Investigate a Non-Dom Regime Alternative for UK Nationals

End of the UK Non-Dom Regime. What's Next?

The UK spring budget of 2024 signalled major changes in the non dom UK status. This regime was previously a benefit to the country's non-domiciled. Yet, with proposed changes that promise to take away most of the tax benefits, you have to manage your finances differently. Understanding these changes will help guide your financial planning.

You should also consider the UK non-dom regime alternatives for UK nationals. These alternative programs will offer you comparable or even better benefits.

In this article, we will reveal the changes to this status and the Malta Global Residence Programs as a alternative tax residency program you can apply for.

What Is the Non Dom UK Status?

Non-dom refers to Non-domiciled individuals. In the UK, this status designates a special tax resident who is “domiciled” or has a permanent home outside the UK. Though your nationality can affect your domicile status, it is not directly linked to it.

This is a popular status since it offers favourable taxes. In fact, reports indicate that nearly 84,000 individuals claimed this status in the UK.

Upcoming Changes UK Non Dom Status

The UK government has announced they will abolish the remittance basis of their non-domiciled regime by 6 April 2025. The details of the changes have not been definitively decided. Nevertheless, you can anticipate how it will change based on the following proposed changes:

• Transition tax relief: For the individuals who have been non-domiciled in the past 10 years, they will have access to 4-year tax relief instead of typical 15-years.
• Income taxation: After 4 years, all non-domiciled individuals will need to pay income tax like any resident.
• Foreign income and gains taxation: If you have been in the country for over 4 years, you will need to pay taxes on foreign income and gains at the same rates as standard residents.
• Tax reduction: For the 2025 – 2026 tax year, current non-domiciled individuals will have 50% tax reduction on personal foreign income. In addition, you will have capital gains tax rebating, and the government will temporarily facilitate repatriation.

However, these proposed changes to the non-dom status in the UK may not occur as described above. This is because, though the government proposed these changes under conservative chancellor Jeremy Hunt, the Labour Party is now in power. According to reports, Labour wants to remove the 50% discount and subject offshore trust to inheritance tax.

The UK Non-Dom Regime Alternative for UK Nationals: Malta GRP

As the proposed changes to this status will make it less convenient, you should consider alternative programs in other countries. In particular, the Malta Global Residence Program offers favourable taxes.

Malta GRP Benefits

The following are benefits you will receive if you take part in this program and pair it with the special tax status:

• Lower foreign-sourced income tax: You will not need to pay any tax on foreign income you do not remit to this country.
• Reduced income tax: The maximum Malta-sourced income tax is 35%, while it is 45% in the UK. For example, if you had an income of $500,000, you would save $50,000 in taxes with this program.
• No foreign-sourced capital gains tax: Even if you remit them to Malta, you will not need to pay foreign-sourced capital gains tax.
• Double taxation relief: You can access double taxation relief through the tax agreements the country has made with other nations.
• Increased Stability: Since there is no sign of this regime ending, you can confidently use this program to plan your taxes.

Malta GRP Requirements

Here are the requirements to apply for this program:

• Malta address: You will need to have a residential address in the country and maintain it.
• Medical insurance: You will need medical coverage that has a licence inside the country.
• Financial proof: To prove you can live in this country without requiring help, you should prove you have $110,900 (€100,000) in financial assets.
• Clean background: You should have no criminal record.

To maintain your residency, you must pay a minimum tax of $16,600 (€15,000). As for the income you remit to Malta, you will need to pay a minimum of $16,600 (€15,000) or 15%.

Malta GRP Application Process

To apply for this program, you should use the following steps:

• Complete your identification: To begin your Global Residency application, you will need to complete your identification on the Veriff platform.

• Pay the fees: After you have completed your identification, you will need to pay your professional fees.

• Submit Documentation: Once you have paid your fees, you will need to submit your documents to professionals. They will prepare your application and ensure they meet the legal requirements. When your documents are ready, they will be submitted.

• Pay the application fee: After you have submitted your documents, you should pay a €6,000 fee to the Maltese tax authority. Then, you will receive a receipt within 3 days of your submission.

• Wait for processing: Now that you have paid for the application, you will need to wait for the due diligence process. A part of the due diligence may include a 10-minute meeting.

• Sign and submit your letter of intent: Once you have gone through the due diligence process, you will need to sign and submit a letter of intent.

• Meet the requirements: In the next 12 months after signing your letter, you will need to meet the tax and residential requirements.

• Receive the confirmation letter: After you have met the requirements and your application succeeds, you will receive a confirmation letter.

• Apply for your residence card: Finally, you will need to apply for your residence card and submit your biometric data in person. Later, you will receive your card.

Current Taxation Differences between Non Dom UK Status in UK and Malta GRP

Since Malta is an old British colony, its culture, legal system, and education share commonalities. Nevertheless, its programs are drastically different.

In particular, the current non-dom regime UK and the Malta residency program differ in the following ways:

Features	Malta	UK
Income Tax	35% tax on Malta-sourced income.	45% tax on UK-sourced income.
Capital Gains Tax	No capital gains tax on foreign assets, even if remitted.	No capital gains tax on foreign assets unless remitted.
Inheritance Tax	No Inheritance Tax.	Inheritance tax exemption for 15 out of 20 years.
Foreign Dividends	No taxes on foreign dividends unless remitted.	No taxes on foreign dividends on a remittance basis unless remitted.

Apply for Malta Global Residence with Vancis Capital

With the guidance of Vancis Capital's migration consultants, you will be able to find the right alternative to your non-domiciled regime. Starting with a consultation, we will evaluate your goals and find the right citizenship or residency solutions, such as the Malta MPRP, for you and your family.

From the initial submission to your interviews to your integration, our experts will ensure a seamless experience. In your Global Residence application, we will facilitate consultation with Maltese tax lawyers. We will also assist you in finding and renting a property that is as luxurious as you desire. As for your health insurance, we will request quotes from our trusted partners to ensure you have comprehensive coverage and benefits.

Frequently Asked Question

How long can you stay in the UK as a non-dom?

You can stay in the UK as a non-dom for less than 16 – 46 days, depending on your past residency. The official cut-off point is 183 days, after which the government automatically considers you a tax resident. If you have strong ties to the UK, such as being fully employed there, the government will also consider you a tax resident.

Can a UK citizen claim non-Dom status?

Yes, you can claim non-dom status as a UK citizen. However, you cannot claim this status in the UK. This is because if you were born in the UK, have strong ties to the country, or have a permanent home there, you do not qualify as non-domiciled.

Am I still a UK resident if I live abroad?

You might still be a UK resident even if you live abroad. Your UK residency depends on how much time you spend in the UK. Your tax liability will also influence whether the government considers you a resident.