Recent changes in UK taxation have seen a new tax rate of 50% on incomes over £150,000 and the abolition of tax allowances on incomes of over £100,000. In addition, the freezing of tax allowances will mean that thousands more will be paying marginal tax rates of 40% over the next few years. On top of all that, there have been increases in Council (property) tax and in national insurance contributions.
So how does this compare with places like Malta?
There, income tax is a flat 15% and there is no property tax - as local councils are funded by block grants from the Government.
If you want to buy a property, it will cost you around 6.5% of its value which compares well with many other countries.
Property is not cheap but local mortgage finance is readily available at favourable terms - and the investment outlook is strong, with long term demand exceeding supply - bolstered by an exponential growth in low cost airlines, not only from the UK but from across Europe and the rest of the World.
There are no death duties in Malta.
Many Companies have relocated to Malta - which positively encourages inward investment. The labour force is well educated, highly technically literate and English is a joint first language - so setting up is a great deal easier than elsewhere.
As a member of the euro zone, Malta enjoys currency stability and access to many adjoining markets such as Italy, France, Germany and Spain.
Ray Woods from http://www.maltabuyproperty.co.uk/ says, "For EU citizens such as those from the UK, permanent residency in Malta is a formality provided that you can demonstrate that you are self sufficient. For those on higher incomes in the UK, notably owner managers, it is a financial no brainer, particularly since the latest wave of tax and other increases.
Increasingly businesses are not geographically tied, driven by the growth of the internet and high quality low costs telecommunications. High marginal tax rates in some countries like the UK therefore work in favour of places like Malta where labour and employee related costs are typically much lower than.
Buying property is also a much more straight forward process than in the UK - with a ‘legal handshake' operated within the notary system. This speeds up the whole thing and makes it much less stressful.
The education and healthcare systems are free and of a high standard. Crime rates are very low and children are able to play on the streets in safety - and have a fantastic quality of life. With income tax at a flat 15% and no council taxes, we expect to see a growing influx of British entrepreneurs including those with young families.
Last but not least is the fabulous weather and of course the friendly people of Malta."