For decades, the UK’s non-dom rules were the best-known special tax status in Europe. That ended on April 6, 2025, when the UK replaced domicile with a residence-based system and introduced a four-year relief for new arrivals. Wealthy and internationally mobile people who had relied on the old rules started to look elsewhere.
Europe still offers several routes, but they are no longer one thing. A few countries keep a true non-dom or remittance basis. Others charge a fixed annual amount on foreign income. A third group offers time-limited incentives for people who move to work. Each has its own conditions, costs and limits.
This guide explains the three families of regimes, compares the main options as of October 2026, and sets out what none of them can do on its own.
Key takeaways
- The UK abolished the remittance basis from April 6, 2025. New arrivals can claim a four-year exemption on foreign income and gains if they were not UK resident in the previous ten years.
- Malta, Cyprus and Ireland still tax resident non-domiciled people in a favorable way, each with different rules.
- Italy (€300,000 a year for new arrivals from 2026) and Greece (€100,000 a year) offer fixed annual amounts on foreign income for up to 15 years.
- Portugal’s IFICI and Spain’s Beckham regime are incentives for people who move to work, not general non-dom regimes.
- No regime ends tax duties in the country a person leaves. That depends on that country’s own residence, exit and treaty rules.
What non-dom means and the three types of regime
In common-law systems, domicile is the place a person treats as their permanent home. It is different from tax residence, which usually depends on days, a home and personal ties. A non-dom is someone who is tax resident in a country but domiciled elsewhere. Some countries tax non-doms only on local income plus foreign income they bring in (the remittance basis).
In practice, European special regimes now fall into three groups:
- Remittance-basis regimes (Malta, Ireland) tax local income and foreign income only when it is brought into the country.
- Lump-sum or flat regimes (Italy, Greece, and Switzerland in many cantons) replace tax on foreign income with a fixed annual amount or, in Switzerland, a tax based on living costs.
- Inbound incentive regimes (Portugal, Spain, Greece’s worker regime, and the UK’s new four-year relief) give reduced rates or exemptions for a limited number of years after a move.
Cyprus sits in its own category: residents pay normal income tax, but non-doms are exempt from the Special Defence Contribution, the separate charge that applies to dividends and interest.
What the UK changed in April 2025
The UK government’s policy paper sets out the reform. The remittance basis was removed from April 6, 2025. In its place:
- New arrivals get full relief on foreign income and gains for their first four years of UK tax residence, if they were not UK tax resident in any of the previous ten years.
- People who used the remittance basis before can bring in older foreign income and gains at a reduced rate under a Temporary Repatriation Facility: 12% for the first two years and 15% in the third.
- Inheritance tax now depends on long-term residence. A person who has been UK resident for at least 10 of the last 20 tax years is in scope on worldwide assets, and stays in scope for between 3 and 10 years after leaving.
The reform has prompted departures, which we cover in our article on the UK wealth exodus after the end of non-dom status. People leaving the UK also need to understand the statutory residence test.
Europe’s special tax regimes compared
| Country | Regime | Main cost or rate | Duration | Prior non-residence |
|---|---|---|---|---|
| UK | Four-year FIG relief | Foreign income and gains exempt | 4 years | 10 years |
| Italy | Flat tax on foreign income | €300,000 a year, plus €50,000 per family member | Up to 15 years | 9 of the last 10 years |
| Greece | Lump sum on foreign income | €100,000 a year, plus €20,000 per relative; €500,000 investment | Up to 15 years | 7 of the last 8 years |
| Malta | Remittance basis for non-doms | Foreign income taxed only if remitted; €5,000 minimum in some cases | While non-domiciled | None |
| Malta | Individual Tax Programme (from 2027) | 15% on remitted foreign income, €35,000 minimum | 5 years, renewable | None |
| Cyprus | Non-dom exemption | No Special Defence Contribution on dividends and interest | Until 17 of 20 years of residence | None |
| Ireland | Remittance basis for non-doms | Foreign income taxed only if remitted | While non-domiciled | None |
| Portugal | IFICI | 20% on qualifying Portuguese work income; most foreign income exempt | 10 years | 5 years |
| Spain | Beckham regime | 24% on work income up to €600,000, 47% above | Year of move plus 5 | 5 years |
All figures are as of October 2026 and simplified. Each regime has eligibility conditions, exclusions and filing deadlines that the table does not show.
Italy: the most expensive fixed amount
Italy’s flat tax replaces Italian income tax on foreign-source income with a fixed amount. For people who move from January 1, 2026, it is €300,000 a year, plus €50,000 for each family member included. People who moved earlier keep €100,000 or €200,000. Italian-source income is taxed normally, and the option requires a favorable advance ruling from the Revenue Agency. The full rules are in our guide to Italy’s flat tax for new residents.
Greece: a cheaper lump sum with an investment condition
Greece offers three regimes, summarized by PwC’s Greece tax summary:
- Investor regime. A lump sum of €100,000 a year on foreign income, regardless of its amount, plus €20,000 for each relative included. The person must invest at least €500,000 in Greek real estate, businesses, securities or shares within three years, and must not have been Greek tax resident in 7 of the previous 8 years. It lasts up to 15 years.
- Pensioner regime. A flat 7% on foreign income for people who move from a country with a tax cooperation agreement with Greece and were not Greek resident in 5 of the previous 6 years.
- Worker regime. A 50% exemption on Greek employment or business income for up to seven years, for people who take up a new job or business in Greece.
Foreign tax is not credited against the Greek lump sum, and non-payment ends the regime.
Malta: remittance basis and a new programme
Malta taxes resident non-domiciled people on Maltese income and on foreign income remitted to Malta. Foreign capital gains are not taxed, even if remitted. Non-doms who are not under another minimum tax scheme and have at least €35,000 of foreign income that is not fully remitted pay a minimum tax of €5,000 a year, according to PwC Malta.
Malta is also replacing its Global Residence Programme and related schemes with a single Individual Tax Programme from January 1, 2027. It taxes remitted foreign income at 15% with a €35,000 minimum for most beneficiaries and requires a €700,000 property or €14,000 annual rent. Our article on Malta’s new tax programme covers the details.
Cyprus: the 17-year non-dom exemption
Cyprus taxes its residents on worldwide income, with a 0% band up to €22,000 from 2026. Dividends and interest are treated differently: instead of income tax, they are subject to the Special Defence Contribution (SDC), at 5% on dividends from 2026 profits. Only people who are both tax resident and domiciled in Cyprus pay SDC, so non-doms generally pay no Cypriot tax on dividends and interest, subject to anti-abuse rules. A person without a Cypriot domicile of origin is treated as domiciled for SDC purposes only after 17 years of Cypriot tax residence in the previous 20, based on PwC Cyprus.
Cyprus also lets some people become tax resident with 60 days in the country, if they have business or job ties and a home there and do not spend more than 183 days in any other single country. From January 1, 2026, the condition that the person must not be tax resident anywhere else no longer applies. Our guide to how tax authorities decide where you live explains why such rules interact with other countries’ tests.
Ireland: a remittance basis without the headlines
Ireland taxes resident but non-domiciled individuals on Irish income, on employment income for work done in Ireland, and on other foreign income only to the extent it is remitted. It does not charge a fixed fee for this treatment. Ireland’s general income tax rates still apply to what is taxable.
Portugal and Spain: incentives for people who move to work
Portugal closed its old non-habitual resident regime to new entrants from 2024, with transitional cases. Its replacement, IFICI, applies a 20% rate to qualifying employment and self-employment income from eligible activities, and exempts most foreign income other than pensions, for ten years. Applicants must not have been Portuguese residents in the previous five years. Our IFICI guide covers the eligible activities.
Spain’s regime for people who move there, known as the Beckham law, is set out in Article 93 of the Spanish income tax law. Qualifying people are taxed largely like non-residents, at 24% on Spanish employment and business income up to €600,000 and 47% above, for the year of the move and the next five years. They must not have been Spanish residents in the previous five years and must move for a job, remote work, a directorship or a qualifying business activity. See our Beckham law explainer.
Switzerland’s lump-sum taxation
Switzerland offers taxation based on living expenses rather than income to some foreign nationals who move there and do not work in Switzerland. The tax base is set by reference to the person’s worldwide living costs, subject to minimums in federal and cantonal law. Some cantons, including Zurich, no longer offer it, so the choice of canton matters.
What none of these regimes can do
A special regime in a new country does not end obligations in the old one. A person may remain resident in their former country under its domestic rules, face an exit charge on unrealized gains, or need a treaty tie-breaker to settle a dual-residence conflict. Our guides to countries with exit taxes and the Common Reporting Standard explain why planning in this area always stays fully compliant with reporting rules.
Some regimes also share information directly with the former country. Italy, for example, passes the name of the last country of tax residence to that country’s tax authority.
Outside Europe, one option some nomads look at is the Próspera Lump Sum Tax Regime in Honduras, a flat $5,000 per year with 7 days per year spent in Próspera. Details are on our tax residency page. As with every regime in this guide, whether a person leaves their previous tax system depends on that country’s own rules.
Frequently asked questions
Does the UK still have non-dom status?
No. The remittance basis was abolished from April 6, 2025. New arrivals who were not UK resident in the previous ten years can claim a four-year exemption on foreign income and gains instead.
Which European countries still have a non-dom regime?
Malta and Ireland still tax resident non-domiciled people on a remittance basis, and Cyprus exempts non-doms from its Special Defence Contribution for up to 17 years. Italy and Greece offer fixed annual amounts on foreign income instead.
Is Italy’s flat tax still €100,000?
Only for people who moved before the August 2024 change. It rose to €200,000 for moves after August 10, 2024, and to €300,000 for moves from January 1, 2026.
What is the cheapest non-dom regime in Europe?
There is no single answer, because the regimes tax different things. Cyprus and Ireland charge no fixed amount, Malta’s remittance basis has a €5,000 minimum in some cases, and Greece and Italy charge fixed sums. The total cost depends on income type, where it is earned, and whether it is brought into the country.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.