Non-Dom status ended in April 2025. What the new FIG (Foreign Income and Gains) regime means for Turkish HNW investors buying or moving to the UK.
Non-Dom Has Ended, FIG Has Arrived: 2026 Tax Guide for Turkish HNW Investors
The Non-Dom (non-domiciled) status that made London attractive to global wealth ended in April 2025.
What replaced it? For HNWI (High Net Worth Individual) investors from Turkey considering UK investment or relocation — is the picture bleak, or are there still useful windows?
What Was Non-Dom? (Brief Summary)
Non-Dom applied to UK residents who maintained a domicile outside England. Under it:
- Foreign-source income was taxed only when remitted to the UK (remittance basis)
- Property, shares, and rental income abroad remained outside UK tax if not brought in
That system ended in April 2025.
What Is FIG? (Foreign Income and Gains)
FIG is the replacement regime. The core idea:
"New arrivals receive a four-year exemption on foreign income and gains."
FIG Main Rules
| Rule | Detail | |---|---| | Duration | Four tax years after first UK residence | | Scope | Foreign income and capital gains exempt | | Condition | Not UK resident in at least one of the prior 10 years | | After year 4 | Worldwide income taxed in the UK |
What Changed for Turkish Investors?
Scenario 1: Investment Only (No UK Residence)
If you live in Turkey and invest in London, FIG and Non-Dom do not directly affect you. As a non-resident, you owe UK tax on London rental income and CGT on disposal — as before.
Scenario 2: Planning to Move to the UK
First-time UK arrivals who were not resident in any of the prior 10 years gain four years of FIG relief. During that period:
- Turkish rental income
- Turkish bank interest
- Turkish portfolio gains
- Other foreign income
Can remain tax-free even if remitted to the UK.
After four years, planning becomes critical.
Scenario 3: Long-Term UK-Resident Turks
Turkish investors already in the UK beyond four years no longer have Non-Dom protection. Worldwide income must be declared.
Practical Impact on Property Investment
Rental Income Tax
If you let a London property and are UK tax resident, rental income is taxable. Expenses (mortgage interest, maintenance, insurance, management) are deductible subject to rules.
CGT (Capital Gains Tax)
Following the Autumn 2024 Budget:
- Basic rate: 18% (residential)
- Higher rate: 24% (residential)
Different rules apply where property is held in an SPV.
IHT (Inheritance Tax)
2025 reforms mean UK-sited property falls within IHT regardless of where the owner lives. Amounts above £325,000 are taxed at 40%.
Trust structures and offshore asset planning matter more than before.
Action Items
Turkish Investor in London (Non-Resident)
- Self Assessment on rental income
- CGT reporting within 60 days of sale
- Annual review with solicitor and tax adviser
Turkish Investor Planning UK Relocation
- Restructure before arrival — position income flows to maximise FIG
- Timing of remittances in the first four years is critical
- Consider SPV or LLP setup during the window
Common Mistakes
-
"Non-Dom is gone, so London is off the table" — Wrong. FIG offers a meaningful four-year window. Non-resident investors' core obligations are largely unchanged.
-
"I don't need to declare rental income" — Wrong. UK-source rent is taxable even for non-residents.
-
"Buying through a company means no tax" — Wrong. Structure optimises tax; it does not eliminate it. Corporation Tax still applies.
Summary: Is It Still Worth It?
Yes. Under the new rules, England still offers:
- Political stability and rule of law
- Freehold ownership security
- One of the world's most liquid prime property markets
- Sterling-based wealth preservation
- A four-year FIG transition window for new arrivals
The "zero tax" narrative from before 2022 no longer applies — tax planning and structure choice are more important than ever.
Free tax structure review:
+44 7990 38 1102 | investinlondon.com.tr