Top Tax-Free Countries to Enjoy a Zero-Tax Life

Bahamas

The name itself sounds exotic. Apart from the lush green coconut groves, the zero tax to the residents is another reason that makes it a preferred destination to settle down. However, if you intend to settle down here, you must invest in infrastructure or property to get a permanent residency. With tourism and offshore banking services contributing a major chunk of the economy, this county is one of the richest Caribbean countries you will come across.

Bahrain

The Abu Safa oil deposits are heavily exploited by Bahrain and Saudi Arabi equally, contributing 70% of its income from oil export. Citizens pay no taxes on personal income. However, they pay a nominal 7% social security tax, with ex-pats paying 1%. The employers here must pay a 12% social security tax for the locals and 3% for the ex-pat employees. In addition, you will have to pay a 3% stamp duty on selling real estate, and ex-pats are liable to 10% municipal tax if they rent any property.

Bermuda

This Caribbean destination is more developed than any other Caribbean islands. Validation of the same is the country’s beautiful roads and world-class transportation system. At the same time, it is an expensive nation mainly because it is isolated from the world. Even though individuals do not pay taxes, the employer pays a 14% payroll tax on the first US$750,000 each employee earns annually. In addition, all workers and employers are entitled to pay US$30.40 per week as social tax. In addition, individuals must pay property and stamp duty taxes.

The British Virgin Islands

With its tax-free regime, you will find several people applications for migrating here. However, you will sometimes face stiff competition with limited temporary residences being approved yearly. In addition, the approval process is very bureaucratic and time-consuming. You can end up losing your patience as well. Be ready for a high cost of living if you somehow manage to push through.

Brunei Darussalam

Being the 3rd largest oil producer in the Southeast Asian region and the 9th largest liquefied natural gas producer globally, Brunei earns a major portion of its income from exports of fossil fuels itself. As a result, Brunei has a zero percent tax on personal income, dividends, royalties, interest, and property. In addition, there is no sales tax, VAT, payroll tax, capital duty tax, transfer tax, and manufacturing tax. The per capita GDP is also very high, which makes it among the preferred global destinations to move in. However, corporations and their branches must pay a corporate tax of 18.5%, and Petroleum operators must pay a 55% corporate income tax.

Cayman Islands

The Caribbean islands get plenty of revenue from the vibrant tourism and offshore finance sectors. The government imposes zero tax on its citizens. However, like in other countries, if you want to become a permanent resident, you must invest in property, infrastructure, or local businesses. Also, be prepared for high living costs.

Kuwait

With the 4th largest oil reserve globally, Kuwait thrives on providing a tax-free life for its citizens and even ex-pats. However, for all the ex-pats, if you do not open a foreign corporate venture in the country, you may pay 15% of your income as taxes. In addition, citizens pay an 8% social security tax, with employers paying 11.5%. Nevertheless, Kuwait offers one of the highest GDPs per capita, making it a comfortable and easy-going life for its citizens and ex-pats.

Monaco

This beautiful country on the French Riviera provides its residents with a luxurious, safe, comfortable, and tax-free life. The ultra-luxurious Europeans are somehow attracted to invest heavily in this country. However, to become a resident, you must invest heavily and display your wealth status to become a permanent citizen.

Oman

This Arab country provides a tax-free opportunity for its residents and several business-friendly taxes. Like its neighbors, Oman derives a major portion of its revenue through oil mining. Property, wealth, and capital gains fall under this beautiful Middle Eastern country’s tax-free umbrella. Citizens only pay a nominal 6.5% security tax and 3% stamp duty for the ones purchasing a property.

Panama

Panama is a great American country that thrives on a flexible tax structure and tax-friendly laws where offshore companies and individuals have to pay zero taxes. If involved in local businesses, offshore companies will have minimal local taxes. The country’s beautiful landscape is decorated with gorgeous beaches, vivacious casinos, and gigantic skyscrapers, making it among the top destinations to live and visit.

Saudi Arabia

The leading crude oil and petroleum exporter globally has provided its residents a tax-free regime on personal income. However, the rules and regulations are frequently chopped and changed, so don’t be surprised. Any form of non-employment is taxed, like non-resident party income, withholding taxes on various services offered, and capital gains. In addition, companies that operate in the Special Integrated Logistics zone pay almost 0% corporate tax. The standard corporate VAT rate is 15% in the country otherwise.

The UAE

This Arab country is highly rich in natural resources like oil and gas, so they do not need to collect taxes from the citizens’ incomes. Therefore, people here enjoy a tax-free life with foreign ownership opportunities, high quality of life, and zero taxes, making it one of the top destinations for people to settle down. In addition, there are 45 Economic zones, that make it ideal for registering a company. You can even avoid a dividend tax on owning shares of foreign companies.

Qatar

Being the 3rd largest natural gas reserve globally, Qatar stands among the richest countries worldwide. It boasts of a high-end infrastructure in gas mining, exports, and gas liquefaction that leads to oil and gas companies paying 35% profit tax. With that being said, there is zero tax on income, dividends, capital gains, property, and royalties for its residents. The tax component also comes only if you have a rental income or your company is involved in commercial activities that will charge a nominal ten percent paid annually.

Vanuatu

This South Pacific Ocean County is a conglomerate of 80 islands that give you instant access to blue waters, beautiful coral reefs, and plenty of water sports opportunities like deep sea diving and scuba diving. The major chunk of the country’s economy is supported through tourism. Vanuatu is one of the few countries where permanent residency can be obtained easily and quickly. The country has, of late, started using Bitcoin as an investment currency.

Summary

Be prepared to invest heavily in money and time if you intend to move into one of the above tax-free countries. Consider yourself among the lucky ones if you are born here or a resident here already. Living in a tax-free country, apparently, comes with huge perks as you save a lot of money that you would generally end up paying in taxes.