Several European countries offer special tax regimes that treat foreign income differently for new residents. The landscape shifted sharply in 2025, so this guide sets out the current shape and what to verify before acting.
Information, not advice. Figures are indicative and current as of June 2026. Always confirm the present rules with the official program authority and a licensed professional before you act.
A special tax regime is a set of rules that gives qualifying new residents more favourable treatment of foreign income or gains for a limited period. The mechanics differ widely. Some charge a flat annual fee in place of tax on foreign income. Others exempt certain foreign earnings for a fixed number of years. None of them make you tax free everywhere, and all of them sit inside a wider set of residence, reporting and anti avoidance rules.
The United Kingdom ended its long standing non domiciled regime in April 2025 and replaced it with a residence based system. Under the new foreign income and gains rules, people who have not been UK tax resident for a set number of years before arriving can claim relief on foreign income and gains for an initial period. The detail and the qualifying conditions are specific, so confirm them with His Majesty's Revenue and Customs or a licensed adviser.
Italy operates a flat tax regime for new residents that substitutes a fixed annual amount for tax on foreign income, for a capped number of years. The headline figure has changed recently and grandfathering may apply to earlier arrivals, so the current amount must be confirmed.
Portugal closed its original non habitual resident scheme to new applicants in 2025 and introduced a successor regime aimed at specific qualifying activities in fields such as science, technology and education. Greece offers its own regime under which qualifying new residents can pay a fixed annual amount on foreign income, with an additional amount per family member. Each figure and condition should be checked against the relevant national tax authority.
Tax is only one part of a relocation decision. Before you move, establish how the regime treats your particular income types, how long the benefit lasts, what happens when it ends, and how your home country will treat your departure. Ask about exit taxes, inheritance and gift rules, and reporting obligations. Because these regimes change with most national budgets, build your plan on current law confirmed with the official authority and a licensed tax professional.
No. These regimes change how some foreign income or gains are treated for a limited time. You remain subject to local rules, reporting duties and anti avoidance provisions, and your home country may still assert taxing rights. Confirm your full position with a licensed tax adviser.
Sometimes. Several countries apply grandfathering so existing residents keep their original terms when a regime is tightened, but this is not guaranteed and the detail varies. Verify the transition rules with the relevant national tax authority before relying on them.
No. A residence or citizenship route gives you the right to live somewhere. A special tax regime governs how you are taxed once resident. They are separate decisions that often need to be planned together. Treat each on its own facts and confirm both with the official authorities.
Information, not advice. Figures are indicative and current as of June 2026. Always confirm the present rules with the official program authority and a licensed professional before you act.
The rules for this route changed recently. Confirm the current position with current guidance before you act.
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