Category: Residency

Background

As of 6th April 2022  a number of new UK immigration rules came into effect.

The Tier 1 (investor) visa had already been closed to new applicants on 17 February 2022.

A summary of the key changes is detailed below.

Overseas Representatives Business Category

The Overseas Representative Businessperson category, commonly known as Sole Representative will no longer exist. The Overseas Media Person category will remain unaffected. Those currently holding permission under the Sole Representative category will be unaffected.

Global Business Mobility Routes

The Intra-Company Transfer routes have been revamped and will be known as the Global Business Mobility routes. Those under this category will not be eligible for permanent residence.

The new Global Business Mobility route creates 5 sub-categories as set out below. It means that a sponsor licence holder will need to hold licences under the relevant sub-categories to be able to be a sponsor:

1. The Senior or Specialist Worker which replaces the Intra-Company route and is applicable to senior managers or specialist employees who are being assigned to a UK linked entity for a temporary assignment.
2. Graduate Trainee which replaces the Graduate Trainee Intra-Company route and is designed for those on a dedicated Graduate programme outside of the UK, and who are required to be assigned to the UK for part of the programme.
3. UK Expansion Worker which is for senior managers or specialist workers being assigned temporarily to the UK to establish an UK entity or to undertake work related to a business expansion to the UK. The applicant would need to meet the points criteria (60 points) and be granted a Certificate of Sponsorship. This will mean that the employer must obtain a sponsor licence by requesting a provisional rating, with the applicant holding the role of authorising officer. The maximum stay allowed would be 5 years in any 6-year period.
4. Service Supplier which is for overseas workers who are undertaking temporary work assignments in the UK, where the worker is either a contractual service supplier employee or a self-employed independent professional. The applicant would need to meet the points criteria (40 points) and be granted a Certificate of Sponsorship. There are no requirements to meet the salary point requirements. The maximum stay allowed would be 5 years in any 6-year period.
5. Secondment Worker which is for overseas workers who are undertaking temporary work assignments, where the assignment is part of a high value contract or investment by their overseas employer. The applicant would need to meet the points criteria (40 points) and be granted a Certificate of Sponsorship. There are no requirements to meet the salary point requirements, but the contract must have been registered with the Home Office. The maximum stay allowed would be 5 years in any 6-year period.

Introduction of the High Potential Individual (HPI) and Scale-up Routes

The HPI introduces an elite points-based route to attract the brightest and best to the UK to maintain the UK’s status as a leading international hub for emerging technologies. Applicants must have a bachelor’s or postgraduate degree from one of the Global Universities, listed by the Home Office, within 5 years of the date of application.

The Scale-up route introduces an elite points-based route to attract the brightest and best to the UK, to maintain our status as a leading international hub for emerging technologies. A job offer must be received from an authorised UK scale-up company. The scale-up company would need to demonstrate that they have an annualised growth of at least 20% for the previous 3-year period in terms of turnover or staffing, as well as having a minimum of 10 employees at the start of the 3-year period.

Additional Changes

Changes have been made to the rules relating to Settlement based on Family Life and Private Life, to make the requirements simpler to understand.

Policy Guidance

A further update will be provided once the policy guidance has been released.

Further Information and Advice

If any of the changes above affect you and/or you need assistance regarding immigration to the UK, as an individual or as an employer, please speak to Peter Robertson at: advice.uk@dixcart.com.

Digital Nomads – the Background

Digital nomads are remote workers who travel to different locations regularly. They use modern technology to work from coffee shops, hotels, co-working spaces, or libraries with a Wi-Fi-connected laptop or smartphone from anywhere in the world.

Digital nomads tend to be freelancers or entrepreneurs who are self-employed, working for themselves or for companies as independent contractors.

In the past it has been difficult for entrepreneurs and freelancers to apply for traditional visas as either a contract with a local entity was required, or a letter of invitation. A tourist visa, for example, is not suitable as the individual might want to stay for a more extended period.

The Malta Nomad Residence Permit

The Malta Nomad Residence Permit can easily be obtained by; remote workers, digital nomads, and freelancers and it grants the holder a legal right to reside in Malta and travel visa free throughout the Schengen Member States.

About Malta

Malta has long been famous for its expat-friendly environment, which is well illustrated by the large expat community in Malta. Thanks to its favourable legislative system and tax benefits, the island is home to many foreign companies.

It is a small country in size but has a cosmopolitan soul. There are many cafes, bars, restaurants, and co-working spaces that make life easier for digital nomads. In addition, it is now one of the very few countries in the world with 5G nationwide coverage.

Along with its digital nomad-friendly environment, it also has everything an ideal island would have; beaches, 300 sunny days a year, a relaxed way of life, excellent seafood, and a lot of fun. Malta has it all and is a perfect base for remote working.

Eligibility Criteria for Malta Nomad Residence Permit

There is a specific set of rules for the program.

Applicants must:

• Be a third-country national (non-EU)
• Have a monthly income of €3,500 (gross of tax) for a single applicant
• Have a work contract for an employer that is registered in a country other than Malta, OR
• Be a partner/shareholder in a company that is registered in a country other than Malta, OR
• Offer freelance services to clients whose permanent establishments are in  countries other than Malta, and with whom the applicant has a contract(s)
• Have a valid travel document
• Have health insurance covering Malta
• Present a property rental or property purchase agreement

Cost of Application and Timeframe for Malta Nomad Residence Permit

The government fee for the main applicant is €300, with an additional €300 fee payable for each family applicant.

Applicants who intend to spend up to 180 days in Malta will be issued with a National Visa, while those who plan to spend up to 365 days or more will be issued with a Residence Permit.

Processing applications takes approximately 30 days, from receipt of all the required documentation and application forms.

Which Family Members can be Included?

The main applicant can include dependent family members. It is possible to add a spouse and minor children, as well as adults who are financially dependent on the main applicant.

Malta recognizes same-sex unions. A same-sex partner in a committed relationship for a defined period, can be included in an application.

Applicable Taxes

Nomad residence permit holders are not subject to personal income tax as they are  expected to pay tax in their country of origin. However, nomad residence permit holders will be subject to consumption tax (VAT) in the same manner as all Malta residents. 

How Can Dixcart Assist?

If you would like further information regarding Malta Nomad Residence Permit, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

There are several residence programmes available in Malta aimed at non-EU/EEA nationals to obtain residence status in Malta. The various programmes range from those intended to obtain a permanent residence status to programmes giving a special tax and temporary residence status.

In Malta the two most popular residency routes are the Malta Permanent Residence Programme (MPRP) and the Malta Global Residence Programme (GRP).

Malta Permanent Residence Programme (MPRP)

The MPRP is open to all third-country, non-EEA and non-Swiss nationals, with a stable income from outside Malta sufficient to maintain themselves and their dependants with adequate financial resources. 

Once applicants have successfully completed the application process with Malta Residence Agency who run the programme, they receive an e-Residence card that entitles them to live in Malta and travel visa-free throughout the Schengen Member States. More information about the MPRP program can be found here: Malta Permanent Residence Programme.

Malta Global Residence Programme (GRP) 

GRP is available to non-EU passport holders. The Global Residence Programme entitles non-EU nationals to obtain a Maltese residence permit, renewable annually, through a minimum investment in property in Malta and by paying a minimum annual tax. Individuals who are EU/EEA/Swiss nationals please see: Malta Global Residence Programme which operate on the same basis as the GRP.

The Main Difference

The main difference between the Global Residence Programme (GRP) and Malta Permanent Residence Programme (MPRP), is that the GRP does not offer permanent residence rights. A special tax status leads to an annual residency permit, whilst the MPRP offers permanent residence in Malta. 

Residence Status Explained

Residence status obtained under the MPRP is valid for life (provided that the requirements of the programme are still being met), whilst the residence status obtained under the GRP is renewed annually subject to paying an annual tax.

Annual Tax:

• Under the GRP, a beneficiary must pay a minimum annual tax of €15,000.

• Under the MPRP, there is a minimum annual tax of €5,000 if the person is ordinarily resident in Malta, or zero tax if the person is not ordinarily  resident in Malta. In both cases the tax rate on income remitted to Malta is a flat 35%.

Comparison of Programs: GRP and MRVP 

Conditions	Global Residence Programme	Malta Permanent Residence Programme
Financial requirements	Not specifically defined, but an individual should have sufficient resources to sustain himself and his dependants, without any recourse to social assistance in Malta.	No less than €500,000 in all assets (€150,000 of which should be in financial assets – for the first 5 years).
I. Option. Purchase a property with a minimum value of	Central/North Malta: €275,000 South Malta/Gozo: €220,000	Central/North Malta: €350,000 South Malta/Gozo: €300,000
II. Option. Rent a property with a minimum value	Central/North Malta: €9,600 South Malta/Gozo: €8,750	Central/North Malta: €12,000 South Malta/Gozo: €10,000
Minimum annual tax	€15,000 per year	From €5,000 per year, if ordinarily resident **
Tax rate	15%: Foreign Source Income remitted to Malta 35%: Local Source Income	If ordinarily resident: 0% – 35%**
Registration procedure	Application Fee + Property + Annual Tax	Application Fee + Contribution + Property + Charity
Application process	3-6 months	4-6 months
Official application fee	€6,000	1. Application Fee: €10,000 due within one month of submission 2. Letter of Approval: €30,000 due within two months of submission 3. 8 months to conclude the due diligence and a contribution of: €28,000 or €58,000 needs to be paid
Dependants	Spouse, Children up to 18 or adult children between 18 and 25 years old, including adopted children, provided that such children are not economically active and are financially dependent on the main applicant. Financially dependent parents.	Allowing 4 generations to be included in one application: spouse, children – regardless of age can be included in the application if they are unmarried and financially dependent, parents and grandparents if they are principally and financially dependent on the main applicant.
Donation to a Non-Government Organisation	Not applicable	€2,000
Additional Criteria	Applicant must not spend more than 183 days in any other jurisdiction in any single calendar year.	An additional €7,500 payment per person is required for each adult dependant included in the application.
Duration of status in Malta	One calendar year. Need to re-submit on an annual basis.	Permanent Status: a Malta residence card is issued for all family members for 5 years, then renewed without any additional contribution, if the requirements of the programme continue to be met.
Schengen Access (26 European countries)	Right to travel within the Schengen Area for 90 days in any 180 days.	Right to travel within the Schengen Area for 90 days in any 180 days.

** Annual minimum tax under the Permanent Residence Programme is Zero if you are not ordinarily resident in Malta. If you select to be ordinarily resident in Malta, then the annual minimum tax is €5,000.

How Can Dixcart Help?

Any individual interested in applying for one of these programmes is required to do so through a registered approved agent.

Dixcart is an authorised agent and offers a bespoke service. We will be by your side throughout the process from completing the required documents to meetings with the various Maltese Authorities.  We can support you in choosing the best residential programme in Malta for you and your family.

Additional Information

If you would like further information regarding MPRP or GRP in Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

Background

The island of Guernsey is the second largest of the Channel Islands, which are situated in the English Channel close to the French coast of Normandy. The Bailiwick of Guernsey comprises three separate jurisdictions: Guernsey, Alderney and Sark. Guernsey is the largest and most populated island in the Bailiwick. Guernsey combines many of the reassuring elements of UK culture with the benefits of living abroad.

Guernsey is independent from the UK and has its own democratically elected parliament which controls the island’s laws, budget and levels of taxation. Legislative and fiscal independence mean that the island can respond quickly to the needs of business. In addition, the continuity achieved through the democratically elected parliament, without political parties, helps deliver political and economic stability. 

Guernsey – a Tax Efficient Jurisdiction

Guernsey is a leading international financial centre with a good reputation and excellent standards:

• The general rate of tax payable by Guernsey companies is zero*.
• There is no capital gains tax, inheritance tax, value added tax or withholding tax.
• Income tax is generally a flat rate of 20%.

*Generally, the rate of corporation tax payable by a Guernsey company is 0%.

There are certain limited exceptions when a 10% or 20% rate of tax apply. Please contact the Dixcart office in Guernsey, for further details: advice.guernsey@dixcart.com.

Tax Residence and a Significant Tax Advantage 

An individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on Guernsey source income only, subject to a minimum charge of £40,000. In this instance any additional income earned outside Guernsey will not be taxed in Guernsey.

Alternatively, an individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on his or her worldwide income.

Special provisions are available for those who are resident in Guernsey solely for employment purposes.

For Guernsey income tax purposes an individual is ‘resident’, ‘solely resident’ or ‘principally resident’ in Guernsey. The definitions relate primarily to the number of days spent in Guernsey during a tax year and, in many cases, also relate to the days spent in Guernsey in several preceding years.

Precise definitions and current tax rates and allowances are available on request. 

Attractive Tax Cap for Individuals 

Guernsey has its own system of taxation for residents. Individuals have a tax-free allowance of £13,025. Income tax is levied on income in excess of this amount at a rate of 20%, with generous allowances.

‘Principally resident’ and ‘Solely resident’ individuals are liable to Guernsey income tax on their worldwide income.

‘Resident only’ individuals are taxed on their worldwide income or they can elect to be taxed on their Guernsey source income only and pay a standard annual charge of £40,000.

Guernsey residents falling under one of the three residence categories above can pay 20% tax on Guernsey source income and cap the liability on non-Guernsey source income at a maximum of £150,000 OR cap the liability on worldwide income at a maximum £300,000.

New residents to Guernsey, who purchase an ‘open market’ property, can enjoy a tax cap of £50,000 per annum on Guernsey source income in the year of arrival and subsequent three years, as long as the amount of Document Duty paid, in relation to the house purchase, is at least £50,000.

The island offers attractive tax caps on the amount of income tax payable by residents and has:

• No capital gains taxes
• No wealth taxes
• No inheritance, estate or gift taxes
• No VAT or sales taxes

Immigration to Guernsey

The following individuals do not generally need permission from the Guernsey Border Agency to move to the Bailiwick of Guernsey:

• British citizens.
• Other nationals of Member States of the European Economic Area and Switzerland.
• Other nationals who have permanent settlement (such as indefinite leave to enter or remain in the Bailiwick of Guernsey, United Kingdom, Bailiwick of Jersey or the Isle of Man) within the terms of the Immigration Act 1971.

An individual who does not have an automatic right to live in Guernsey must fall within one of the categories below:

• Spouse/partner of a British citizen, EEA national or settled person.
• Investor
• Person intending to set themselves up in business.
• Writer, artist or composer.

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival.  The entry clearance must be applied for through the British Consular representative in the individual’s country of residence. The initial process generally starts with an online application via the British Home Office website.

Property in Guernsey

Guernsey operates a two tier property market. Individuals who are not from Guernsey can only live in open market property (unless they have a work licence), which is generally more expensive than local market property.

What Other Advantages Does Guernsey Offer?

• Location

The island is situated approximately 70 miles from the south coast of England and a short distance from the north-west coast of France. It has 24 square miles of beautiful countryside, a stunning coastline and a mild climate, courtesy of the Gulf Stream.

• Economy

Guernsey has a stable and diverse economy:

• Low tax regime which is compliant with international standards
• AA+ credit rating
• World class professional services with a global network
• A pro-business attitude with easy access to government decision makers
• Frequent connections to London airports
• Part of the sterling zone
• Mature legal system 

• Quality of Life

Guernsey is renowned for its relaxed, high quality standard of living and a favourable work-life balance. The following benefits are available:

• A wide range of attractive residential properties to choose from
• A safe and stable place to live
• High-powered “city” jobs without the downsides of commuting or inner city living
• First rate education system and quality health care
• Peter Port, one of Europe’s most attractive harbour towns
• Breath-taking beaches, stunning cliff coastline and idyllic countryside
• High quality restaurants
• The natural resources of the island enable a variety of recreational and sporting activities
• A strong sense of community with a charitable spirit

• Transport Links

The island is only forty-five minutes from London by air and has excellent transport links to the seven key UK airports, which enables easy access to European and international connections. 

What Does Sark Offer?

In addition to Guernsey, the island of Sark falls within the Bailiwick of Guernsey. Sark is a small island (2.10 square miles) with a population of approximately 600 and has no motorised transport.

Sark offers a very relaxed lifestyle and a simple and low tax system. Personal tax per adult resident, for example, is capped at £9,000.

There are laws which restrict the occupation of certain dwellings. 

Further Information

For further information on relocation to Guernsey please contact the Dixcart office in  Guernsey: advice.guernsey@dixcart.com. Alternatively, please speak to your usual Dixcart contact.

Dixcart Trust Corporation Limited, Guernsey: Full Fiduciary Licence granted by the Guernsey Financial Services Commission.

 

Guernsey registered company number: 6512.

The New Permanent Residence Programme came into effect at the end of March 2021.

What are the Key Defining Features of the Malta Permanent Residence Programme?

The Malta Permanent Residence Programme (MPRP) is open to all third country, non-EEA, and non-Swiss nationals, with sufficient financial resources.  

Once the application process has been successfully completed by ‘Residency Malta Agency’, applicants receive permanent residency immediately and an ‘eResidence’ card, that entitles them to live in Malta and to travel visa free throughout the Schengen Member States.

Features that set the MPRP apart from other programmes, include:

• There is no need to learn Maltese as there is no language test to obtain Permanent Residence.
• English is an official language in Malta so all documents and government interactions will be in English.
• Permanent Residence is granted on successful completion of the application
• There are no minimum days to be spent in Malta.
• Children, regardless of age, can be included in the application, as long as they are unmarried and principally dependant on the main applicant.
• Dependant parents and grandparents may also be included in the application, effectively allowing 4 generations to be included in one application.
• Children born or adopted by the main applicant after the application approval date can also be included.

Requirements

An individual will need to make an investment consisting of the following:

• Physical Address in Malta
  • Purchase a property with a minimum value of €350,000, reduced to €300,000 if the property is situated in the South of Malta or Gozo, or
  • Rent a property, with a minimum rental cost of €12,000 per annum, reduced to €10,000 per annum if the property is situated in the neighbouring island Gozo or in the South of Malta.

AND

• Pay the non-refundable administration fee of €40,000

AND

• Make one-off Government contributions, as follows:
  • €58,000 – if the applicant rents a property, or
  • €28,000 – if the applicant buys a qualifying property and
  • An extra €7,500 per additional adult dependant (where applicable). This applies whether the applicant is buying or renting a property.

AND

• Donate a minimum amount of €2,000 to an NGO.

Payment timeframe:

• Initial Administration fee of €10,000
  • Due within one month of the application submission
  • Letter of approval, remainder of the Administration fee of €30,000
    • Due within two months of the application submission
  • 8 months to provide all due diligence and the payment of the Government contribution of either €28,000 or €58,000, to be paid.

The main applicant should have at least €500,000 of net assets in order to qualify for the programme, and €150,000 of the €500,000 must consist of financial assets. The financial assets, however, only have to be maintained for the first 5 years. The capital requirement of €500,000 will remain in force for as long as the individual wishes to remain on the programme.

Finally, health insurance only needs to cover Malta, not all EU countries. This may result in an annual reduction in the insurance premium.

How Dixcart Can Help?

Individuals interested in applying for the MPRP programme must do so through a registered approved agent. Dixcart is an approved agent, and offers a bespoke service to guide clients, every step of the way, through the MPRP process.

Additional Information

If you would like further information regarding MRVP in Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

The UK offers several popular visa options for entrepreneurs and businesses based outside the UK, who are looking to set-up and run a business in the UK.

The Sole Rep Visa Category – Key Points

The Sole Rep visa allows an overseas parent company to send a senior employee to the UK to establish its first UK branch or wholly owned subsidiary. To be eligible, some of the key requirements to be met include:

• the main applicant cannot have a majority stake, own or control the overseas business under any arrangement – this also applies to the main applicant’s dependent partner (if also applying)
• only genuine applicants can apply
• the overseas parent company will need to continue to have its headquarters and principal place of business outside the UK
• both the overseas parent company and the intended UK branch or wholly-owned subsidiary must be actively trading in the same type of business
• the applicant needs to have the skills, experience and knowledge of the business necessary to undertake the role and have full authority to negotiate and take the operational decisions on behalf of the business
• the applicant will not engage in business of their own nor represent any other business’ interest in the UK

A Snapshot of the Start-up and Innovator Visa Categories

The Start-up and Innovator visas (which replaced the former Tier 1 (Entrepreneur) visa category on 29 March 2019), allows entrepreneurial applicants, who have had their business idea assessed and approved by an endorsing body as being innovative, viable, and scalable, to set-up and run their business or businesses in the UK. Some of the key requirements include:

• applicants must be the sole founder or an instrumental member of the founding team, relying on their own business plan, and responsible for executing the plan
• an Innovator visa applicant’s business, may have already started trading, but the applicant must be the sole founder or an instrumental member of the founding team
• the “viability” criteria requires the applicant’s business plan to be realistic and achievable based on the applicant’s available resources
• those applying for an Innovator visa must have initial capital of £50,000

Permanent Settlement in the UK

Although the Start-up visa does not permit applicants to apply for permanent settlement, the Innovator visa does allow this option after 3 years. Similarly, the Sole Rep category is a route to permanent settlement, but after 5 years.

Are There Any Other Changes on the Horizon?

A number of new visa announcements were made in the UK Budget of March 2021, to encourage investment into, and growth for business – particularly in the fields of academia, science, research and technology. These include:

• the introduction of an elite points-based visa by March 2022
• the launch of the new Global Business Mobility visa category (which may be a replacement of the Sole Rep route) by spring 2022 for overseas businesses to establish a presence or transfer staff to the UK

Summary

The above is a general overview of some of the popular options and key requirements. If you have any questions and/or would like tailored advice on any UK immigration matter, please speak to Dixcart Legal at: advice.uk@dixcart.com or to your usual Dixcart contact.

When people talk about moving to the UK, many people want to apply for “permanent residence” at the start of their UK immigration journey. In most cases, this is not possible – an application for settlement or indefinite leave to enter/remain usually requires a minimum residence period in the UK of between 2 and 5 years depending on the visa category.

The Importance of the Visa Category Selected

It is very important to choose an appropriate visa category which allows you to do what you want to do in the UK, as well as eventually being able to apply for settlement (if that is an objective).

For instance, both the Skilled Worker and Intra-Company Transfer categories allow individuals to work in the UK; however, only individuals in the Skilled Worker route will be eligible to apply for settlement after 5 years, if they meet all the requirements.

An important requirement is that employers continue to hold a valid sponsor licence. Organisations will be aware that a sponsor licence is valid for 4 years, and they will have diarised to renew their sponsor licence. Without a valid sponsor licence, the individual will not be eligible to apply for indefinite leave to remain, and may be unlawfully working.

Absences from the UK

Another vital requirement, not just in the Skilled Worker category but for most routes eligible for settlement, is that individuals cannot be absent from the UK for more than 180 days in any rolling 12 month period, during the minimum residence period. There are exceptions which might apply, and some visa categories even allow specific work-related absences to be discounted from the “180 day rule”.

It is also not just the responsibility of Skilled Worker migrants to keep a track of their absences, but sponsors also have a duty to keep a record. In reality, many employers and HR staff already keep a record in the personnel files for each member of staff. In addition, employers are required to confirm in writing to the Home Office, that the individual is still required for work for the foreseeable future, and will be paid the minimum salary.

Are there Visa Categories Where the Minimum Residence Period is Less Than 5 Years?

There are a number of visa categories that allow individuals to apply for settlement in less than 5 years if all the requirements are met, for instance:

Visa Category	Minimum Period of Residence in the UK
Tier 1 (Investor) – £5 million investment	3 years
Tier 1 (Investor) – £10 million investment	2 years
Innovator	3 years
Global Talent (depending on sub-category and endorsing body)	3 years

Is it Possible to Combine Time Spent in Another Visa Category?

Depending on the individual’s current and previous visa categories, it may be possible to combine time spent continuously in the UK, to meet the relevant minimum residence period. For instance, if an individual has spent a continuous period of 5 years in the UK, with 3 years in the Sole Rep category, and subsequently 2 years in the Skilled Worker category, then the minimum 5 year residence period is met. However, the same minimum residence period is not met if combining 2 years on a Student visa and 3 years in the Skilled Worker category.

There is also the Long Residence rule which means individuals who have continuously and lawfully lived in the UK for 10 years, can combine all their different UK visas to become eligible to apply for settlement. Under the Long Residence rules, the Home Office currently state that absences from the UK cannot be more than 540 days.

Conclusion

The rules to become eligible to apply for settlement in the UK will be different for each individual, dependent on their own immigration circumstances. Employers/sponsors should ensure that key dates are diarised to ensure appropriate steps are taken at the correct time, and that good records are kept.

Further information

If you have any questions and/or would like tailored advice on any UK immigration matter, please speak to Dixcart Legal at: advice.uk@dixcart.com or to your usual Dixcart contact.

A move of residence can provide opportunities to review your affairs and holding structures. There may well be potential to implement wealth preservation and inheritance provisions, and advantageous strategic investment structures.

Every jurisdiction is different. There will always be some specific items to consider before relocating and taking bespoke professional advice at an early stage will always be the right thing to do. Carefully considered pre-exit and pre-arrival planning is essential to ensure a smooth and efficient move.

Please see below a comprehensive checklist that every individual and their family need to consider before relocating.

PRIOR TO ARRIVAL IN NEW COUNTRY

Consider Practical Issues	Travel documents (visas) Formal enrolment in country/jurisdiction of ‘arrival’, including communication with tax authorities, healthcare, schooling, etc.
Succession and Inheritance	Confirm which laws govern succession and whether a choice of different jurisdiction law is available. Confirm whether marital/family laws are affected and whether a choice of different jurisdiction law is available. Review estate planning documents (wills, succession, and prenuptial documents) and consider the interaction of wills, appropriate for different jurisdictions.
Implications of Transferring Physical Wealth	Family heirlooms, jewellery and works of art (possible ban on export or right of first refusal, etc.). Are import duties applicable?
Before Exit	Confirm arrangements that affect heirs and family that remain behind. Optimal timing of loss of tax residence and exit charges. Consider establishing new banking arrangements to segregate income and gains, if this is relevant to the new residence regime.
Before Arrival	Seek early tax advice from a professional advisor. Take advantage of any special tax regimes that are available. Review if there are any changes to controlled foreign company rules and what the effects may be. Ensure that previously established companies, trusts, life insurance policies, etc. are compliant.
Gifts and Donations	Confirm whether gifts or donations should be executed in advance of acquiring a new residency.
ONGOING	Annual review of estate planning documents (wills, succession, and prenuptial documents). Annual review of trusts arrangements, structures, and bank accounts. Annual review of any changes to tax laws and implications in relation to existing agreements and structures.

Residency versus Citizenship

Residency and citizenship are not the same things. Individuals may seek alternative residency in another country and may still remain a citizen of their country of origin. Citizenship is the status of being a ‘citizen’ of a country. This will include the privilege of holding a passport for that country. Dual citizenship (nationality) may be an interesting option, but it is not always feasible, depending on an individual’s country of origin.

Residence Programmes

Residence programmes vary in what they offer and the criteria that need to be met. Depending on the country, there are differences regarding the time period that residence is valid for, how to apply, what the benefits are, tax obligations, and how to move on to apply for citizenship (and a passport), if the individual wishes to follow this route and it is permitted by the particular residence programme.

There are many reasons why individuals and their families choose to take up residence in another country. They may wish to start a new life elsewhere, in a more attractive and relaxing environment, or they may find the greater political and economic stability that another country offers, of appeal.

For individuals considering an alternative country of residence, the most important decision is where you and your family would like to live. It is critical that clients consider the long-term objectives for themselves and their family before applying for a particular residence (and/or citizenship programme), to help make sure that the decision is right for now and in the future.

Citizenship – A Passport

The benefit of gaining citizenship is the right to obtain a passport from a particular country. This may also make travel much easier, into and out of a considerable number of countries.

A number of residence schemes can lead to citizenship and a passport. Countries where this is possible include: the Isle of Man, Malta, Portugal, and the UK.

What else can Dixcart Domiciles help you achieve?

Experts at Dixcart Domiciles will not only help you achieve your family goals but can assist further, by explaining the tax regimes that exist in different countries (a number of which are particularly attractive for new residents) and assist you to ensure that your affairs are structured in a tax efficient manner. The exit strategy from the country that you are moving from also needs to be planned for. We can also help on a practical level by organising visits to the country and helping you complete application forms and supply the right documentation. You may also need advice regarding the purchase of real estate – and even help with the move itself.

If you would like to talk to one of our experts, please contact: advice@dixcart.com. Alternatively, please contact your usual Dixcart contact.

‘Digital nomadism’ has never been so topical.

Over recent years the concept of remote working has become an every day reality. Technology has improved and the way the workplace is structured is changing; a new culture of working from home is being adopted by a lot of companies, especially as a result of the Covid-19 pandemic and stay-at-home requirements enforced by many countries around the world. 

There are numerous countries around the world offering Digital Nomad visas. Three of the most popular countries are; Cyprus, Malta, and Portugal – here is why.

CYPRUS

From January 2022, Cyprus is launching a Digital Nomad Visa for non-EU nationals wishing to work remotely for employers/clients based outside of Cyprus. Individuals who are self-employed, salaried, or on a freelance basis, can apply for the right to live and work in Cyprus.

Individuals who apply for the Cyprus Digital Nomad visa will have the right to stay in Cyprus for a period of up to 1 year. They can renew the visa for another 2 years, if required.

Cyprus is an attractive destination for individuals; it is a member of the EU, located in the eastern Mediterranean Sea and enjoys over 320 days of sunshine per year, it offers the warmest climate in Europe, has a good infrastructure and a convenient geographic location for internationally mobile individuals – it is easily accessible from in Europe, Asia, and Africa.

The population of Cyprus is approximately 1.2 million, with 180,000 foreign nationals living in Cyprus. It offers an excellent private healthcare sector, a low cost of living, and a friendly expat community.

As an incentive to attract and retain highly-skilled and highly-paid expats to Cyprus, foreign workers (for example, non-dom tax residents), do not need to pay taxes on international dividends, ‘passive’ interest income, or profit from the sale of securities.

In addition, individuals who were not previously resident in Cyprus, but who take up residence in Cyprus for work purposes, and earn over €100,000 per annum, are entitled to the following tax benefit:

• 50% of employment income earned in Cyprus is exempt from income tax for a period of 10 years.

However, the proposal for 2022 (the relevant legislation has not yet been implemented) is to allow an income tax exemption of 50% to new resident employees with income of €55.000.

MALTA

Malta has introduced a Nomad Residence Permit which enables individuals to maintain their current job in another country whilst they legally reside in Malta. The permit is targeted at non-EU remote workers and entitles them to reside in Malta for 1 year. After this, the visa can be renewed.

Malta offers the climate, the relaxed lifestyle and rich history to make living in Malta a real pleasure. Located in the Mediterranean, just south of Sicily, Malta offers all of the advantage of being a full member of the EU and Schengen Member States, has English as one of its two official languages, and a climate many chase all year round. Malta is also very well connected with most of the international airlines, which makes travel to and from Malta easy.

Since joining the EU and due to the forward-thinking Government actively encourages new business sectors and technologies, Malta’s economy has enjoyed large growth in recent years.

With a population of about 540,000 over an area of 316 square kilometres, Malta is already home to many expats and EU digital nomads. This community of ‘nomads’, enjoys Malta’s climate and lifestyle, and have already begun to interact with people with similar ideas, to add value to the community.

The Nomad Residence Permit in Malta opens up this opportunity to third country citizens, who would usually need a visa to travel to Malta. This permit lasts for 1 year and can be renewed at the discretion of Residency Malta, as long as the individual still meets the criteria.

Applicants for the Nomad Residence Permit must prove they can:

• Work remotely using telecommunication technologies, or
• Work for an employer registered in a foreign country and have a contract for this work, or
• Perform business activities for a company registered in a foreign country (and be a partner/shareholder of that company), or
• Offer freelance or consulting services, mainly to customers whose permanent establishment is in a foreign country, or
• Earn a monthly income of €3,500 gross of tax.

One of the biggest advantages of relocating to Malta is the remittance basis of taxation. Malta non-domiciled individuals are taxed on Malta source income and certain gains arising in Malta but are not taxed on non-Malta source income not remitted to Malta. In addition, they are not taxed on capital gains, even if this income is remitted to Malta.

PORTUGAL

Portugal’s temporary residence visa is particularly popular with freelancers and entrepreneurs; it is an independent workers and entrepreneurs visa available to individuals for 1 year. After this it can be renewed for up to 5 years. After 5 years, individuals have the option to apply for permanent residency in Portugal if they wish.

Portugal is located in the southwest of mainland Europe and is easily accessible in terms of travel to and from the rest of the world, which makes it very popular with international mobile individuals. The two islands of the Azores and Madeira are also autonomous regions of Portugal and, like the mainland, offers fantastic weather, a relaxed lifestyle, cosmopolitan cities, and stunning coastlines.

The Portuguese government is very aware of Portugal’s reputation as an international hub for digital nomads and, in response, launched a ‘Madeira Digital Nomads’ project, to attract foreign professionals to the island. Those taking advantage of this initiative can live in the Digital Nomad village in Ponta do Sol which boasts both villa or hotel accommodation, free wi-fi, coworking stations and regular social events.

For individuals who wish to live and work in Portugal, for example in Lisbon, Porto, or along the coast of the Algarve, there is also a large and established community to interact with. Lisbon is teeming with digital nomads, and Porto is the second most popular spot.

Portugal is an attractive and popular location – not only for digital nomads to move to – but for a large variety of individuals, in many different circumstances. Not only is it a beautiful country, offering an attractive lifestyle, but it also offers the popular Non-Habitual Residents programme (NHR), which allows individuals moving to Portugal to enjoy tax advantages once they re-locate here.

This has proven to be a major motivator for both EU and non-EU citizens. Provided they have not been resident in Portugal for the previous 5 years, they can enjoy non-habitual status for 10 years, whereby income derived from employment or independent personal services (from a domestic source) is taxed at a special flat rate of 20% provided the income is from high value-added activities or a scientific, artistic, or technical nature. In addition, a tax exemption might also apply to income derived from a foreign source.

Summary

Digital nomad visas and temporary residence permits have made travelling the world and working, easy and enjoyable. They provide new opportunities to individuals who can work remotely and independently of their location but continue to remain legally employed by their current employer. If you would like more information on applying for a Digital Nomad visa, please contact:

• Katrien de Poorter in our Cyprus office: advice.cyprus@dixcart.com
• Jonathan Vassallo in our Malta office: advice.malta@dixcart.com
• Catarina Sardinha in our Portugal offices (Lisbon and Madeira): advice.portugal@dixcart.com

Alternatively, please contact your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC

Background

Many foreigners move to Switzerland for its high quality of life, outdoor lifestyle, excellent working conditions and business opportunities.

A central location within Europe with a high standard of living, as well as connections to over 200 international locations via regular international flights, also make Switzerland an attractive location.

Many of the world’s largest multi-nationals and international organisations have their headquarters in Switzerland.

Switzerland is not part of the EU but one of 26 countries making up the ‘Schengen’ area. Together with Iceland, Liechtenstein and Norway, Switzerland forms the European Free Trade Association (EFTA).

Residence

Foreign nationals are allowed to stay in Switzerland as tourists, without registration, for up to three months.

After three months, anyone planning to stay in Switzerland must obtain a work and/or residence permit, and formally register with the Swiss authorities.

When applying for Swiss work and/or residence permits, different regulations apply to EU and EFTA nationals, compared to other nationals.

EU/EFTA Nationals

EU/EFTA – Working

EU/EFTA nationals enjoy priority access to the labour market.

Should an EU/EFTA citizen want to live and work in Switzerland, they can freely enter the country but will require a work permit.

The individual will need to find a job and the employer must register the employment, before the individual can actually start to work.

The procedure is made easier if the new resident forms a Swiss company and is employed by it.

EU/EFTA – Not Working

The process is relatively straightforward for EU/EFTA nationals wanting to live, but not work, in Switzerland.

They must fulfil the following criteria:

• Have sufficient financial resources to live in Switzerland and to ensure that they will not become dependent on Swiss welfare.
• Take out Swiss health and accident insurance.

Non-EU/EFTA Nationals

Non-EU/EFTA – Working

Third country nationals are allowed to enter the Swiss labour market if they are appropriately qualified, for example managers, specialists and those with higher educational qualifications.

The employer needs to apply to the Swiss authorities for a work visa, while the employee applies for an entry visa from their home country. The work visa will allow the individual to live and work in Switzerland.

Again, this procedure is made easier if the new resident forms a Swiss company and is employed by it.

Non-EU/EFTA – Not Working

Non-EU/EFTA nationals, without gainful employment are divided into two categories:

1. Older than 55;

• Must apply for a Swiss residence permit through a Swiss consulate/embassy from their current country of residence.
• Provide proof of adequate financial resources to support their life in Switzerland.
• Take out Swiss health and accident insurance.
• Demonstrate a close connection to Switzerland (for example: frequent trips, family members living in the country, past residency or ownership of real estate in Switzerland).
• Abstain from gainful employment activity in Switzerland and abroad.

• Under 55;
• A residence permit will be approved on the basis of “predominant cantonal interest”. This generally equates to paying tax on deemed (or actual) annual income, of between CHF 400,000 and CHF 1,000,000. The precise amount of deemed annual income depends on a number of factors, including the specific canton in which the individual lives.

Taxation

Standard Taxation

Each canton sets its own tax rates and generally imposes the following taxes; income, net wealth, real estate, inheritance and gift tax. The specific tax rate varies by canton and is between 21% and 46%.

In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.

Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.

Lump Sum Taxation

Lump sum taxation is a special tax status, available to resident non-Swiss nationals, without gainful employment in Switzerland.

The taxpayer’s lifestyle expenses are used as a tax base instead of their global income and wealth. This means that it is not necessary to report effective global earnings and assets.

Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that particular canton.

It is possible for an individual to have gainful employment outside Switzerland and to take advantage of Swiss lump-sum taxation. Activities relating to the administration of private assets in Switzerland can also be undertaken.

Additional Information

If you would like additional information regarding moving to Switzerland, please contact Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com