.png)
Below we compare the tax systems in selected countries, focusing on the treatment of res non-dom individuals.
Malta Res Non-Dom
In Malta, the res non-dom tax system operates on a remittance basis, meaning that foreign income is only taxed if it is remitted to Malta. Pre-immigration capital is not taxed unless mixed with new income, and there is a minimum tax of €5,000 if overseas income exceeds €35,000. The default tax rate ranges from 0% to 35%, with exceptions at 15% and 35%.
Portugal offers the Non-Habitual Resident (NHR) regime, which provides significant tax benefits for new residents. Pre-immigration capital is not taxed, and there is a 20% tax on personal income. The tax rate for foreign income is 20%, and there is no wealth tax56789.
Switzerland has a lump-sum tax regime available in certain cantons, where individuals are taxed based on their total annual living expenditure. Pre-immigration capital is only taxed on total annual living expenditure, and there is a wealth tax ranging from 0.1% to 1% depending on the canton1011121314.
Cyprus taxes foreign income on a remittance basis, meaning it is only taxed if remitted to Cyprus. Pre-immigration capital is not taxed, and there is no wealth tax. The tax rate for foreign income is 0% to 35%, with pension income exceeding €3,420 taxed at 5%1516171819.
Spain's tax system includes Beckham's Law, which provides tax benefits for foreign workers. Pre-immigration capital is not taxed, and the tax rate for foreign income is 24% up to €600,000 and 45% on income exceeding €600,000. There is a wealth tax ranging from 0% to 2.5%, limited to assets located in Spain2021222324.
Italy offers a flat tax regime where foreign income is taxed at a flat rate of €100,000 per year. Pre-immigration capital is included in the tax base, and there is no wealth tax on assets held outside of Italy2526272829.
Canada does not have a specific regime for non-domiciled individuals, but residents are taxed on a worldwide basis. Pre-immigration capital is not taxed, and there is no wealth tax, although it has been proposed by political parties30313233.
The UAE does not have a personal income tax (PIT), so foreign income is not taxed. There is also no wealth tax34353637.
Uruguay offers a tax holiday for new residents, where foreign income is not taxed for the first 11 years. After this period, certain foreign income streams are taxed at 12%. There is a wealth tax ranging from 0.1% to 0.2%, with exemptions for certain investments38394041.
This summary highlights the key aspects of the tax systems in these countries, focusing on the treatment of foreign income, pre-immigration capital, and wealth tax. Each country offers different benefits and requirements, making it important to consider individual circumstances when evaluating tax residency options.
