The Autumn Budget may not have put up the income tax rates but by further freezing the tax thresholds it has put the squeeze on working people.
Then there’s the mansion tax. UK council taxes are already high by European standards but now some home owners will pay another couple of thousand on top of an existing bill of £3,000-£4,000. The average council tax (Band D) bill is £2,280.
Clearly many people are already leaving the country – the latest figures show we are leaving at record rates, and especially those under 30, driven by the high cost of living, over-priced housing and better job opportunities.
So with scant chance of any turnaround until 2029 – is it time for a rethink? Here are our top four favourites.
Spain
One of the best all-rounders for quality of life, affordable housing, great education, and of course the weather. You probably won’t save huge amounts on income tax, but you’ll save on most other things – cost of living, annual property taxes, transport, a bottle of wine (beware it’s going up another 54p in the UK Budget!). The cost of living is 23% lower than the UK.
Must-know: there is no new tax on non-EU buyers but prices are rising so don’t waste time.
How to move: choose between the Non-Lucrative Visa and the Digital Nomad Visa.
Portugal
Compares with Spain for quality of life, weather, some superb new schools and also a cost of living that can be even more tempting – 27% less than the UK, says Numbeo. You’ll save on inheritance tax, annual property taxes, property purchase taxes and if you look away from the coastal or city hot spots there are some very low house prices.
Must-know: it’s one of the easiest and most affordable places to get a visa – the popular D7 (see below)
How to move: the D7 visa is the obvious one: you need only to show €870 per month income.
France
Easy to reach – especially if you hate post Brexit airport queues – and full of charming stone houses with five-figure price tags, France remains a favourite. You might not be hugely better off financially – the cost of living is similar to the UK – but when buying a home your money goes so much further. Quality of life – that food might cost more but tastes so much better – remains a huge draw, also the scope to run a gite for an early retirement adventure…
Must-know: speak to a tax advisor: it doesn’t advertise the fact but it can be a surprisingly tax-efficient place to move to.
How to move: choice of visas through a relatively efficient application process (TLSContact). The one-year VLS-TS is the most popular choice.
Cyprus
Gaining in popularity, Cyprus packs a punch for tax benefits as well as its Anglo-friendly culture, weather and relaxed pace of life. You save on property taxes and annual taxes, but there are also the big benefits: a flat rate of 5% tax on pensions, corporate tax rate of only 12.5% and the non-dom regime, which provides exemptions on dividends and interest income for up to 17 years.
Must-know: the cost of living is 13% less than the UK: the average person can live on around €858 a month, says Numbeo.
How to move: the one-year renewable visitor visa is the most popular option – no property purchase necessary.
