Moving to a tax haven in your 20s

[arewecrayzee]

DP and I are both in finance in our mid-late 20s. Neither of us really have time for what London offers but do really enjoy our jobs and work. We have both been having serious conversations to move offshore. We are open to anywhere really, so long as we can have more space and to be outside more.

Would we be crazy to leave London for 1-2 years in our 20s and try living on an island somewhere? Could be as remote as BVI but I would probably prefer Bermuda or Cayman. DP wouldn't mind Guernsey. Aware all are very different.

We'd be taking a pay cut on the headline salary. But we (think) the experience of living somewhere very different would be interesting for a short while.

You mean become a tax exile? Everyone I know who has done this has then decided that they can’t ever return to live here and pay UK taxes again. So they are very rich, tanned, and raging alcoholics who have traded meaningful life experiences for money and servants. Which I can’t deny had its appeal. But, for me, I think you lose some of the richness of life’s experiences for worldly riches

I live in one of your so defined ‘tax havens’, and work in an offshore private wealth role, so let’s be clear, ignore what @Blahblah34 says.

if you both have the opportunity in your late 20s to travel with your job then you would be crazy to turn the opportunity down. What a fantastic experience to live somewhere else for a few years.

The majority of people I know who have moved offshore have done so to achieve a better work life balance, particularly ex-city workers with families. The work we do is akin to what you would be doing in the city with zero commute and the opportunity to leave work and go straight to the beach afterwards. Crime rates are low but cost of living high but if you’re used to London prices this shouldn’t be too much of a shock. So my advice - go for it. But have a look at all the jurisdictions and choose wisely. Good luck!

What about HK? Income tax is 15% flat. Has a bit more going on than most offshore places. Lots of outdoors stuff- hiking, trail running, paddling. Nice beaches.

I have a friend in Cayman, great lifestyle if you like diving and structured sports such as golf, tennis. v lacking in the kind of culture you get in london or NY for example, it wouldn't be for me but it depends what you want.

I've enjoyed visiting but it's a bit old fashioned eg seemed acceptable among the expats i met for there to be corporate entertaining in girly bars. I'm older than you - reminded me of london in the 90s vibe in that way but it was a couple of years pre covid. Our friends who made the move there and other places like Singapore are v happy, but their adult children are now moving back to and living in the UK

Sorry i've reread and seen you've suggested doing it for 1-2 years. Check out the UK tax position but I think you'd want to be out longer than 1-2 years for uk tax reasons - 2+.

What about singapore? Lots of finance jobs and a great place to be based for asia travel

Come to the UAE, no income tax at all - doesn't get any better than that!

We have property in Gibraltar, bought using the proceeds of our London house sale when we sold everything to move out here, which is tenanted. Check out category 2 status there, that's what both of our tenants have. (FYI, we have to pay tax on our rental income there, so life is not completely tax free).

Guernsey resident here who worked in finance for many years. There are lots of jobs here for suitably qualified individuals but you will need any prospective employer to be able to secure a housing licence for you, which might only be for a relatively short term. The other thing to be aware of, is that there is currently a huge housing crisis and you may well find it very hard to find accommodation. Depending on the industry you are in, I would look to see if there are any jobs available with your current employer in any of the domiciles you are interested in relocating too. I’d pay a visit first before looking for employment as living here is very different to living in London. It’s lovely in the spring and summer but autumn and winter can be pretty miserable and wet and you can get stuck here in bad weather when boats don’t run and aircraft are grounded by fog.

I just responded to a similar thread about a young person’s experience of BVI (my daughter)