Published in Market trends
Non-Dom Reform drives Ultra-Wealthy from UK
Discover why the end of non-dom status in the UK is driving millionaires abroad, and why Spain is an ideal destination for relocation.
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The UK government has officially announced that from April 2025, the long-standing non-domiciled (non-dom) tax status will be abolished. This decision marks a turning point for wealthy individuals in the UK, many of whom are now exploring options to relocate to more tax-friendly countries.
A recent analysis by the Adam Smith Institute suggests that this policy change could result in a 20% decline in the UK’s millionaire population over the next parliamentary term. The share of millionaires, which currently stands at 4.55%, is projected to fall to 3.62% within five years, while other nations, such as Germany and France, expect steady growth in their affluent populations.
What Is Non-Dom Status?
The non-dom regime, introduced over 200 years ago, allows UK residents whose domicile (permanent home) is outside the UK to:
Pay UK taxes only on income earned within the UK
Exclude income earned elsewhere in the world from UK taxation
This arrangement has been a key draw for wealthy individuals, offering them a completely legal way to minimize taxes by designating a lower-tax country as their domicile.
Why Are People Leaving?
With the abolition of non-dom status, many high-net-worth individuals are eyeing countries with favorable tax regimes. Some of the top destinations include:
Switzerland: Known for its financial privacy and stability
Monaco and Malta: Offering indefinite inheritance tax exemptions
Dubai: A tax haven with no income, capital gains, or inheritance tax
Spain: A rising star for expatriates, thanks to its unique tax benefits, investment opportunities, and exceptional quality of life
Why Choose Spain?
Spain is quickly becoming a favorite among those seeking a blend of fiscal advantages, investment potential, and an outstanding lifestyle. Here's why:
Tax Benefits – The Beckham Law
Spain’s Beckham Law (régimen fiscal de impatriados) offers foreign residents moving to Spain for work the chance to:
Pay a flat 24% tax rate on income earned in Spain
Exclude worldwide income from Spanish taxes for up to six years
This generous policy is particularly appealing for high earners and entrepreneurs.
A Booming Real Estate Market
Spain’s real estate sector is thriving, presenting fantastic opportunities for investment:
Rising sales: Transactions in the first half of 2024 grew by 6% compared to last year
Historical highs: Activity is now 23% above the ten-year average, with cities like Madrid, Barcelona, and Marbella leading the charge
Lifestyle and Climate
Spain’s quality of life is one of the best in Europe, with:
A warm and sunny climate year-round
A rich cultural heritage and vibrant traditions
Popular expat hubs such as Madrid, Barcelona, and Marbella, where you’ll find excellent infrastructure, international schools, and a welcoming community
Ready to Make the Move?
If the changes in the UK tax landscape have you considering a move, Spain might be the perfect solution. With expert guidance, transitioning to a new country can be seamless and rewarding.
Our team specializes in helping individuals like you navigate Spain’s tax policies, real estate market, and lifestyle opportunities.
Contact us today to discover how Spain can become your next home!
