Table of Contents
Key Points
- Nassef Sawiris moves to Italy after UK abolishes non-dom tax status, ending a long association with the country.
- Sawiris moved his family office to Abu Dhabi in December 2023, distancing himself from the UK ahead of tax changes.
- Italy’s flat tax scheme, charging €200,000 ($220,500) for foreign nationals, now appeals to Sawiris and other wealthy individuals seeking tax-friendly alternatives.
Egypt’s richest person, Nassef Sawiris, is the latest billionaire to leave the UK in response to sweeping tax reforms. After benefiting from the UK’s non-dom tax status for over a decade, Sawiris has decided to make Italy his new home. The move follows the UK government’s decision to abolish the 200-year-old tax status, prompting Sawiris—Africa's fourth-richest person, with a $9 billion fortune—to reassess his options.
This shift comes after reports earlier this year revealed that Sawiris had been considering his future in the UK due to changes made by the ruling Labour Party. With investments in companies like Adidas and OCI Global, a Netherlands-based fertilizer producer, Sawiris began distancing himself from the UK in December 2023 when he moved his family office to Abu Dhabi, a growing hub for wealthy individuals seeking more favorable tax conditions.
Sawiris relocates to Italy over tax changes
With the UK’s tax reforms set to take full effect on April 6, Sawiris’s departure marks the end of his long association with the country. The reform will scrap the non-dom status, which allowed wealthy foreigners to only be taxed on UK income and assets.
This change comes on the heels of several other high-profile exits from the UK, as wealthy individuals look for more favorable tax jurisdictions. For instance, steel magnate Lakshmi Mittal moved to the UAE, and German crypto investor Christian Angermayer relocated to Switzerland, both citing dissatisfaction with the UK government’s tax policies.
Sawiris is now expected to take advantage of Italy’s flat tax scheme, which charges a blanket rate of €200,000 ($220,500) for foreign nationals, allowing them to live in the country without being taxed on their global income and assets. This offer adds to Italy's appeal for the ultra-wealthy, offering a clear alternative to the changes in the UK.
UK shifts non-dom rules in 2025
For years, the UK’s non-dom status was a significant draw for high-net-worth individuals, especially those from Africa, many of whom own properties or do business in the country. Starting in April 2025, the UK will replace the non-dom system with new rules that focus more on an individual's residence status.
This will affect many HNW Africans with ties to the UK, who must now be more careful about their time in the country to avoid triggering tax liabilities under the UK’s Statutory Residence Test. The shift eliminates the remittance basis of taxation, meaning foreign income and gains will no longer be exempt from UK tax just because they are kept outside the country.
