Move to UK and pay ZERO TAX? (UK Resident Non-Dom Program)

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Immigrate to the UK and pay ZERO TAX? Could this be possible?
The answer is YES it could, and today we explain how.
There's something that's called the UK Resident non-dom program that you could take the advantage of and pay no TAX in the UK.
What is the difference between domicile and residency, and how you can benefit from being non-dom?
The UK is one of the few countries that has a difference between residency and domicile. Some other countries have this as well including Ireland, Malta, and Cyprus.
If you relocate to one of these countries you become a resident, but that doesn't mean that you're also domiciled in that country, meaning you could get some tax benefits.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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[@hellophoenix]

You are amazing , especially with the details you give about the issue , even the British accountant I met a couple of years ago didn’t give me this detailed information. But he did tell me that it’s not that difficult for foreigners to have the non domicile status . The only reason stopped me from immigrating is their long cold rainy winters.

[@MichaelRosmer]

Thanks! Yes the weather is definitely poor. Where did you end up instead?

[@hellophoenix]

@@MichaelRosmer For now Dubai but I still have my eye on Portugal. But because of my back problems that caused limited mobility issues , I do need to research if I could find an affordable caregiver like I will have in Dubai.

[@farceadentus]

@@hellophoenix the cost of living is quite high in Dubai right?

[@Hermes88]

I am not bringing the money to UK. After 7 years, I will pay £ 30 k per year and also tax on the money I got from bonds in my country am I right? And what happens with heritance tax?

[@alfs3]

Ok, to reclarify, we're planning to buy a Tesla in Berlin and bring it back to the UK, did you say that we do or don't have to pay tax for bringing it in? Wasn't quite clear on that point.

[@gm6978]

Hello there came across your video today and it's my new binge watch. Could you do some content on Africa and South America. Thanks

[@OffshoreCitizen]

Thanks for the suggestion! :)

[@AusValue]

I may have missed something here, but doesn't UK allow you to make a one off transfer of cash at the start of non dom residence which shouldn't be taxable? So then there is no need to remit income as long as your initial deposit is substantial

[@OffshoreCitizen]

It's not one off it's all the money you bring with you when you come before you're a tax resident is not taxable For a lot of people though they don't have enough to last them several years without bringing any money in. Varies by person though

[@enjoyslearningandtravel7957]

So if one is a US citizen and makes most of their money out of dividends and or all their money are in on foreign accounts then supposing your rent is 2000 £ per month just for a figure, maybe live in a small town in England then would that mean you pay tax of whatever the rent rate is on the yearly amount of your rent and whatever you need to keep in the bank to pay for your food and electricity etc.? By the way, why would England and Ireland have such a program, how would it benefit them? The country.

[@busimo]

But you do have to pay taxes of some other country where you make the bank account outside the uk right?

[@OffshoreCitizen]

No, location of bank account doesn't make you taxable in a country, residency and source income do

[@DarkCreed]

Rishi Sunak brought me here

[@alexrappoport2911]

Great video Mike . Do they have CFC rules in the UK? What if you're running an active company?

[@MichaelRosmer]

Yes they absolutely have CFC rules in UK as well as GAAR and DPT to worry about. The rules are fairly complex too

[@soniacourt]

UK entity and OS-Beni Owner have different domiciles - UK entity is not taxed and Beni Owner is not taxed - You need to update your DD - We will have a conversation soon:

[@richardmcleod3691]

I am a British citizen based in the U.K. and I have been in Africa for 4 months. I have started exporting minerals from Africa to the U.K. My seller is based in Africa and my buyer is based in the U.K mainland. I wanna pay lowest tax legally possible, are you the person I need to speak to

[@OffshoreCitizen]

Richi, happy to assist you with your taxes. The best first step is probably to book a call calendly.com/michael-rosmer I'll guide you on the best solution and any next steps

[@zackeryzackery9381]

So how does one pay for you rent and food? If I keep my money in a Singapore or Cayman bank account for investment purposes, I can pull money through an ATM to pay for living tax free?

[@MichaelRosmer]

You would pay tax on that money then. Usually you separate your income and also possibly bring a certain portion of money in when you first come

[@EddieGittins]

can you not use Credit Cards…. live off credit and pay your balance offshore ..

[@rahulchawla20]

@@EddieGittins yes, I have the same question. Is it possible?

[@jamesg6109]

@offshore Citizen what are your thoughts on Isle of Man?

[@MichaelRosmer]

Depends for what. There are pretty good fiduciaries there, the trust law is decent, zero corporate tax but has personal tax, expensive place to employ people with small talent pool.

[@Cavalher]

Thank you so much for the awesome videos with quality content and clear comprehension. 😀🙏 I have heard there is a possibility of opening a company that pays zero taxes in the UK for non-territorial gains. I am not interested in living in the UK, but just opening a company there. Do you have any videos about that? 🙏

[@MichaelRosmer]

You can avoid UK tax though that doesn't mean you'll avoid the tax in your home country so you need to be careful

[@tristanquevilly2223]

​@@MichaelRosmer Are non-dom exempted to pay corporation taxes in UK as well ?

[@MichaelRosmer]

@@tristanquevilly2223 dividends from foreign company that aren't remitted aren't taxed but UK resident companies are still taxed and CFC and other rules apply

[@soniacourt]

Not applicable if a UK citizen, only non UK citizen.

[@OffshoreCitizen]

Yeah exactly. That’s the whole point of non domiciled, that you’re not a citizen.

[@hellophoenix]

Few years ago, I remember reading something in UK newspapers about members in the parliament with the non-dom. It was a big scandal at the time and the rules has hanged since then. My understanding is that if your parent has the non domicile status , you could inherited it from them . This also might’ve changed it but I could be wrong . But I do know now you could keep it for 15 years only. The history of the whole thing is very interesting because it goes back centuries.

[@alefermin]

​@@OffshoreCitizen Wait. If I'm a foreigner, naturalized UK citizen, or even born UK citizen, I can't claim non-domiciled status? I thought it had nothing to do with citizenship. www.gov.uk/tax-foreign-income/non-domiciled-residents

[@APMcD]

What about British citizen from a parent but born elsewhere

[@MohamedAhm3d]

Does anyone know if this applies to investments made in foreign companies after gaining residency in the UK, as long as the profits are not remitted ? Would that qualify as foreign income ?

[@ryans-7600]

I am UK resident with a company in the UK I am not spending anytime in the UK what is the best option for tax?

[@nft9321]

What about single LLC registry as a UK born citizen wanting to move to Dubai? Do I register single UK LLC or single Dubai LLC if I am stuck in UK still, while selling on Amazon UK and US and want to pay zero UK tax? Thanks

[@EricParker]

Will non dom make it more difficult to lose my Canadian tax residency, since it's sort of paradoxical (telling Canada I'm leaving forever and telling UK I'm going back).

[@MichaelRosmer]

No

[@owenbreward4974]

I love your videos and thank you for sharing. However, I would like to dispute the claim that "it won't really work if you're a citizen" - because it is open to some British citizens. If you're a British citizen by descent (i.e., one or both parents are UK-born) you can still do non-dom. That said, seeing the things I'm seeing right now in the surveillance and police state called the U.K. (i.e., "Kill The Bill", draconian mask mandates, and the countless, endless lockdowns to name but three), I don't think I'd want to live there. IMHO, the "Free State of Florida" seems like the best option right now - has never imposed any lockdowns nor any mask mandate and their economy is booming. (PS - I don't live there but right now I would base my residency choices entirely on places with less restrictive pandemic responses over anything else.)

[@uziminhas]

I am a dual US+UK citizen that has to live in London for a year whilst my fiance awaits her Green Card. I qualify as a non-dom, but I work for a company in NYC. I would like to remain on their employment contract, get paid in USD, and only bring across income that is needed to pay for expenses in UK. Will this structure be allowed?

[@owenbreward4974]

Michael mentions (2:58) that "it won't really work if you're a (British) citizen" - only as an immigrant. However, from my understanding, it will work if you are a British citizen but only "by descent." That is, if you were born outside of the UK (with at least one parent being born in the UK), you qualify. If you yourself were born in the UK, you don't. (As per the Tories 2017 Election Manifesto.)

[@valesans]

If i use remittance basis..the not taxed earning have to be taxed somewhere else outside the UK? For. Example, It i am italian, line in the UK, receve royalties form Amazon and never remit them ti UK .doni have ti pay taxes in Italy sinxe my domicile Is there?

[@smartcuts3144]

If uk resident earn Capital gain from India, if which is Tax-free in india, is it required pay tax in UK when it transfered to uk

[@RomilCPatel]

Does the Irish non dom tax residency work the same way this one in the UK?

[@OffshoreCitizen]

Similar yes, not exactly the same but similar

[@RomilCPatel]

@@OffshoreCitizen Do you plan on making a video about the Irish one?

[@jasonkk8462]

I am non domicile and choose remittance base. If I earn GBP50,000 in foreign countries each year and earn totally GBP300,000 in 6 years. I remit this GBP300,000 to UK in the 6th years, any UK tax should be paid for this GBP300,000 ? If yes, what tax rate will be applied? 20% on GBP50,000 each year (GBP50,000x20%×5years )or 40% on GBP500,000?

[@OffshoreCitizen]

Yes if you remit you'll pay taxes that's the point. Rate depends on type of income and bracket

[@azazeellucifer684]

Do this type of non dom programs as in UK or Ireland lead to citizenship someday or it will never happen unless you become a tax resident over there??

[@MichaelRosmer]

Yes these don't affect citizenship status

[@yusufg9674]

Can you eventually qualify for UK citizenship if you live there as non-dom?

[@AVAM..]

Yes you can after 5 years.

[@MichaelRosmer]

Yes for sure

[@bhaveshchudasama6543]

If I don't have enough money in my UK bank account, 40 hire purchase payment in uk, Can I use the money from my foreign bank accountFor this paymentWithout encouraging any tax here in United Kingdom

[@bhaveshchudasama6543]

I meant without incurring any tax here in United Kingdom

[@mark-3466]

If you live here pay your taxes, we all have too,

[@OffshoreCitizen]

Pay as little as legally possible

[@pankaja7974]

Hello Michael, I wanted to know a simple case of bringing in say GBP50K into UK on remittance basis. Do I have to pay 30K fee and the rest of 20K is available for me to spend, or does the 20K get added to my UK income and potentially be taxed as normal rates ? Thanks

[@OffshoreCitizen]

Not clear what you mean by 30k vs 20k? The income you remit gets added to your UK income and is taxed potentially minus some of the normal benefits

[@pankaja7974]

@@OffshoreCitizen Thank you for the response! My question was about the remittance fee of 30K (or 60K based on years) that we have to pay to use the remittance basis of taxation. Is that fee applied post tax in UK or before ? So if I plan to bring in 50K into UK and I am in 40% bracket here then potentially paying 40% tax (20K) and 30K fee thereafter leaves me with nothing. If fee is levied before then I will have to pay 30K+8K(40% of 20K) leaving me with 12K.

[@OffshoreCitizen]

Ah so you're saying after you've already lived under the remittance basis for years and you're now paying the minimum tax? You can btw opt out

[@emmanueljames2487]

Can a Caymanian, Bermudian, or any British overseas citizen live in the UK under a non-domiciled tax system? Can you have two UK British Overseas Territory citizenships like Bermuda and Cayman Islands at the same time?

[@andrewwalker1408]

is non Dom status automatic or do you apply before hand?

[@MichaelRosmer]

You opt in

[@AusValue]

@@MichaelRosmer opt in after the first tax return.. or on arrival?