Tax exile

A tax exile is someone who intentionally leaves a high-tax country and establishes residence in another jurisdiction with more favorable tax rules in order to lessen their overall tax exposure. This generally requires severing residential, economic, and sometimes familial connections with the original country, while meeting the legal residency requirements of the new one. The relocation is lawful, though the primary motivation is often tax reduction.

Example: Imagine an investor who relocates from Country A, where personal income tax rates are steep, to Country B, which imposes little or no income tax. If the individual also ensures they do not satisfy Country A’s residency thresholds—such as spending too many days there or keeping a long-term home—they may be seen as a tax exile.