Saed News: The UK’s move to end its preferential tax treatment system for wealthy foreigners draws attention to other countries that offer benefits and privileges to global elites.
According to Saed News, quoting Fararu, the UK has announced that it will abolish the system that allows individuals living there but with permanent residency abroad to avoid paying taxes on their foreign assets for up to 15 years. This revision of the system, which has provided preferential treatment for wealthy foreigners, comes as the growing wealth gap in many Western countries forces some governments to restrict tax and citizenship benefits for immigrants. Portugal has also announced plans to eliminate its "non-habitual resident" program, which allows foreigners to pay lower income and pension taxes than local residents for ten years.
So, where can wealthy migrants from the UK and elsewhere move to protect their assets? Here are five countries offering benefits to foreign residents:
Since implementing a new tax law in 2016, both residents and non-residents in Antigua and Barbuda are exempt from taxes on income earned abroad. This policy has been a major economic driver, attracting wealthy investors and boosting the real estate market. Additionally, there is no wealth or inheritance tax on the islands.
Foreigners can also obtain guaranteed citizenship, granting visa-free travel to Europe for a minimum investment of $100,000. Antigua and Barbuda citizens can travel visa-free to 154 countries. However, wealthy individuals considering this option should be aware that the European Union is pushing to restrict visa-free access and pressuring Caribbean nations to tighten or eliminate their citizenship-by-investment programs.
Dubai and the UAE have attracted a wave of hedge fund managers and bankers from around the world due to their lenient tax laws and luxury amenities. The UAE imposes no personal income tax, capital gains tax, inheritance tax, or property tax and has one of the world's lowest corporate tax rates—9% for companies earning over 375,000 dirhams ($102,000) annually.
The country has also expanded its long-term residency visa program to include entrepreneurs and engineers. However, Dubai is becoming increasingly expensive due to its popularity, driving up real estate prices and creating long waitlists for international schools and private clubs.
Italy’s generous tax system for foreigners, introduced in 2017, has been highly effective in attracting immigrants. The number of people moving to Milan to take advantage of the tax exemptions more than doubled in 2021, reaching over 1,300. New residents pay a flat annual fee of €100,000 ($109,000) and are exempt from taxes on foreign income. Additionally, those who have not resided in Italy for two fiscal years can receive a 50% tax reduction on Italian income.
The surge in demand has led to rising property prices and increased living costs in Milan, creating tensions with local residents. However, as the UK and Portugal phase out their incentives for foreign residents, financial advisors say Italy remains a key destination for global migrants—particularly from the US and the Middle East—looking to relocate their wealth to a low-tax European country.
Singapore presents a mixed picture for wealthy migrants. While the city-state has benefited from China's crackdown on Hong Kong, its decision last year to increase property taxes by 60% for foreign buyers has reduced its appeal. Nonetheless, Singapore’s personal income tax rate remains low, capped at 22%.
However, purchasing a $5 million home in Singapore requires a foreign buyer to pay 65% in taxes and fees—much higher than the approximately 4% in New York, 15% in London, or 30% in Hong Kong.
Multi-millionaires continue to flock to Monaco to enjoy its casinos, lavish lifestyle, and low taxes. The tiny country serves as a playground for European elites since residents pay no wealth tax, personal income tax, or capital gains tax. Rental properties are subject to just a 1% tax on annual rent, and Monaco has eliminated dividend taxes and corporate income tax.
According to a recent Knight Frank wealth report, Monaco has the world's most expensive real estate market, with just 15 square meters of property available for $1 million. Residency in Monaco can be obtained through an investment of at least €1 million ($1.1 million).
For countries that impose higher taxes but offer strong public services and quality of life, France, Belgium, Denmark, and Japan rank among the highest-taxing nations.
✈️France imposes a top income tax rate of 45%, plus an additional 3% surtax on earnings over €250,000 ($273,000). Capital gains tax is 19%.
✈️Denmark has an income tax rate that reaches 52%.
✈️Belgium taxes income over €46,440 at 50%.
✈️Japan also has a top income tax rate of 45%.
While these high-tax countries provide excellent social benefits, they may be less attractive to wealthy individuals seeking to minimize their tax burden.
