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5 EU Countries That Won't Tax Your Foreign Income · IMI Podcasts

• 0:00
  SPEAKER_00: When the UK scrapped its 226-year-old non-Dom tax regime, not only did 10,800 millionaires leave the country that year alone, tens of billions in wealth and assets also left.
• 0:13
  SPEAKER_00: But hold on, there's good news.
• 0:15
  SPEAKER_00: The non-Dom concept didn't die with it.
• 0:18
  SPEAKER_00: Several European countries still shield your foreign income from local taxation, and some of them even offer better terms than the UK.
• 0:26
  SPEAKER_00: IMI has gathered the intel on how each incentive works and which one fits your situation.
• 0:32
  SPEAKER_00: Before we get into specific countries, let's clarify what we're talking about.
• 0:37
  SPEAKER_00: Non-domiciled status separates where you live from where your permanent home is considered to be.
• 0:42
  SPEAKER_00: Your domicile is typically your country of origin or the place you intend to return to permanently.
• 0:49
  SPEAKER_00: If you reside in one country but maintain domicile in another, you may qualify for special tax treatment on your foreign income.
• 0:56
  SPEAKER_00: Why does this matter?
• 0:57
  SPEAKER_00: Because under ordinary tax rules, most countries tax your worldwide income.
• 1:02
  SPEAKER_00: Every foreign dividend, every offshore business profit, every overseas investment return gets taxed at local rates.
• 1:10
  SPEAKER_00: In much of Europe, that means 45% or more at the top.
• 1:14
  SPEAKER_00: These non-domicile or non-dom regimes create an exception.
• 1:19
  SPEAKER_00: Two main models exist.
• 1:21
  SPEAKER_00: First, remittance-based systems tax foreign income only when you transfer it into the country where you live and are tax resident.
• 1:30
  SPEAKER_00: Keep it offshore and you owe almost nothing, if not nothing, in local taxes.
• 1:35
  SPEAKER_00: Second, flat tax systems charge a fixed annual amount regardless of how much you actually earn abroad.
• 1:41
  SPEAKER_00: Whether your foreign income is€500,000 or 5 million euros, the bill is the same.
• 1:47
  SPEAKER_00: For over two centuries, the UK let non-domiciled residents use the remittance basis system.
• 1:53
  SPEAKER_00: You could live in London, earn millions from overseas businesses, and as long as you didn't bring that money into the UK, you paid nothing on it.
• 2:01
  SPEAKER_00: That ended on April 6, 2025.
• 2:05
  SPEAKER_00: The government replaced it with the Foreign Income and Gains Regime, or FIG.
• 2:10
  SPEAKER_00: Under the new rules, if you haven't been a UK tax resident for at least 10 consecutive years before you arrive, you get a four-year exemption on foreign income and gains.
• 2:20
  SPEAKER_00: Only four years, then the UK taxes your worldwide income at standard rates.
• 2:25
  SPEAKER_00: Compare that to the favorable benefits of the old system, which also lasted up to 15 years.
• 2:31
  SPEAKER_00: Global tax expert Jimmy Sexton believes the UK is making every wrong financial decision possible and weakening its ability to attract global capital.
• 2:41
  SPEAKER_00: The data supports that view.
• 2:42
  SPEAKER_00: According to the Henley Wealth Migration Dashboard, 10,800 UK-based millionaires left the country in 2024.
• 2:51
  SPEAKER_00: Between October 2024 and July 2025, another 3,800 company directors moved their official residence abroad, representing a 40% increase from the same period the previous year.
• 3:04
  SPEAKER_00: So the question is, where are all these people going?
• 3:08
  SPEAKER_00: Ireland is the first destination worth serious consideration.
• 3:12
  SPEAKER_00: It operates a remittance-based non-DOM regime that closely mirrors what the UK once offered.
• 3:17
  SPEAKER_00: But in several critical ways, Ireland's version is even more attractive.
• 3:21
  SPEAKER_00: If you're tax resident in Ireland but domiciled elsewhere, your foreign income is only taxed when you remit it.
• 3:28
  SPEAKER_00: Keep it outside Ireland and it's tax-free.
• 3:31
  SPEAKER_00: Three features set Ireland's incentives apart.
• 3:34
  SPEAKER_00: First, there is no time limit.
• 3:36
  SPEAKER_00: The UK used to impose deemed domicile rules after 15 years, forcing long-term residents onto worldwide taxation.
• 3:44
  SPEAKER_00: You can use the remittance basis indefinitely as long as you avoid Irish domicile.
• 3:50
  SPEAKER_00: Second, there is no annual fee.
• 3:52
  SPEAKER_00: The UK charged£30,000 or£60,000 per year for non-DOMs who had been resident for seven or more years.
• 4:00
  SPEAKER_00: Ireland charges nothing.
• 4:03
  SPEAKER_00: Third, there is no formal application process.
• 4:05
  SPEAKER_00: You qualify based on your circumstances, not through a government approval procedure.
• 4:10
  SPEAKER_00: The catch is that remittance rules are extensive and technical.
• 4:14
  SPEAKER_00: Using a foreign credit card for a purchase in Ireland, withdrawing cash from a foreign account at a local ATM, or transferring any funds to an Irish bank account can trigger tax liability.
• 4:26
  SPEAKER_00: Planning ahead with a qualified advisor is essential.
• 4:29
  SPEAKER_00: You can find, sort, and contact experts in any jurisdiction, not just Ireland, at imidaly.com.
• 4:37
  SPEAKER_00: For those who manage their affairs carefully, Ireland offers near zero taxation on foreign income with full EU residency and no expiration date.
• 4:47
  SPEAKER_00: Now, Italy takes a fundamentally different approach by letting you replace ordinary taxation with a single flat annual payment.
• 4:55
  SPEAKER_00: On December 30th, 2025, Italy raised this flat tax to€300,000 per year.
• 5:01
  SPEAKER_00: Family members can be included for an additional€50,000 each, and the regime lasts up to 15 years.
• 5:08
  SPEAKER_00: This is the second increase in two years.
• 5:11
  SPEAKER_00: When the program launched in 2017, the rate was€100,000.
• 5:16
  SPEAKER_00: Then it doubled to€200,000 in 2024, then jumped again to its current level.
• 5:21
  SPEAKER_00: The higher threshold clearly filters for ultra-high net worth individuals.
• 5:26
  SPEAKER_00: But run the numbers.
• 5:27
  SPEAKER_00: Top marginal rates across Europe exceed 45%, often layered with wealth taxes, inheritance taxes, and extensive reporting requirements.
• 5:37
  SPEAKER_00: If your foreign income exceeds roughly 1.5 million euros, Italy's flat tax still saves you a considerable amount and it eliminates the compliance burden entirely for qualifying income.
• 5:48
  SPEAKER_00: There's another benefit that most investors don't mention.
• 5:51
  SPEAKER_00: As a flat tax beneficiary, you gain exemption from Italian gift and inheritance tax on foreign assets.
• 5:59
  SPEAKER_00: For families planning intergenerational wealth transfers, that can be worth just as much as the annual income tax savings.
• 6:07
  SPEAKER_00: To qualify, you must not have been an Italian tax resident for at least nine of the previous 10 years.
• 6:13
  SPEAKER_00: Any income earned within Italy still faces standard Italian rates.
• 6:17
  SPEAKER_00: Greece entered this European tax incentives market more recently, launching its non-DOM programs in 2019 and 2020.
• 6:25
  SPEAKER_00: The non-DOM investor regime requires a minimum€500,000 investment in Greek assets.
• 6:32
  SPEAKER_00: In exchange, you pay a flat€100,000 per year on all foreign income, regardless of the amount.
• 6:39
  SPEAKER_00: The program runs for up to 15 years, and family members can be added for€20,000 each.
• 6:45
  SPEAKER_00: Foreign income under this arrangement is entirely exempt from Greek taxation.
• 6:49
  SPEAKER_00: You're not required to declare it, and foreign assets face no Greek wealth taxes.
• 6:54
  SPEAKER_00: Income generated within Greece, however, falls under standard rates, just like in Italy.
• 6:59
  SPEAKER_00: At€100,000 per year versus Italy's€300,000 per year, Greece looks cheaper on the surface.
• 7:06
  SPEAKER_00: But the€500,000 investment in Greek assets, of course, adds some complexity.
• 7:12
  SPEAKER_00: The question is whether that investment fits your broader financial strategy.
• 7:17
  SPEAKER_00: If real estate is your preferred route, that investment requirement can actually work in your favor.
• 7:22
  SPEAKER_00: Invest in Greece Golden Visa eligible property, and you're putting capital into a tangible asset in one of Europe's strongest tourism markets, while simultaneously accessing the flat tax regime.
• 7:35
  SPEAKER_00: You can find some of these eligible properties, by the way, on IMI Real Estate, where only listings that qualify for residency or citizenship are collected.
• 7:44
  SPEAKER_00: Check it out.
• 7:45
  SPEAKER_00: Two more EU options round out the picture.
• 7:48
  SPEAKER_00: Malta operates a remittance-based system similar to Ireland's.
• 7:52
  SPEAKER_00: If you're tax resident but not domiciled in Malta, foreign income held abroad is not taxed locally.
• 7:58
  SPEAKER_00: The minimum annual charge is just€5,000, a fraction of what the UK used to require.
• 8:04
  SPEAKER_00: Like Ireland, Malta has no deemed domicile rule either.
• 8:08
  SPEAKER_00: You can maintain non-dom status indefinitely without being forced into worldwide taxation after a set number of years.
• 8:16
  SPEAKER_00: Cyprus works differently, though.
• 8:18
  SPEAKER_00: The Cypriot system taxes residents on worldwide income once you're tax resident there.
• 8:23
  SPEAKER_00: However, if you're tax resident but not domiciled in Cyprus, you can be exempt from the Special Defense Contribution, or SDC, on dividends and most passive interest for up to 17 years.
• 8:36
  SPEAKER_00: This exemption applies whether the income is earned in Cyprus or abroad.
• 8:41
  SPEAKER_00: It is not tied to where the funds sit.
• 8:43
  SPEAKER_00: High earners in Cyprus also benefit from a 50% tax exemption on employment income above 55,000 euros annually.
• 8:51
  SPEAKER_00: Each of these six regimes involves trade-offs, of course.
• 8:54
  SPEAKER_00: Your decision depends on the size and source of your foreign income, how long you plan to stay, whether residency and citizenship matter to you in the long run, and how much complexity you're willing to manage.
• 9:06
  SPEAKER_00: None of these decisions should be made without professional advice tailored to your circumstances.
• 9:12
  SPEAKER_00: If you want to continue learning about tax incentives and you'd be thrilled to pay a single amount every year despite your rising income, check out this video on your screen now about all flat tax regimes in Greece, Switzerland, Italy, and Anguilla.
• 9:28
  SPEAKER_00: And if you want IMI's analysis in your inbox every week, subscribe to our free newsletter at IMIDAily.com.