Non-Dom tax regime: capital protection and a Plan B for an investor

What is the Non-Dom tax regime?

Non-Dom, or non-domiciled taxation, is a preferential tax regime available to certain new tax residents. Depending on the country, it may: 

• provide exemptions for specific categories of foreign income; 
• apply a remittance basis of taxation;
• allow payment of a fixed annual tax instead of ordinary taxation on foreign income. 

It does not automatically eliminate worldwide taxation.

How to obtain Non-Dom status?

The non-domiciled tax regime applies to foreigners who have become tax residents of a country and have lived there for a limited period of time. What constitutes a “limited period” is defined differently by each country.

For example, in Cyprus, a foreign investor is considered a non-domiciled tax resident if they have lived in the country for less than 17 years out of the last 20 — for instance, after obtaining permanent residence by investment.

The tax regime is not granted automatically. To obtain it, one must register with the tax authorities and meet specific conditions. In Greece, foreigners pay a fixed annual tax of €100,000 to qualify for Non-Dom status.

Who may benefit from Non-Dom status?

For example, an owner of overseas real estate may benefit from the Non-Dom regime. They do not pay tax on rental income from their properties or on capital gains if they sell the real estate.

The Non-Dom regime generally applies to personal taxation and does not automatically subject foreign companies to corporate tax in the country of residence. However, corporate tax exposure may arise if the company creates a permanent establishment or falls under local management and control rules.

In some jurisdictions, capital gains arising from the sale of foreign assets may be covered by the Non-Dom regime. However, the treatment depends on local tax rules and whether the gains are considered foreign-sourced or remitted.

A financially independent foreign national who has moved to a new country and obtained tax residence with Non-Dom status does not pay tax on their foreign assets.

An investor who has relocated with their family to provide their children with a prestigious education is exempt from tax on income earned in other countries.

5 benefits of the Non-Dom regime

For globally active investors and entrepreneurs, Non-Dom regimes can serve as part of a broader international tax strategy. Depending on the country, they may help optimise taxation of foreign income, preserve capital, and support long-term family wealth planning.

1. Tax optimisation of foreign income

In countries applying a remittance basis, Non-Dom residents are taxed on local income and on foreign income only if it is remitted. In other jurisdictions, a fixed annual tax may apply instead of ordinary taxation on foreign income. This structure may reduce effective tax exposure on international income streams.

2. Predictability of tax liabilities

Certain Non-Dom regimes provide clarity regarding the taxation of foreign income for a defined period, either through fixed annual contributions or clearly structured remittance rules. This predictability allows investors to plan long-term international structures with greater certainty.

3. Capital protection and structuring flexibility

High-net-worth individuals may keep their main assets offshore and structure cross-border investments more efficiently, subject to local anti-avoidance and CFC rules. Reporting obligations may still apply under domestic legislation and international frameworks such as CRS.

4. Inheritance and family wealth planning

In some jurisdictions, foreign assets may receive favourable inheritance or gift tax treatment during the Non-Dom period. Certain regimes also allow family members to be included, supporting coordinated intergenerational wealth planning.

5. Jurisdictional diversification and mobility

Establishing tax residence under a Non-Dom regime may form part of a broader diversification strategy. Relocating to a stable European jurisdiction can reduce reliance on a single legal or fiscal system and enhance long-term financial resilience and mobility.

Countries that offer Non-Dom tax status

Several European jurisdictions continue to offer preferential tax regimes for new tax residents. Although these regimes are often referred to collectively as “Non-Dom”, their structure varies significantly.

Cyprus

Cyprus tax residence may be obtained by spending more than 183 days per year in the country or by applying the “60-day rule”.

A foreign national becomes a Cyprus tax resident after 60 days if they:

• own or rent residential property in Cyprus;
• conduct business or are employed in Cyprus;
• do not spend more than 183 days per year in another country and are not considered a tax resident there;
• reside in Cyprus for at least 60 days per year.

A foreign national is recognised as a non-domiciled tax resident of Cyprus if they were not born in the country and have not been a Cyprus tax resident for more than 17 out of the last 20 years. To obtain Non-Dom status, an application must be submitted to the tax authorities. Continued compliance with the conditions must be confirmed every three years.

Cyprus permanent residence by investment allows foreigners to become non-domiciled tax residents of Cyprus and benefit from the Non-Dom tax regime.

The Non-Dom regime may be applied for 17 years. During this period, a 0% tax rate applies to foreign-sourced income, dividends, inheritance, and capital gains. In addition, unlike domiciled residents, non-domiciled residents do not pay Cyprus Special Defence Contribution.

Greece

Foreign nationals become tax residents of Greece if they spend 183 days per year in the country. The counting starts from the day of entry. This rule does not apply to tourists or to individuals who travel to Greece for medical treatment.

Foreigners may apply the Non-Dom tax regime if they:

• have not been Greek tax residents for seven out of the last eight years;
• have invested €500,000 in the Greek economy within the last three years or have obtained a Greece Golden Visa by investment.

The Non-Dom regime applies for 15 years from the moment of changing tax residence. To obtain the status, an application must be submitted to the Greek tax authorities by March 31st. If the application is filed later, the Non-Dom regime will not apply for the current tax year. 

The application for the regime is submitted once upon transfer of tax residence. The fixed annual tax must be paid each year to maintain the regime.

Foreign nationals with Non-Dom status pay a fixed tax of €100,000 per year on all foreign-sourced income. Family members may be included in the regime; an additional €20,000 per year is payable for each family member. The fixed annual contribution must be paid within 30 days after approval by the tax authorities of the transition to the Non-Dom regime.

Spain

Spain does not have a classical Non-Dom tax regime, but it offers a similar system known as the “Beckham Law”. This status allows tax residents to pay personal income tax at a fixed preferential non-resident rate of 24%. The standard personal income tax rate for Spanish residents ranges from 19 to 47%.

A foreign national may apply for the special tax regime if they have not been a tax resident of Spain during the previous five years and meet one of the following conditions:

• have obtained an employment contract with a Spanish company as a highly qualified specialist;
• have launched a startup in Spain and manage it directly;
• hold a senior executive position in a Spanish company;
• conduct research, scientific, or innovative activities in Spain;
• have obtained a Spain Digital Nomad Visa.

Under the Beckham Law, qualifying individuals are taxed primarily at a flat rate on Spanish-source employment income. Certain categories of foreign income may still be taxable, depending on their nature and source.

The preferential status applies for six years. To switch to taxation under the Beckham Law, an application must be submitted to the Spanish tax authorities within six months from the start of employment or the registration of a startup in Spain.

Malta

Foreign nationals become tax residents of Malta if they spend more than 183 days per year in the country. Tax residence may also be obtained if Malta becomes the centre of one’s interests, for example, by opening a business, purchasing property, and visiting the country over a three-year period.

Tax residence in Malta may be domiciled or non-domiciled.

Maltese citizens born in Malta become domiciled residents automatically. Foreign nationals may also be considered domiciled residents if they:

1. Demonstrate an intention to reside permanently in Malta, for example by purchasing property and relocating their family;
2. Do not spend more than 183 days per year in another country.

Foreign nationals who do not intend to make Malta the centre of their interests may apply non-domiciled tax status. They pay tax only on income earned in Malta and on foreign income remitted to Malta.

Non-domiciled tax residents are exempt from capital gains tax on gains obtained abroad but pay tax on capital gains arising in Malta.

Individuals taxed on a remittance basis in Malta may be subject to a minimum annual tax of €5,000 if they earn foreign income exceeding a statutory threshold, even if such income is not remitted.

Malta residence by investment may be obtained with an investment starting from €30,000. Family members may be included in the application: spouse; financially dependent children up to 24 years old; parents over 55; grandparents; brothers and sisters.

Investors become tax residents and pay 15% tax on worldwide income remitted to Malta. This taxation system is referred to as the remittance basis.

There are no minimum stay requirements in Malta to maintain residence status. It is sufficient not to spend more than 183 days per year in another country and to pay at least €15,000 in taxes in Malta per year for the entire investor’s family.

Italy

One becomes a tax resident of Italy by spending more than 183 days per year in the country. The Non-Dom regime applies to foreign nationals who have not been Italian tax residents for nine out of the last ten years.

A resident with Non-Dom status is not required to declare foreign assets and pays a fixed tax of €200,000 per year on worldwide income. Family members may be included in the tax regime; an additional €25,000 per year is payable for each family member.

A foreign national under the Non-Dom regime does not pay tax on dividends, capital gains, inheritance, or gifts if the assets are obtained outside Italy.

The Non-Dom regime applies for 15 years. To obtain the status, an application must be submitted to the Italian tax authorities together with documents confirming non-resident status for the previous ten years, and the fixed annual tax must be paid.

An Italy Digital Nomad Visa is granted to foreign nationals who work remotely for foreign companies and can confirm a monthly income of at least €2,700. Applicants must also demonstrate savings of at least €28,000 and purchase or rent property in Italy.

Digital nomads pay tax as ordinary Italian residents if they spend more than 183 days per year in the country. The personal income tax rate depends on annual income and ranges from 23 to 43%.

Ireland

Ireland does not offer a fixed-sum Non-Dom regime similar to Italy or Greece. Instead, the country applies a remittance basis of taxation for individuals who are tax residents of Ireland but are not domiciled there.

An individual becomes an Irish tax resident if they spend 183 days or more in Ireland in a calendar year, or 280 days over two consecutive years, with at least 30 days spent in each year.

Irish tax residents who are non-domiciled in Ireland are taxed on:

• income arising in Ireland;
• foreign income only if it is remitted to Ireland.

Foreign income and foreign capital gains that remain outside Ireland are generally not subject to Irish tax. However, Irish-source income is fully taxable.

The remittance basis does not apply to all types of income automatically, and complex rules govern the remittance of funds, especially in cases of mixed income accounts.

Ireland does not impose a time limit on the application of the remittance basis. The regime may apply for as long as the individual remains non-domiciled under Irish law.

Inheritance and gift taxation in Ireland is based on domicile and residence status. Long-term residents may become subject to broader tax exposure over time.

Ireland’s remittance-based system is often considered suitable for internationally mobile entrepreneurs and investors who structure their foreign income carefully and do not transfer it to Ireland.

Non-Dom tax regimes in different countries

Country	Conditions for obtaining status	Duration of regime	Tax on foreign assets
Cyprus	Spend more than 183 days per year in the country or 60 days and meet additional conditions. Not have been a tax resident for 17 out of the last 20 years.	17 years	No
Greece	Spend more than 183 days per year in the country. Not have been a tax resident for 7 out of the last 8 years.	15 years	€100,000 per year — for a non-domiciled resident. €20,000 per year — for each family member
Spain	Spend more than 183 days per year in the country. Not have been a tax resident for 5 out of the last 6 years.	6 years	No
Malta	Spend more than 183 days per year in the country or have the centre of interests in Malta, for example by purchasing property or opening a business.	Unlimited	€5,000 per year — fixed contribution on foreign assets
Italy	Spend more than 183 days per year in the country. Not have been a tax resident for 9 out of the last 10 years.	15 years	€200,000 per year — for a non-domiciled resident. €25,000 per year — for each family member
Ireland	Spend 183 days per year in the country or 280 days over two consecutive years	Unlimited	Foreign income and foreign capital gains taxed only if remitted to Ireland

Countries where the Non-Dom tax regime does not apply

Not all European jurisdictions continue to offer Non-Dom or similar preferential tax regimes. In recent years, several countries have reformed or abolished their special tax frameworks for new residents, replacing them with alternative systems or standard taxation rules. 

United Kingdom

The United Kingdom has reformed the traditional Non-Dom regime and is transitioning to a new Foreign Income and Gains framework, introducing time-limited relief for new tax residents. The regime had been in place for more than 100 years. It is replaced by the Foreign Income and Gains regime, known as FIG.

UK tax residents may apply the FIG regime if they have not been UK tax residents for 9 out of the last 10 years. Under the new regime, foreign income will not be taxed in the United Kingdom for four years. After this period, participants of the FIG regime will pay tax on their worldwide income.

Foreign nationals who were UK tax residents at the time the Non-Dom regime was abolished will pay tax on their foreign income at 12% from 2025 to 2027 and 15% from 2027 to 2028.

Portugal

Portugal abolished the Non-habitual Resident, NHR tax regime in 2024. The government is developing a new tax regime known as IFICI, which will be available to:

• directors of administrative and commercial services;
• specialists in physical sciences, mathematics, engineering, and related technologies;
• doctors;
• university and higher education lecturers;
• information and communication technology specialists.

The new tax regime will apply only to individuals who became Portuguese tax residents on or after January 1st, 2024.

Tax residents who meet the conditions of the IFICI regime are exempt from tax on foreign income, except for pensions.

The IFICI regime for new tax residents applies for 10 years. To obtain the status, an application must be submitted to the Portuguese tax authorities no later than January 10th. If submitted later, the tax regime will apply only from the following year.

Andorra

Andorra does not have a Non-Dom tax regime. Instead, the country applies a flat personal income tax rate of 10% for all tax residents. This is one of the lowest personal income tax rates in Europe.

Tax on dividends and capital gains in Andorra is also fixed at 10%. For comparison, in Spain, capital gains tax ranges from 19 to 23%, and tax on dividends ranges from 19 to 47%.

Andorra residence may be obtained by investment starting at €1,000,000. An investor must also confirm an annual income of at least €52,100.

Limitations of the Non-Dom regime

Not always a full exemption from tax on worldwide income. In some countries, a fixed annual contribution must be paid on all foreign assets. For example, in Malta this contribution starts from €5,000, while in Greece and Italy it amounts to €100,000 per year.

Limited duration. In most countries that offer a Non-Dom regime, its application is time-limited. For example, in Spain the Non-Dom status applies to new tax residents for the first six years, in Greece for 15 years, and in Cyprus for 17 years.

May be abolished. There are no guarantees that a government will not change its tax strategy and abolish a preferential regime. A recent example is the United Kingdom, which discontinued the Non-Dom regime.

Does not override CFC rules. A controlled foreign company (CFC) is a foreign company controlled by a tax resident of another country. Some jurisdictions have laws preventing the shifting of profits to low-tax jurisdictions. The Non-Dom regime does not отменяет these rules and does not exempt a resident from related tax obligations.

For example, a Cyprus tax resident with Non-Dom status owns a company in Belize that receives passive income, does not rent office premises, and does not conduct active business operations. Dividends from this company are not taxed due to the Non-Dom status. However, under Cyprus law, the resident must still submit a CFC report to the Tax Department.

Requires periodic confirmation. Residents must submit an application to the tax authorities annually and confirm that the conditions for applying the tax regime remain satisfied.

Key facts about the Non-Dom regime

1. Non-Dom is a tax regime for foreigners who have recently obtained tax residence. Depending on the jurisdiction, the regime may exempt certain categories of foreign income, apply taxation only upon remittance, or replace ordinary taxation with a fixed annual charge.
2. Through the Non-Dom regime, countries attract high-net-worth residents, investors, and qualified professionals. For example, one may apply for Non-Dom status for 17 years after obtaining Cyprus permanent residence by investment.
3. Non-Dom status helps preserve income from dividends, capital gains, and inheritance.
4. To obtain the status, one must first become a tax resident by living in the country for more than 183 days per year with a residence permit.
5. Some countries abolish the Non-Dom regime in order to eliminate preferential tax conditions.