The idea of becoming a fiscal nomad (also known as a Perpetual Traveller) has gained huge popularity in recent years. It’s a lifestyle that offers freedom, flexibility, and potentially a significant reduction in your global tax bill.
But can you really avoid being classed as tax resident anywhere? And if so, what does that mean for your income, investments, and long-term financial security?
In this first article in our Fiscal Nomad series, we explore what UK citizens need to consider before making the leap.
How Most Countries Tax: Residence and Source
It’s important to understand the basic principle used by nearly all tax authorities — including the UK:
Residents are usually taxed on their worldwide income, regardless of where it’s earned.
Countries also tax locally sourced income, such as rent from property located within their borders.
So, if you successfully arrange your affairs to avoid being tax resident in any country, you won’t be taxed on your global income - but you will still be taxed on local income in the country it arises.
For example, rent from a UK property will still be taxed in the UK, even if you’re living full-time abroad.
The Catch: No Tax Residence = No Treaties
If you’re not tax resident anywhere, you’re also not eligible to benefit from Double Tax Treaties. These treaties are designed to avoid or reduce taxation (especially on things like interest, dividends and royalties) between two countries - but they only apply if you’re officially resident in one of them.
Without treaty protection, you could be hit with higher withholding taxes in some countries, even if you're not paying UK tax.
The Key Is Planning
The idea of paying little or no tax as a global nomad is achievable — but only with proper planning.
To make this lifestyle sustainable and compliant, you’ll need to:
Track your travel days and establish clear non-residency
Avoid creating unintentional residency ties
Manage property, investment, and business income tax-efficiently
Understand the limits of treaty benefits if you’re not resident anywhere
Considering a Nomadic Lifestyle?
We work with many clients who want to escape the traditional tax net and live a more international lifestyle. But it’s essential you get the structure right from the outset - or risk being pulled back into the UK tax system without realising.
If this lifestyle appeals to you, follow our page for more articles in the series - or drop us an email at info@expat-tax-advice.co.uk for tailored advice.
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