Remittance Basis of Taxation

A tax regime under which foreign-source income is taxed only when actually brought (remitted) into the taxing country, rather than as it arises. Historically available to non-domiciled residents of the UK, Ireland, and Malta. The UK abolished the remittance basis for new residents from 6 April 2025 in favour of a 4-year foreign-income-and-gains (FIG) regime. Ireland retains the remittance basis for non-domiciled residents indefinitely, with specific rules on co-mingling, clean-capital accounts, and constructive remittance. Malta's Global Residence and Residence Programme offer their own variants. Planning around the remittance basis requires careful segregation of pre- and post-remittance funds and tracking of investments by 'source' account.