Digital Nomad
How the New Foreign Income & Gains Regime Affects Digital Nomads
With the UK’s non-dom and foreign income rules reformed from 6 April 2025, this article shows digital nomads what reliefs now apply, what regime they may fall under, and how to plan their tax affairs in 2026 and beyond.
By NomadicTax Research Team • 5-8 min read • May 30, 2026
## The UK’s Foreign Income & Gains (FIG) Regime Explained
From **6 April 2025**, the **remittance basis** system was abolished and replaced with a residence-based “Foreign Income and Gains (FIG)” regime. Qualifying individuals—typically those non-UK resident for some years—get relief from UK tax on foreign income & gains in their **first 4 tax years** of UK residence, and can bring funds into the UK without extra charges. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals/?utm_source=openai))
## What Digital Nomads Should Know
If you move between countries (or frequently spend time abroad), consider:
- Do you qualify for the **4-year FIG regime**? If you've been non-UK tax resident for ≥10 of the past 20 years, then upon return residence the FIG relief may apply. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals/?utm_source=openai))
- **Overseas Workday Relief (OWR)** simplifications: for your first 3 years of UK residency, you may claim exemption for UK tax on overseas employed income (work done abroad) under simplified rules. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals/?utm_source=openai))
- After the 4-year FIG window or if you don't qualify, all foreign income and capital gains are taxable when arising, similar to UK domiciled residents. Trust-based income is also on arising basis. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals/?utm_source=openai))
## Planning Tips & Examples
- If planning to move to the UK, time your move so that you are eligible for FIG (e.g., ensure non-UK residence for enough past years).
- Keep meticulous records of where work is done, income is earned, when and how money comes into the UK.
- Consider working via contracts that distinguish between UK work, overseas work, and ensure travel days are documented.
**Example**:
Emma, a digital consultant, spent 12 years abroad before returning to UK for work in 2025. She qualifies for FIG, so for her first 4 tax years (2025-26 to 2028-29), her overseas income and gains are exempt from UK tax—even when remitted. After that, she will be taxed on all foreign income/gains as they arise.
## Compliance Risks & Practical Steps
- Be aware that failure to qualify for FIG means losing exemptions and possibly facing higher bills, even if income seems foreign.
- Review your domicile status: former domicile, residence patterns, and whether you are deemed domiciled under the new rules.
- Seek professional advice if you hold offshore trusts or structure income/gains via non-UK entities: rules for trust distributions have shifted.
- If using the remittance basis previously, note the transitional rules and the timing of when FIG takes over.
**Bottom line**: These reforms significantly change how digital nomads are taxed by the UK. If you will be UK resident again, lining up your overseas income, domicile history, and using FIG regime correctly can save tax—but miss qualification, and obligations kick in with little room for error.