Best Relocation Tax Incentives: Cyprus, UK or the UAE?
Considering relocating? One major consideration is how you will be taxed in your new home country. Tax rules differ between countries, and some countries offer attractive tax incentives for the high net worth families who are willing to relocate and bring in their capital.
Cyprus
Cyprus has a favourable tax regime for the persons born outside Cyprus to non-Cypriot families and who relocate to Cyprus. These people are called non-domiciled tax residents or simply non-doms.
In Cyprus the non-doms are exempt from Cyprus tax on dividend income, interest income, and rental income for the first 17 years of their life in Cyprus.
To be eligible for these incentives you have to stay in Cyprus for more than 183 days in a calendar year. But a shorter period of only 60 days is acceptable if you do not stay in any other country more than 183 days in a calendar year.A simple registration is required to avail yourself of these tax incentives.
UAE
The UAE does not have personal taxes, so relocating to the UAE all your income will be tax free. The UAE does not have corporate income tax either.
This makes the UAE a very attractive pre-retirement residency destination as it enables high income individuals to accumulate their income without suffering any tax. This can be attractive at any point in life but considering the rigorous hot weather in the country many people take up residency in the UAE for a few years before they retire.
United Kingdom
The United Kingdom also offers incentives to attract high heeled migrants. The UK rules are complex but in most general terms the persons who are non-domiciled tax residents in the UK for the past 7 of the previous 9 years can elect to pay the fixed GBP 30,000 remittance charge per year regardless of how much income they bring into the UK. This amount doubles once you’ve lived in the UK for at least 12 years of the previous 14 years until you have lived in the UK for 15 years – at that point you will be deemed as a UK domiciled and taxed under normal rules. Eligibility for this incentive depends on a number of factors, including the number of days you stay in the UK in the financial year which runs from 6 april to 5 April, and the type and number of “ties” you have to the UK. The eligible ties include your home, family, work, and the duration of stay in the UK.
How we can assist?
Our tax experts can assist you to identify whether you are eligible for any tax incentives and assist you with the appropriate filings and communications with the tax authorities.