The UK non-dom remittance basis was fully abolished from 6 April 2025, replaced by a limited 4-year Foreign Income and Gains (FIG) regime. Individuals who have been UK tax resident for more than 4 years now face full UK taxation on worldwide income and gains.
What Changed: Before vs After April 2025
The abolition of the UK non-dom regime, announced in the 2024 Autumn Budget and taking full effect from April 2025, has triggered a wave of relocations among internationally mobile wealthy individuals. Monaco has emerged as one of the top destinations for former UK non-doms, offering zero personal income tax, no capital gains tax, and no wealth tax — a compelling package for those accustomed to the remittance basis regime.
| Feature | Before April 2025 (Remittance Basis) | After April 2025 (FIG Regime) |
|---|---|---|
| Offshore income | Untaxed unless remitted to UK | Taxed on arising basis after 4 years |
| Duration of benefit | Up to 15 years with annual charge | Maximum 4 years, no extensions |
| Annual charge | £30,000 (7-12 yrs) / £60,000 (12-15 yrs) | None (benefit limited to 4 years) |
| Trust protections | Offshore trusts broadly protected | Trust protections largely removed |
| Capital gains | Remittance basis available | Full UK CGT after 4 years |
| Inheritance tax | Non-UK assets excluded for non-doms | 10-year tail after leaving UK |
UK vs Monaco: Effective Tax Rates
Planning Your Transition
The transition from UK non-dom status to Monaco residency requires careful planning. Key considerations include the timing of your departure relative to the UK tax year, the treatment of offshore trusts and structures under the new UK rules, and the disposal of UK assets before establishing Monaco residency. The UK's four-year Foreign Income and Gains (FIG) regime provides a temporary bridge, but for those beyond this window, Monaco's permanent zero-tax framework is far more attractive.
Monaco Residency Application Process
The Monaco residency application process involves opening a local bank account (minimum deposit typically €500,000+), securing accommodation, and providing a clean criminal record. UK nationals benefit from visa-free travel to Monaco and simplified residency procedures as European nationals post-Brexit are treated favorably. The entire process typically takes three to six months, and engaging a Monaco-based immigration lawyer is strongly recommended.
Estate Planning Considerations
Estate planning deserves particular attention. Monaco's inheritance tax is 0% between spouses and direct descendants, compared to the UK's 40% inheritance tax above the nil-rate band. However, the UK's deemed domicile rules mean that former UK residents may remain subject to UK IHT for a period after departure. A comprehensive cross-border estate plan, ideally involving Monaco, UK, and any third-country assets, should be established before the move.
Lifestyle Transition
The lifestyle transition from London to Monaco is smoother than many expect. English is widely spoken, the British community is well-established (with organizations like the British Association of Monaco), and direct flights connect Nice-Côte d'Azur airport to London in under two hours. Many former non-doms maintain business interests in the UK while basing their personal and family life in Monaco.
Use our tax calculator to estimate how much you could save by moving from the UK to Monaco.
Step-by-step guide for British residents moving to Monaco, including visa, banking, and timeline.
Points cles
- The UK non-dom remittance basis was abolished from April 2025 — the new FIG regime only covers 4 years.
- Monaco offers 0% income tax, 0% CGT, and 0% inheritance tax for spouses and direct descendants.
- UK IHT may still apply for up to 10 years after departure under the new deemed domicile tail.
- The residency process takes 3-6 months and requires a bank deposit of €500,000+.
- Plan your exit timing carefully around the UK tax year (6 April) to minimize overlap.