I've been in a similar situation so I can share my experience with you. Essentially you are considered to be living outside your country if 2 things occur. The first is that you spend over 6 months outside the country (you'll need to prove that to the tax authorities so hold onto your tickets, boarding passes or anything that details chronological order of travel) and the second is you have a residence permit at the second country. You may be considered tax exempt if the company pays from your home country > Kuwait however there are specific industries which are not tax exempt. So I am unsure of the specifics in your case. The wisest thing to do would be to consult with a tax attorney prior to your departure and to make sure that you remain on the right side of the law by documenting your travels as carefully as you can. My experience is that outbound financial transactions from the EU to non EU countries are considered exempt as taxation is calculated at the country of arrival, which in Kuwait should not be a problem to you.
Hope this helps, good luck!

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00abuse

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Thank you for your quick reply, it was very helpful.

The first requirement of spending over 6 months in Kuwait shouldn't be a problem - we will be permanetly living in Kuwait for a minimum of 2 years, with only brief holidays in the UK (and less than the 90 day requirement for tax).

My main question was relating to your point about Kuwait residency. Is this something that you have to specifically apply for, or would this happen by default if you are living in the country for a certain length of time? If you do have to apply for it, are there any requirements to getting this approved - i.e she will be working for a UK company, not a Kuwait company.

If she is able to be exempt from UK tax, what exactly is the tax situation in Kuwait? Obviously it is tax free, but are there any other taxes that may be applicable?

Obviously we will seek professional advice, but any advice we receive prior to this will be great.

Thanks
Andy

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00abuse

andy, just some of my experience and view to share with.
1) about yourself - you need to be out of UK for one complete tax year before qualifying for tax exemption.
2) if your wife is working for a UK company and collect salary in Kuwait, she may still be considered as having income in UK. Eg i am receiving pension from a UK company and i work overseas, but my pension remains taxable as though i am still living in UK
check with your tax office
good luck . I am an engineer too.

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00abuse