What are British Overseas Territories? Are they tax free? Can I visit or even live in one?

From the financial powerhouse of the Cayman Islands to the windswept wildlife sanctuary of South Georgia, you might have heard of British Overseas Territories (BOTs) - but how much do you really know about them? Are these "British" places truly tax free havens for the super-rich? Or are they wildlife refuges for a few rare birds breeding on remote and wildswept isles? The truth is, each of these unqiue places is bound by its connection to the UK - but they are all wildly different.

Each one is linked to Britain through a shared monarchy, British citizenship (with some variations), and a continuing constitutional link that preserves their place on the world stage. Though small in size, these territories represent a fascinating chapter in Britain’s global legacy—and continue to play a quiet but significant role in its modern identity.

These territories are remnants of the once-sprawling British Empire, now numbering just 14 scattered across the globe—from sun-soaked Caribbean islands to remote Antarctic outposts. They are not part of the United Kingdom itself but remain under British sovereignty, with the UK responsible for their defence, foreign affairs, and overall good governance.

Each territory has its own constitution, local government, and legal system, although the UK retains ultimate authority—usually exercised through a Governor appointed by the King. The origins of these territories stretch back to the age of exploration and empire-building, when Britain established colonies across continents. While most colonies gained independence throughout the 20th century, some chose to retain their British ties for political stability, economic support, or historical loyalty.

Nestled in the eastern Caribbean, Anguilla is a shimmering gem praised for its crystalline beaches and relaxed island lifestyle. Renowned as a Caribbean tax haven, Anguilla imposes no income, corporate, capital gains, or inheritance taxes. Revenue is generated through payroll levies, social security contributions, property taxes, and import duties on goods. Annual property taxes are modest—around 0.75% on buildings—while commercial properties face slightly higher rates

The economy relies heavily on luxury tourism and offshore financial services, which flourish amidst the island’s serene atmosphere. British citizens can explore Anguilla visa‑free for up to six months, but those seeking employment must secure a locally‑sponsored work permit, as there is no automatic right to settle. To live and work here long-term, residents must first find a job and have their employer facilitate the necessary paperwork.

Perched in the North Atlantic, around 650 miles east of North Carolina, Bermuda radiates old-world charm from pastel-coloured homes and rose-inlaid gardens. A legacy of its Royal Naval past, today’s economy centres on high finance and upscale tourism. Bermuda imposes no direct income, corporate, or capital gains taxes, instead raising revenue via payroll tax, customs duties, land tax, and stamp duties. Payroll tax ranges from 1.5% to 9.5% based on incomes up to $900,000. Corporate entities pay annual licence fees based on capital, but there is no traditional corporate income tax

British passport holders may stay for up to 90 days without a visa, but those wishing to stay longer or work must obtain a residence permit, contingent on being sponsored by a local employer. Despite its small size, Bermuda boasts a high standard of living shaped by its dual heritage of British governance and North American flair.

The mosaic of idyllic isles, including Tortola, Virgin Gorda, and Jost Van Dyke, makes up the British Virgin Islands—famed for sailing, scuba diving, and a thriving offshore financial industry. The main driver of the local economy is tourism, supplemented by the financial services sector anchored on trust and corporate administration. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings. Visitors from the UK can arrive without a visa, but if they intend to settle or work, they must secure both a work permit and a residence permit through local sponsorship. Despite administering their own internal affairs, residents remain under the jurisdiction of the British Crown, blending laid-back Caribbean living with British traditions.

Located southwest of Jamaica, the Cayman Islands have become a powerhouse in global finance, noted for insurance, investment funds, and banking services. Tourism also plays a significant role, thanks to pristine reefs and luxury resorts. British nationals enjoy visa‑free entry for short visits, but to take up employment or establish residency, they must obtain a work permit overseen by a sponsoring employer—and a residence permit follows. While the territory operates with a high degree of self-governance, final authority lies with the British-appointed Governor. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

Remote and windswept, the Falkland Islands lie over 8,000 miles from the UK in the South Atlantic. The economy revolves around sheep farming, fishing, and increasingly wildlife tourism. British citizens can visit without a visa, but anyone wishing to live or work must register with the local government—settlement rights are not automatically granted. The Falklands’ sovereignty was fiercely defended in the 1982 war, yet today the islands manage internal governance under the watch of a British-appointed Governor. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

Guarding the southern tip of the Iberian Peninsula, Gibraltar rises from the sea in a dramatic limestone monolith steeped in history—from Moorish and Spanish conflicts to a key role in World War II. The economy thrives on tourism, shipping, financial services, and online gaming. British passport holders can enter visa‑free, but working or settling involves securing a work permit and residence permit. Gibraltar offers residency routes for high‑net‑worth individuals (Category 2), high‑paid professionals (HEPSS), self‑employed entrepreneurs, and pensioners. Although outside Schengen, its proximity to Spain has forged a unique British-Mediterranean identity. Gibraltar boasts no capital gains, wealth, or VAT, but imposes standard income tax up to 27% and around 10% on company profits

Montserrat, once known for emerald landscapes, was partially buried by volcanic eruptions in the 1990s. It has since rebounded with a modest economy focused on agriculture, tourism, and public sector activity. UK citizens can visit without a visa, but taking up residence or employment requires a work and residence permit. The island’s unique story includes its nickname “the Emerald Isle of the Caribbean” and the indelible impact of volcanic devastation, all while retaining strong ties to its British colonial past. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

Incredibly remote, the Pitcairn Islands house the small community descended from the 18th‑century HMS Bounty mutineers. The economy is driven by honey production, stamps, and a trickle of tourism. British citizens may visit for up to 14 days on arrival permission, though longer stays require pre-approval. Settlers must apply for permits, though the small population and strict controls make permanent residency unlikely. Life here is governed by direct democracy, with islanders managing their own affairs via an elected council. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

These far-flung Atlantic islands share a colonial legacy shaped by geographical isolation. Saint Helena, famed for Napoleon’s exile, supports tourism, government services, and limited agriculture. Ascension hosts a military facility, while Tristan da Cunha is famed for its remote community and fishing. UK citizens may travel visa‑free, but settling or working requires a local permit. Though governance is unified, each island community has its own council, reflecting their distinct cultures and histories. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

Just southeast of the Bahamas lies the Turks & Caicos archipelago, a luxury resort centre with booming tourism and real estate industries. Remarkably, hotels, beaches, and diving sites draw visitors worldwide. British nationals need no visa for short stays, but work and residency require employer-sponsored work permits and subsequent residency permits. Self-governance is strong here, though the Governor represents the Crown in matters of national security. A zero-income-tax jurisdiction, it attracts business and investment through nil rates on personal and corporate earnings.

The Chagos Archipelago, including Diego Garcia, lies in the Indian Ocean and hosts a major US/UK military base. It has no civilian population and access is strictly regulated—British citizens need a formal permit. With no chance of residence, it serves solely strategic military purposes.

Covering a remote region of Antarctica, this territory is solely for scientific research stations. No one lives here permanently, and all visitors—including British—must obtain research permits well in advance. The pristine environment is managed under international treaties, barring civilian settlement.

These desolate islands lie in the subantarctic, rich in wildlife and visited mainly by researchers and wildlife enthusiasts. Access is heavily restricted and visitors require permits. With no permanent population, the islands are administered by a Commissioner, reflecting their conservation-focused role.

On the island of Cyprus lie these two sovereign military bases, home to military families and local Cypriot employees. Geography varies from coastal enclaves to agricultural inland areas. British and Cypriot nationals enter under Cyprus entry rules, but anything beyond 28 days requires a base-area permit. Working or living here is governed by local regulations tailored to support military operations and civilian community needs.

British citizens can generally visit inhabited territories visa-free, but settling requires employer‑sponsored work permits and residence permits tailored to each territory’s laws. Gibraltar offers unique schemes for investors, high-earners, self-employed individuals, and pensioners, while military and research zones are off-limits without prior approval. Despite sharing a single sovereign authority, each territory retains its own identity, culture, and entry requirements—reflecting their diverse roles within Britain’s global footprint.