Non-dom
Non-domiciled resident
A resident of a country whose domicile is in another country. In such regimes (for example, in the UK) foreign income is taxed on preferential terms or not taxed until brought into the country. A tool of lawful optimization.
- What it is
- A resident of a country whose domicile is in another country — with a preferential regime for foreign income
- How it works
- Foreign income is not taxed until it is brought into the country (remittance)
- Where it applies
- Regimes such as the British non-dom and equivalents in other countries
- Is it legal
- Yes: it is an official regime, not a scheme
- Can you prepare
- Yes: plan your residence, domicile and income flows
In plain words
A non-dom (non-domiciled resident) is a person who lives in a country as a tax resident, but whose domicile (permanent home for life) is in another country. In a number of states a preferential tax regime applies to such people: foreign income is taxed lightly or not at all until it is brought into the country of residence.
The classic example is the British non-dom regime: the resident pays tax on local income, while foreign income is taxed only when it is brought into the country (the remittance basis). Similar regimes for new residents exist in other countries too. It is a lawful optimisation tool, not a grey scheme — it is expressly provided for by tax law.
Domicile is the key to everything. The non-dom regime is available precisely because your permanent home is in another country; once your domicile changes, the relief disappears. That is why non-dom status is planned together with domicile, residence and the asset structure, and the rules change periodically — they are checked for currency.
Who non-dom status interests
How the non-dom regime works
- A resident of the country
- Domiciled in another
- Often a new resident
- Local income — as usual
- Foreign — preferentially
- Until brought into the country
- Remittance rules
- A possible fixed charge
- Duration of the regime
- Domicile in another country
- A change of domicile ends the relief
- A lawful regime
How to use the regime
- 01Check domicile and residence
- 02Assess the country’s regime
- 03Plan income flows
- 04Observe the remittance rules
- 05Lawful optimisation
What you need to know
- A non-dom is a resident domiciled in another country
- Foreign income is taxed preferentially, often until brought into the country
- The classic example is the British non-dom regime
- It is a lawful regime, not a grey scheme
- A change of domicile ends the relief
Common mistakes
- Confusing non-dom status with full exemption from tax
- Not accounting for the remittance rules when transferring money
- Assuming the regime lasts forever — its conditions change
- Ignoring the link with domicile
- Planning without regard to CFC rules and exchange of information (CRS)
What this means for a BRIDGES client
We work out whether a non-dom regime is available to you and how to use it lawfully: we check your domicile and residence, arrange income flows in line with the remittance rules and follow changes to the regime, so that the optimisation is sustainable.
Frequently asked questions
01 /Does non-dom status exempt you from all taxes?
No. Local income is taxed in the ordinary way; the relief concerns foreign income — often until it is brought into the country. It is optimisation, not full exemption.
02 /What is the remittance basis?
A rule under which foreign income is taxed only when it is brought into the country of residence. As long as the money stays abroad, no tax arises on it.
03 /Who is the regime available to?
Residents whose domicile is in another country — often new residents. The key condition is domicile, not citizenship.
04 /Does the regime change?
Yes, the conditions are reviewed periodically, including time limits and fixed charges. That is why the current rules are checked before planning.
05 /Is non-dom status linked to domicile?
Directly: the regime is available precisely because the domicile is in another country. A change of domicile ends the relief.
06 /Is it legal?
Yes, non-dom is an official regime expressly provided for by the tax law of a number of countries. It is important to observe its rules and reporting.
See also
Read next
This material has undergone editorial review by BRIDGES.
Is a non-dom regime right for you?
We will check your domicile and residence and show how to use the relief on foreign income lawfully.