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The UAE and Saudi Arabia, in recent years, have become very popular among British expatriates looking for a life in the sun – free from the tax burden.

Although this is not a new phenomenon, particularly for the extremely wealthy, in recent years an increasing number of people have been attracted by the prospect of a better life elsewhere, away from the cold and grey United Kingdom.

But as conflict erupts throughout the Middle East and popular cities favored by expatriates – such asDubai, Abu Dhabi and Riyadh – are experiencing surges of violence, where can Brits seek refuge?

Some may choose nations like Portugal or Malta, which provide advantageous deals for certain groups, while others might look toward low-tax areas located farther away, such as Barbados.

Where is the ideal place for expatriates to enjoy a tax-free lifestyle, offering the benefits of locations such as the UAE, yet located in a less well-known area and free from continuous conflict?

Here is our selection of some of the top choices available…

Bahamas

For years, the Bahamas has been seen as a tropical haven for the affluent, providing numerous benefits regarding tax matters.

It imposes no income tax, attracting foreign investors and retirees, and there is also no capital gains tax, inheritance tax, or corporate tax.

You can fly directly from London Heathrow to Nassau with British Airways, which makes it an attractive option considering the current crisis affecting air routes in the Middle East — and other flight paths may include a stop in Canada.

This region provides an authentic luxurious setting featuring hidden pink-sand beaches, coral reefs, and excellent sailing opportunities.

Privacy, security, and a desirable way of life have made it a popular choice for numerous North American millionaires. However, start-ups, cryptocurrency, and financial technology investors are also attracted to its capital, Nassau.

The British also appreciate it – approximately 4,100 reside there, with many choosing to settle in Nassau, located on the island of New Providence, which serves as the main expatriate center featuring the majority of international schools and cultural organizations.

As per the cost-of-living platform Numbeo, leasing a one-bedroom apartment in the downtown area will set you back $1,195 (£895) monthly – whereas typical utility expenses will amount to $285 (£213) each month.

Drawbacks involve occasional crime, with the FCDO noting that violent crimes and armed robberies, occasionally resulting in fatalities, have occurred in residential and tourist areas of New Providence and Grand Bahama.

Differences in culture and varying legal systems, along with traditional views on the LGBT+ community, may also lead to conflicts.

Bermuda

If you enjoy the ambiance of the Caribbean, Bermuda might be the perfect option for you.

Bermuda is the oldest self-governingBritish Overseas Territory, and is favored by numerous British people.

What are its major benefits? Security, safety, and a high quality of life – along with the absence of income tax or capital gains tax.

You are allowed to visit Bermuda without a visa for a maximum of 180 days within any 12-month timeframe. You need to possess a ticket for return or further travel.

To remain for a longer period or to work, study, travel for business, or other purposes, you need to fulfill the entry requirements set by the Bermudian government.

If you plan to work in Bermuda, you need to secure a job offer and obtain a work permit prior to entering the country. You are not allowed to search for employment while visiting as a tourist.

But, unfortunately, it is not without its drawbacks.

Bermuda imposes significant import taxes and also features a high cost of living. A three-bedroom apartment in Paget could reach $10,000 (£7,497) per month in rental fees — this is 113.2 percent more expensive than in London, as reported by Numbeo.

Monaco

A billionaire’s haven, Monaco is, of course, next on the list.

Celebrated by F1 icons, global business leaders, and numerous other famous individuals, it is a sanctuary renowned for its opulent way of life and stylish hotels.

Boasting luxury shopping and Michelin-starred dining, along with numerous casinos and beach clubs, it has a higher concentration of millionaires per square meter than any other place.

Over 2,800 individuals holding British citizenship are officially living in Monaco.

The absence of income tax, wealth tax, and capital gains tax is a major attraction—along with the fact that spouses and children are not required to pay inheritance or gift tax when receiving assets.

Drawbacks involve a very high expense of living.

Numerous individuals have noted extremely high expenses in the area, with Monaco being one of the most expensive.overrated destinationsthat “are not worth the cost” as per visitors.

Cayman Islands

Direct flights from Heathrow to Bermuda are available with British Airways, providing a tax-free and coastal way of life in this British Overseas Territory.

The area offers a high quality of life along with a low level of criminal activity and a tropical climate.

It’s also recognized for its lively, energetic way of life, featuring numerous boat parties centered around Seven-Mile Beach and George Town, the largest town and commercial center of the Cayman Islands.

It also offers tax benefits: there are no corporate, income, capital gains, or inheritance taxes.

Drawbacks involve a limited-island mindset, limited job opportunities, and elevated costs for electricity and home insurance.

Although the risk is minimal, the area experiences hurricanes, with the hurricane season in the Cayman Islands typically lasting from June to November.

Seismic activity also poses a danger in the Cayman Islands.

And certain locations featuring minimal tax rates…

Malta

Recently, a study examined the world’s most well-knownand emerging digital nomad destinations to reveal the top ten countries for Brits considering a move this year – and Malta secured a place in the top five.

The European Union’s headquarters uses English as an official language and offers a remittance tax system for residents of the United Kingdom.

Malta’s tax residency program provides a fixed 15 percent tax rate on foreign income brought into Malta, and there is no domestic tax on overseas earnings that remain outside of Malta, as reported.Tax Advisory Partnership.

Capital gains earned outside of Malta are tax-free, regardless of whether the funds are brought into Malta.

Valletta, the capital of Malta, was also awarded the highly sought-after distinction of being named the top city in the world at the Condé Nast Traveller Readers’ Choice Awards 2025.

The European region is famous for its sunny Mediterranean climate, along with remarkable architecture, delicious cuisine, and high costs.

It’s also affordably priced, with a beer in the city costing approximately €2.12 (£1.85), as reported by Holidays in Malta.

Nevertheless, overpopulation, severe traffic jams, expensive rent, and continuous, all-season construction are some of the major concerns for people residing in the country.

The small island, covering only 316 square kilometers, offers limited housing options and expensive rent, especially in the capital, Valletta.

Cyprus

Starting this year, Cyprus provides an annual tax-free income limit of €22,000 (£19,061) for individuals, making it very attractive to British expatriates.

Ranking fifth among the top 10 countries preferred by Brits for relocation, this expat destination offers tax-exempt foreign income and a relaxed Mediterranean way of life — although the limited public transportation and a healthcare system that is not as advanced as the UK’s NHS might be off-putting to certain individuals.

And there are many tales of British individuals who have relocated to the warm country.

Last year, a British family someone who became so tired of the dull life in the UK and relocated to Cyprus shared how much more content they are with their new lifestyle.

Sarah, 48, and James Moore, 47, relocated from Middlesbrough with their two children, nine-year-old Bea and Miles, five.

Now, the four-person family spends more time together and became ‘immediately happier’ shortly after moving.

The expense of living in Cyprus has proven beneficial for them.

However, the disadvantages of Cyprus involve slow administrative processes and intense summer heat – not suitable for all.

Georgia

Digital nomads looking for a more budget-friendly way of living can enjoy visa-free stays in Georgia for as long as a year, along with a 1% tax rate for small enterprises.

According to research, Tbilisi surpasses 69 other European citiesfor cost-effectiveness, aligned with merging low expenses with a wealth of cultural and historical sites.

In Tbilisi, a glass of local beer is only £1.64, whereas a three-course meal for two at a moderately priced restaurant is under £33.

There is more to attract expats beyond just affordable costs, however.

Featuring a wide range of food and cultural attractions, there’s much to discover in this rising destination.

It is worth mentioning that beyond its capital, Tbilisi, language obstacles and insufficient infrastructure in Georgia could present certain difficulties for some individuals.

The Foreign, Commonwealth & Development Office recommends avoiding travel to specific areas of Georgia, so it’s advisable to confirm the safety of the region you intend to visit.

Costa Rica

Costa Rica mandates a monthly income of $3,000 (£2,233) for the Digital Nomad Visa and offers tax breaks on foreign earnings.

You can reach San Jose’s Juan Santamaria Airport by flying from Madrid or Amsterdam, along with other locations.

Life in Costa Rica offers numerous benefits.

First of all, the wide range of stunning beaches, swim-friendly waters, top-notch hiking trails, and mountains and waterfalls to explore make it a remarkable option for nature enthusiasts.

Additionally, temperatures vary from 12-27°C, indicating you would be steering clear of overcast Britain for more sunny destinations.

However, the large number of visitors can lead to challenges, and poor road conditions can create difficulties when moving around.

Additionally, the GOV.UK website cautions: ‘Muggings and theft are major issues, especially along the Atlantic coast.’

You need to be mindful of your surroundings while using ATMs, stay alert on public transportation, and ensure your belongings remain visible whenever possible—thieves may attempt to divert your attention. Be cautious with your wallet and valuable items when at the beach.

There have been cases in which thieves puncture a tire and then propose to assist in changing it, while an associate steals from the vehicle.

In Costa Rica, it’s advisable to refrain from walking alone in dark or isolated areas during the evening. Additionally, if you’re driving a rented vehicle, avoid stopping for strangers who signal for assistance – they might be attempting to carjack you.

Mauritius 

Mauritius provides a one-year Premium Visa, tax-exempt offshore earnings, and a tropical environment.

You can also travel through Paris or Amsterdam, bypassing well-known stopover points in the Middle East.

According to Tripadvisor: ‘Mauritius is a tropical haven offering countless activities and boasting some of the world’s most stunning scenery.

Certainly, this island country in the Indian Ocean is famous for its beautiful beaches, waterfalls, lagoons, and scenic mountain vistas.

Port Louis, the contemporary capital of this island measuring 38 miles by 29 miles, is a lively harbor featuring a renewed waterfront and a lively marketplace. It’s worth exploring, although many tourists prefer resort areas like the upscale Mont Choisy, the serene Trou-aux-Biches, and the energetic Flic en Flac.

Drawbacks involve expensive food, lodging, and products – along with heavy traffic and crowding.

Plus, the FCDO cautions: ‘The majority of criminal activities are non-violent, including burglaries in tourist villas or theft of unattended bags. Minor crimes are frequent, especially in tourist spots like Port Louis, Grand Baie, and Flic en Flac. There have been a few instances of sexual assaults against visitors.’

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