With the trend toward global asset allocation, wealth succession has become a topic of increasing concern for many investors. Countries with favorable tax systems attract more immigrants, while those with stringent tax regimes may deter some prospective applicants. For those who wish to avoid global taxation while still aspiring to obtain status in a major power, where is the best place to go?
Recently, UK Chancellor Jeremy Hunt made a major announcement regarding the Spring Budget, which has sparked widespread discussion by abolishing the "non-domiciled" tax regime that has been in place in the UK for over two centuries. Starting from April 2025, the UK will impose global taxation on immigrants who have resided in the country for more than four years.
According to the latest proposed Foreign Income and Gains (FIG) regime, starting from April 6, 2025, individuals moving to the UK who have not been residents for the previous 10 years will be exempt from UK tax on foreign income and gains for the first four years of residence, during which they can freely bring overseas income into the UK without paying tax. Similar to the existing policy, individuals must apply for the remittance basis annually and will lose their annual capital gains tax exemption (currently £6,000) and personal allowance (currently £12,570). After the four-year period ends, individuals will be required to pay tax on their global income and capital gains. In other words, regardless of whether the immigrants' overseas income is remitted to the UK, and regardless of which country the money was earned in, as long as they hold UK immigrant status, they will be subject to tax—this is "global taxation."
Currently, UK status is divided into Domicile and Non-Domicile. The former refers to native-born British citizens, while the latter refers to new immigrants from foreign countries, also known as "non-residents." Data shows that about one-third of non-domiciled residents in the UK have an annual income exceeding £5 million, while only one-tenth of native residents have an annual income exceeding £5 million. This vast wealth disparity has finally led the UK to target the wealthy. In fact, inheritance tax is a widely existing tax system globally, and it is also being considered in mainland China. Many developed countries, such as the United States, Germany, and Japan, have implemented inheritance tax systems aimed at regulating wealth distribution, preventing the widening of the wealth gap, and raising fiscal revenue. Each country's inheritance tax system has its own characteristics, but all are designed around national laws, regulations, and policy orientations.
The announcement of the UK's policy to initiate global taxation on immigrants has triggered strong reactions from different groups; it can be said that some are happy while others are worried. It is foreseeable that as major global powers begin to implement global taxation, those who aspire to obtain immigrant status in a major power while seeking a destination with a sound tax system should act quickly to consider their actual situation, choose a destination suitable for their own status planning, and make relevant tax arrangements.
The United States, as a traditional major immigration power, is one of the countries with the most comprehensive global tax systems. The U.S. tax law is known for being "formulaic, scientific, and humane," and can be considered a model for global tax systems. In fact, U.S. tax law has many humane measures that not only consider the taxpayer's intentions and actual situation but also have advantages such as institutional transparency and the absence of double taxation.
Taking the United States as an example, it has a comprehensive inheritance and gift tax act. The U.S. inheritance tax implements a cumulative tax system, which ensures both tax fairness and avoids excessive collection. At the same time, the United States also has comprehensive tax avoidance acts, such as establishing family trusts and insurance wealth management, to achieve wealth succession. In addition, the United States has clear regulations on pre-landing tax planning and tax exemptions for tax residents to avoid the abuse of the tax system.
In summary, before immigrating to the United States, fully understanding U.S. tax law and conducting comprehensive asset planning can allow individuals to utilize U.S. tax incentive policies—especially regarding inheritance and gift tax planning—to reduce or exempt relevant tax burdens, provided that tax laws are followed. The existence of such policies makes the United States maintain a strong appeal in attracting global investment and status planning, and more and more investors are choosing the United States as a destination for placing their wealth and families.
Currently, the EB-5 investment immigration program is an effective way to quickly obtain a U.S. Green Card. The application requirements for EB-5 investment immigration are flexible, with no restrictions on age, education, language, business, or work experience background. One person applies, and the whole family can immigrate to the United States, where they can live and work anywhere in the country. Children enjoy free public education (K-12), and spouses and unmarried children under 21 can immigrate together. The rural project in the EB-5 reserved visa category is still in a non-backlog status—seize the opportunity to get on board!
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