The impending changes to the UK Non-Dom tax regime have led an increasing number of UK Non-Doms to look for better options in other jurisdictions.
Amidst uncertainty, Greece presents a compelling proposition; with its favorable tax environment, Greece offers stability & financial efficiency.
UK’s Spring Budget 2024 has set the stage for a fundamental transformation in the taxation of non-domiciled individuals.
Chancellor Jeremy Hunt’s announcement on March 6 signals important changes in the British tax landscape, paving the way for a new foreign income and gains regime, effective April 6 2025; the Chancellor announced the end of the remittance basis, which currently allows UK Non-Dom tax residents to be liable on foreign income under UK tax law only if said income is brought to, or received in, or used in the UK.
Save for a four-year window for new applicants and transitional provisions for existing Non-Dom tax residents, past April 6, 2025, foreign income and gains will be taxed as per standard procedures, i.e. on the arising basis, meaning that foreign income will be taxed under UK tax law regardless whether it was brought in the UK or not.
Under this paradigm shift, UK Non-Doms are considering strategic recalibration for their tax planning. A diverse group exceeding 65,000 individuals, they have long enjoyed the benefits of the UK’s favorable tax policies that allowed them to exempt foreign earnings from the applicability of UK taxation, while also mitigating their exposure to UK inheritance tax.
But, as for the foreign income, it seems that the government’s current intentions are to shift from a domicile-based system to a residence-based system regarding the inheritance tax as well.
Considering New Perspectives
The impending changes to the U.K. Non-Dom tax regime have already led an increasing number of affected individuals to question whether the UK remains the best option for them and explore opportunities beyond its borders.
For those eyeing European destinations, Greece emerges as an attractive choice.
Exploring Greece’s Potential
Amidst uncertainty, Greece presents a compelling proposition for UK Non-Doms; with its favorable tax environment, Greece offers stability & financial efficiency.
While the decision to relocate is multifaceted, Greece’s advantages cannot be overlooked, such as:
- flat annual tax of €100,000
- possibility to include family members with an extra annual flat tax of €20,000
- minimal requirement of a €500,000 investment into Greek assets,
- possibility to complete the investment during the first three years of entry in the regime,
- no obligation to file tax return for the foreign income,
- flexibility to bring and use the foreign income in Greece without change of its tax status,
- no inheritance or gift tax for assets outside Greece.
As global tax dynamics evolve, Greece stands out as a promising destination for individuals navigating the complexities of international tax planning.
Eleanna Karvouni & Vasileios Tsintzos from our private client team navigate the global tax landscape, diligently advising our clients to ensure that they can make informed decisions aligning with their financial goals.
For UK clients, Eleanna & Vasileios are assisted by our team in our London offices led by Daphne Kassimati.
