Where to retire to escape high-tax Britain

Gone are the days when British pensioners were given an easy ride on tax.
Labour's continued freeze on income tax thresholds means a growing chunk of retirees' income is clawed back by the state each year.
The state pension is on course to exceed the tax-free 'personal allowance' threshold by 2027 – a phenomenon dubbed the 'retirement tax'.
To achieve a 'comfortable' standard of living in retirement today, a single pensioner needs an income of £52,220 a year, according to the Pensions and Lifetime Savings Association (PLSA).
This would tip them into the punitive 40p 'higher rate' bracket and rack up an income tax bill of £8,320 – effectively handing over 16pc of their income to tax.
But any retirees considering moving abroad for their golden years will find a plethora of low-tax regimes ready to welcome them – without demanding a big slice of their pension in return.
Here are four highly desirable destinations where you could slash your retirement tax bill.
Greece has devised a preferential tax regime for expats with foreign pensions and investment income as it aims to attract high-net-worth retirees.
The country offers a flat 7pc rate of income tax on foreign-sourced income – including pensions – for up to 15 years.
You must fulfil certain conditions to be eligible, including staying in Greece for more than 183 days each year, and not having been a tax resident in Greece for five of the last six years prior to arrival. You must also move from a country with which Greece has a double taxation treaty – which includes Britain.
Greece's 'golden visa scheme' allows expats to gain residence in exchange for investing in real estate. The Greek government has raised the minimum property value to €800,000 (£684,000) in popular areas such as Rhodes, Kos and Santorini, in an effort to deal with housing affordability for locals.
But it is still possible to get the same visa for a smaller investment if you look for homes in less in-demand areas such as the Peloponnese or mainland Greece. Purchasing a property for €400,000 or more is enough to secure you a golden visa.
The threshold falls to €250,000 if you convert a commercial building into a residence anywhere in the country, or restore or reconstruct a listed property.
The simplest way to become a Cypriot tax resident is to spend more than 183 days a year in the country.
Once you are a tax resident, your British state pension, occupational and personal pensions, and annuities will be subject to income tax in Cyprus. The only exception is income from government service pensions, paid to retired members of the fire service, police, civil servants, armed forces and local authorities, which remains subject to British tax.
Pension income can be taxed in one of two ways. Cyprus offers a very low 5pc flat rate of income tax on foreign pension income above a tax-free allowance of €3,420. Or you can choose the standard Cypriot income tax system each year, with the first €19,500 exempt.
A pensioner on a 'comfortable' retirement income of £52,220 (€61,110) would be better off opting for the 5pc rate. By contrast, anyone with an income below around £21,400 (€25,000) would be better off under the standard Cypriot system.
Non-domiciled residents of Cyprus are also exempt from tax on dividends and interest, there are no inheritance, wealth or gift taxes and there is no capital gains tax on property sold outside the island.
Expat retirees moving to Italy can benefit from an attractive 7pc flat rate of income tax – but only if they move to certain underpopulated areas.
The southern regions of Abruzzo, Molise, Campania, Puglia, Basilicata, Calabria, Sicily and Sardinia offer the rate on foreign income – including pensions – for anyone who becomes a resident in municipalities with fewer than 20,000 inhabitants.
While your pension or other sources of non-Italian income will be taxed at 7pc, you will still need to obtain a visa to move there if you are not an EU citizen.
The preferential rate lasts 10 years, and to qualify, you must have been a tax resident outside Italy for at least the previous five years.
For non-working retirees, the 'elective residency visa' is a popular choice. To qualify, you will need to prove you have an annual income of at least €31,000 for an individual or €38,000 for couples, plus 20pc for every additional dependent, or 5pc for a dependent child.
In Britain, anyone over the age of 55 can take 25pc of their pension as a tax-free lump sum. But in foreign tax regimes, including Italy's, this withdrawal will be taxable.
David Denton, of investment manager Quilter Cheviot, said: 'Retirees should consider taking their pension lump sum before leaving the UK, as this feature is typically unavailable abroad. This benefit could effectively be lost if not accessed beforehand.'
The UAE's low-tax regime has turned it into one of the top destinations for wealthy British expats, with the tax perks on offer extending to pensioners.
There is zero income tax in the UAE, which comprises Dubai, Abu Dhabi and five other emirates. And if you spend at least 183 days in a year there, there are no UAE taxes on your assets outside the country.
The Dubai 'retirement visa' offers a renewable five-year residency for all expats aged 55 and over who meet either an income or property ownership requirement.
Applicants need a minimum yearly income of AED240,000 (£48,600) – or AED180,000 in Dubai. Alternatively, they can buy a property (or properties) in the UAE with a total value of at least AED1m, or hold this amount in savings in a UAE bank account.
Levies, including income tax, capital gains tax and inheritance tax are non-existent in the UAE, but other requirements act as taxes by proxy. Mr Denton said: 'Low-tax environments, such as the UAE, can come with hidden costs – mandatory health insurance being a prime example – effectively functioning as indirect taxation.'
Another point to consider is that you will not receive the annual 'triple lock' uplift on your state pension if you move to the UAE. Britain does not have a 'reciprocal agreement' in place with the Emirate, meaning your state pension will be frozen at its current level on the day you leave Britain.

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