19 Tax-Free Countries 2024: If you are planning to register your company in a foreign land, then here is the list of the 19 Tax-Free Countries ( No Income Tax ) Enjoy A Zero Tax Life. These are the countries where there is completely Zero Tax. Neither do they levy any Corporate Tax nor any Income Tax.
All those who have taken refuge in India have to pay tax to the government. But in many countries one rupee will not be taxed. Although it may come as a surprise to some, some countries actually do not collect a single rupee of tax from their residents. Now let’s look at some of the countries that do not impose such tax (Tax-Free Countries). This can help people who want to migrate to a non-taxable country. Still there is no tax on anything here. This is why the people who live here save a lot which is no mistake.
19 Tax-Free Countries 2024: Enjoy A Zero Tax Life!
1. United Arab Emirates
The mere mention of the United Arab Emirates may make you think of the awe-inspiring buildings, the opulent malls, and the jaw-dropping hotels. If the country can be described in one word, it would be – opulent!
This Arab country in the Middle East has abundant natural resources like oil, and its economy does not need any further revenue boost through income taxes from the citizens. People in the UAE can take home their entire salary without incurring taxes.
With zero taxes and foreign ownership opportunities, UAE is one of the best tax-free countries in the world for people who want to settle down.
2. Bahamas
When you talk about one of the beach holiday destinations in the world, the Bahamas would undoubtedly be in the top 10 list. Apart from spending a relaxing holiday, the Bahamas gives you another compelling reason not just to visit but settle there. The country does not levy any income tax on its residents. It is one of the few countries with zero income tax.Â
Blessed with the most pristine beaches and a fast-growing economy, the Bahamas is rated among the best places to live in the world. The no income-tax policy is an icing on the cake. However, if you want to settle here permanently, you must make long-term investments in local real estate properties before getting permanent residency.
3. Bermuda
The local government of Bermuda has taken income tax out and thrown it in the Bermuda Triangle. In short, Bermuda is one of the Caribbean countries with no income taxes.Â
Compared to other nearby islands, Bermuda is more developed and has excellent infrastructure facilities, from roads to public transportation, making your stay here in the country a pleasant experience. However, you must know that the cost of living in Bermuda is quite high, as it is relatively isolated.
If you have always dreamed of living near sandy beaches and swanky restaurants, Bermuda is your haven.
4. Panama
Located in Central America, Panama is one of the most beautiful countries in the world. While its reputation as a popular tourist nation precedes its name, it is also known for being one of the most tax-friendly countries in the world.
A tax haven, Panama, has the most tax-friendly laws and flexible legal structure. Whether you are an individual staying in Panama or running an offshore company in the country, you need not pay any taxes. You can enjoy zero-corporate tax if your company is engaged in business from outside Panama.
However, you must pay minimal taxes if you have a local business. Apart from the liberal taxation system, the pristine natural beauty of the place, and the colourful culture, make it an excellent destination to live in.
5. Cayman Islands
Another stunning Island nation from the Caribbeans, the Cayman Islands is known for its Azure beaches and vibrant culture. Apart from this surreal natural beauty, the nation is known for not imposing any taxes. The tiny nation generates sufficient revenue from its bustling tourism industry and offshore finance sectors, freeing the locals from paying any taxes.
6. Kuwait
Another nation from the Middle East with no income tax policy is Kuwait. Kuwait’s economy majorly depends on its natural resources like oil. The government generates enough revenue from it and therefore levies no income tax on personal income. This applies to all residents in the country, irrespective of their nationality, making it one of the best tax-free countries.Â
But if you open a foreign venture in Kuwait, as per the country’s tax laws, you must pay a 15% tax on your income to the Kuwaiti Government.
7. The British Virgin Islands
The British Virgin Islands don’t impose taxes on income and capital gains, as well as withholding taxes.
The islands are known for their stunning natural beauty, crystal- clear waters, white-sand beaches, and a vibrant marine ecosystem. Under British Overseas Territory status, the BVI’s political stability provides a secure environment for residents and investors.
The country doesn’t grant residency or citizenship by investment.
8. Monaco
A stunning island on the French Riviera, Monaco is one of the few countries with zero income tax in Europe. Like Dubai, everything about Monaco is luxurious. Home to some of the wealthiest individuals in the world, Monaco does not need its residents to pay a single penny in taxes.
Some of the most elite families and high net-worth individuals worldwide love investing and staying in Monaco, and they have been thriving here. If you plan to move to this stunning country, you must shell out big bucks to prove your net worth. Once you do that, it is one of the easiest places to get citizenship.
So, there you go, you have a list of the best tax-free countries in the world. Which of these are you excited about the most?
9. Oman
The Arab nation, Oman, is another tax-free country that is also popular for its simple and uncomplicated tax laws for business enterprises. While non-petroleum-related businesses operating in the country must pay 15% taxes on their taxable income, petroleum businesses are mandated to pay up to 55% in tax. When it comes to no tax, wealth, property, and gains from investment, they all come under a tax-free umbrella. If you want to move to one of those countries with no income taxes, Oman could be the best choice.
10. Qatar
Qatar recently made global headlines for hosting the Football World Cup in 2022. It is one of the few Arab nations that boast an undeniable cosmopolitan vibe. Besides, the welcoming atmosphere, and tax-free policies, make Qatar one of the best places to live in the Middle East.
This Arab nation offers full tax exemption on personal income to its residents. However, commercial activities are subject to a 10% income tax on the company’s total state income. Also, income earned through rent is subject to a 10% fixed tax, which is payable annually.
So, if you are frustrated with paying high taxes in your country, you may consider moving to Qatar and settling there permanently.
11. Bahrain
Bahrain, located in the Persian Gulf alongside Qatar and UAE, is another tax-free country that does not impose income tax. But it requires you to contribute to their Social Insurance and unemployment programs. The corporate tax rate for oil companies is 46%. Other than its tax benefits, Bahrain is a great place for people from different communities and cultures, as it is one of the most liberal Gulf countries in the world. Moreover, English is widely spoken by all Bahrainis.
So, there you go, you have a list of the best tax-free countries in the world. Which of these are you excited about the most?
12. Brunei
This tiny Sultanate on the Malaysian island of Borneo also has enough oil wealth to forego collecting income tax.
However, unlike Bahrain or the Bahamas, Brunei is extremely difficult to live in. It has a reputation of not very friendly to foreigners and the government is, frankly, heavy-handed and dictatorial. You might even find fellow expats who are scared to speak to you thanks to local laws and policing practices.
Permanent residence and citizenship are also out of the question – unless you somehow gain the approval of the Sultan. Brunei exemplifies how countries with no income tax are not necessarily hubs of economic freedom.
13. Saudi Arabia
Saudi Arabia is a Muslim country with strict traditions, but it’s also known for its rich cultural heritage, strategic economic reforms, and vast natural resources. The corporate tax is 20% of the net profits; however, corporate income from oil and hydrocarbon production is taxed at 50-85%. The standard VAT rate is 15%.
The country’s permanent residency can be obtained by investing at least $1.1 million.
14. Saint Kitts and Nevis
If you’re looking for a place where you can easily establish tax-free citizenship, look no further than Saint Kitts and Nevis. The price tag of its citizenship by investment is also far lower than other citizenship by investment programs.
There are two investment options to get the passport. A donation of $150,000 to the Sustainable Growth Fund or an investment in a government-approved real estate project for at least $400,000. While you can read more about the citizenship by investment program in Saint Kitts and Nevis here, it’s a relatively easy process that can take less than a year to complete.
15. Maldives
Imagine living in an overwater bungalow without paying a dime in income tax.
Well, you can technically do that in the Maldives, a small island country in the Indian Ocean and thanks to its plentiful – and expensive – resorts, the Maldives doesn’t see much need for an income tax.
However, while spending your days living tax-free in the Maldives sounds idyllic at first, staying there long-term is close to impossible. You need to be a Sunni Muslim to even apply for citizenship or permanent residence and, even then, the country doesn’t have a program for foreigners to become permanent residents, let alone citizens.
There is one upside to this: while you’re lounging at the St Regis, at least you won’t have to worry about complicated triggering tax requirements.
16. Nauru
Nauru is a small island country in the southwest Pacific Ocean that was first named ‘Pleasant Island’ by European sailors.
Unfortunately, however, the island doesn’t seem to quite live up to its original name.
Most people only know of Nauru for its recent media coverage as the location of a controversial Australian-run detention camp for asylum-seekers. And while Nauru certainly has many of the charming features that draw visitors to other Pacific islands, the island’s phosphate mining industry has decimated its economy.
If all that wasn’t bad enough, Nauru is also under threat of sinking into the Pacific Ocean, thanks to rising sea levels.
In fact, Nauru only makes the list of countries with no taxes because of its government’s last-ditch efforts to keep its economy afloat. If you’re looking for a peaceful tax haven in the South Pacific, Nauru may not be your best bet.
17. Somalia
Remember when I mentioned that not all countries on this list are very livable?. Somalia is – without question – one of those countries. Insurgent groups like al-Shabab still control large swaths of the country’s territory. Somalia is also facing a devastating humanitarian crisis, with millions facing acute food insecurity and NGOs struggling to provide aid to vast areas controlled by al-Shabaab due to the fear of attacks.
The clan uprisings have been accompanied by the worsening drought, with al-Shabaab increasing taxes and local clans rebelling. Somalia’s ongoing conflicts mean that it is far from a viable option when looking for a zero tax territory. However, Somalia’s emergence from decades of conflict might mean the end of its zero-tax status as the country repays its foreign debts.
18. Vanuatu
Like many other island nations, Vanuatu relies on tourism revenue to fund its government. It’s also one of the few countries with no taxes where you can get a second passport quickly, easily, and (relatively) cheaply. After a devastating cyclone ripped through Vanuatu in 2015, its government re-introduced its citizenship by investment program to help raise funds to rebuild the damage.
Today, Vanuatu’s citizenship by investment program is one of the easiest to navigate in the world. The country has even begun to accept Bitcoin as an investment currency. It also costs significantly less than similar programs in the Caribbean, and its passport has become considerably stronger over the past few years.
The only drawback to Vanuatu is getting there. Although I’ve found a handful of inexpensive flights from hubs like Kuala Lumpur, traveling there is time-consuming and costly. However, since Vanuatu is one of the easiest countries with no taxes for citizenship by investment, going there may be worth the trouble.
19. Western Sahara
You probably won’t want to go to Western Sahara anytime soon, but it’s important to get a complete picture of all countries with no income tax.
Western Sahara, otherwise known as the Sahwari Republic, is an anomaly among these types of nations. Although it’s technically a disputed territory, 36 countries have currently established diplomatic relations with it, and it is recognised as a full member of the African Union.
Its tax-free status is also somewhat of an enigma. Western Sahara doesn’t have enough income from its natural resources to subsidise a tax-free state and it’s not a tourist hub, either.
Instead, Western Sahara’s tax-free status likely stems from its territorial disputes.
While Western Sahara isn’t a war zone, its unstable legal status makes living and investing there difficult – even for the most adventurous. Therefore, although Western Sahara has a favourable tax policy, we wouldn’t recommend living or investing there.
Should You Move to a Country With Tax-Free?
If you’re tired of losing a good portion of your income to taxes, then moving to a country with no income tax can be tempting. However, as I can attest, actually moving to one of these places and is easier said than done.
If you’re a US citizen, you’ll still have to contend with Uncle Sam every year unless you renounce. You’re also limited in where you can go and where you can stay long-term. Gulf states tend to favor employed expats over foreign investors, and tourist hubs usually require a large investment to live there.
Ease of access is part of going where you’re treated best, and unfortunately, not many countries with no taxes fit that bill. These kinds of limitations are why I often suggest low-tax countries as tax-free second residences. Territorial tax countries like Malaysia are often much easier to establish residence in than countries with no taxes.
However, if you’re dead set on living in one of these countries with no taxes, you can get citizenship by investment fairly easily in Saint Kitts or Vanuatu. With some planning and flexibility, you might just be able to achieve the dream of living tax-free.