Non-Dom programs are special tax regimes offered by certain European countries to attract foreign capital, investors, and internationally mobile high-net-worth individuals. These regimes allow qualifying residents to benefit from favourable tax treatment on income generated outside the host country, while remaining fully compliant with local tax laws.
Unlike standard tax residency systems where worldwide income is typically taxable, Non-Dom frameworks introduce alternative rules that limit, cap, or exclude taxation on foreign-sourced income. This makes them particularly attractive for individuals with diversified global income streams, overseas investments, pensions, or family wealth structures.
In 2026, Non-Dom programs are increasingly used not only for tax efficiency, but also as part of broader residency, succession planning, and long-term relocation strategies within the European Union.
How Non-Domiciled Tax Status Works
Non-Dom status is based on the legal distinction between tax residence and domicile. While tax residence is usually determined by physical presence (such as the 183-day rule), domicile relates to where an individual is considered to have their permanent home or long-term personal ties.
Under Non-Dom regimes, individuals may be treated as tax residents of a country while being recognised as non-domiciled for tax purposes.
This distinction allows for preferential treatment of foreign income, commonly through:
- Remittance-based taxation: Only foreign income that is brought (“remitted”) into the country is subject to tax. Income kept offshore remains untaxed.
- Foreign income exemptions: Certain income categories such as dividends, interest, capital gains, or pensions may be fully exempt from local taxation, even if remitted, depending on the country.
- Flat annual taxation: Some jurisdictions apply a fixed annual tax on foreign income, regardless of its amount, providing certainty and simplicity for long-term planning.
Each country defines Non-Dom eligibility, duration, and tax scope differently, making careful structuring and professional planning essential before selecting a jurisdiction.
Key Benefits: Foreign Income Exemption and Remittance Basis
Non-Dom programs are primarily designed to attract internationally mobile capital by offering clear and lawful tax advantages on foreign-sourced income. For many individuals, these benefits go beyond tax savings and form part of a wider wealth preservation and relocation strategy.
Key advantages typically include:
- Foreign income tax relief: Dividends, interest, capital gains, and foreign pensions may be fully exempt from local taxation or subject to significantly reduced rates, depending on the jurisdiction.
- Remittance-based taxation: In countries such as Malta, only foreign income brought into the country is taxed, allowing offshore income to remain tax-free if retained abroad.
- Predictable tax exposure: Flat-tax regimes, such as Greece’s €100,000 annual tax or Italy’s €200,000 flat tax, offer certainty regardless of income volatility or asset performance.
- Wealth and succession planning advantages: Many Non-Dom regimes reduce or eliminate exposure to inheritance, wealth, or gift taxes on foreign assets.
- EU lifestyle with tax efficiency: Beneficiaries gain access to high-quality healthcare, education, infrastructure, and freedom of movement within the EU, without being subject to full worldwide taxation.
These benefits are particularly compelling in the post-UK Non-Dom era, where predictable and transparent tax regimes are now a priority for relocating investors.
Who Should Consider Non-Dom Programs in 2026
Non-Dom regimes are not one-size-fits-all, but they are especially well suited to individuals with international income streams and long-term mobility goals. In 2026, they are most relevant for:
- Individuals with substantial foreign income from investments, dividends, capital gains, or overseas businesses.
- Former or current UK Non-Doms affected by the closure of the UK regime and 2025 budget reforms, including higher capital gains and inheritance tax exposure.
- International investors and entrepreneurs seeking EU residency combined with fiscal efficiency and legal certainty.
- Retirees and pension recipients with foreign pension income who can benefit from reduced or flat-rate taxation.
- Families planning long-term relocation who want EU residency, access to education and healthcare, and a stable tax framework for intergenerational wealth.
For these profiles, Non-Dom programs offer a structured and compliant pathway to optimise taxation while securing residency in some of Europe’s most desirable destinations.
