Compare · United Kingdom vs Vietnam
United Kingdom vs Vietnam for Australians leaving home
United Kingdom and Vietnam run the same headline regime, worldwide tax, so the decision turns on the details underneath: what each one does to capital gains, dividends and the Australian income you keep.
Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).
Vietnam is the cheaper place to live day to day, roughly 40% of Sydney's basket against United Kingdom's 105% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | United KingdomUnited Kingdom | VietnamVietnam |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 20/40/45% plus employee NI (8% then 2%). The £100k, £125k allowance taper creates a 60% effective band. A £120k salary pays roughly 36% effective with NI. | Progressive 5, 35% on worldwide employment income; the 35% band starts around A$58k/year equivalent, high earners hit the top rate fast. |
| Capital gains | 18% basic / 24% higher rate on shares and crypto, £3,000 annual exemption. FIG-regime arrivals: foreign gains tax-free for 4 years. (24% typical) | Securities: 0.1% of gross sale proceeds (final), cheap if you win, painful if you sell at a loss. Private company stakes: 20% on the gain. Property: 2% of proceeds. (0% typical) |
| Dividends | 8.75/33.75/39.35% above a £500 allowance. Australian franking credits are not recognised, but for FIG-regime arrivals, Australian dividends are simply outside UK tax for 4 years. | Flat 5% on dividends and bank interest, one of the lowest investment-income rates anywhere. |
| Interest | Taxed locally around 40% | Taxed locally around 5% |
| Crypto | Crypto disposals are CGT events at 18/24% with a small annual exempt amount (£3,000). Swaps and spending count. HMRC receives exchange data; FIG-regime arrivals can realise foreign crypto gains UK-tax-free in years 1, 4. | Crypto sits in a legal grey zone: not recognised as an asset or payment means, with a regulatory framework legislated to take effect from 2026 (pilot exchanges, expected transaction taxes). Today, taxation of personal crypto gains is untested in practice. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| Social security | Employee National Insurance (8% to ~£50k, 2% above) is excluded from the calculation above, add it for employment income. | Compulsory social insurance applies to employees on Vietnamese labour contracts (foreigners included, ~10.5% employee side, capped); remote workers for foreign employers are outside it. |
| Visa | ||
| Best pathways |
|
|
| Visa ease | 6/10 | 4/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~2 months on the quickest pathway | ~0 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $6,500/mo | $2,200/mo |
| Rent (couple, monthly) | $4,200/mo | $1,200/mo |
| International school (per child/yr) | Free / local system viable | $20,000 |
| Health cover (family/yr) | $4,000 | $4,500 |
| Cost of living vs Sydney | 105% of Sydney (ex-rent) | 40% of Sydney (ex-rent) |
| Relocation one-off | ~$25,000 | ~$12,000 |
| Flights home (return, pp) | $2,400 | $1,200 |
| Life | ||
| Timezone vs AEST | 9h behind | 3h behind |
| Flight from Sydney | ~22 hours | ~9 hours |
| English | 10/10 | 4/10 |
| Safety | 8/10 | 8/10 |
| Healthcare | 8/10 | 5/10 |
| Schooling | 9/10 | 6/10 |
| Climate | Mild, grey and damp, the winters are dark more than cold, and Australians feel it. | HCMC: hot year-round with a May, November wet season; Hanoi adds a genuinely cold, damp winter. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
United Kingdom
- This is a higher-tax country than Australia for most: 40% starts around A$100k equivalent, NI stacks on top, and the £100k, £125k taper creates a 60% zone with childcare cliff-edges.
- London costs Sydney money without Sydney weather, and the FIG honeymoon is exactly 4 years, after which worldwide taxation lands in full.
- Visa costs are the world's highest: fees plus the health surcharge can run £15, 20k for a family before anyone earns a pound.
- Winter darkness (8-hour days, weeks of grey) is the quiet reason many Australians go home.
Vietnam
- No digital nomad visa and no retirement visa: unless you have a job, a company or a Vietnamese spouse, there is no compliant way to live here long-term.
- The 35% top band arrives at a low threshold, a good Australian salary earned as a Vietnamese resident is taxed harder than in Australia.
- Banking and moving money is bureaucratic: the dong is not freely convertible and repatriating funds requires documentation.
- Healthcare below international-clinic level is poor; anything serious means Bangkok or Singapore.
- Air quality in Hanoi ranks among the world's worst several months a year.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in London: $14,200”, not a range.