The Top 15 Countries With No Income Tax

For high-net-worth individuals, entrepreneurs, and remote workers looking to legally reduce or eliminate income taxes, there are a number of countries, including the UAE, Monaco, Qatar, Oman, Vanuatu, etc., who impose zero personal income tax.

There are also countries like Cyprus, Greece, Malta, and Italy — although they don’t offer zero tax, they do provide powerful tax incentives, which you can benefit from after obtaining a Golden Visa. Each has introduced non-domicile (non-dom) regimes and flat tax schemes that can legally reduce or cap your tax exposure for years.

Income tax free countries are those that have established taxation systems that don’t collect revenue from individual incomes. Instead of taxing personal earnings, these nations typically finance their government operations through alternative means such as:

• Tourism revenue
• Natural resource exports (particularly oil and gas)
• Corporate taxes
• Value-added taxes (VAT) on goods and services
• Customs duties and import taxes
• Citizenship or residency programme fees

This allows residents to keep their personal income without facing direct taxation on their earnings. However, it’s important to note that most of these countries still have other forms of taxation, such as social security contributions, property taxes, or consumption taxes.

Why Consider Moving to Countries Without Income Tax?

The appeal of relocating to countries with zero income tax extends beyond the obvious financial benefits. Here are several compelling reasons why many people consider establishing domicile in these fiscal havens:

1. Wealth Preservation: Keep more of your hard-earned money and accelerate wealth.
2. Retirement Planning: Make retirement savings in places with lower overall taxation.
3. Business Opportunities: Many tax-free countries offer favourable conditions for offshore companies and investment.
4. Simplified Tax Compliance: Avoid complex tax filing requirements and reduce administrative burdens.
5. Lifestyle Benefits: Many tax-free countries boast beautiful weather, pristine beaches, and excellent amenities.

Top 15 Countries With No Income Tax

These countries include the UAE, St. Kitts and Nevis, Antigua and Barbuda, the Bahamas, Bermuda, Vanuatu, etc.

United Arab Emirates (UAE)

The UAE stands as one of the most developed and accessible tax-free destinations globally. It offers:

• No personal income tax
• No capital gains tax
• No wealth tax
• No withholding tax

Residency options include investment in real estate (starting from $204,000), and you may start a business in many of the available freehold zones in the UAE. The corporate tax is one of the lowest globally – 9% – which applies to companies that generate a profit of more than $102,000. The UAE doesn’t offer citizenship by investment; however, you can receive residency with a property investment from $204,000.

Foreigners holding residency status automatically qualify as tax residents; however, obtaining a Tax Residency Certificate requires physical presence for 180+ days annually. This certificate becomes essential when earning foreign income and seeking to apply double taxation agreements to minimize tax obligations abroad.

Saint Kitts and Nevis

This Caribbean nation offers both tax advantages and one of the oldest citizenship by investment programmes globally. Residents enjoy 0% tax on personal income, dividends, royalties, and interest. Corporate tax is 33%, VAT varies from 10 to 15%, and property ownership is taxed at 0.2-0.3%.

Citizenship can be obtained through a $250,000+ non-refundable donation or $325,000+ investment in government-approved property. You can also include family in the application: a spouse, financially dependent children and parents.

With a Saint Kitts passport, you gain visa-free access to over 150 countries, including EU states and the UK. The nation provides a Caribbean lifestyle with developing infrastructure and a growing expatriate community.

Antigua and Barbuda

Aside from 0% income tax, in Antigua and Barbuda, you are free from paying taxes on wealth, capital gains, and inheritance. Companies registered under the International Business Companies (IBCs) programme enjoy 50-year tax exemptions covering corporate taxes and income derived from property, investment securities, and various assets – with obligations limited to annual fees calculated on authorised capital.

Citizenship access begins at the $230,000 investment threshold. Applicants have to be over 18, demonstrate legitimate income sources, and maintain a clean criminal history. Family can be included in the application.

Antigua and Barbuda features pink and white beaches, vibrant coral ecosystems, and crystal lagoons. Boating enthusiasts particularly appreciate the country’s world-class marina facilities.

The Bahamas

This Caribbean paradise offers more than just beautiful beaches and 0% income tax – it provides a corporate tax of up to 3% of the turnover, VAT at 0-12%, and real estate tax at 0.75-2%.

Residency acquisition requires investment of $750,000+. The Economic Residency Permit programme in The Bahamas demands evidence of financial independence. Note that investment-based citizenship options are not available.

While living costs are relatively high, especially in tourist areas, the combination of tax benefits, proximity to the US, and idyllic lifestyle makes it an attractive option for affluent expatriates.

Bermuda

The country imposes no income tax or VAT. Corporate tax is based on share capital levels, and a property tax is based on assessed annual rental value.
Bermuda doesn’t offer citizenship by investment, but you can obtain residency by substantial investment of $2,500,000+. It’s possible to get citizenship by naturalisation after 10 years of permanent living in the country.

The island offers exceptional quality of life and strong infrastructure. Living costs in Bermuda rank among the world’s highest, with real estate prices comparable to premium locations in New York or London. This serves as a natural barrier, making Bermuda primarily accessible to high-net-worth individuals.

Vanuatu

This Pacific archipelago implements zero taxation on personal income, capital gains, and inheritances. Companies can secure 20-year tax exemptions, with minimal annual fees of $300. The limited tax treaty network, however, means Vanuatu passport holders may face tax obligations in other jurisdictions.

Citizenship is available through investment of $130,000+. Vanuatu passports offer visa-free access to 100+ countries. The country offers a laid-back island lifestyle, though with more limited infrastructure than some other tax havens. Vanuatu’s remoteness provides privacy but also presents logistics challenges for business operations.

Cayman Islands

This British Overseas Territory in the Caribbean is renowned for its sophisticated financial services sector and favourable tax policies. The Cayman Islands offer:

• No income tax
• No company or corporation tax
• No property tax
• No inheritance or gift tax
• No capital gains tax
• Stamp duty of 7.5% in most areas

The Cayman Islands don’t offer citizenship by investment. It has excellent infrastructure, healthcare, and education, although with a significantly higher cost of living than many other Caribbean destinations. The Cayman Islands combine financial benefits with an excellent standard of living and proximity to North America.

Monaco

This small country on the French Riviera stands as Europe’s premier tax haven, offering:

• No income tax for residents (except French citizens under certain conditions)
• No capital gains tax (with some exceptions)
• No wealth tax
• No property tax

Monaco has a corporate tax of up to 33% and VAT of 20%.

It’s the only European country ranked among the most affordable zero-tax destinations for expatriates. You can’t obtain citizenship by investing, but may get residency through investment of about $1,100,000+.

With the high real estate prices and extremely limited space, Monaco caters exclusively to ultra-high-net-worth individuals seeking both tax benefits and prestige.

Qatar

This country imposes no personal income tax and VAT. Corporate tax is 10%. There is no rental tax, but you have to pay a fee for a lease registration when renting out property.

Qatar’s residency options include property investment of $200,000+, and you can also obtain citizenship by investment.

The country has exceptional infrastructure, healthcare, and education facilities. While Qatar provides a tax-free lifestyle, residents have to adapt to the conservative social environment and extreme summer temperatures.

Bahrain

Bahrain ranks 3rd in affordability among zero-tax countries according to the William Russell relocation index, scoring 6.36 out of 10, implementing no personal income and capital gains taxes. Corporate tax and VAT are at 10% (with exceptions), and stamp duty varies from 1.7 to 2%.

The country doesn’t offer citizenship by investment, but you can apply for residency. The Bahrain Golden Residency Visa requires a minimum property investment of $530,000 or being a retiree with a minimum monthly income of $10,600.

Bahrain offers a relatively liberal social environment compared to some neighbouring countries, excellent infrastructure, and a strategic location for business.

Oman

Oman ranks 1st in affordability among zero-tax countries according to the William Russell relocation index, scoring 7.9 out of 10.

While maintaining the Gulf region’s tradition of income tax exemption, Oman offers a more relaxed lifestyle than some neighbours. The sultanate combines tax benefits with authentic Arabian cultural experiences. Corporate tax is 15% and VAT is 5%.

You can obtain residency through investment in property of $650,000. Oman has also introduced retirement visas for individuals over 55 with sufficient financial resources.

The sultanate provides excellent infrastructure, healthcare, and education facilities. It combines traditional Arabian culture with modern amenities and has developed specialised economic zones to attract foreign investment and skilled expatriates.

Maldives

This tropical paradise comprises nearly 1,200 islands and also offers a tax-free environment for personal income not exceeding $47,000. Corporate tax is 15%.

Investment options for residency include purchasing property within approved developments with minimum investments of $250,000.

The Maldives offers unparalleled natural beauty with world-class resorts and diving opportunities. However, living options are limited primarily to resort areas, and concerns about rising sea levels due to climate change present long-term risks.

Turks and Caicos Islands

This British Overseas Territory combines Caribbean beauty with strong financial incentives. Residents pay no income tax, capital gains tax, inheritance tax, or tax on corporate profits.

The territory offers stunning beaches, luxury developments, and proximity to the United States and Canada. It focuses primarily on upscale tourism and offshore financial services.

British Virgin Islands (BVI)

The BVI combines tax advantages with stunning natural beauty and sailing opportunities. The territory imposes no personal income, capital gains, or withholding taxes.

The BVI offers beautiful beaches and a relaxed lifestyle, with relatively high living costs compared to many Caribbean neighbours.
Citizenship can’t be obtained by investment in this country; however, as announced in early 2025, the BVI is developing a Residency by Investment (RBI) programme aimed at attracting foreign direct investment and diversifying its economy. The scheme will grant residency status to qualifying investors but will not offer a direct path to citizenship.

To protect local infrastructure, the number of permits issued annually will be capped. Applications will be jointly vetted by investment and immigration authorities to ensure compliance with both economic and legal standards. The RBI programme will be governed under the Immigration and Passport Act, with final details on investment thresholds and eligibility still being finalized.

Brunei

This small but wealthy nation on the island of Borneo offers residents a tax-free environment. It has no personal income tax or VAT; however, corporate tax is 18.5%.

Residency options are primarily employment-based, with limited investment pathways.

The country has a conservative Islamic social environment, which may not appeal to all expatriates, despite the financial benefits.

Kuwait

Kuwait’s vast oil reserves have enabled it to maintain friendly policies, including zero income tax and VAT for individuals. Corporate tax is 15%.

Residency is primarily available through employment with Kuwaiti companies or through close family connections. The country maintains strict naturalisation policies, with citizenship rarely granted to foreigners.

Other Countries with Favorable Tax Rates

While establishing tax residency in zero-tax jurisdictions (by spending 183+ days annually) may seem appealing – especially in idyllic locations like the Maldives or the Caribbean – this approach isn’t practical for long-term living.

Many alternative jurisdictions offer favourable (though not zero) tax regimes that can be equally advantageous, particularly for investors living on passive income streams from abroad. These systems often provide:

• Lower effective tax rates through exemptions or deductions
• Territorial taxation (only local income taxed)
• Non-dom tax status opportunities
• Double taxation treaties to prevent dual liabilities

Expert guidance is critical – we recommend consulting specialised tax advisors to analyse your income sources and assets and develop a compliant optimisation strategy.

Singapore

Tax rate: 0-22% progressive system with partial exemption on the first $220,000. The standard corporate tax is 17%.

Advantages: World-class infrastructure, political stability, strategic location in Asia, and excellent quality of life. Singapore’s taxation system rewards high-income professionals while providing comprehensive legal protections and business opportunities.

Montenegro

Tax rate: Flat 9% personal income and corporate taxes.

Advantages: Beautiful Mediterranean coastline and a rapidly developing economy. Montenegro offers European living with significantly lower costs than Western Europe.

Malta

Tax rate: ranges from 0 to 35%: 15% on foreign income transferred to Malta; 0% on worldwide income kept outside Malta; 35% on the income earned in Malta.

Malta Golden Visa is provided with a minimum investment of €182,000, in either property acquisition or rental. You must also demonstrate a proof of funds of €500,000+. The programme covers the investor’s family, including spouse, dependent children and parents. In 1-3 years you become eligible for Maltese citizenship.

Cyprus

Tax rate: Individuals face progressive taxation from 0 to 35% based on earnings. Global income remains untaxed, and there are no inheritance taxes. Property and income taxation is low compared to some EU countries. Businesses benefit from Europe’s most attractive corporate tax rates at just 12.5%.

You can become a tax resident in Cyprus under two main rules:

• 183-Day Rule (Standard)

– Stay in Cyprus for 183+ days in a calendar year = automatic tax resident.

• 60-Day Rule (Special Conditions)

If you stay 60+ days (but under 183 days) and meet all these requirements:

– Not a tax resident of any other country that year.
– Not present in any single country for 183+ days.
– Have a Cyprus home (owned or rented long-term).
– Work/business ties to Cyprus (job, company director, or business activities).

Cyprus has a Golden Visa programme via property investment from €300,000. Processing is about 6 months and residency covers a spouse, children, and dependent children up to 25. In 8 years you can apply for Cyprus citizenship.

Greece

Tax rate: under Greece’s non-dom regime, participants pay a flat €100,000 annual tax on foreign income for up to 15 years – a major benefit compared to the local tax rates of up to 44%.

You can obtain a Golden Visa in Greece by buying a property valued from €250,000. The minimum investment sum varies, depending on its location and property type. It takes about 6 months to become a resident and you can include your spouse, partner, children and parents in the application.

Italy

Tax rate: a flat €200,000 annual tax on foreign income, regardless of the amount earned, for up to 15 years under the non-dom programme.

To obtain a Golden Visa in Italy, you are required to invest from €500,000 in company shares, local government bonds, or projects of public importance for Italy. Processing takes up to 6 months, with the inclusion of a spouse, partner, parents, and children.

Conclusion

While countries without income tax offer significant financial advantages, the decision to relocate should involve careful consideration beyond just tax implications. Factors such as quality of life, political stability, residency requirements, and long-term security should all factor into the decision-making process.

Each tax-free jurisdiction has its own unique advantages and limitations. Some provide excellent infrastructure and amenities, but at a very high cost of living, while others offer affordability, but may have less developed facilities or stricter cultural environments.

If you’re considering relocating for lifestyle or potential tax advantages, Astons can support you with tailored immigration solutions. While we do not offer tax advice, our experienced team can help you build the optimal immigration strategy – from identifying the right destination to securing residency or citizenship in leading EU and Caribbean countries.

FAQ

Can anyone move to a country with zero taxation?

Most tax-free countries have specific residency or investment requirements. These may include minimum investment thresholds, starting a business, buying property, or specific employment arrangements. Each jurisdiction has different criteria for granting residency permits or citizenship.

Do tax havens offer good quality of life?

Quality of life varies significantly between tax-free countries. Ones like the UAE, Monaco, and the Cayman Islands offer excellent infrastructure, healthcare, and amenities, while others may have more limited services. The cost of living also varies significantly – some tax-free nations are among the most expensive places in the world.

Are there hidden costs in countries without income taxes?

Most tax-free countries compensate through alternative revenue sources. These may include high property prices, elevated costs for imported goods, and significant fees for residency permits.

How long can foreigners stay in income tax free countries?

This varies by country. Some nations, like Saint Kitts and Nevis, allow indefinite stays for citizens who invest in their economy. Others offer residency permits that require frequent renewal. Each has different requirements for maintaining residency status, including minimum stay periods.

Do tax-free countries require citizenship for residency?

Many nations allow foreigners to stay there through residency programmes based on investment, employment, or business establishment. For example, the UAE and Monaco offer residency through real estate or financial investment without granting citizenship. However, residency permits may need periodic renewal, and physical presence rules might apply to maintain tax residency.

Is healthcare expensive in countries with zero taxation?

It depends on the country. Some tax-free countries, like the UAE and Qatar, have excellent healthcare systems with reasonable costs, while others have limited facilities requiring international insurance coverage or medical evacuation provisions.

Can digital nomads easily relocate to tax-free countries?

The accessibility varies. Some tax-free jurisdictions have created specific digital nomad visas or entrepreneur programmes, while others maintain high investment thresholds.

Some tax-free countries are welcoming to digital nomads, while others have stricter residency rules. Places like the Bahamas, the UAE, and Bermuda offer special visas for remote workers. However, countries like Brunei or Kuwait have more restrictive immigration policies.