What counts as a tax incentive for new residents
A new-resident regime lowers tax for people who move in after living abroad, through a flat rate on local income, an exemption on foreign income, or a fixed yearly sum. It is written into law, usually claimed on a form or the tax return, and most end after a set number of years.
These regimes are one of the legal ways to pay less tax after a move, and they split by income: work regimes cut the tax on pay earned in the country, while investor and retiree regimes cover foreign income only. Most also have a look-back: years you must not have been resident before the move.
A past stay can fail the look-back
You spent 7 months of 2023 in Barcelona, which made you Spanish tax resident that year. You move back in 2026 with a remote job, but 2023 falls inside the 5 tax years before the move, so the inbound regime is closed and your salary is taxed on the normal scale from year 1. Check every past stay that crossed a country's day test before you plan around its regime.
Regimes for people who move to work
Each names the job, role or business it covers; none is open to everyone who moves.
Regimes for income from work, checked October 12, 2026
| Country and regime | Tax break | How long | Main conditions |
|---|---|---|---|
| Portugal, IFICI | 20% on qualifying Portuguese work income; most foreign income exempt | 10 years | Not resident in the previous 5 years; a listed research, innovation or startup role |
| Spain, inbound regime (Beckham law) | 24% on work income up to €600,000 (about $683,000), 47% above | 6 tax years | Not resident in the previous 5 years; a job (remote included), directorship, certified business or startup role |
| Italy, impatriate regime | 50% of work income taxed (40% with a minor child), up to €600,000 (about $683,000) a year | 5 tax years | Not resident in the previous 3 years; high qualification; stay at least 4 years |
| Greece, art. 5C | 50% of Greek employment or business income exempt | 7 tax years | Not resident in 5 of the previous 6 years; moving from the EU/EEA or a country with a tax cooperation agreement; a new job or business in Greece; stay at least 2 years |
| Cyprus, 50% exemption | 50% of employment income exempt when pay exceeds €55,000 (about $62,600) a year | 17 years | Not resident for the previous 15 consecutive years |
| Cyprus, 20% exemption | 20% of employment income exempt, up to €8,550 (about $9,730) a year | 7 years | Employed abroad by a non-Cyprus employer for at least 3 consecutive years, and not resident in that time |
| Ireland, SARP | 30% of salary above €125,000 (about $142,000) exempt from income tax | Up to 5 years | Not Irish resident in the previous 5 years; base salary at least €125,000 (about $142,000); assigned by your employer after 6 months with it abroad; arrive by 2030 |
| Malta, nomad residence permit | 0% for 12 months, then 10% on remote work income | Up to 4 years (1-year permit, renewable 3 times) | Third-country (non-EU) nationals with employers or clients outside Malta |
| Thailand, Long-Term Resident visa | 17% on Thai work income for highly skilled professionals; foreign income brought in exempt for remote workers, wealthy citizens and pensioners | 10-year visa | Highly skilled professionals: $80,000 a year of income and a job in a targeted industry; remote workers: the same income and a listed or large employer |
Portugal and Spain: flat rates on work income
IFICI, which replaced Portugal's non-habitual resident regime from 2024, taxes qualifying work income at 20% for 10 years under article 58-A of the Tax Benefits Statute, but only for listed roles in research, innovation and certified startups, so the IFICI regime in Portugal rarely fits a nomad. Foreign income other than pensions and income from listed low-tax jurisdictions is exempt under article 81 of the IRS Code.
Spain taxes work income at 24% up to €600,000 (about $683,000) and 47% above, for the year of the move and the 5 after, under article 93 of the income tax law, for people not resident in the previous 5 tax years. Remote work for a foreign employer counts as a job, the tax agency's manual confirms, but income through a Spanish permanent establishment is excluded outside certified entrepreneurs and startup professionals, so the Spanish inbound regime suits remote employees, not freelancers.
Who gets Spain's 24% rate
Qualifies
You move to Valencia in March 2026 as a remote employee of a Dutch company, after 6 years in the Netherlands. You file Form 149 in time, and your €120,000 (about $137,000) salary is taxed at 24%, or €28,800 (about $32,800), each year through 2031.
Does not qualify
You move to Valencia as a freelance designer invoicing clients in your own name. Your fees are not employment income and your activity is not certified as entrepreneurial, so the normal scale and self-employed social security apply from your first year.
Italy, Greece and Cyprus: part of your pay exempt
Italy taxes only 50% of qualifying work income, up to €600,000 (about $683,000) a year, and 40% for people with a minor child, for the year of the move and the 4 after, under article 5 of Legislative Decree 209/2023. Leave before 4 years and the relief is repaid with interest. From 2027 the regime moves to article 225 of Legislative Decree 117/2026, Italy's new consolidated income tax act, which repeals article 5, so check the terms of article 225 before a 2027 move.
Greece exempts 50% of Greek work income for 7 tax years under article 5C, for employees and the self-employed alike, PwC reports. Cyprus exempts 50% of employment income for 17 years once pay passes €55,000 (about $62,600), or 20%, capped at €8,550 (about $9,730) a year, for 7 years for people employed abroad by a non-Cyprus employer for at least 3 consecutive years and not resident in that time, PwC and KPMG Cyprus set out.
Ireland's SARP, Malta's nomad permit and Thailand's LTR visa
Ireland's Special Assignee Relief Programme exempts 30% of salary above €125,000 (about $142,000) from income tax for employees assigned there from 2026, Revenue explains, though the universal social charge stays due on the full salary. Malta taxes nomad permit holders' remote work income at 0% for 12 months and 10% after that, Forvis Mazars Malta reports, which makes the Malta digital nomad visa a rare permit that changes the tax.
Thailand's Long-Term Resident visa taxes highly skilled professionals' Thai work income at 17%, the Board of Investment lists, while remote workers, wealthy global citizens and wealthy pensioners on the visa pay no tax on foreign income they bring into Thailand under Royal Decree 743, HLB Thailand reports. Remote workers need $80,000 a year of income over the past 2 years, or $40,000 with a master's degree, and a listed or large employer, the BOI adds, which makes the Thai LTR visa a route for senior employees rather than freelancers.
| Spain, inbound regime at 24%Each year for 6 tax years | €36,000 (about $41,000) |
|---|---|
| Portugal, IFICI at 20%Qualifying role only; 10 years | €30,000 (about $34,100) |
| Malta, nomad permit, first 12 months | €0 |
| Malta, nomad permit, after 12 months at 10% | €15,000 (about $17,100) |
Income tax only, at the rates in Spain's article 93, Portugal's article 58-A and Malta's nomad rules. Social security comes on top.
Regimes for foreign investment income and pensions
These regimes tax foreign dividends, interest, gains, rent and pensions lightly; local pay stays taxed at the normal rates.
Regimes for foreign investment income and pensions, checked October 12, 2026
| Country and regime | Tax break | How long | Main conditions |
|---|---|---|---|
| Italy, flat tax (art. 24-bis) | €300,000 (about $341,000) a year for people who move from 2026, instead of tax on foreign income; €50,000 (about $56,900) per family member | Up to 15 years | Not resident in 9 of the previous 10 years |
| Italy, 7% regime (art. 24-ter) | 7% on foreign income | 10 years | Foreign pensioners; not resident in the previous 5 years; a town of up to 30,000 people in the south or a listed earthquake area |
| Greece, art. 5A | €100,000 (about $114,000) a year on foreign income; €20,000 (about $22,800) per relative | Up to 15 years | €500,000 (about $569,000) invested in Greece; not resident in 7 of the previous 8 years |
| Greece, art. 5B | 7% on foreign income | Up to 15 years | Foreign pensioners; not resident in 5 of the previous 6 years |
| Cyprus, non-dom | No Special Defence Contribution on dividends and interest; 2.65% health contribution | Until resident 17 of 20 years, then up to 2 paid 5-year extensions | Not domiciled in Cyprus |
| Malta, Global Residence Programme | 15% on foreign income brought in, at least €15,000 (about $17,100) a year | While the conditions are met | Non-EU, non-EEA, non-Swiss nationals with a qualifying home |
| United Kingdom, FIG regime | Foreign income and gains exempt; personal allowance lost | 4 tax years | 10 consecutive tax years of non-residence |
| Switzerland, lump-sum taxation | Tax on living costs, federal base at least CHF 435,000 (about $523,000) | No set end | Foreign nationals not working in Switzerland |
| Turkey, foreign income exemption | Foreign income exempt | 20 years | Resident from 2026 after 3 calendar years with no Turkish residence or tax liability |
| Uruguay, tax holiday | Foreign investment income untaxed (you stay under the non-resident tax, which does not reach it) | 11 years | Not resident in the previous 2 years; 183 days a year or a qualifying investment |
| New Zealand, transitional resident | Most foreign investment income exempt | About 4 years | Not resident in the previous 10 years; once only |
Flat tax and lump-sum regimes: Italy, Greece and Switzerland
Italy's flat tax costs €300,000 (about $341,000) a year for people who move from 2026 under article 24-bis, and Greece's €100,000 (about $114,000) for people who invest €500,000 (about $569,000) there, PwC reports. Both are due whatever the foreign income is, so a lump sum tax of this kind pays off only for large incomes, and the Italian flat tax needs 3 times the income of the Greek non-dom lump sum to reach the same rate.
Switzerland's lump-sum taxation taxes foreign nationals who do not work there on living costs instead of income, on a federal base of at least CHF 435,000 (about $523,000), under article 14 of the federal tax act. For pensioners, Greece taxes foreign income at 7% for up to 15 years, EY reports, and the Italian 7% regime does the same for those who move to a southern town of up to 30,000 people, under article 24-ter. From January 1, 2027 both Italian regimes move into Legislative Decree 117/2026, so check the new articles before a 2027 move.
Low or zero tax on foreign income: Cyprus, Malta, the UK, Turkey, Uruguay and New Zealand
Most of these are the modern form of non-dom status. The Cyprus non-dom regime charges no Special Defence Contribution on dividends and interest, only the 2.65% health contribution, until you have been resident 17 of the last 20 years, KPMG Cyprus sets out.
Malta's Global Residence Programme taxes foreign income brought into Malta at 15%, with a €15,000 (about $17,100) minimum, under its rules. The UK's FIG regime exempts foreign income and gains for 4 tax years after 10 years away, HMRC's helpsheet HS266 explains, and Turkey exempts foreign income for 20 years for people resident from January 1, 2026 after 3 years away, EY reports.
Uruguay lets people resident from 2026 opt into its non-resident tax for foreign investment income for the year of arrival and 10 more, under article 24-bis of its income tax rules, and that tax reaches only Uruguayan-source income, under article 1 of the non-resident tax, so the foreign income goes untaxed. The Uruguay tax holiday can then continue at 50% of the normal rate for 5 years, under the same article 24-bis. New Zealand exempts most foreign investment income for about 4 years for people not resident in the previous 10, automatically and only once, Inland Revenue explains.
How long each regime lasts
Source: Each regime's statute, tax authority or adviser summary, listed under Sources
Show the numbers
| Years | |
|---|---|
| Turkey, foreign income | 20 |
| Cyprus, 50% employment exemption | 17 |
| Italy, flat tax | 15 |
| Greece, art. 5A lump sum | 15 |
| Uruguay, tax holiday | 11 |
| Portugal, IFICI | 10 |
| Italy, 7% regime | 10 |
| Greece, art. 5C | 7 |
| Spain, inbound regime | 6 |
| Italy, impatriate regime | 5 |
| Ireland, SARP | 5 |
| United Kingdom, FIG regime | 4 |
Most work regimes end within 5 to 10 years and most investment regimes within 10 to 20, after which the normal rates apply. Compare regimes on the effective tax rate over the years you plan to stay, not on the first-year figure.
Who new-resident regimes suit, and who they do not
These regimes fit best for:
- Senior employees moving with a job or a remote contract, under Spain's, Portugal's and Italy's work regimes.
- Investors with large foreign income, through a fixed sum in Italy or Greece or the Cyprus non-dom exemption.
- Retirees on a foreign pension, taxed at a low flat rate in Greece and southern Italy.
- Founders and startup hires, under Spain's rules for certified entrepreneurs and Portugal's IFICI for certified startups.
They are the wrong tool for:
- Freelancers working for foreign clients, outside Greece's 5C regime, Portugal's IFICI in a qualifying role and Malta's nomad permit.
- US citizens hoping to cut the US bill, since the US taxes citizens on worldwide income wherever they live, the IRS states.
US citizens often look at Puerto Rico's Act 60 instead: its investor decree charges 0% on interest, dividends and post-move capital gains, but people who apply for a decree from January 1, 2027 pay 4%, DLA Piper reports, under Act 38-2026, signed in March 2026, AAFAF reports.
How to claim a new-resident regime
Most regimes must be claimed on a form, an application or the tax return within a fixed window; New Zealand's is one of the few that applies automatically.
Claiming a new-resident regime
- Count your past years of tax residence in the country against its look-back.
- Check that the regime covers your kind of income.
- Spain: file Form 149 within 6 months of the start date in your Social Security registration, the tax agency's instructions set out.
- Portugal: apply for IFICI by January 15 of the year after you become resident, PwC Portugal notes.
- Ireland: your employer certifies you within 90 days of arrival, or within 180 days at the cost of the first year's relief.
- United Kingdom: claim the FIG regime on your Self Assessment return by the first anniversary of the January 31 filing date.
- Put the end date in your calendar and plan the year after it.
David's note
I would not move for a regime whose conditions I only half meet. Claims fail on the definitions, such as whether a role counts as highly qualified in Italy or whether contract work counts as employment in Spain, and a regime refused after the move leaves you resident at the normal rates. If your role sits at the edge of the law's wording, I would settle that before signing a lease.
