Global taxation frameworks are tightening, prompting high-net-worth individuals (HNWIs) to look for jurisdictions that protect their wealth while remaining fully compliant. Europe’s non-domiciled (non-dom) residency regimes stand out as legitimate and efficient routes for reducing global tax exposure. In 2025, Italy and Greece now lead this category, offering long-term tax certainty and clear pathways for family and legacy planning as the UK and Portugal transition away from traditional models.
Our guide looks into the most advantageous non-dom tax regimes in Europe, their latest reforms, and what internationally mobile investors should know before relocating.
What Is Non-Domiciled Residency and Who Qualifies?
A non-domiciled resident is someone who lives in a country but is not considered permanently settled there for tax purposes. While residency depends on physical presence, domicile relates to one’s permanent home or long-term intent to remain. This distinction allows qualifying individuals to benefit from reduced or deferred taxation on foreign income and capital gains.
To qualify, most countries require that an applicant:
- Has not been tax resident there for a defined period (typically 5–10 years)
- Transfers their main tax residence to the new country
- Maintains a permanent home or strong ties outside the jurisdiction
Non-dom residency is particularly valuable for HNWIs who hold international investments, operate global businesses, or manage inherited wealth across multiple jurisdictions.
What Are the Tax Benefits of Non-Dom Residency in Europe?
Non-dom regimes share a consistent goal: to encourage foreign investment and high-value migration by limiting the taxation of global income. The primary benefits include:
Foreign income exemptions: Most jurisdictions exempt overseas dividends, pensions, rental income, and capital gains if not remitted locally.
Flat-tax certainty: Italy and Greece now lead with predictable annual lump-sum payments in lieu of standard progressive taxes.
Inheritance and gift tax protection: In these regimes, non-doms pay little to no tax on foreign assets passed to heirs.
Family inclusion options: Spouses and dependents can often be added at reduced rates, simplifying multi-generational planning.
Comparing Europe’s Leading Non-Dom Regimes (2025)
| Country | Structure | Duration | Annual Charge | Family Inclusion | Key Benefit |
|---|---|---|---|---|---|
| UK | Remittance basis (ending 2025) | Up to 15 years | $35k–$70k | Individual only | Foreign income taxed only if remitted (phasing out) |
| Italy | Flat tax | 15 years | $232,000 | +$29,000 pp | Certainty and inheritance protection |
| Greece | Flat tax + $580k investment | 15 years | $116,000 | +$23,000 pp | Inheritance and gift tax exemptions |
| Portugal | NHR (closed to new applicants) | 10 years | N/A | Individual | Exemptions on foreign income until 2035 for existing holders |
United Kingdom: The End of the Remittance Era
For decades, the UK’s non-dom system allowed foreign residents to pay tax only on income brought into Britain. As of April 2025, this is being abolished in favour of a shorter, four-year exemption for newcomers. While the UK remains a financial hub, long-term non-dom planning there is ending, prompting many investors to relocate.
Italy: Predictability Through a $232,000 (€ 200,000) Flat Tax
Italy’s resident non-domiciled regime remains one of the most stable and transparent in Europe. Eligible individuals pay a fixed $232,000 annually on all foreign income, regardless of amount, for up to 15 years. There is no requirement to disclose offshore assets, and inheritance and gift taxes on non-Italian property are fully waived. Families can join for $29,000 per person each year. Italy’s cultural appeal and competitive estate planning rules continue to attract ex-UK and Middle Eastern investors.
Greece: Tax Efficiency with an Investment Edge
Greece’s 2020 non-dom legislation offers a similar 15-year structure at a $116,000 (€100,000) flat rate. Participants must invest at least $582,000 (€500,000) in Greek assets or property within three years of approval. The regime extends inheritance and gift tax exemptions to all foreign assets, providing an advantage for family offices. Low living costs and strategic EU positioning make Greece a rising favourite among European and MENA investors.
Portugal: Phasing Out Its NHR Regime
Portugal’s Non-Habitual Resident (NHR) programme, which granted a 10-year tax holiday on most foreign income, closed to new entrants at the end of 2023. Those already enrolled will retain benefits until 2035. The government has introduced a replacement framework, the Incentivised Taxpayer Scheme, targeting skilled professionals and researchers with moderate reliefs. For HNWIs, Portugal remains attractive for lifestyle and asset residency, but no longer functions as a full non-dom solution.
How Do These Regimes Support Family and Legacy Planning?
In Italy and Greece, family inclusion under one structure ensures intergenerational tax alignment. Spouses and children can be added at fixed annual rates, simplifying estate management across jurisdictions. Both regimes also exempt foreign assets from local inheritance and gift tax, allowing seamless wealth transfer.
In contrast, the UK’s non-dom system subjects UK assets to inheritance tax at 40% once a person becomes “deemed domiciled” after 15 years of residence. Portugal, while tax-efficient for retirees, does not formally extend exemptions to dependents under its successor framework.
Key Risks and Compliance Considerations
Non-dom status requires careful planning and annual renewal. Common pitfalls include failing to meet residency thresholds, remitting income inadvertently, or breaching investment obligations in Greece. From 2025, the EU and OECD are expected to intensify reviews of preferential tax regimes, meaning stricter documentation and audit standards.
Applicants should maintain clear evidence of foreign domicile, separate offshore and domestic bank accounts, and ensure that asset structures align with local anti-avoidance rules.
Choosing the Right Regime for Your Goals
Each jurisdiction offers unique advantages depending on personal objectives:
- Italy: Best for predictable wealth management, confidentiality, and multi-generational estate planning.
- Greece: Ideal for investors willing to combine residence with property or capital investment.
- UK: Suitable for short-term relocations before 2025 reforms take full effect.
- Portugal: More limited but still viable for existing NHR holders and professionals under the new Incentivised Taxpayer Scheme.
HNWIs should evaluate income composition, desired length of stay, and family priorities before choosing a jurisdiction. Integrating non-dom residency with second citizenship or residence-by-investment strategies can further optimise mobility and tax outcomes.
Is European Non-Dom Residency Still Worth It in 2025?
Despite the UK’s withdrawal and Portugal’s policy shift, Europe’s non-dom landscape remains highly competitive. Italy and Greece offer legal, transparent, and long-term tax certainty unmatched by most global jurisdictions. For those prioritising legitimate tax optimisation, estate planning flexibility, and access to European residency rights, non-dom programmes remain a strategic pillar of global wealth management.
To determine which regime best aligns with your goals, speak to Next Generation Equity’s expert advisors. Our team can guide you through eligibility, planning, and structured applications to secure compliant, lasting benefits from Europe’s most rewarding tax residency options. Contact us today so we can further your journey!
