Not Moving Countries Is Like Never Switching Phone Plans: You Pay More for the Same Thing

I switched phone plans every year. I paid less for the very same service year over year and kept my number. No one noticed.

Same with electricity providers. I wrote a script that filled out the form to switch my electricity provider every 12 months. Again, the very same thing for less money.

I would have never thought that this could be applied to countries too.

A few years ago I moved from Austria to Portugal for the ocean. During tax preparations, I learned about tax incentives that I was not aware of before.

To my surprise, these tax incentives were available for people who were not residents for a certain number of years. So even if your plan is to live in a country, you might be better off leaving for a while and coming back later. Like switching phone plans.

If you hold an EU passport, you have the right to move to another EU country whenever you wish.

Countries with “switching plan” tax benefits today:

• Portugal — IFICI / NHR 2.0: 20% tax on qualified work income. Foreign capital benefits too. Reset: 5 years out.

• Austria — Zuzugsbegünstigung: 30% tax-free allowance on scientific/research income. Limited capital benefit. Reset: 10 years out.

• Spain — Beckham Law: 24% tax on work income. Foreign capital benefits. Reset: 5 years out.

• France — Impatriate Regime: Partial income exemption. Foreign capital benefits. Reset: 5 years out.

• Netherlands — 30% Ruling: 30% of salary tax-free. No real capital benefit. Reset: roughly 16 months out of the region.

• Sweden — Expert Tax Relief: 25% of salary tax-free. No capital benefit. Reset: 5 years out.

• UK — FIG Regime: 0% UK tax on eligible foreign income and gains for 4 years. Strong capital benefit. Reset: 10 years out.

• Italy — New Resident Flat Tax: Fixed yearly tax on foreign income and gains. Reset: 9 of the last 10 years out.

• Greece — Non-Dom Regime: Fixed yearly tax on foreign income and gains. Reset: 7 of the last 8 years out.

I know that moving is hard.

Paying more for the same is easy. I don’t like easy.