Digital Nomad

Digital Nomads & UK’s Foreign Income and Gains (FIG) Regime: What’s New and How It Works

After the end of the non-dom regime, the new FIG regime offers fresh tax rules for those arriving in the UK or globally mobile; understanding eligibility and trade-offs is vital for international employees.

By NomadicTax Research Team • 5-8 min read • February 22, 2026

## From Non-Dom to FIG: What Changed Effective April 2025 - On **6 April 2025**, the UK abolished the **non-dom (non-domicile) regime** and replaced it with the **Foreign Income and Gains (FIG) regime**. This affects people coming to the UK or previously non-resident who have foreign income/gains. ([bdo.global](https://www.bdo.global/en-gb/insights/tax/expatriate-tax/united-kingdom-employers-and-internationally-mobile-employees-%E2%80%93-impact-of-changes-to-non-domicile?utm_source=openai)) - Under FIG, foreign income and gains can be **treated as outside UK taxation** for the first **four tax years** of UK residence, subject to rules. Overseas Workday Relief (OWR), available under some previous regimes, now has more limited scope. ([bdo.global](https://www.bdo.global/en-gb/insights/tax/expatriate-tax/united-kingdom-employers-and-internationally-mobile-employees-%E2%80%93-impact-of-changes-to-non-domicile?utm_source=openai)) ## Eligibility & Key Features - **10 years absence**: To get the full benefit of FIG, you must have been **non-UK tax resident** for at least **10 previous UK tax years** before becoming resident. ([bdo.global](https://www.bdo.global/en-gb/insights/tax/expatriate-tax/united-kingdom-employers-and-internationally-mobile-employees-%E2%80%93-impact-of-changes-to-non-domicile?utm_source=openai)) - **Election by year**: FIG applies by **election**, often year-by-year for Internationally Mobile Employees (IMEs); it isn’t fully automatic. ([bdo.global](https://www.bdo.global/en-gb/insights/tax/expatriate-tax/united-kingdom-employers-and-internationally-mobile-employees-%E2%80%93-impact-of-changes-to-non-domicile?utm_source=openai)) - **Trade-offs**: Access to FIG brings restrictions—you may lose parts of tax allowances and CGT annual exemption depending on election and residency status. ([bdo.global](https://www.bdo.global/en-gb/insights/tax/expatriate-tax/united-kingdom-employers-and-internationally-mobile-employees-%E2%80%93-impact-of-changes-to-non-domicile?utm_source=openai)) ## Impact on Digital Nomads & International Workers - If you're arriving to the UK and planning long-term work or rentals abroad, FIG offers a clearer path than the old remittance basis—but only temporarily. - If foreign income is remitted to the UK or realised from assets held abroad, FIG’s protections may still require careful planning—especially if you expect residence beyond four UK tax years. - For IMEs working in multiple jurisdictions, FIG changes how foreign employers, PAYE, social security contributions, and tax residency are treated, so your employment contract and compensation structure may need adjusting. ## Actionable Steps: Planning Your Move - **Map prior tax residence**: Make sure you’ve had 10 UK non-residency years; if not, FIG access may be limited. - **Document foreign income & gains**: Keep clean records of where income arose, when it's foreign vs UK-sourced. Helps with reliefs and exemptions. - **Consider tax treaties**: Where you also pay tax abroad, double taxation reliefs may still exist—research treaties and credits. - **Election timing**: Decide if you’ll elect FIG for each year. Possibly opt in when it makes most sense (e.g. high foreign income years). ## Examples - Mia moves from Brazil to the UK in July 2025. She has been non-resident for 10 years, so she can elect into FIG, excluding her foreign dividends and rental income abroad from UK tax during her first four years. If she fails to elect in a given tax year, those protections won’t apply for that year. - Tom, a freelancer based in the UK who also works for some US clients, plans to go abroad. Under FIG, his foreign consultancy income (if genuinely foreign-sourced and not remitted) can stay outside UK tax **for up to four years**, providing cash flow advantages. Once he’s in UK more than four years, his worldwide income becomes taxable like any UK resident. ## Considerations & Limitations - FIG doesn’t mean forever tax-free income: after four years, you’re taxed worldwide. - Loss of some allowances or exemptions may reduce benefits. - If you anticipate returning frequently to the UK or have evolving foreign sources, structuring matters—holding assets via foreign companies, trusts, and the like may affect FIG eligibility and tax liabilites. ## Takeaway The FIG regime is simpler than non-dom, more predictable, and better suited to globally mobile professionals. But it’s no silver bullet—understanding **when you become UK tax resident**, **foreign income types**, **timing of elections**, and **how allowances apply** is critical. With good documentation and planning, digital nomads and international workers can make the regime work in their favour.