i guess i'm looking for some guidance on recommendations of countries that are reasonable options. aswell as overall experiences that people have went through or some validation that other people have thought about this also - also any experience in logistics of potentially having to be a contractor if there's no legal entity in the region and what that means more broadly?
context:
currently remote work setup north of england, left london a few years ago because of extortionate cost of living but tbh net net hasn't got thaat much better cost wise - coupled with high taxes. not saying i'm in a dire situation but i do feel as though i can get more bang for my buck elsewhere (surely.. else god help us all). espeically to fund investments and take care of family more generally.
general criteria is i want to keep as much of pay in my pocket, as work income is my main personal wealth driver at this stage and in the UK it's just getting burned by the tax man (I also understand the nuances that leaving the UK would have me paying for healthcare, less sophisticated infrastructure etc.. etc..). also have started a family (a bit of extra context) and my wife is onboard for moving countries with our newborn
as for lifestyle - we're pretty flexible, im very much a homebody - an internet connection, a bit of whatsapp and i'm good to go.. will adapt to the environment more or less
i've stated to my boss my intent to move country (even remote) with my employer and want to explore options without having to jump to a new company. i mentioned a region where we have a regional office (APAC - given there's local presence there and english is widely spoken)..but honestly i'm not sure.
Based on the most helpful WSO content, here are some insights and recommendations for your situation:
1. Countries with Favorable Tax Systems
If your primary goal is to maximize your take-home pay and reduce tax burdens, consider these regions: - Asia (APAC): - Singapore: Known for its territorial tax system, low personal income tax rates, and English as an official language. It's a great option for professionals with families due to its safety, infrastructure, and quality of life. - Hong Kong: Similar to Singapore, it offers low taxes and a territorial tax system. However, the political climate may be a consideration. - Malaysia: Kuala Lumpur offers a lower cost of living compared to Singapore or Hong Kong, and the tax rates are relatively moderate. - Europe: - Switzerland: Offers low taxes and high quality of life, but the cost of living can be steep. - Ireland: Attractive for English speakers, with a favorable tax regime for certain professionals. - Portugal: The Non-Habitual Resident (NHR) tax regime can be advantageous for expats. - Middle East: - United Arab Emirates (UAE): No personal income tax, and cities like Dubai and Abu Dhabi offer excellent infrastructure and expat-friendly environments.
2. Logistics of Moving Without a Legal Entity
If your company doesn’t have a legal entity in your chosen country, you may need to work as a contractor. Here’s what that entails: - Tax Implications: As a contractor, you’ll be responsible for managing your own taxes. This could mean hiring an accountant or tax advisor to ensure compliance with local laws. - Healthcare and Benefits: You’ll need to arrange private healthcare and other benefits that your employer might currently provide. - Legal and Administrative Setup: You may need to set up a sole proprietorship or a limited company in the new country to invoice your employer. This can vary by jurisdiction, so research local requirements.
3. Lifestyle and Family Considerations
4. Validation and Experiences
Many professionals on WSO have shared similar frustrations with high taxes and cost of living in the UK. Moving to a country with a more favorable tax regime is a common strategy to maximize wealth and improve quality of life. However, it’s important to weigh the trade-offs, such as healthcare costs, cultural adjustments, and potential isolation from extended family.
5. Next Steps
If you’re considering APAC, Singapore seems like a strong contender given its tax benefits, English-speaking environment, and regional office presence. However, if you’re open to other regions, the UAE or Portugal could also align with your goals.
Sources: 6 Things to Consider Before Accepting an International Work Assignment, , The insanity of the US tax code: Bad Laws and Predictable Consequences
Paraguay is fantastic, very safe and modernized and a growing cohort of digital nomads. Very easy to get a visa and set up less than $5k and you pay 0% on all foreign earnings. Not sure if you have kids, if you did not want to stay there all year you do not you could register Paraguay as your tax residency and it requires zero days, so you could rotate in other locations staying less than 180 days in countries (spend half the year in spain, greece etc or in Asia and be subject to 0% tax. If you wanted to stay put in one location you could go Dubai.
Only downside is you have to live in Paraguay and surround yourself with the worst of the worst when it comes to “digital nomads”
lol, what’s the story here?
The maths needs to be properly looked through.
If you have kids who may go to university, they will be looking at U.K. universities and the cost for resident and non-resident is massive (you go from £10k to £50k per year on the best schools - note it's not based on citizenship, plus obviously living costs). You might want to wait until they graduate but I understand this is in a long time so this may not be an issue now at least.
If you are looking to relocate long term, you also need to make sure that the host country has a way towards long-term residence visa and / or citizenship. For example in the UAE there is no really any way to gain that, so you might not be able to stay forever should you not make a profit for a given year or want to retire. Dubai is a typical get in for two years, milk the money there is, and come back. If that is not your plan, you'll need to look elsewhere.
Some countries have lower taxes but also much higher costs. Having lived in the U.S., your health insurance is going to be about $1k per month for yourself, then $1k for your wife, and $1k for your kid so you are already looking at $3k per month on health insurance (which won't even cover 100% of the costs). Nurseries in the U.S. are extortionate (if you thought they were in the U.K...), speaking $20-30k per year for a good one (and $40k in big cities). So you do say you know about extra costs but they are much much higher. Same with Wi-Fi: a typical fibre contract in the UK is £20-40 a month, but in the U.S. you are looking at $200-300 per month. Costs were so high there that even with 2x pay and less taxes I came back to the UK, still better off here.
Many other countries won't really give you visas. There are a few that are easy though, like Paraguay, Uruguay, or Panama, and some dodgy islands in the Caribbean, but I wouldn't raise my children there. The other great alternatives were basically some countries in Europe like Luxembourg or Andorra but since Brexit it is basically impossible to relocate there unless you have an Irish (or other EEA) passport.
So you aren't left with many options. Bahamas, Cayman, certain low-tax cantons in Switzerland (e.g. Zug), Hong Kong - all of these have investment requirements for long-term residence anyways so you are effectively "front-running" your UK tax equivalent, plus these investments can't be your own residence, are often local, illiquid, and don't appreciate. That's a massive opportunity cost.
In general though, the world is moving to a streamlined global tax framework so expect most of the loopholes to disappear. In the past 20 years anyways they have already drastically reduced. Plus if your consulting revenue is based in the UK (or other high tax country), you'll have to pay taxes there anyways in most cases, and then you also have a withholding tax that you need to pay to the country where you bring the dividends back in your foreign holding (say Bahamas). So please speak to a tax adviser before you do something stupid and sell a generational wealth property in the U.K...
Speaking from experience here - I made the move to Dubai in 2018 and honestly never looked back, there is of course higher expenses attached to this such as extorionate school fees, high rent, countless deposits and hidden fees.
However i counter all of those with insurance (therefore private healthcare is very accessible), growing capital appreciation (i bought instead of rent and it has paid me dividend - with no income tax or capital gains!), absolute safety (i leave my car and home unlocked at all times), convenience (i can get literally anything delivered to my doorstep in 15-20 minutes, i mean anything!), and of course everyone speak english, culture is great, food is amazing, expat community is also exuberant! , happy to discuss if you'd like further insight.
this is good insight, did you work for a dubai based company? or what's the situation. I'm thinking of pitching this idea to my company who do not have a dubai presence. Could I work as a contractor? Do you know of anyone with this type of arrangement?
I do, i work in a real estate development and investment firm, from a big4 background originally, which is highly valued in the region. I do know of some people doing what you mentioned, you would have to be compliant with HMRC which usually revolves around spending a certain amount of time in the UK (depending on whether you want to continue being a resident or not). Companies moving here can be very tax efficient, its only a 9% CT and very favourable terms on offshore freezone set ups, with no NIC's, resident visa's given via employment contracts, mandatory health insurance etc.
The process can be irritating as some bureaucratic tape here doesn't work as efficiently as the UK, however in the long run it will be a lot smoother.
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