Taxes help fund vital public services and build/maintain infrastructure. But that doesn’t make it fun to pay them! You watch your hard-earned income get whittled down by thousands of dollars, then drive over a giant pothole and wonder what it’s being spent on…
It’s enough to make anyone envy places with low (or even no) income tax. But where exactly in the world could you go to enjoy this kind of setup? Keep reading to find out.
1. Vanuatu
This laidback chain of islands in the South Pacific has pristine beaches and warm turquoise waters perfect for snorkeling.
The tax situation isn’t bad, either. There’s no tax on income, inheritance, property, or capital gains, meaning you can live here almost tax-free (there is a 12.5% value-added tax on goods and services).
2. Bermuda
This British Overseas Territory in the North Atlantic Ocean isn’t just famous for its shorts, blazers, and pulled-up socks – or the eponymous legendary triangle. Its status as a tax haven holds significant appeal, too.
Although employers pay a payroll tax and a new corporate income tax will take effect on January 1, 2025, Bermudans don’t pay anything on personal income.
3. The Bahamas
This quintessential tropical paradise isn’t just great for beach vacations. It’s also fantastic if you’re tax-averse. Not only is there no personal income tax in the Bahamas, but you don’t pay taxes on inheritance, gifts, or capital gains, either.
Money comes in through tourism and international banking, but investment banking is the country’s primary source of revenue. The CIA says it represents up to 85% of GDP.
4. Bahrain
The Kingdom of Bahrain is an island nation located in the Persian Gulf, just off the coast of Qatar. Like other countries in this part of the world, oil and gas have made it incredibly wealthy. It’s so wealthy, in fact, that Bahrain doesn’t levy personal income tax.
Other perks include year-round sunshine, historical attractions, and a luxurious lifestyle full of high-end shops and restaurants.
5. Monaco
This tiny independent country nestled on the Mediterranean coast has the highest population density in the world, with 18,750 inhabitants per square kilometer. Part of its appeal could be the lack of tax…
Monaco is another well-known tax haven that doesn’t tax personal income. Businesses enjoy relaxed tax rules there, too. According to KPMG, investment income, capital gains, dividends, and directors’ fees all go untaxed here.
6. United Arab Emirates
The UAE has grown so rich from oil and gas exports that it doesn’t need your tax dollars. There’s no tax on personal income, capital gains, properties, or gifts.
It does levy corporate tax, but only if the business generates over AED 375,000 (around $100,000). Even then, it’s only taxed at 9%, making it one of the lowest corporate tax rates on the planet.
7. Qatar
Vast reserves of oil, gas, and petrochemicals have turned Qatar into one of the richest nations on Earth. Ultra-modern cities full of luxury shopping centers and gleaming skyscrapers rise like magic from the desert.
Although Qatar levies a corporate tax of 10% (although this increases if the company operates in the oil and gas sector), it doesn’t tax personal income, property, or inheritance. There’s no VAT, either.
8. Saint Kitts and Nevis
Saint Kitts and Nevis is yet another exquisite Caribbean island nation that’s a) full of natural beauty and b) incredibly tax-friendly. Traditionally, the country has relied heavily on the sugar industry, but tourism is now the main force driving its economy. Tax-wise, all personal income is tax-free.
9. Antigua and Barbuda
Its tourist industry and offshore financial services have helped turn Antigua and Barbuda into a prosperous Caribbean country. While it isn’t tax-free, you don’t pay tax on personal income, capital gains, or inheritance. There’s no wealth tax, either. The fact it happens to be a paradisiacal island with a low crime rate adds to the appeal.
10. Cayman Islands
Here’s another British Overseas Territory that’s both beautiful and extremely tax-friendly. Comprising three islands (Grand Cayman, Little Cayman, and Cayman Brac) located south of Cuba in the Caribbean Sea, residents of the Cayman Islands pay no tax whatsoever. There’s also no corporate tax, which makes it a popular location to run a company and/or set up a subsidiary.
11. The British Virgin Islands
The British Virgin Islands are part of a stunning archipelago in the Caribbean, located east of Puerto Rico. As the name suggests, this is a British overseas territory, but close economic connections with the US Virgin Islands mean the US dollar is the primary currency. People who live there don’t pay any income or capital gains tax.
12. Montenegro
While Montenegro isn’t as tax-friendly as other countries on this list, it’s probably more accessible from a financial perspective. It also has a reputation for immense beauty, with mountains, beaches, and towns rich in history. Favorable tax rates are the cherry on top. The personal income tax rate ranges from 9% to 15%.
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