Digital Nomad
Digital Nomads in the UK: Navigating the New Property, Savings & Dividend Income Tax Rates
Starting April 2026 and April 2027, the UK introduces new tax rates for income from property, savings, and dividends—key for digital nomads earning from global assets.
By NomadicTax Research Team • 5-8 min read • June 12, 2026
## What’s Changing?
The UK government is introducing changes to tax rates on property income, savings, and dividends:
- **Dividend income** rates rise by **2 percentage points**: the **ordinary rate** increases from 8.75% to 10.75%, and the **upper rate** from 33.75% to 35.75%, effective **6 April 2026**. These changes affect distributions, loans, or benefits conferred on participators from close companies. ([gov.uk](https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income?utm_source=openai))
- **Savings income** rate increases (basic, higher, additional rates) taking effect **6 April 2027**. ([gov.uk](https://www.gov.uk/government/publications/changes-to-tax-rates-for-property-savings-dividend-income/changes-to-tax-rates-for-property-savings-dividend-income?utm_source=openai))
- **Property income** will have separate tax rates from other income, also effective **6 April 2027**: basic rate 22%, higher rate 42%, additional rate 47%. Finance cost relief will be aligned to the property basic rate. ([gov.uk](https://www.gov.uk/government/publications/changes-to-tax-rates-for-property-savings-dividend-income/changes-to-tax-rates-for-property-savings-dividend-income?utm_source=openai))
## What Digital Nomads Should Know
If you’re working internationally and earning UK-taxable income from assets, these changes can impact your overall liability:
| Income Type | Tax Rate Before | New Rate | Effective Date |
|--------------|------------------|------------------------|------------------|
| Dividend (ordinary) | 8.75% | **10.75%** | 6 April 2026 |
| Dividend (upper) | 33.75% | **35.75%** | 6 April 2026 |
| Savings income (all bands) | 20/40/45% | **22/42/47%** | 6 April 2027 |
| Property income rates | Same as employment/investment income | **Separate rates** 22/42/47% | 6 April 2027 |
## Practical Example
You’re a remote consultant based abroad, and have:
- £5,000 in UK dividend income above allowances
- £4,000 interest from UK savings
- £8,000 UK rental profits
Before April 2026:
- Dividends taxed at 8.75% → £437.50
- Interest: if within basic rate, 20% → £800
- Rental profits added to other income, taxed at existing sloping rate, say 20–40% depending on your bracket.
After April 2026/27:
- Dividends: taxed at **10.75%** for ordinary, **35.75%** for upper rates
- Savings: up to **22–47%** based on bracket from April 2027
- Rental profits: taxed separately at new property rates—**22–47%, same as savings and property bracket**
## Actionable Advice for Digital Nomads
- Review your international income streams. Where possible, classify income efficiently and know your brackets.
- Utilize allowances (Dividend Allowance, Personal Savings Allowance) and ISAs to shield against rate hikes.
- If you hold UK property, plan deductions and finance costs carefully to make sure you benefit from relief at the **property basic rate (22%)**.
- Seek treaty advice: if you’re resident abroad, double taxation treaties may allow you to claim relief.
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With voting UK tax revenues rising and income from assets being taxed more aggressively, planning ahead can help digital nomads manage tax exposure under the new structure.