Faced with rising taxes and broken public services, many British workers may be wondering if it is time to pack up their bags and take their career in a more international direction.
The Government has signalled that it will raise taxes in the autumn in order to bolster the public finances, but the Chancellor has not specified which ones.
This has fuelled speculation that Rachel Reeves could launch a raid on people’s savings, properties and investments.
But whatever happens, the Government’s tax freeze will still leave Britain on track for the highest tax burden since the Second World War.
The Conservative government’s decision to freeze income tax bands – and cut the threshold at which the top 45pc rate kicks in – means any pay rise a worker receives is soon eaten up by soaring tax bills.
Many workers have had enough. An estimated 532,000 Britons emigrated in 2023, according to the Office for National Statistics, and higher earners and entrepreneurs are among those jumping ship. This year, consultancy Henley & Partners forecasts that 9,500 millionaires will abandon the UK – more than double the number seen in 2023.
But working out where to relocate can be a challenge. Beyond salary, it is important to factor in the cost and quality of living, as well as how much tax you are likely to pay on income earned.
Here, we outline the best countries to move to for a higher disposable income.
Dubai of the United Arab Emirates (UAE) is an increasingly popular destination among British expats. Living there is expensive, and workers will need to pay for medical insurance, but with no income tax, they can keep more of what they earn.
For example, a finance director could earn between $173,000 and $258,000 in Dubai, according to recruitment firm Robert Half, compared to between £100,000 and £150,000 in London.
Among the UAE’s biggest industries are oil and gas, financial services, real estate and hospitality.
Bob Parker of Holborn Assets, a financial advice firm, said: “Saudi Arabia is a next door neighbour and is about to become the next big thing – Neom is attracting world attention and thousands of key workers who currently prefer to have their families in Dubai.”
The majority of expats are found in Dubai, he added, however many are also found in Abu Dhabi “and the lesser known but fast-growing Emirate of Ras Al Khaimah, an hour’s drive from Dubai and with much cheaper housing”.
How much tax will I pay?
There is no tax on income in the United Arab Emirates.
Cost of living
In Dubai, rent is typically paid upfront as part of a one-year fixed-term contract. As of June 2024, the average apartment and villa rents stood at AED 127,969 (£27,123) and AED 354,512 per annum (£75,140), respectively, according to CEBR.
Meanwhile, someone buying property could expect to pay about $850 per square foot, according to estate agents Savills, working out at about $680,000 for a property of 800 square feet.
Emirati nationals can access public healthcare for free, but British expats must pay. Both nationals and expats are required by law to have health insurance. You may also want to pay for a health card, which costs 320 dirhams (£70) for an adult.
A monthly Metro pass in Dubai is likely to cost about 350 dirhams (£76).
Moving there
To work and live in the UAE, you need a residence visa.
If you are employed by a company based in the UAE, then they can apply for a standard residence visa on your behalf, usually valid for two years.
However, getting a company to sponsor you is not the only way to move to the UAE.
The country also offers green visas to “skilled workers” with a bachelor’s degree and an employment contract, investors, and freelancers – also with a bachelor’s degree – provided they have earned more than 360,000 AED (£77,629) annually over the past two years.
Mr Armoils said: “The UAE is relatively easy to migrate to, especially for wealthy people that buy a property there.”
This is because “golden visas” are available to investors who buy a property worth more than two million AED (£431,485), as well as:
- Entrepreneurs who own a business with an annual revenue of AED one million or more
- “Outstanding” students from top universities
- Doctors
- Scientists
- Inventors
- Executives
- Specialists in scientific fields
- Athletes
- Doctoral degree holders
- Specialists in the fields of engineering and science
- Nurses, medical assistants, lab technicians and pharmacologists who worked on the frontline of the pandemic
Once you have your own residence visa, you can sponsor family members to come and join you.
Expats will have to undergo a medical check to get a visa in the UAE. This will include a blood test. If you test positive for diseases such as HIV or hepatitis, then you will not be granted a visa.
Salaries in Switzerland are the highest in Europe and among the highest in the world, making it a top destination for migrants looking to bump up their paycheque.
Major companies based in Switzerland are Nestlé, Zurich Insurance Group and Glencore.
How much tax will I pay?
Working out your rate of income tax in Switzerland is complicated. The maximum overall rate of federal income tax is fairly low, at 11.5pc. However, each of the 26 cantons also has a separate law for cantonal taxes.
Cost of living
Switzerland is widely considered the most expensive country in the world. The World Population Review estimates it has monthly living costs of $2,497 per month.
The median monthly rent for apartments in Switzerland is CHF 1,650 (£1,474) according to the platform RealAdvisor. In Zurich it may be more common to spend over CHF 2,000 (£1,786).
However, based on an average salary of CHF 72,993 (£65,194), this would still leave someone with a decent amount of disposable income.
You should also expect to pay around CHF 360 a month on health insurance, which is compulsory in Switzerland.
Depending on how many zones you travel within, an annual public transport pass in Zurich could cost between CHF 474 (£423) and CHF 2,226 (£2,049).
Moving there
You will need a company to sponsor you in order to work in Switzerland. Generally, the State Secretariat for Migration (SEM) will only give authorisation if you are a manager, specialist or otherwise skilled worker.
If you want to be self-employed in Switzerland, then you will need to show that your self-employment "will have a lasting positive effect on the Swiss labour market”.
To do this, you will need to submit a range of documents including a business plan, planned investment, projected turnover and profit.
Australia is expected to attract 2,500 millionaires from other countries this year, according to Henley & Partners.
Among those heading for Australia’s sandy beaches are British doctors. An anaesthetist working as a consultant for the NHS and earning £115,000 could double their salary in pounds by moving down under.
Australia’s minimum wage is higher than most, at AUS$17.47 per hour. It also has set salary requirements for expats, with employer-sponsored workers needing to earn AUS$73,150.
How much tax will I pay?
If you reside in Australia for more than half of the year and you intend to stay in the country, then you will be considered a resident for tax purposes.
Whereas the income tax rates for non-residents range from 32.5pc to 45pc, for residents the range is between 0pc and 45pc.
Cost of living
Average rental costs in Australia are AUS$480 per week for an apartment or AUS$550 per week for a house, according to data from Domain.
But some cities are significantly more expensive – while renters in Melbourne can expect to pay AUS$550 a week for an apartment, in Sydney the norm is AUS$720 per week.
Similarly, buying a house will cost on average $1.7m in Sydney compared to AUS$850,000 in Perth and AUS$586,000 in Darwin.
Australia’s healthcare system is a blend of public and private. Its public health system, known as Medicare provides essential hospital treatment, doctors appointments, and medicine for free or for a reduced cost.
The UK has a Reciprocal Healthcare Agreement with Australia, so while in the country, Brits can access emergency healthcare for free.
However, additional services such as dentistry, ophthalmology and physiotherapy are part of the private system.
Cost for health cover varies depending on your age, and the level of care you want to pay for. For just hospital treatment, a person can expect to pay $2,257 (£1,160) for those under 36, $2,713 (£1,390) for people between 36 to 59, and $3,076 (£1,580) for those aged 60 and over, according to financial comparison site Canstar.
For combined hospital and extras, it’s $3,017 (£1,550) for those under 36, $3,456 (£1,770) for those between 36 to 59, and $3,829 (£1,970) for those aged 60 and over.
You could choose to get just insurance for “extras” – at a cost of $877 (£450) for lower level of coverage, $1,046 (£537) for mid level coverage, and $1,157 (£595) for higher level of coverage – given Medicare covers emergency treatment.
Moving there
The Employer Nomination Scheme visa lets companies nominate workers to stay in Australia permanently. To be eligible, your job must be on the relevant list of eligible skilled occupations, which includes accountants, engineers and doctors.
“People that move to Australia generally need to fill some kind of critical skills shortage,” said Mr Amoils. “Migrants to Australia also need to show they financially support themselves.”
Professions where there is a skills shortage include car, medicine and programming.
You can also get a temporary visa for up to four years if you are filling a role that the company is struggling to hire for.
You can earn significantly more working in the US compared to the UK. The average salary was just over £46,000 in the US last year, according to the US Bureau of Labor Statistics, compared to £35,000 in the UK, according to the Office for National Statistics (ONS).
The trade off is fewer benefits. For example, British workers get a minimum of 28 days of annual leave per year, compared to 10 days for American workers.
The top places in the US attracting expats are the San Francisco Bay Area, for tech, and New York City for finance roles. Andrew Argoils of Henley & Partners said: “Commuter towns near NYC such as Greenwich, Darien and Old Westbury also have very high average incomes.”
However, living in New York or San Francisco will be far more expensive than living in a less populous, more obscure area.
How much tax will I pay?
The US has seven federal income tax brackets, with rates of 10pc, 12pc, 22pc, 24pc, 32pc, 35pc and 37pc. The top rate applies to income of over $500,000 (£400,860).
On top of this, US states apply their own income taxes. For example, state income tax in New York is charged at between 4pc and 10.9pc. California has the highest top income tax rate at 13.3pc.
However, nine states – Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming – have no income tax. You can find out more about them in our guide on where to move in America to pay the least tax.
Cost of living
Rent in the US varies dramatically across the country. Average rent across the country was $1,372 in 2023 according to Apartment List. However, this rose to $1,958 for California and $1,765 for New York.
In New York, you can buy a MetroCard for $132 (£105) a month to ride the subway and buses as often as you like.
You’ll also need to factor in health insurance costs. According to the Kaiser Family Foundation, a non-profit, the average annual premium for family coverage was over $23,968 in 2023 and $8,435 for an individual.
Most Americans get health insurance through an employer, which will cover some of this cost. For family coverage, a worker will typically contribute $6,575 per year or about $548 per month, while the average worker contribution for a single policy is $1,401. This means about $117 and $548 dollars a month may need to be spent on health insurance.
Moving there
You will generally need to be sponsored by a US employer before you can apply for an immigrant visa.
To become a permanent resident, you will need a Green Card, typically only available to highly skilled workers, unless you have a close relative in the US.
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