United Kingdom

The United Kingdom remains a global financial center with stable legal framework, though its tax advantages for international residents have diminished significantly. The abolition of non-domiciled (non-dom) tax status on April 6, 2025 ended a 200-year-old regime that had attracted wealthy individuals worldwide.

Income tax reaches 45% on earnings over GBP 125K , with an additional 2% National Insurance. Capital gains are taxed at 18-28% for residential property and 10-20% for other assets. Inheritance tax applies at 40% on estates over GBP 325K .

Under the former non-dom rules, residents could avoid UK tax on foreign income and gains for up to 15 years. The new Foreign Income and Gains (FIG) regime offers only a 4-year exemption for new arrivals, substantially reducing the UK's attractiveness for international tax planning.

The Tier 1 Investor visa closed to new applicants in February 2022 amid concerns about illicit finance. The Innovator Founder visa remains available for entrepreneurs with endorsed business plans.

While no longer offering the non-dom advantage, the UK's stable legal system, global financial center status, extensive tax treaty network, and world-class professional services continue to attract international business. The 4-year FIG transitional relief provides limited protection during initial settlement.