Once a favourite among Britons for its glitzy, sun-soaked lifestyle and low taxes, Dubai has long served as a vision of cosmopolitanism and progress – a safe haven in contrast to the rest of the ever-volatile Middle East.
However, there is no denying the strain that the events of the past few months will have put upon the emirate’s carefully constructed image. Indeed, a reported 30,000 Britons have already chosen to leave the city – abandoning with it the so-called ‘Dubai dream’.
Yet for any Britons rapidly rethinking relocation plans to the emirate, the absence of Dubai from the expat map does not mean succumbing to the UK’s penny-pinching tax regime and collapsing property market.
With help from insurance firm William Russell, we’ve put together an ultimate guide to relocation in some of the world’s lowest tax destinations, with advice on buying property, necessary visas – as well as where to head for year-round guaranteed sun.
1. Panama
Panama attracts expats and retirees with its tropical climate, vibrant culture and favourable tax systems – and it’s also increasingly popular with young entrepreneurs (pictured, Boquete)
Panama has emerged as a top choice for expats and retirees in recent years thanks to its tropical climate, vibrant culture and favourable tax systems.
It’s been voted the best country to move by relocation network InterNations for the second year running, and, according to insurance firm William Russell, has the lowest tax rates for expats of anywhere in the world.
Expat-friendly residency programmes, such as the Pensionado Visa, make it extremely popular with retirees. However, the country is increasingly popular with young entrepreneurs, too, looking for an affordable lifestyle while possibly starting a business. Wellness and adventure holiday companies, for example, are particularly popular.
Visas and employment
Panama offers a wide variety of permanent residency visas, but, along with a Remote Worker visa, two in particular are popular with foreigners, as they don’t require substantial financial investment.
For the Pensionado Visa, retirees only need to prove US$1,000 (£738) monthly in lifetime income, plus an additional $250 (£184) for each dependent.
The visa also provides discounts for retirees, referred to as jubilado, if you meet the age requirements of 55 years old for women, and 60 years old for men.
These include 50 per cent off entertainment, 30 to 50 per cent off hotels, 30 per cent off public transport, 25 per cent off airfares and utilities, 20 per cent off restaurants and doctors – and more.
The other visa available is the ‘Friendly Nations’ Visa, for which there are four ways for Brits to qualify. These include employment in Panama; investing in a home of at least $200,000 (£150,000); investing the same amount in a three-year CD (a savings account) at a Panama bank; setting up a Panama company that will provide a labour contract and a work permit.
With any of these Friendly Nations Visa options, Britons can receive a work permit to sell products or services in Panama, according to Panama Relocation Tours. You may also receive jubilado discounts if age eligible.
Jackie Lange highlights the wealth of opportunities to start businesses in Panama
While many choose Panama as a remote working destination, there are ample opportunities to start businesses here, says Jackie Lange, owner of Panama Relocation Tours. She has seen expats launch all manner of ventures, from restaurants and micro-breweries, to estate agencies and property management companies.
‘Sports bars are very popular, but so are yoga classes, small hotels or hostels, or hotel management in Panama,’ she adds.
For those not wanting to start their own business, there is the option to continue with work in the UK remotely. It’s worth noting that the practice of in-person professions such as healthcare and legal work is reserved for Panamanian people.
Taxes
Panama has a territorial taxing system in place, meaning you only pay taxes if you sell products or services within the country. Foreign income, or pensions received from abroad, are not taxed, and there is no inheritance, estate, gift or wealth taxes.
Individual income tax rates are zero per cent up to $11,000 (£8,115), 15 per cent from $11,001 to $50,000, and 25 per cent beyond $50,000. There is no UK-Panama double taxation agreement (DTA) currently in place, but foreign income is not taxed if earned outside of the country.
Annual property tax is also relatively low. For a primary residence, the rate is zero per cent up to US$120,000 (£88,528); 0.5% from US$120,001 to US$700,000 (£516,415); and 0.7% above US$700,000.
Capital gains tax (CGT) applies to real estate sales, with sellers generally charged a flat 10 per cent rate. However, sellers may also face an alternative three per cent calculation based on the sale value or cadastral value, whichever is higher.
Cost of living
Lower living costs in Panama are a huge draw to the country. According to Number.com, the cost of living is 46.8 per cent higher in the UK than Panama (excluding rent). Rent is 44 per cent higher in the UK.
However, the average monthly net salary in Panama is, unsurprisingly, less than that in the UK – and important goods can be more expensive. Transport and services tend to be cheaper.
A comfortable lifestyle outside of Panama City can cost someone around $800–$1,500 (£590–£1,107) a month, according to Global Citizen Solutions. In capital Panama City, you can expect that figure to sit around $2,000–$2,500 (£1,475–£1,844).
Healthcare services are approximately £75–£225 a month, while housing costs vary considerably based on location (see below).
Property
Casco Antiguo, the historic district of Panama City, is a UNESCO world heritage site. The area is popular with expats and known for its cafes, restaurants and nightlife
Foreigners are able to buy property freely in Panama and have the same legal rights as locals. Homes themselves can be great value, and property taxes are low.
However, Ms Lange recommends that anyone moving over to Panama rents for at least six to 12 months before investing more permanently.
She says: ‘This gives you time to know that you like living in Panama and the areas. You get to experience both the rainy and dry seasons – which can be dramatically different.’
In Panama City, the colonial architecture of Casco Antiguo (or Casco Viejo) is popular with expats, says Roberto Diaz of United Country Real Estate. ‘Known for its cafes, restaurants and nightlife, it reminds me of the French Quarter in New Orleans,’ he says. An average two-bedroom apartment here will cost $1,500–$2,000 (£1,125–£1,500) per month to rent.
The other popular area in the city is the master-planned community of Costa del Este, which is close to the financial centre, international schools, security.
Coastal city Coronado or small town Boquete both come at a premium, but are still great value when compared to either the UK or USA. Towns like Chitre, Dolega and Penonome are becoming more popular due to their affordability.
Beyond these more popular choices, there’s also Torio, on the Azuero Peninsula, where Katie lives, where you can find a one or two-bed casita (small house) for $300–350 a month, or $700,000 for a three–bedroom house overlooking the ocean.
For buyers, a property under $400,000 (£300,000) comes with around $2,700 (£2,000) of closing costs, including legal fees (you must use a lawyer).
2. Malta
Malta offers year-round sunshine, low taxation and a slower pace of life (pictured, Valletta)
For any Britons looking for ways to protect their savings – and enjoy a milder climate – Malta provides a tempting solution.
‘We see more people moving from Britain than anywhere else,’ says estate agent Grahame Salt. ‘They like the Mediterranean lifestyle, the low crime rate, the fact that English is spoken here and, above all, the low taxes.’
Indeed, as a former British colony, Malta offers a level of familiarity and safety for Britons, as well as year-round sunshine, low taxation and a slower pace of life.
Visas and employment
If you have lived on Malta for five years and wish to make it your permanent home, the Long-Term Residence Permit is for you. This allows holders to enjoy nearly the same rights as Maltese citizens, including access to employment, education and public services.
Malta today is a young, vibrant and crowded place but still historically astonishing.
To apply for this form of residence, you must demonstrate stable financial income to support yourself and your dependents, as well as comprehensive health insurance and suitable accommodation.
Alternatively, non-EU nationals (including UK citizens) can apply for permanent residency under the Malta Permanent Residency Programme.
To do so, you must have assets of at least €500,000 (£435,000) – with at least €150,000 (£130,000) in financial investments – or assets of €650,000 (£565,000), with at least €75,000 (£65,000) in financial investments. You will also need comprehensive health insurance covering you and your dependents.
English is now an official language in Malta, meaning setting up a business is very straightforward. Compared to other European countries, such as Germany or France, the company registration process is also incredibly efficient, taking only a few weeks.
English language teaching is a significant employment area available in Malta (pictured, the street of St Lucia in Valletta)
Malta is also an affordable place to start a business: for private limited companies, a share capital of only €1,165 (£1,013) is needed, with only 20 per cent of this required up front. This is a particularly attractive prospect for small to medium businesses, especially when combined with low corporate tax rates (between five and seven per cent).
There are also several employment options available for expats in Malta. The country is now a major hub for IT and software firms, attracting British expats with skills in software development, data analysis and customer support. There is also a steady demand for accountants, auditors and other financial professionals, due to the many international firms operating in Malta’s robust financial sector.
English language teaching is another significant employment area available in Malta, as the country is a popular destination for students learning English.
Taxes
Long-term residents in Malta pay a progressive tax rate of up to 35 per cent on the highest income brackets – 10 per cent below Britain’s top rate.
There is no wealth, inheritance or annual property tax, which further benefits incomers. However, there is 5 per cent stamp duty on property purchases and potential capital gains tax for property sales.
If you retire to Malta, then you will need the Malta Retirement Programme. To qualify for this status, you must own or rent a property in Malta. The property should be worth €275,000 (£239,000), or €220,000 (£191,000) in South Malta. For those renting, the minimum annual rent should be €9,600 (£8,345) or €8,750 (£7,606) in South Malta.
Applicants must reside in Malta for at least 90 days a year and should have a pension that constitutes 75 per cent of their total income. Health insurance is also required. The programme also permits holders to include dependents, providing they share the principal residence.
Retirees in Malta are subject to a generous flat tax rate of 15 per cent on foreign income, with local income taxed at 35 per cent.
Cost of living
The Mdina festival, which takes place in the west of Malta, involves battle re-enactments, live medieval music, flag-throwing displays, magic shows and falconry
In general, the cost of living in Malta is lower than the UK, with monthly spending estimated at £2,571 for a family of four, as opposed to £3,907.
You’ll also pay about 22 per cent less for rent, as the price per square metre for a city centre apartment is almost 40 per cent lower than in London.
Property
A new report reveals that property prices in Malta have increased by 125 per cent over the past decade. Apartments comprise 50 per cent of the island’s 297,000 homes.
On your drive from the airport, you may be less than impressed with the first sight of Maltese property: box-like housing scarred by satellite dishes.
It is only when you get to the capital of Valletta, around which most people live, with its mixture of baroque and Renaissance palaces that you begin to appreciate Malta’s architectural splendour.
3. Cyprus
Cyprus offers the warmest winter weather in the Mediterranean – and delicious dishes such as moussaka, pourgouri and baklava
Offering the warmest winter weather in the Mediterranean, Cyprus has long been a popular relocation and retirement spot for the British – and is only a four-hour flight away.
As a Commonwealth island, Cyprus also offers comfort of safety and familiarity: English is widely spoken, there are three-pin plugs and cars drive on the left.
Tax benefits eligible to residents in Cyprus have also become an additional pull factor for those planning how to protect some of their hard-earned cash from HMRC.
‘In the past two years there’s a noticeable increase in enquiries from UK retirees and, interestingly, from people looking to retire earlier than originally planned,’ says Wayne Thompson of Keller Williams Seven Paphos.
Visas and employment
To stay in Cyprus for more than 90 days, a UK national will need to obtain a visa or residence permit. Those with an Irish or other type of EU passport will apply for a Yellow Slip (registration certificate).
Most retirees will apply for a ‘Pink Slip’: a temporary residence permit which is valid for one year and can be renewed annually. You must show that you have €10,000 (£8,693) in a bank account, and enough income to cover living expenses – around €2,000 per month, plus an additional 20 per cent for a spouse.
You can rent or own a property and have private medical insurance unless you are of UK state pension age. Under the terms of this permit, you are not permitted to be in employment.
You apply for a residency permit at the immigration department of the district where you are living. After taking your paperwork to a pre-booked appointment, including medical and police checks, it takes six months to get your permit.
Allow around €1,000 (£869) per person if you are paying for private healthcare cover (under state pension age).
Alternatively, there are routes to permanent residency permits, such as the ‘Category F’ visa, granted to applications with a secured annual income, who do not need to work. To qualify for a Category F visa, retirees need an annual income of €9,568 (£8,317)
There is also the option of retiring with investment. Applicants need to purchase a new-build property for at least €300,000 (£261,000) plus VAT. However, the high annual income needed makes this a less popular option: €50,000 (£43,000) per year for the main applicant and another €15,000 (£13,000) for the spouse, so that’s £56,000 for a couple.
Less common is the BCS Visa, an option for those semi-retired but setting up a company in Cyprus, or employees of a Cypriot company, giving the right to live, work and access healthcare in Cyprus, and also enjoy non-domiciled tax status.
Taxes
There is no inheritance, wealth or gift tax in Cyprus. Any UK buy-to-let income is only taxable in the UK (pictured, Archangelos Michael Church in Kyrenia)
Cyprus is a relatively low-tax environment for individuals and businesses, making it increasingly attractive to both small entrepreneurs working remotely, but also retirees.
As of 2026, Cyprus has changed its tax rates to make pension taxation even more attractive than a year ago.
Now, retirees can choose between a flat rate of five per cent tax on pension income (above a tax-exempt allowance of €5,000/£4,371), increased from €3,420 (£2,990), making Cyprus one of the tax-efficient countries in the world for UK retirees.
Alternatively, pensioners can be taxed at normal tax rates (after €22,000/£19,233 personal allowance). This means 20 per cent up to €32,000/£27,976, then progressive rises to 35 per cent for income over €72,000/£62,946.
If your pensions add up to more than around €25,000 (£21,861) per year, it is usually better to go for the flat rate, according to Blevins Franks, a cross-border wealth consultancy – but seek advice. Cyprus has a double taxation agreement (DTA) with the UK.
There is no inheritance, wealth or gift tax in Cyprus. Any UK buy-to-let income is only taxable in the UK.
There is also a non-dom status that suits wealthy expats and retirees who earn income from investments, available to those who have not been resident in Cyprus for 17 of the last 20 years.
This status includes significant advantages including no tax on passive income, such as dividends and interest. Capital gains are also exempt – from the sale of shares, stocks, bonds and the sale of foreign property.
Cost of living
Outside the city, the average rent for a one-bedroom apartment is £619 a month,while apartments more centrally located in the city come to around £736 a month (pictured, St George of the Greeks Church, Famagusta)
The cost of living in Cyprus is 14.2 per cent lower than the UK, according to numbeo.com, but the average net salary is lower, averaging approximately £1,473 per month.
Outside the city, the average rent for a one-bedroom apartment is £619 a month,while apartments more centrally located in the city come to around £736 a month. Generally speaking, though, rent is much lower than the UK – especially outside of Limassol and Nicosia.
Property
Property is also more affordable in Cyprus than other south-western European states.
‘A third of our property sales are now to buyers moving here rather than just buying a holiday home – mostly retirees,’ says Sarah Hordle of Island Homes Cyprus.
After seeking approval from the Council of Ministers to buy (a straightforward process), those looking to purchase can save on VAT when buying a new-build property: a reduced rate of five per cent, rather than the standard 19 per cent, is available, subject to conditions, until June.
The southeastern portion of the island, offering the best beaches in Cyprus at better value, has also become increasingly popular. The traditional villages behind the coast in Famagusta – such as Sotira, Avgorou, Liopetri, Xylofagou – are sought by with expats.
You can find a three-bedroom villa with a pool from around €240,000 (£209,910), or a new-build villa from around €300,000 (£262,388). Prices rise closer to the coast: a villa in Pernera is for sale at €499,000 (£436,437) with Island Homes Cyprus.
On second-hand properties, tiered transfer tax is payable – allow around €5,000 (£4,346) in total for buying costs, including legal fees, on a property worth €300,000 (£261,000).
4. Andorra
Andorra offers its residents resplendent scenery and a great quality of life, as well as advantageous tax breaks (pictured, Grandvalira ski resort)
Nestled between France and Spain, surrounded by the Pyrenees mountains and expansive, glacial lakes, Andorra offers its residents resplendent scenery and a great quality of life, as well as advantageous tax breaks – which is why it’s fast being recognised as a leading destination for Britons wanting to relocate elsewhere.
Visas and employment
Before moving to Andorra, you will need to decide what kind of permit you will opt for: passive residence, or active residence permit.
Passive residence, also known as administrative residence, requires staying in the country for at least 90 days at a time. You must also invest €1,000,000 (€800,000 in properties) in Andorran assets. It is worth noting, though, that this kind of visa does not permit the holder to work or a run a business in Andorra; all income must be earned abroad.
This investment also requires an interest-free, refundable deposit of €47,500 (£41,289) which must be transferred to the Andorran Financial Authority as evidence of solvency. An addition deposit of €9,500 (£8,258) must be included for each additional family member moving with the main applicant. This reduces the main investment total.
Expats may also acquire a permit to run or acquire a business in Andorra – taking a meaningful stake in the company of 34 per cent or more, and, in some cases, taking on managerial responsibilities.
It’s worth acknowledging that this business is very much expected to be real and active – not just a shell company for residency purposes – so this route is better suited to those with a genuine interest in running a business in Andorra, not simply holding shares remotely.
For those not wanting to set up and run businesses themselves, there is also the simpler option of employed active residency: taking up a salaried job offer from an existing Andorran employer.
Taxes
For higher earners, income above €40,000 is taxed at 10 per cent – relatively low in comparison to other Western European countries (pictured, Andorra la Vella)
The main appeal of relocating to Andorra for UK residents is its personal income tax rates, which are capped at 10 per cent, with the first €24,000 (£20,862) tax-free and income from €24,001 to €40,000 (£34,770) taxed at five per cent.
For higher earners, income above €40,000 is taxed at 10 per cent – relatively low in comparison to other Western European countries. Similarly inviting for any focusing on estate planning and asset preservation is the country’s lack of wealth, inheritance or gift tax.
It is also favourable for entrepreneurs and business owners: corporate tax is capped at 10 per cent, and social charges are 22 per cent of gross salary.
Property
The Andorran property market has experienced a boom over the past few years, with gross rental yields averaging 5.8 per cent in July 2025, according to Wise. Indeed, residential property prices have hit historic highs over the past few years, seeing a 6.48 per cent year-on-year increase as of 2025, with the average apartment valued at €4,440 (£3,859).
Any individual is permitted to buy property in Andorra – even without residency. However, for those without residency in Andorra, you usually need to obtain authorisation for foreign investment before completing the purchase. If you are already a resident, the process is far simpler. In both cases, though, you’ll need an Andorran bank account in order to complete property purchases.
Popular, high-demand areas include capital Andorra la Vella and Escaldes-Engordany, the country’s second-most popular parish. Prices usually range between €4,200-4,700 per square meter.
Cost of living
An additional boon for British expats, the cost of living in Andorra is generally speaking lower than back home in the UK, at around 9.7 per cent lower according to Numbeo.com.
However, rent can vary significantly based on location and the type of property. For example, while a one-bedroom flat might cost about €400-600 (£348-£522), higher-spec houses will be considerably more expensive.
The average salary in Andorra is usually lower than in the UK – but this is usually offset by Andorra’s favourable tax regime.
5. Mauritius
Although this village is called Cap Malheureux – which is French for ‘unlucky/unhappy cape’ – Mauritius has been voted the happiest country in Africa
Voted the happiest country in Africa, there is plenty about life on this English-speaking, low-tax island that will appeal to Britons looking for a life in the sunshine. Obtaining residency for the island is also relatively straightforward, and there is no tax on many forms of foreign income, making Mauritius an attractive destination for expats.
Visas and employment
There are several ways of obtaining residency in Mauritius: occupation permit, retirement permit, or a residence permit linked to investment or family circumstances.
The Occupation Permit will generally be chosen by those wanting to run a business in Mauritius – either as an investor, a full-time professional or self-employed. For self-employed or investor applications, Mauritian authorities usually require evidence that the business is already trading, has a credible future and enough activity to support the move.
In other words – they want to see evidence that the business activity is genuine, and not merely a shell constructed for tax purposes.
Aimed at those aged 50 and over, the Retirement Permit is available to those able to show a stable monthly transfer from overseas, or adequate financial means. It is generally reserved for those who want to live in Mauritius, but without taking foreign employment.
Taxes
Many Britons will be drawn to Mauritius not merely for its turquoise waters and relaxed lifestyle, but moreover its territorial-style tax system, and relatively low headline rates.
Personal income tax is generally charged at a flat rate of 15 per cent – competitive with the UK and the rest of Europe. There is no capital gains or inheritance tax, and corporate tax rates are also low.
Generally speaking, Mauritius also does not tax foreign-sourced income – especially attractive to any with overseas pensions, investment income, or a business located outside of the island itself.
Cost of living
Everyday expenses are generally lower in Mauritius than in the UK, but imported goods, private schooling and top-of-the-range housing can push up living costs considerably (pictured, Tamil Surya Oudaya Sangam temple in Grand Baie)
When it comes to everyday expenses, the cost of living in Mauritius is generally lower than the UK – approximately 43.4, per cent, according to Numbeo.com – with restaurants costing an average of 55.9 per cent less, and groceries some 35.2 per cent lower.
However, it’s worth noting that imported goods, private schooling and top-of-the-range housing can push living costs up considerably, and average monthly salaries (after tax) are lower than back in the UK.
Rent can also vary hugely, with a one-bedroom property outside of the city centre costing an average of 14,000 Mauritian rupees (£224) a month, but furnished homes in high-demand areas like Grand Baie and Flic en Flac – near international schools – costing approximately 25,000 MUR per month (£399).
Property
While foreigners are not able to invest freely in the Mauritian real estate market, there are a number of government-approved schemes and developments on hand to facilitate easy property purchases, such as the Smart City Scheme and the Property Development Scheme. Foreigners who invest $375,000 or more also become eligible for permanent residence.
The areas usually favoured by expats include Grand Baie, ‘The Riviera’ of the island, Black River on the West Coast – surrounded by lush mountains and pristine beaches – Roches Noires and Beau Champ, offering a quieter lifestyle surrounded by natural beauty.
Accordnig to William Russell, you can expect to may £293 a month to rent a one-bedroom property on the island, with property prices averaging approximately £2,285 per metre squared.
6. Zug, Switzerland
The old town of Zug in Switzerland. The town offers a highly favourable tax regime set against a backdrop of lakeside views
Home to just 135,000, the Swiss town of Zug, 22 miles south of Zurich, has been fast attracting former Dubai residents looking to find a stable base in Europe.
As the canton’s Finance Director, Heinz Tannler, told the Financial Times: ‘We are, of course, saddened by the circumstances that led to this situation, but the reality is that Zug is benefitting from this process.’
Already popular with business owners and investors, Zug offers a highly favourable tax regime set against a backdrop of lakeside views, a historic centre and scenic railroads.
Residency and visas
Swiss visa restrictions are tighter than other relocation destinations, so residency for non-Swiss citizens is usually provided via employment, self-employment, financial independence or familial dependency.
For those wishing to run a business or own a company in Switzerland, officials will ask to see evidence of a active, commerically viable business – rather than a shell structure.
Residency is also possible via investment: applicants are required to invest between CHF 250,000-1,000,00 (£236,524-£946,095) per year annual lump sum, with the total payment required determined on a case by case basis. Applicants must establish a base in Switzerland, and spend a significant amount of time in the country.
After maintaining residence for 10 to 12 years, investors may then be eligible to apply for Swiss citizenship.
Taxes
Especially in comparison to other European jurisdictions, Zug offers a very competitive tax environment. Personal and corporation taxation in Switzerland is set at federal, cantonal and municipal levels, with Zug known for having some of the lowest rates in the country.
The effective total tax burden (combining federal and canton/municipality profit tax) totals a competitive 11.85 per cent, with wealth tax between 0.001-0.2 per cent of taxable equity, and a standard VAT rate of 8.1 per cent.
Holding companies domiciled in Zug, and mainly holding investments in other companies, are almost completely exempt from tax at the cantonal level.
Known as ‘Crypto Valley’, Zug is also an enticing location for crypto, blockchain and start-ups, as the town offers breaks for innovation in these areas, as well as a strong network of investors and developers.
Zug is an enticing location for crypto, blockchain and start-ups, as the town offers breaks for innovation in these areas
Cost of living
Even by Swiss standards, the cost of living in Zug is considerably high. Rents usually tower above the country’s average, and everyday expenses such as groceries and transport are far hgher than in the UK.
According to Numbeo.com, you can expect to pay about 28.9 per cent more for rent in Zug, compared to London, with groceries a whopping 63.7 per cent more expensive than in the UK.
Property
Especially for foreign buyers, buying property in Zug is tightly controlled, and can be expensive, too. Acquiring a residency permit, or establishing yourself in the country first, usually makes the process easier.
Given Zug’s petite size, supply of property is also limited – with prices usually reflecting the canton’s advantageous tax environment and reputation as a good, safe place to live.
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