Relocating abroad can be an exciting opportunity to start fresh, explore new cultures, and secure financial stability. In 2025, several countries continue to attract newcomers with tax incentives designed to encourage migration, investment, and innovation. This guide highlights some of the best destinations where new immigrants can enjoy favorable tax regimes and financial benefits.
1. Portugal
Tax incentive: Revised Non-Habitual Resident (NHR) Regime
Portugal remains a top destination in Europe for migrants seeking mild weather, safety, and financial advantages. The reformed NHR program offers flat tax rates for skilled professionals and exemptions on certain types of foreign income, depending on the applicant’s profile and timing of relocation.
Key advantages:
• Flat 20% rate on eligible professional income
• Possible tax exemptions for pensions or foreign-source income (subject to conditions)
• Access to EU residency benefits
The rules have tightened for new entrants after 2024, so eligibility depends on the move date and profession.
2. Spain
Tax incentive: Impatriate Regime (Beckham Law)
Spain’s impatriate regime allows certain foreign workers to pay reduced taxes on Spanish-sourced employment income for up to six years. This incentive aims to attract international talent and foreign investment.
Key advantages:
• Flat tax rate on employment income
• Attractive for professionals relocating with employment contracts
• Access to Spain’s modern infrastructure and quality of life
Strict eligibility requirements and administrative steps must be followed to qualify.
3. Italy
Tax incentive: Flat Tax for New Residents
Italy offers several options for new residents, including a flat tax regime for individuals transferring their tax residence to Italy. Eligible taxpayers may pay a fixed annual amount on foreign income instead of regular progressive taxation.
Key advantages:
• Predictable annual tax on foreign income
• Ideal for investors, entrepreneurs, and high-net-worth individuals
• Includes potential exemptions for family members
Requires meeting specific residency conditions and maintaining genuine ties to Italy.
4. Greece
Tax incentive: Non-Dom and Pensioner Regimes
Greece’s tax reforms make it increasingly attractive for foreign retirees and high-income individuals. New residents can opt for a flat annual tax of €100,000 on global income, while retirees benefit from a 7% flat rate on foreign pension income.
Key advantages:
• Predictable annual taxation
• Suitable for retirees and investors
• Residence in an EU country with a low cost of living
Designed for individuals with significant income or assets.
5. United Arab Emirates (UAE)
Tax incentive: Zero Personal Income Tax
The UAE continues to be one of the world’s most tax-friendly jurisdictions. There is no personal income tax on salaries or wages, and residents can benefit from modern infrastructure and high living standards.
Key advantages:
• Zero tax on personal income
• Residency options through employment or investment
• Wide range of business opportunities in free zones
Cost of living can be high in major cities such as Dubai and Abu Dhabi.
Other Countries to Consider
• Cyprus: Favourable non-dom regime and low tax rates on dividends and interest.
• Malta: Remittance-based taxation allows certain foreign income to remain untaxed if not brought into the country.
How to Choose the Right Country
When comparing tax-friendly destinations, consider:
1. Residency requirements: Check minimum stay periods and visa types.
2. Income type: Determine which sources (salary, pension, investments) benefit most.
3. Cost of living: Low taxes can be offset by high daily expenses.
4. Long-term plans: Some incentives expire after a few years.
5. Legal advice: Tax laws can change, consult a licensed professional before relocating.
Conclusion
Choosing a country with favorable tax incentives can significantly improve financial outcomes for new immigrants. As governments adjust their programs to attract global talent and investors, Portugal, Spain, Italy, Greece, and the UAE stand out as leading options in 2025. However, it’s essential to verify current regulations and assess personal circumstances before making the move.
