Where you are resident and where you are domiciled determines your tax position (there is a difference)
There are 4 types of countries when it comes to the treatment of personal taxation:
1. No personal taxation N/A example: UAE
2. Territorial (source basis) where you earn the income example: Singapore/HK
3. Residency (worldwide basis) where you are resident example: UK/Australia
4. Citizenship where you are based/domiciled example: US
The UAE levies no personal taxation on income, meaning earnings are paid gross. There is indirect taxation (VAT) in the UAE when you spend on goods and services, but income tax remains at 0%.
Other countries levy income tax on people who earn money in that country, such as Singapore.
However, being a resident of a country like the U.K., you will be taxed on your worldwide earnings. For example, if you earned an income in Singapore you could be taxed as a UK resident and at source in Singapore.
However, there are double tax agreements in place between the U.K. and a host of countries to ensure you don’t pay ‘double’ tax… but you need to check whether there is one, and what the terms are. With the exception of US citizens where you are taxed on your worldwide income with no agreements in place to mitigate the tax burden.
This is a complex area of planning, hence it is really important that you seek advice. It is also worth considering the long term, when you die, do you want the law of the land to govern how you pass on your wealth or even Sharia Law?
Insurance based investments will allow you to pass on your wealth to who you nominate and not who you are dictated to by law…