Countries With Non-Dom Taxation In 2026

In this article we visit countries with non-dom taxation. Although the UK abolished its own non-dom regime in 2025, you can still find similar tax regimes in Europe and elsewhere. 

For greater context, we explain what non-dom taxation is, how it developed and why, plus the reasons the UK opted to abolish it. 

We then take a look at non-dom tax countries around the world, as well as some alternative options for those looking to reduce their tax burden. 

What Does “Non-Dom” Taxation Mean?

Non-dom is short for non-domiciled. It is a special legal definition dating back to colonial Britain whereby an individual’s tax liability is determined by their place of domicile, rather than their current country of residence.

It is similar to territorial taxation, in that a non-dom is only taxed on their local source income, while foreign income remains untaxed unless it is remitted to the country. The difference, however, is in the legal definition of domicile and how that impacts an individual’s ability to claim this status. 

Under the non-dom system, an individual’s domicile is determined not by where they currently reside but where they intend to reside in the future. 

For example, if the person was born overseas or their parents were, one can argue that this overseas country is their true domicile.

Similarly, if an individual currently resides in a non-dom country but fully intends to move abroad to live permanently in another country, that country could also be deemed their true domicile.

Non-Dom Taxation: Historical Context

To fully understand non-dom taxation, you must first understand the historical context. The legal definition of being domiciled for tax purposes dates back to the colonial era. 

At the time, Britain was at war with France. It was also still smarting from the loss of its American territories following a disastrous conflict, one which had resulted from heavy-handed British taxation. 

As the nerve centre of the world’s then largest empire (covering two-thirds of the globe), Britain wanted to ensure that wealthy traders and foreign landowners remained loyal to the Empire, and one way to do so was to limit their tax burden. 

In those days, it was common for a citizen of one of Britain’s many colonies to reside in the UK for several years for business reasons, then return to their country of domicile once their business had concluded. 

Non-dom taxation, therefore, solved the issue of double taxation while also keeping the merchant and landlord classes happy, maintaining their loyalty and ensuring their wealth ultimately remained within the British financial system. 

Even with the end of colonialism and the decline of the British Empire in the 20th century, this system still made sense, as immigrants from both current and former colonies came to Britain to seek their fortune before returning home to retire. 

Nonetheless, the policy remained controversial. For years politicians from both major parties sought to abolish the regime but were prevented from doing so out of fear that it would drive away wealthy foreigners and, with it, foreign investment. 

In 2017, the Conservative Party (Tories) amended the rules and included a “deemed domicile” clause, whereby, if an individual resided in the UK for 15 out of the past 20 years, then the UK should be considered their deemed domicile, thus they would no longer be able to claim non-dom status. 

Essentially, this placed a time limit on non-dom status, a solution which the government hoped would help alleviate the political pressure to abolish non-dom taxation, without chasing away wealthy citizens. 

For a time, at least, it worked. 

Why did the UK abolish non-dom taxation?

It’s strange to think that, in the 18th century, the UK government was a lot more attuned to the realities of global mobility than it is now.

Back then, Britain was a dominant, sea-faring superpower enjoying the lion’s share of the world’s wealth.

The 21st-century realities are very different, with a cost-of-living crisis, economic stagnation and high levels of government debt. Add to this, the years of austerity following the 2008 financial crisis, planting the seeds for Brexit. 

The final straw for non-dom taxation came in 2022, when it emerged that Akshata Murty was claiming the status, despite being the wife of the incumbent Prime Minister, Rishi Sunak. 

Although the Conservatives would have preferred to retain it, the political backlash was too much to ignore, prompting Sunak’s government to announce the end of non-dom taxation.

Following the 2024 general election, Sunak was succeeded by the Labour Party’s Kier Starmer, who followed through on his predecessor’s promise, announcing that the UK would finally abolish non-dom taxation in April 2025. 

As expected, it prompted capital flight from the UK to more tax-friendly countries, including zero-tax countries like Monaco and the UAE. 

Thus ended over two centuries of policy which had helped maintain London’s position as one of the world’s most important financial centres by being home to some of the world’s wealthiest individuals and families.

It was not the end of non-dom taxation entirely, however, because, as we’ll see, the concept of taxation based on one’s domicile continues on elsewhere. 

Non-Dom Tax Countries In Europe

Although the UK suspended its non-dom tax regime in 2025, non-dom taxation lives on in several countries, many of which are right on the UK’s doorstep.

The list includes three EU member states, along with Commonwealth countries in the Caribbean and elsewhere, with legal systems based on English common law. 

For contrast, we are also going to look at some alternative tax regimes which, although not non-dom regimes in the traditional sense, have a similar territorial tax-based structure. 

Finally, we will look at some alternative jurisdictions offering tax-free alternatives, which are worth exploring for comparison. 

While these are often the first port of call for many HNWIs leaving the UK, they are by no means the only options available. 

Indeed, when the UK announced it was scrapping its non-dom regime, many wealthy individuals realised they need not go too far to avail of an almost identical programme. 

Ireland

When Ireland gained its independence from Britain in 1922, it opted to retain many aspects of Britain’s legal system, including English Common Law and non-dom taxation.  

As an English-speaking, EU member state with a strong passport, Ireland is a popular destination for those seeking citizenship by descent.

Its low corporate tax rate, meanwhile, makes Ireland attractive to foreign companies, particularly US firms, in the tech, pharma and financial services sectors. 

One other advantage, which does not get mentioned as much, however, is that unlike the UK, Ireland retains a non-dom tax regime which is closely modelled on the defunct UK version.

Under this regime, non-domiciled individuals are only taxed on their Irish-sourced income, provided, of course, they do not remit said income into the country. 

There is always the possibility that the Irish government will opt to follow the UK’s lead and also cancel its non-dom programme, though it likely makes more sense to retain it and attempt to woo UK-based HNWIs.

One key advantage over other jurisdictions is Ireland’s unique relationship with the UK, which enjoys considerably more border fluidity compared to other EU members via the Common Travel Area. (The trade-off is that Ireland is not a Schengen member.)

That said, after years of British weather it’s easy to understand why UK-based HNWIs may prefer to opt for someplace sunnier. 

Gibraltar

Gibraltar is a tiny peninsular nation jutting out to sea where the Atlantic and Mediterranean meet. 

It shares a land border with Spain to the north and a maritime border with Morocco. Its most prominent feature is the towering Rock of Gibraltar, home to the famous Barbary apes, the only simian species found anywhere in Europe. 

Originally Spanish, Gibraltar became a British territory in 1713 and, as with many former British colonies, holds the official designation of British overseas territory.

The country, therefore, retains the King as head of state but is mostly self-governing, enjoying full domestic autonomy, while deferring to the UK in foreign policy matters. 

It has its own government, led by a Chief Minister (a position similar to Prime Minister) and sets its own independent fiscal policy. 

This is why, when the UK abolished its non-dom tax regime in 2025, Gibraltar was able to retain its own non-dom system, known as Category 2 status. 

Under this regime, you are only taxed on the first £118,000 (the Gibraltar pound is pegged to the UK pound 1:1) of worldwide income. To qualify for this status, you must not have been a resident in Gibraltar for the preceding five years. You also need to apply directly to Gibraltar Finance to receive a special certificate.

Aside from the tax benefits, Gibraltar’s main advantage is that it is a UK-adjacent, common law jurisdiction which uses the pound as currency and offers direct access to UK markets. 

This makes Gibraltar an ideal alternative to British-based HNWIs looking to reduce their tax burden while retaining close ties to the UK. 

On the other hand, this close alignment to Britain comes at the expense of EU membership, since Gibraltar left the EU, along with the UK, in 2020. 

The next country on our list, however, doesn’t have that problem and has instead been one of the primary beneficiaries of Gibraltar’s post-Brexit exodus.

Malta

The tiny island of Malta is a favourite of ours at Millionaire Migrant due to its attractive taxation and increasingly popular residency by investment programme.

Like Ireland, Malta is an English-speaking, EU member state and former British colony (it gained independence in 1964) with a legal system based on Common law. Unlike Ireland, however, it enjoys a Mediterranean climate and remains part of the Commonwealth. 

Malta offers a range of tax benefits, including its own variant of the UK’s defunct non-dom tax regime, whereby non-domiciled individuals are only taxed on their domestic-sourced income. All foreign-sourced income remains untaxed, provided it is not remitted to Malta. 

All this combines to make Malta a great all-rounder for low-tax living, though it is by no means the only such country in the region with these attributes.

Cyprus

Located in the eastern Mediterranean, the Republic of Cyprus is another European country boasting a competitive tax system and a residence by investment programme. 

Cyprus joined the EU in 2004, the same year as Malta and, like Malta, it is a former British colony (gaining independence in 1960) and a member of the Commonwealth. 

Unlike Malta, however, it is not a native English-speaking country and instead has Greek and Turkish as its official languages. 

The unresolved territorial issue, whereby the north of the island has remained under de facto Turkish control since the 1970s, continues to cast a long shadow over Cyprus. For this reason the country is not a Schengen member.

That blemish aside, the island has plenty going for it with a low rate of corporation tax, no wealth or inheritance taxes and a non-dom regime which exempts foreign-sourced income for up to 17 years. 

Considering Europe’s many alternatives, Cyprus may not be the ideal solution in every case, though if you are looking for a low-tax EU member with strategic proximity to MENA markets, it’s a no-brainer.

Non-Dom Alternatives: Europe

In addition to its non-dom programmes, Europe also has many special tax regimes which achieve the same or similar results, either by not taxing foreign-sourced income, or by taxing it at much lower rates. 

Also included in this list are a couple of lesser-known jurisdictions which, rather than providing special regimes, offer low rates of personal income tax. 

Portugal

Portugal’s specialist IFICI regime stands for the Tax Incentive for Scientific Research and Innovation. It offers an exception on foreign-sourced income for a period of up to ten years, plus a 20% flat tax on income derived from Portugal. 

The snag here, however, is that your Portuguese operations must be linked to qualifying industries such as science, technology, medicine or education. 

This is why we much preferred its predecessor, the NHR, which was far less narrow in scope. 

Spain

Next up, Spain and its Special Expatriate Regime, which is a little more flexible compared to that of its Portuguese neighbour.

The programme, better known as the Beckham Law after the famous English football player, offers exemptions on foreign income and a flat tax of 24% on local income, though only for six years, versus Portugal’s ten. 

The other catch is that this flat tax is capped, so if your local income exceeds €600,000, you will be taxed at standard income tax rates in excess of 45%. 

Andorra

Still heading east, we come to Andorra, a small principality located between Spain and France. 

Andorra is one of Europe’s lesser-known destinations, which is a shame, as it has much more to offer HNWIs than just fresh mountain air and skiing. 

No wealth or inheritance taxes, for a start,  VAT at just 4.5%, corporation tax capped at 10%, matched by a maximum 10% income tax rate for the highest earners. 

These rates obviously negate the need for a special tax regime, making Andorra a perfect example of a traditional low-tax jurisdiction. 

Bulgaria

Bulgaria is another country which tends to get left out of conversations about tax-friendly European jurisdictions. 

Unlike Andorra, which adopted the euro as its currency but is not in the EU, Bulgaria is an EU member state which has also just recently adopted the euro as its official currency. 

It’s also a low-tax country with corporate and personal income tax rates both capped at 10%. 

Italy 

One of the better-known programmes in Europe, Italy’s flat tax regime is designed for HNWIs who wish to reduce their tax burden while living in Italy.

It differs from other regimes on this list since worldwide income is still taxed, albeit at a flat rate of €200,000 each year, while locally sourced income is still taxed at higher progressive rates. 

This arrangement lasts for up to 15 years, adequate time to naturalise and become an EU citizen, if included as part of a golden visa strategy. Family members can also be added for an additional €25,000 per person. 

The problem, however, is that the €200,000 rate is double what it was before 2024, and there are rumblings about increasing the amount again to as much as €300,000.

This would make the regime far less attractive to HNWIs, especially when compared to its closest competitor in our next country. 

Greece 

Imitation, they say, is the best form of flattery, so no doubt Italian legislators must feel flattered by Greece’s flat tax regime.

However, while the Greeks may have copied Italy’s original design, they did not duplicate their mistake of doubling the rate, which means the annual flat rate you pay is just €100,000.

It’s also cheaper to add family members at €20,000 per year versus Italy’s rate of €25,000. 

This regime, however, also requires a minimum investment of €500,000, though you can invest in real estate if you so wish and can combine this all as part of a golden visa strategy. 

Non-Dom Countries: The Caribbean

While the Caribbean has a large number of both current and former British territories with legal systems based on Common law, it doesn’t have that many strict non-dom regimes. 

Indeed, many of the region’s most popular HNWI destinations are zero tax jurisdictions offering some of the world’s most popular citizenship by investment programmes. 

Barbados 

The island of Barbados gained independence from Britain in 1966, but it retains a legal system based on common law. 

It is a member of both the Commonwealth and CARICOM (Caribbean Community), but not the OECS. 

Barbados is one of the few countries in the region which makes a distinction between being domiciled or non-domiciled for tax purposes. In the case of the latter, you will only be taxed on your local-source income while your worldwide income is ignored. 

Jamaica

Jamaica gained its independence from Britain in 1962 but, through a strange regional quirk affecting Caribbean nations, retains its status as a constitutional monarchy, rather than a fully independent republic. 

So, although it is, in essence, a parliamentary democracy with full sovereignty, its official (though entirely ceremonial) head of state is still the British monarch, King Charles III. 

In addition to its ties to the monarch, Jamaica also retained many elements of British law, including a non-dom tax regime. Under this system, a non-domiciled individual will not be taxed on worldwide income, provided it is not remitted to Jamaica. 

That said, there is a reason we don’t mention this country much. While Jamaica has given the world much in terms of music, culture and cuisine, it doesn’t offer much for HNWIs. 

Unlike many of its Caribbean neighbours, which are more accustomed to catering to wealthy individuals, Jamaica’s famous “island pace” means its bureaucracy and services are sluggish even by Caribbean standards. The country’s crime rate also remains a concern, prompting the need for enhanced security. 

When all these factors are combined, you can see why the majority of HNWIs consider Jamaica not worth the hassle, opting to either go west to the Cayman Islands or other tax-free jurisdictions in the eastern Caribbean instead.

Non-Dom Alternatives: Latin America

While predominantly Latin by its very definition, the region was also partly subject to British influence, aspects of which persist to this day. 

Elsewhere, the region boasts popular non-territorial jurisdictions which offer welcome alternatives to the UK’s now-defunct non-dom regime. We are going to look at both now.

Belize

Located in Central America on the Caribbean coast, the former colony of British Honduras changed its name to Belize in 1973 before gaining full independence from Britain in 1981. 

It remains a member of the Commonwealth and is one of only two countries in the region which has English as an official language. (The other being Guyana.)

Strictly speaking, Belize does not have a non-dom regime, however it does have a territorial tax system. Add to this a legal system based on common law, and the overall effect is much the same. 

Panama

Panama is the region’s biggest financial centre, a popular destination for HNWIs and nomads looking to combine a high quality of life with low taxes. 

It uses the US dollar as currency and employs a territorial tax system, whereby only locally-sourced income is taxed at a maximum rate of 25%.

Paraguay

Next, we come to one of the up-and-coming countries in the global mobility community. 

Paraguay offers a territorial tax system and a fast-tracked path to residency, without the need to invest. All you need is a good business plan and an intention to establish a business at a later date. 

Your locally sourced income will still be taxed, but if the majority of your income is foreign, Paraguay makes a lot of sense, while positioning your new operation at the very heart of the growing Latin American market. 

Non-Dom Alternatives: Zero Tax Jurisdictions

While non-dom and similar territorial or low-tax jurisdictions are appealing for many reasons, given the choice, most of us would prefer to pay absolutely no tax whatsoever. 

With that in mind, let’s look at some of the more popular tax-free jurisdictions in Europe, the Caribbean and beyond. 

Monaco

The Principality of Monaco is the premier tax destination in Europe. 

While there are many low-tax countries in Europe, Monaco is 100% tax free, making it ideal for HNWIs. 

Situated on the glamorous French Riviera, bordering France and a short drive from northern Italy, it’s also an ideal location for European geoarbitrage allowing residents to take full advantage of the country’s strategic position.

The Caribbean 

While some remnants of the UK’s non-dom system remain (see above), they tend to be superseded by the large number of zero-tax options available in the Caribbean. 

These include several current and former British territories, as shown in the table below:

Jurisdiction	Status	Currency	CBI
Anguilla	British overseas territory	East Caribbean Dollar	No
Antigua & Barbuda	Independent (1981)	East Caribbean Dollar	Yes
The Bahamas	Independent (1973)	Bahamian Dollar	No
Bermuda*	British overseas territory	Bahamian Dollar	No
British Virgin Islands	British overseas territory	US Dollar	No
Cayman Islands	British overseas territory	Cayman Islands Dollar	No
St. Kitts & Nevis	Independent (1983)	East Caribbean Dollar	Yes
Turks & Caicos	British overseas territory	USD	No

All the above are common law jurisdictions. While the majority of these are British Overseas Territories, the independent countries on this list retain King Charles III as their official (though largely ceremonial) head of state, which is characteristic of the Caribbean region. 

Note, we have also included Bermuda in this list. Although technically not in the Caribbean but rather the Atlantic, it maintains many of the same attributes as other islands. 

Both Antigua and Barbuda and Saint Kitts and Nevis have citizenship by investment programmes, with the latter having the distinction of offering the world’s first CBI programme.

United Arab Emirates 

The United Arab Emirates is fast becoming the premier destination for wealthy, UK-based individuals looking to reduce their tax burden – and with good reason. 

Comparing the UAE vs the UK isn’t really a fair fight, because the UAE wins in almost every category. 

It’s a zero-tax jurisdiction with a business-friendly government, a strong focus on innovation and an excellent standard of living. (Just some of the reasons our offices are based here.)

The UAE’s reputation has been further bolstered by sustained media coverage of British wealth migration, including several billionaires and prominent business leaders. 

Non-Dom Versus No-Tax

One clear advantage of being in a no-tax rather than a territorial-based system is that you need not worry about remittances. 

This is the trap many people fall into, especially since some countries have stricter remittance policies than others. 

Another potential pitfall is that of residency rules, which are often vague and therefore require professional tax advice to ensure compliance. 

Switching to a no-tax jurisdiction like Monaco or the UAE negates these risks completely, allowing you to focus on growing your business, investments and wealth unimpeded. 

Countries With Non-Dom Taxation: Key Takeaways

• The UK abolished its non-dom tax regime in 2025, prompting an exodus of HNWIs. 
• The UAE has since become the most popular destination for wealthy migration from Britain.
• Ireland, meanwhile, has since emerged as the leading non-dom jurisdiction as it most closely resembles that of the UK’s defunct regime. 
• Similar programmes exist in Gibraltar, Malta and Cyprus, as well as Barbados and Belize. 
• The concept of non-domiciled taxation is a holdover from the British Empire, though the concept has been mostly superseded by tax-free jurisdictions which offer more clarity and flexibility. 

Countries With Non-Dom Taxation: Conclusion

The end of Britain’s non-dom regime resulted in a rush of HNWIs leaving the UK for more tax-friendly jurisdictions like Dubai.

It also marked a watershed moment for Britain, whereby it relinquished its support for the principles of global mobility, which it once upheld. 

For generations, the British government understood that, although the UK may not be your final destination, it was still a critical step on your road to success. 

Coming to London from overseas was often seen as a rite of passage, a place to seek your fortune, though not anymore. Now that traffic is going in the opposite direction, as more young people join the wealthy by leaving the UK in search of a better life overseas. 

With the UK’s programme gone, it remains to be seen how other countries will adapt, perhaps replacing their existing non-dom type programmes with more contemporary offerings. 

One immediate effect of the UK’s tax changes has been an increased demand for alternative programmes, so we could also see more countries launching new regimes in 2026. 

This would be great news for the industry, but not necessarily from a consumer point of view. The tax landscape is confusing enough as it is without even more programmes to try and make sense of – it’s a frustration we encounter a lot.

Which is exactly why we have a team of dedicated researchers who do all that hard work for you, keeping on top of the latest programmes and changes to existing tax regimes to ensure you always have the most accurate, up-to-date information. 

Our advisors ensure you make the best choices, helping you weigh up the pros and cons of each jurisdiction to find the best solution for your needs. 

To avoid those tax headaches and make the best decisions with confidence, contact Millionaire Migrant today.

Non-Dom Taxation: FAQs

What is “non-dom” status?

Non-dom is short for non-domiciled, a tax status originally devised by the UK for those who were resident in the country but whose home country, or domicile, was elsewhere.

These included foreigners living in the UK who planned on repatriating to their home country at a later date, or individuals who planned on leaving the UK to live permanently overseas.

By claiming “non-dom” status, your foreign income would remain untaxed, provided it was not remitted to the UK. Britain abolished the regime in 2025, though similar schemes remain active in several current or former British territories.

Why did the UK abolish non-dom status?

The UK’s non-dom regime has always been controversial, and over the years, various political parties have attempted to either reform the regime or scrap it entirely. 

A pivotal point came during the tenure of former PM Rishi Sunak, when it emerged that his wife, the wealthy heiress and businesswoman Akshata Murty, was claiming non-dom status. 

Although Murty is an Indian citizen and was therefore well within her rights to do so, the fact that she was married to a sitting Prime Minister at the time proved problematic.

The resulting media backlash brought further attention to the already-controversial tax regime, ultimately prompting the government to abolish it. 

When did the UK abolish non-dom status?

The UK abolished its non-dom tax regime in April 2025, ending a system which had been in place since the 18th century. 

What was the consequence of the UK ending its non-dom regime? 

When the Labour government announced it was finally scrapping the regime during the October 2024 budget, it kicked off an exodus of wealthy individuals leaving the UK for more tax-friendly jurisdictions, with the United Arab Emirates emerging as one of the top destinations. 

Which countries still offer non-dom status?

Variants of the UK’s non-dom regime live on in several jurisdictions which are either former or current UK territories. The closest such regime to the old UK non-dom system is in the Republic of Ireland, which maintains numerous aspects of the UK’s common law system. 

Other countries with non-dom status include the British overseas territory of Gibraltar, and former UK territories turned EU member states, Malta and Cyprus. 

It’s worth mentioning, however, that many more countries, including Panama, Georgia and Singapore, dispense with the concept of being domiciled or non-domiciled entirely. Instead, they offer a purely territorial tax system, whereby only locally sourced income is taxed. 

Could other countries follow the UK’s lead and cancel their non-dom programmes?

Possibly. With a cost-of-living crisis to match the UK and a track record of taking cues from its neighbour, Ireland is probably the most likely country to follow suit. Though it may also prefer to capitalise by luring wealthy people to its shores much like it does foreign companies.

Gibraltar, Malta and Cyprus are less likely to scrap their non-dom programmes, or if they do, they will replace the regime with something even more competitive to help them contend with emerging jurisdictions like the UAE.