What Was the Non-Dom Status?

🧾 What Was the Non-Dom Status?

The non-domiciled status, or non-dom for short, was a tax classification for foreigners living in the UK but claiming their permanent tax residency elsewhere. This status allowed them to:

✅ Keep foreign income tax-free as long as it wasn’t brought into the UK
✅ Keep foreign-held assets outside the scope of UK inheritance and estate tax
✅ Enjoy significant tax benefits for up to 15 years

For international families, entrepreneurs, hedge funds and property investors, this system was a strategic tool for wealth protection and tax optimisation.

🔁 What Has Changed?

Since April 2025, the non-dom regime has been fully abolished. Foreigners living in the UK are now taxed just like UK citizens — including on their worldwide income and foreign assets.

The result?
💼 A rapid exodus of high-net-worth individuals from London
💸 Capital flowing into more tax-efficient jurisdictions
📦 Dozens of family offices, trust firms and private equity branches shutting down

According to experts at Henley & Partners, an estimated 16,000+ millionaires are expected to leave the UK this year — a record high.

🌍 Where Is the Capital Going?

Here are some of the most popular destinations for the former non-dom elite:

1 🇦🇪 Dubai (United Arab Emirates)

💡 A favourite among entrepreneurs, investors and digital nomads

Dubai has become the number one alternative thanks to:

✅ 0% income tax
✅ No capital gains tax or inheritance tax
✅ The 10-year Golden Visa based on property or business investment
✅ A stable economy, cutting-edge infrastructure, and high quality of life

🇦🇪 Abu Dhabi (United Arab Emirates)

💡 An emerging destination for family wealth and institutional investors

Alongside Dubai, Abu Dhabi is rapidly positioning itself as a prime destination for global wealth migration. The UAE capital offers:

✅ A highly stable political and economic environment
✅ Tax benefits such as 0% income and capital taxes
✅ A strong focus on sustainability, innovation and infrastructure
✅ Access to exclusive real estate on Saadiyat Island, Yas Island and Al Reem
✅ Favourable regulations for family offices, foundations, and private wealth management

🇨🇭 Switzerland

💡 Discreet, stable, and highly attractive for wealth structuring

Switzerland remains a popular choice due to:

✅ Lump-sum taxation for foreign residents
✅ Political neutrality
✅ A world-class private banking sector
✅ Exceptional quality of life in cities like Zurich, Lugano, and Geneva

🇲🇹 Malta

💡 An EU member state with notable tax advantages

✅ Foreign income is only taxed if remitted to Malta
✅ Possibility of EU citizenship via investment
✅ Strategic location in the Mediterranean

🇵🇹 Portugal (attractive until 2024)

💡 Previously a top choice under the Non-Habitual Resident (NHR) regime

Although Portugal has recently scaled back its fiscal incentives, it remains popular thanks to:

✅ Low cost of living and real estate
✅ Pleasant climate
✅ A stable real estate market, especially in Lisbon, Porto, and the Algarve

🇮🇹 Italy

💡 A flat-tax scheme for new residents

✅ A fixed tax of €100,000 per year on foreign income
✅ Popular among athletes, artists and entrepreneurs
✅ Strong interest in Tuscany, Milan, and Lake Como