Moving to United Kingdom: tax, residence and real costs (2026)
United Kingdom: first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide. The cheapest route to residence is a UK visa (unless British or Irish); foreign-income regime 4 years: about USD 10k in fees doing it yourself, with no investment, in about 3 months. Living costs about USD 3,650 a month for one person in London, USD 1,550 in Sunderland, and around USD 1,500 on a bare-minimum budget.
Key facts
| Tax in one line | first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide |
| Foreign income | first 4 years after arrival: foreign income and gains free (FIG regime) if not UK resident in the previous 10 years |
| Gains · dividends | 18-24% · up to 39.35% |
| Wealth · inheritance tax | none · 40% on worldwide assets once resident 10 of the last 20 years |
| Cheapest residence | a UK visa (unless British or Irish); foreign-income regime 4 years |
| Money needed | About USD 10k in fees doing it yourself, with no investment |
| Time | about 3 months |
| Doable yourself? | Mostly; a local fixer for one step helps |
| Days you must spend there | statutory residence test |
| Citizenship | 6 years+ |
| Online business | 40% effective, about USD 1,500 a year to run: UK work is UK income: 40-45% (company 25% + dividends 39%) |
| Living (one person a month) | London ~USD 3,650; bare minimum ~USD 1,500; family of four ~USD 5,600 |
| Good for | FIG: 4 tax years of untaxed foreign income and gains for people not UK resident in the 10 previous years; deep capital markets |
| Common set-up | arrive, claim FIG for 4 years, leave before the inheritance tax net (10 of 20 years) closes |
Pros and cons
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Questions
- How much does residence in United Kingdom cost?
- A UK visa (unless British or Irish); foreign-income regime 4 years: about USD 10k in fees doing it yourself, with no investment, about 3 months.
- Does United Kingdom tax foreign income?
- First 4 years after arrival: foreign income and gains free (FIG regime) if not UK resident in the previous 10 years. In one line: first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide.
- What does it cost to live in United Kingdom?
- Living costs about USD 3,650 a month for one person in London, USD 1,550 in Sunderland, and around USD 1,500 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from United Kingdom?
- Effective tax about 40% with the cheapest legal set-up, which costs about USD 1,500 a year: UK work is UK income: 40-45% (company 25% + dividends 39%).
- What is the catch in United Kingdom?
- Many wealthy non-doms left after 2025.
Compare
- Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
- Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
- Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
- Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
- Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
- Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
- Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
- Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise
Compare all 53 places with your own income and budget →
Sources
- https://www.gov.uk
- Living costs: based on livingcost.org (livingcost.org, June 2026), rounded