The best countries for wealthy expats

2024-03-12 13:01:00, Kosova & Bota CNA

The UK's bid to end the preferential tax system for wealthy foreigners shifts the focus to other countries that offer benefits and perks to the global elite.

The United Kingdom announced that it will scrap the preferential tax system, which allows people who live there but have permanent residence abroad to avoid taxes on their foreign assets for 15 years.

The change comes as the widening wealth gap in many Western countries is prompting some of them to limit tax and citizenship benefits aimed at immigrants. Portugal last October announced plans to scrap its "unusual" resident program, a policy that allows foreigners to pay lower income and pension taxes than locals for 10 years.

So where can expats from the UK and elsewhere go to protect their assets? Below are five countries around the world that offer benefits to foreigners.

Antigua and Barbuda

Since the implementation of a new tax law in 2016, residents and non-residents are not taxed on their domestically earned income, or on their foreign assets. This law has been a major driver for the country's economy, attracting wealthy investors and boosting the real estate market. Also, there are no estate or inheritance taxes on these tropical islands.

Foreigners can also secure citizenship, which promises visa-free travel to Europe, for as little as $100,000. Citizens of Antigua and Barbuda can travel to 154 countries without applying for a visa in advance. But the EU is trying to crack down on the visa-free policy and pressure it and other Caribbean countries to end or tighten citizenship-by-investment programs.

United Arab Emirates

Dubai and the Emirates have attracted a host of investment fund managers and bankers from around the world in recent years, thanks to tax laws and incentives for the wealthy. The UAE does not tax personal income, capital gains, inheritance, gifts or estates. And the country has one of the lowest corporate tax rates in the world, at 9% for companies generating more than 375,000 dirhams ($102,000) in annual profits.

The country has also recently increased the range of people who can apply for long-term visas, including entrepreneurs and engineers. However, Dubai is becoming unaffordable, as due to its popularity, real estate prices are on the rise. Waiting lists for international schools and private clubs are quite long.

Ital

Italy's generous tax system for foreigners established in 2017 has been very effective in attracting immigrants. The number of foreigners in Milan benefiting from these tax breaks doubled in 2021, a total of more than 1,300 people. New residents pay an annual fee of €100,000 ($109,000) and are exempt from paying foreign income tax. They may also not pay tax on 50% of their Italian income if they have not been resident for the previous two fiscal years.

Recently in Milan, real estate prices have risen and caused a higher cost of living in the city, sparking tensions among local residents. However, as the UK and Portugal scrap incentives for foreigners, wealth consultants say Italy remains one of the main beneficiaries of global migrants - particularly from the Americas and the Middle East - looking to stash money in a tax-free European country. low.

Singapore

While the Asian city-state has benefited from China's crackdown on Hong Kong, last year's move to raise property tax to 60% for foreign buyers has made it less favorable. The personal income tax rate for residents is low, limited to 22%. The standard corporate tax is 17%.

However, to buy a house worth $5 million, a foreign buyer will have to pay 65% ??tax in Singapore, including other taxes, compared to about 4% in New York, 15% in London and 30% in Hong Kong.

Monaco

Multi-millionaires have continued to flock to Monaco to enjoy the city's casinos, lavish lifestyle and low taxes. A "playground" for the European elite, the small country has no taxes on property, personal income or capital gains. Rental properties are taxed at 1% of the annual rent. Monaco eliminated taxes on dividends paid by local companies and does not apply a general corporate income tax.

The European country has the most expensive real estate in the world, where $1 million can buy a property with just 172 square meters. The residence permit in the country can be obtained by investing over €1 million ($1.1 million).

Which countries have the highest taxes?

If you're curious about countries that tax the most but also provide good quality of life and public services, France, Belgium, Denmark and Japan have some of the highest tax brackets in the world.

France's income tax goes up to 45%, similar to Japan. France applies a 3% tax on income exceeding €250,000 ($273,000), while capital gains tax is 19%. Denmark's income taxes go up to 52%. In Belgium, any income over €46,440 is taxed at 50%./ Monitor