Digital Nomad
Living and Working Globally: Digital Nomads & the UK FIG Regime
The UK’s new Foreign Income and Gains regime reshapes how digital nomads are taxed—understanding these rules is vital for anyone frequently moving in and out of UK tax residency.
By NomadicTax Research Team • 5-6 min read • March 31, 2026
## What is the FIG Regime?
From **6 April 2025**, the UK abolished the traditional “non-domicile” remittance basis. In its place, the **Foreign Income & Gains (FIG) regime** applies to individuals who become UK tax resident after at least **10 tax years of non-UK residence**. ([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))
Under FIG, qualifying individuals get:
- **Four years** of exemption from UK tax on foreign income and gains upon arrival (providing they meet the 10-year non-UK residence test).
- Ability to bring those funds into the UK without additional taxation during those four years. ([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))
However, those already resident less than four years after long absence, or those ineligible, face full worldwide taxation without remittance basis. Transitional reliefs exist for pre-6 April 2025 assets. ([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 Need to Know
### 1. Residency & Tax Years
- UK tax residency rules depend on **number of days and ties** in the UK. Digital nomads should track days carefully to determine when UK residency triggers the FIG regime. Use automatic overseas test or sufficient ties.
### 2. Asset Timing & Structuring
- Assets and income earned overseas **before moving** to the UK may enjoy transitional protection. Use this window smartly by transitioning income or realising gains before residency if possible. Rigs in funds or investments located outside may now need reporting.
### 3. Overseas Trusts & Distributions
- Under FIG, non-resident trust distributions may be taxed differently. If trust distributions were a strategy, review structuring, maybe timing or establishment. Also consider the “Temporary Repatriation Facility” for pre-6 April gains at reduced rate. ([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))
## Example Case: Anna the Nomad
- Anna has lived outside the UK for 12 years and plans to return in September 2025. She meets the 10-year non-UK residence requirement. She qualifies for FIG and for four years can receive her overseas income and gains without UK taxation. She also can bring pre-FIG funds without additional charge.
- However, she has UK property rental income which is taxed immediately, and if she enters the UK part way through the tax year, she should consider planning her arrival date to maximize the full tax year.
## Tips & Best Practices
- **Engage a tax specialist** with experience in international tax to help map your residence and asset profile.
- Use **agreements with employers and contractors** to delineate source of income—where it is earned and taxed.
- **Maintain meticulous record-keeping** of foreign income, gains, and trust distributions.
- Decline to rely on “remittance basis”—it is no longer an option post-April 2025.
## Bottom Line
The UK’s FIG regime is designed for globally mobile individuals, but eligibility hinges on residency and prior non-UK residence. Proper planning can offer significant relief—but missteps may lead to unexpected taxation. Start planning well in advance of any move or income shift to/from the UK.