5 High Tax Countries You Can Live Tax Free
The United Kingdom
If you live in the UK but your permanent home is in another country you could live here tax free.
If that is your situation you will be classified as non-domiciled and will be taxed on the remittance basis.
The remittance basis of taxation means that you will only be taxed on income that you remit to the UK.
It is, of course, easy to avoid sending money to the UK. You can always borrow money from your offshore company or trust to cover living expenses!
In recent years there has been some political debate about billionaires living in the UK tax free.
In response HMRC introduced a new rule. If you have stayed in the UK for 7 out of the last 9 years and want to continue on the remittance system you will have to pay £30,000 per year.
If you have been in the UK for 12 of the last 14 years you will pay £60,000.
If you have a seven figure income you can still live in a top class, first world city like London with a single digit tax rate. Only payable after 7 years of living tax free.
If you are a High Net Worth person and would like to live in Italy there is a version of the non domiciled scheme here too.
Unfortunately it is much more expensive than the UK’s offering.
If you’d like to live on the Italian Riviera without paying tax on your worldwide income you can live here and pay the Italian tax authorities €100,000 per year plus 25,000 for each family member.
Not cheap but if you have a seven figure income it could still offer significant savings on your home country. And you get to live in a beautiful, first world country.
If you are considered a temporary resident for tax purposes in Australia you will not be taxed on your foreign income or capital gains.
There are several routes to getting a temporary resident permit here.
New Zealand citizens living in Australia are always considered temporary residents for tax purposes. It’s a perfect opportunity if you are a high net worth New Zealander to relocate to Australia and live tax free.
Other nationalities will have to get a non permanent visa to take advantage of this opportunity.
Non-permanent visas are available for Investors and entrepreneurs and are issued for 4 years.
You can invest $1.5m in Australian government bonds or $595,000 in a business. Alternatively you can secure $200,000 funding from a separate party as an entrepreneur.
Portugal offers the Non Habitual Resident scheme.
If you are a Non Habitual Resident of Portugal you will effectively not be taxed on any overseas income.
This is especially useful if your income is in the form of dividends or rent payments. It doesn’t work so well if your income is in the form of management fees. It’s important to structure your affairs properly to take advantage of this scheme.
To qualify for the NHR scheme you can’t have been resident in Portugal for the last 6 years.
Once you do qualify you will keep the status for at least 10 years.
Portugal is a beautiful country with one of the best climates in Europe. An ideal location to live a tax free life.
Ireland is an attractive location for High Net Worth Individual to relocate to.
Ireland offers the remittance basis of tax, very similar to the UK. If you become tax resident of Ireland and are classed as non-domiciled your income from overseas sources will only be taxed if you send it to Ireland.
Irish rules on non domicile are much less restrictive than the UK. There is no minimum charge here no matter how long you’ve been in Ireland.
Ireland offers great links to the rest of Europe. It’s a short flight away from London or Paris. There’s spectacular scenery and friendly locals.
If you structure your affairs carefully you can live in Ireland tax free.
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* Offshore Companies
* Second Passports
* Legal Tax Avoidance