New Destinations for Non-Domiciled Residents (HNWI): Opportunities in Switzerland, United Arab Emirates and Hong Kong
With the UK’s upcoming 2025 tax reform, many High-Net-Worth Individuals (HNWI) are exploring new options for establishing tax residency abroad. London, historically attractive for the tax advantages granted to non-domiciled (non-dom) residents, will see these benefits on foreign income gradually phased out. This change has HNWIs considering countries that offer solid tax benefits and stable environments for relocating their residency.
Switzerland: A Strategic Choice for Stability and Quality of Life
Switzerland continues to draw interest with its advantageous tax system, offering options such as an annual lump-sum taxation for non-domiciled residents in certain cantons. This framework allows HNWIs to benefit from competitive tax rates in a highly stable political environment with a top-tier quality of life, including exceptional healthcare and education systems. Switzerland also stands out for its natural beauty and multicultural setting, fostering an inclusive environment with unlimited Schengen access and an extensive network of treaties to prevent double taxation.
United Arab Emirates: Zero Taxation and a Cosmopolitan Environment
The UAE is one of the most attractive choices for HNWIs due to the complete absence of personal income, inheritance, or gift taxes, with no individual tax declarations required. Cities like Dubai and Abu Dhabi offer excellent healthcare infrastructure and a high standard of living within a cosmopolitan environment that blends tradition with modernity. With flexible visa options and a strategic location providing easy access to multiple international markets, the UAE also offers unparalleled investment opportunities.
Hong Kong: Tax Benefits and Access to the Chinese Market
Hong Kong ranks among the most sought-after destinations for investors and HNWIs due to its favourable tax system, which includes no capital gains, inheritance, or gift taxes. Individual income tax rates are among the world’s lowest, and Hong Kong’s unique position allows easy access to mainland China. Its economic dynamism and robust financial institutions make it ideal for those seeking a competitive environment with extensive networking and business development opportunities, bolstered by numerous treaties to avoid double taxation.
Evaluating the Right Jurisdiction: Final Considerations
Choosing the ideal jurisdiction depends on each individual’s personal and financial needs. Switzerland, the UAE, and Hong Kong each offer targeted solutions for tax planning and lifestyle, although their residency requirements and access criteria vary. Carefully considering all factors before making a decision is essential
If you’d like to delve into the specifics, download our complete guide “New Relocation Opportunities for HNWI,” where you’ll find practical information and targeted advice for each destination.