice, this means entrepreneurs can operate from Dublin while structuring global businesses efficiently. Ireland’s strong double tax treaty network also reduces the risk of income being taxed twice, making it especially attractive to US and European investors. Combined with a vibrant tech and startup scene, the regime ties in neatly with wider opportunities.

 

Malta

 

Malta’s non-domicile regime allows foreign residents to be taxed only when remitted to the country. It’s particularly popular because Malta also offers a range of residency and citizenship schemes. Essentially, the country’s tax treaties can also reduce the risk of double taxation.

Another appeal is lifestyle. Malta is an EU member state, English-speaking and well connected to Europe. For wealthy individuals, this creates a unique blend of lifestyle and fiscal advantages too. The regime has been used by business owners looking to manage both personal income and corporate structures from a stable yet simultaneously flexible location.

 

Cyprus

 

Cyprus has positioned itself as a tax-friendly location for international residents. Non-doms are exempt from tax on dividends and interest, even if sourced from abroad, for a set number of years. Cyprus is especially appealing to those with investment-heavy income streams.

The island also offers a pretty favourable corporate tax rate of 12.5%, one of the lowest in the EU, which is very attractive for entrepreneurs setting up holding companies. Its geographic location between Europe, Asia and Africa makes it a strategic hub, especially for shipping and finance. This combination strengthens the appeal of its non-dom framework.

 

Gibraltar

 

This small British Overseas Territory offers a favourable system for non-doms. Individuals are taxed on income accrued in Gibraltar, with foreign income often untouched. Combined with low overall tax rates, Gibraltar tends to attract both businesses and individuals.

Another key factor is simplicity. The local tax code is relatively straightforward compared to larger jurisdictions, which appeals to individuals who prefer fewer compliance burdens. Gibraltar also benefits from its proximity to Spain, allowing access to European living standards while retaining its unique tax advantages. Financial services and gaming industries have particularly flourished here.

 

Italy

 

Italy’s non-dom regime is a newer entrant to this list. Residents can opt to pay a flat tax on foreign income, rather than the standard progressive rates. This is particularly appealing to wealthy retirees and high-earning professionals moving to Italy for lifestyle reasons, of which, these days, there are many.

The flat tax is currently set at €100,000 per year, regardless of the size of foreign income, which creates predictability and security for high earners. Italy has marketed this heavily to athletes, celebrities and international executives, who can enjoy the Italian lifestyle without facing punishing tax rates on global wealth.

 

Greece

 

Greece has also jumped onboard with a regime offering flat annual tax rates for certain categories of foreign income. It’s been marketed heavily to retirees and entrepreneurs seeking Mediterranean living with tax advantages.

One of the standout features is the ability to lock in the preferential regime for up to 15 years, offering long-term certainty. This is attractive for those planning retirement in Greece’s islands or mainland cities. Combined with investment incentives in property and tourism, the regime positions Greece as both lifestyle and a top-notch financial destination.

 

Portugal

 

Portugal’s Non-Habitual Resident (NHR) programme works slightly differently but has similar aims. New residents can enjoy reduced or even zero tax on certain foreign income for a fixed period, making it a big draw for remote workers and retirees. It’s not technically non-dom, but it’s pretty similar.

The scheme typically lasts for 10 years and has been used extensively by digital nomads, pensioners and business owners relocating to Lisbon, Porto or the Algarve. It has also spurred significant property investment in Portugal, particularly from UK and French nationals looking for a tax-efficient yet culturally rich new base.

 

Jersey, Guernsey and the Isle of Man

 

These Crown Dependencies offer low personal tax rates and in some cases remittance-style systems. They also provide residency routes for high-net-worth individuals, so they’re very similar to non-dom regimes.

For example, Jersey’s personal tax rate is capped at 20%, with no capital gains or inheritance taxes, which makes it particularly appealing for wealth planning. Guernsey and the Isle of Man have similar regimes, combining strong financial services sectors with lifestyle advantages. Their political stability is yet another draw for high-net-worth families in particular.

 

Monaco

 

Monaco doesn’t have personal income tax (except for French citizens), which means residents effectively enjoy the same benefit as non-dom status, with no tax on foreign or local income.

Beyond taxation, Monaco also offers unparalleled lifestyle appeal, from its Mediterranean setting to its elite cultural and sporting events. It has become synonymous with luxury living, attracting entrepreneurs, athletes and entertainers too.

But, property is super expensive, and gaining residency requires significant financial commitments, meaning the regime is geared firmly towards the ultra-wealthy.

 

Switzerland

 

Switzerland offers lump-sum taxation to wealthy foreigners. Instead of taxing worldwide income, the tax is calculated based on living expenses, creating a predictable and often much lower tax bill.

Typically, this arrangement is negotiated directly with cantonal tax authorities, offering a degree of flexibility not seen elsewhere. Switzerland also provides political stability, world-class infrastructure and access to European markets, which makes it a long-standing choice for global elites. Its reputation for discretion adds another layer of appeal for private individuals.

 

Thailand

 

Thailand introduced a new Long-Term Resident (LTR) visa and tax incentives for high-net-worth individuals, skilled professionals and wealthy pensioners too. Some categories allow exemptions or reductions on foreign income tax if certain conditions are met.

The LTR visa can last up to 10 years and comes with additional perks like multiple re-entry privileges and reduced bureaucracy. For retirees, the combination of a low cost of living, warm climate and favourable tax rules has made Thailand a leading Asian hub for relocation, with  Bangkok and Phuket as particular hotspots.

 

Singapore

 

Singapore does not tax most foreign-sourced income unless it is received in Singapore, and its territorial tax system works in a way similar to non-dom status. This has made it a popular hub for expatriates with international earnings.

The country also offers one of the most business-friendly environments in the world, with low corporate tax rates and strong financial services infrastructure. For entrepreneurs, Singapore combines efficient administration, political stability and global connectivity. Its growing appeal to tech founders and family offices really highlights the strategic role of its territorial tax approach.

 

Hong Kong

 

Like Singapore, Hong Kong operates a territorial tax system, meaning only income arising in or derived from Hong Kong is taxable. Foreign-sourced income remains untaxed even if remitted to Hong Kong.

This has, historically, made Hong Kong a magnet for multinational corporations and wealthy individuals, particularly from mainland China. While recent political changes have raised concerns, it remains a highly efficient tax jurisdiction. Combined with its status as a global financial centre, the territorial tax system still carries strong international appeal.

 

Bahamas, Bermuda, Cayman Islands and Other Caribbean Nations

 

Many Caribbean jurisdictions have no personal income tax at all, which means residents, by default, are not taxed on foreign income. These territories often combine this with investor visa programmes.

Each of these jurisdictions has its own twist. The Bahamas, for example, markets itself as a luxury lifestyle destination with proximity to the US, while the Cayman Islands and Bermuda focus heavily on financial services and corporate structures. These locations are popular for those seeking both privacy and tax neutrality in global wealth planning.

 

United Arab Emirates

 

The UAE doesn’t levy personal income tax. Combined with its investor-friendly residency schemes, it operates effectively as a permanent non-dom jurisdiction for expatriates, making it one of the most popular places in the world to start a business.

Dubai and Abu Dhabi have become global business hubs, attracting entrepreneurs, consultants and family offices with world-class infrastructure and ease of doing business. The introduction of “Golden Visas” has further cemented the UAE’s role as a long-term base for wealthy individuals seeking security, opportunity and tax efficiency in the Middle East.

 

What Do These Regimes Exist?

 

The idea is simple. Countries want to attract wealthy individuals who will spend money locally, invest in property, employ people and contribute to the economy. Offering tax incentives is one way to make that happen, and that’s why it’s becoming an effective way to stimulate economies.

Of course, it’s not without criticism. Some argue these regimes give the rich an unfair advantage, while others see them as essential tools for competing in the global talent and investment market. But, from a purely practical perspective, they work. Countries that offer these incentives tend to see an influx of high-net-worth residents who boost the local economy in a variety of ways.

 

Things To Consider Before Moving for Non-Dom Benefits

 

So, if you’re thinking about relocating to take advantage of a non-domicile regime, remember that tax law is complex and most importantly, it changes regularly. What’s attractive today might look very different in five years, and it often does. There are also other considerations beyond tax, including cost of living, quality of life, visa requirements and long-term plans.

It’s also important to understand how your home country taxes its citizens or former residents. In some cases, you could still be liable for tax there even if you are a non-dom elsewhere, so at the end of the day, professional advice is essential before making a move based purely on tax incentives – it’s not worth finding out crucial information at a later stage.

Non-domicile regimes can offer huge financial advantages for the right person in the right circumstances. They’re designed to draw in wealth and talent, and they do exactly that. From the UK to Cyprus, Malta to Italy, these schemes have become an important part of how countries compete for residents on the global stage.

So, ultimately, if you’re considering it, do your homework. Moving countries is a big decision, and tax benefits are just one piece of the puzzle, no matter how attractive they may be. But for many, non-dom status is a powerful incentive that tips the balance in favour of packing their bags and starting a new chapter abroad.