The British government is digging deeper into its citizens’ pockets every year. Your hard-earned money is increasingly siphoned off by endless taxes.
If you’re a United Kingdom tax resident, it’s time to consider a bold move – leaving the country and becoming a UK expat.
While JH Marlin attorneys are not tax experts in the UK, we do know a thing or two about expatriation and getting a second (or third) residency and/or citizenship in a foreign country. We’ve helped hundreds of high-net-worth individuals do just that in the last decade. Are you next?
The Changing Tax Landscape in the UK
Phasing out the Non-Dom Tax Regime
You’ve probably heard the rumblings. The British parliament has decided to phase out the 200-year old non-domiciled (non-dom) tax system, effective in April 2025.
The non-dom tax regime was a special tax status for individuals who lived in the UK but whose permanent home (domicile) was outside the country. Like other UK tax residents, non-doms were taxed on their UK income and gains. However, their foreign income and gains were only taxed if they were remitted into the UK, which was rare.
Therefore, the regime was a savior from worldwide taxation for many wealthy individuals who did not live permanently in the UK.
On the other hand, critics of the non-dom system have claimed that the UK rich weren’t paying their fair share and that the regime allowed them a tax loophole.
So, now that Parliament has announced the eradication of the regime, what happens?
Introduction of the Foreign Income and Gains (FIG) System
The UK government is pulling the plug on this tax break, which means domiciled residents will foot the bill. Why?
Well, as in jurisdictions around the globe, high-net-worth individuals who’ve built job-creating, economy-stimulating businesses and worked hard to build their wealth are the prime targets. So, those who have the means will simply move their residence – and their finances, investments, and assets – out of the country to prevent their estates from being taxed into oblivion.
Then, who’s left for the government to tax? Average people. And, in the UK’s case, domiciled residents.
The UK isn’t just axing the non-dom status. They’re rolling out something new – the Foreign Income and Gains (FIG) system, which is designed to tax residents’ foreign income and gains, even if they don’t live in the UK full-time.
Together with several other factors, this is why thousands are considering expatriation from the UK.
Why Become a UK Expat?
Financial Incentives
The primary reason to become a UK expat is to protect your wealth. By leaving the UK, you could potentially slash your tax bill. Keep more of what you earn instead of handing it over to the – or a – government. The more you make, the more sense it makes to expatriate from the UK.
Quality of Life
As I mentioned earlier, we at JH Marlin have helped hundreds of high-net-worth individuals relocate to countries where they’re happier, healthier, wealthier, and more free. Beyond the UK’s grey skies and tax demands, 195 other countries exist. What’s to say you won’t be better off elsewhere?
Imagine living in a country where the sun shines most of the year, where your money goes further, where the government is less involved in your daily life, and where you’re not constantly worried about the next war or violent attack in your backyard.
Latin America, the Caribbean, Southeast Asia, the Middle East. UK residents are leaving Europe for greener pastures. The lifestyle benefits of doing so are undeniable.

Plan B
Britain’s exit from the European Union in 2020, colloquially known as “Brexit,” changed things for its citizens, its economy, and its future prospects. Let’s focus on the former.
Because its citizenry is no longer of the European Union, they no longer have residency rights across the 27 member states either. That means education, jobs, and residency in other European countries are far more difficult to obtain than they were in the past.
So why expatriate from the United Kingdom? The following destinations for residency and citizenship make more sense when you consider Europe is no longer within such easy reach logistically for British workers and high-net-worth individuals.
Jurisdictions UK Expats Are Considering
So, where do you go once you decide to leave the UK? This is typically the first question UK residents ask us. There are plenty of places that welcome British expats with open arms, that offer favourable tax regulation, and that promote a high quality of life.
But let’s narrow it down to the favourites:
Citizenship Programs
If you seek citizenship in a second country to bolster your passport portfolio, protect your assets, or plan for the future, more than twelve countries around the world offer citizenship by investment programs. Meaning you can qualify for citizenship and a passport in their jurisdiction just by investing in their economy.
Caribbean Citizenship Programs
Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia in the Caribbean islands offer five of the world’s most popular, cost-effective citizenship programs.
Each country offers several investment paths for applicants: Invest in real estate and get a return on your assets – of course, apart from the intangible benefits of citizenship and a passport in the country. Or, donate to a government fund for a far lower financial requirement.
Here are some benefits of citizenship in the Caribbean islands:
- Visa-free travel to 135+ countries
- No income tax in Antigua & Barbuda and St Kitts & Nevis (not even a tax return in each tax year)
- No capital gains or inheritance tax in any of the countries
- Travel connectivity to several large Western cities
- Low physical presence requirements (i.e. no moving abroad if you don’t desire)
- Residency rights in other Organization of East Caribbean States (OECS) member countries
The application and investment process in most of these programs is quick and straightforward, which makes the Caribbean a big draw for British people looking to make a swift exit.
European Citizenship by Descent Programs
This is sometimes where we recommend JH Marlin clients start. Why? Citizenship by ancestry is the lowest hanging fruit in the investment migration industry. Why? An EU country like Italy or Germany simply requires you to prove your ancestry in their country. No investment required.
Common ways to prove your lineage are baptism certificates, marriage certificates, birth or death certificates, citizenship records, proof of residency, and passports or IDs.
Here’s a starter list of EU countries that offer citizenship by descent:
- Czechia
- Germany
- Hungary
- Ireland
- Italy
- Poland
- Portugal
With Brexit in the rearview mirror, this is your chance to regain the lost residency rights and freedom of movement that membership in the EU afforded you. So, if you have European roots and qualify for citizenship by descent, this is a no-brainer. You may be eligible for citizenship in the European Union again.

Malta Citizenship by Investment
If you and your family don’t qualify for citizenship by descent in any European Union countries, you still have options on the table. For example, you can invest in Malta’s citizenship by investment program and become a citizen of the EU that way. (Valletta also has a residency program.)
Malta’s CBI program is the most respected in the world. While it’s not the most cost-effective option on this list, Malta’s favourable tax regime, English-speaking population, and Mediterranean lifestyle make it a top pick for UK expats.
Residency Programs
If a second citizenship isn’t a goal of yours, but you still want to leave the UK and enjoy the perks of reducing your taxes and living a high standard of life outside Britain, Residency by Investment (RBI) programs are the way to go.
Portugal Golden Visa
Our final EU country on this list is Portugal. With affordable investment options starting at €250,000, the Portuguese Golden Visa offers a clear path to EU residency (and citizenship in five years if you desire it). The program is especially popular with Americans, Canadians, and others seeking access to the European Union.
Dubai (UAE) Residency Visa
If you seek a more lavish lifestyle, the United Arab Emirates is where you want to be. The Dubai Residency Visa is popular with UK expats, investors, and entrepreneurs. Dubai offers world-class amenities, a booming expat community, and security that’s hard to find elsewhere. It’s a fast-growing hub for business, making it an ideal choice if you’re looking to expatriate from the UK.
Paraguay Residency
Here’s a hidden gem. I bet you didn’t expect to see Paraguay on this list.
The landlocked South American country offers one of the world’s most accessible residency programs with incredible tax advantages. Like several other Latin American jurisdictions, Paraguay operates on a territorial tax system, which means that if you are a tax resident, only your income sourced from the country is taxed.
So, if you’re making money online or in another territory, Paraguay does not tax that income.
Paraguay is increasingly popular with British expats looking for a low-key but cost-effective way to leave their home country and keep their wealth intact. With Paraguay’s low cost of living, Brits are able to afford luxuries they may not be able to in their home country – like private healthcare and top-tier international schools.
All applicants must do to qualify for residency is prove their economic solvency and obtain temporary residency.
Tax Considerations for UK Expats
Claiming Tax Residency
Of course, before you leave your home country, you need to understand the tax implications of your next steps. Moving abroad doesn’t automatically cut your ties with the UK tax system.
You need to establish tax residency in your new country and prove you’re no longer a resident dependent on the UK National Health Service, British military, UK accommodation, and other institutions before making your new residency your tax home. And, depending on the jurisdiction, that can be more complicated than you may think.
Different countries have different rules, and it’s crucial to know what you’re getting into before making the leap.
Double Taxation Treaties
Double taxation treaties are agreements between countries that prevent you from being taxed on the same income twice. If you’re moving to a country with a double taxation treaty with the UK – like Malta or Portugal – you’re in luck. These treaties can significantly reduce your tax liability and ensure you’re not paying more than you need to.
It’s a crucial factor to consider when choosing your new home as a UK expat.
Again, JH Marlin is not a tax expert in the UK. However, we may recommend you consult with a professional before making any serious moves that may incur tax liability in the UK and beyond.

Frequently Asked Questions About UK Expats
Where Do British Expats Live Abroad?
Brits historically tend to settle in English-speaking countries like Australia, Canada, and the United States. But non-English-speaking countries have become far more popular with UK expats in the last few decades.
Spain and Portugal’s close proximity, UAE’s luxurious lifestyle, and the more rugged Latin America are top choices. Your choice depends on your needs. Need access to world-class private schools and services? Paraguay may not be the best option.
Do UK Expats Pay UK Tax?
It depends. If you’re still earning income in the UK or have assets like property, you might still be liable for UK taxes, especially now that the non-dom tax regime has been closed.
However, if you establish tax residency in another country and cut economic ties with the UK, your UK tax obligations could be significantly reduced. Get expert advice from a British tax professional.
Are Expats UK Tax Residents?
Tax residency is determined by several factors, including the amount of time you spend in the UK each year and your connections to the country (like owning property or having family there).
So, most people take the first step to cut economic ties with a country by spending minimal time there. Then, an expat should go to lengths to reduce their involvement with the country by moving their money out of the country, cancelling recurring payments and memberships, selling their house, etc.
Finally, of course, you need to re-establish economic ties in your new tax residency to claim your tax home somewhere. Ideally, you’d make your new tax residence a favourable one.
Again, this tax residency process can be complex. So, we recommend professional advice.
Whether you’re Welsh, Scottish, or English, the UK is becoming a tougher place to be wealthy. And, more Brits are making the move to expatriate from the country. Whether you’re looking for a Plan B in another country or just want a second residency that offers better tax benefits, plenty of options exist.
But don’t go in blind. Plan your move carefully, understand the tax implications, and choose a jurisdiction that aligns with your financial and lifestyle goals.
If you’re interested in obtaining residency or citizenship outside the UK, JH Marlin can help. Contact us today to learn about the programs that best fit the life you want to live.