Tax Free Countries 2021

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Income tax is a tax levied by the government on income generated by individuals and businesses in their jurisdiction. Income can include wages, salaries, winnings from lottery prizes, interest on savings bonds, and so on. In the United States, both the federal and state governments levy an income tax, although some states do not collect state income tax.

Most countries have a progressive income tax system where those who earn higher incomes pay a higher rate of income taxes. Every year, citizens file and income tax return to determine their tax obligations.

In most countries, tax revenues account for about 80% of all government revenues for about half of the world’s countries. Revenue generated from income tax is used to pay government obligations and fund public services.

While the majority of countries have an income tax, several countries do not have an income tax. Many people look to these countries to establish residency and live tax-free.

The Bahamas

The Bahamas does not impose income tax on its residents, regardless of where they earn their income. The government receives most of its revenue from its tourism and offshore industries.

Bahrain

Located on the Persian Gulf, Bahrain is a tax-free nation that receives much of its wealth and government revenues from its oil discovery. Those looking to establish residency in a tax-free country should know that citizenship in Bahrain is very difficult, but permanent residency requires that you be retired, invest $135,000 in property, or invest $270,000 in a Bahraini company.

Brunei

Brunei does not have an income tax, however, Brunei is not necessarily a hub for economic freedom. Permanent residency and citizenship are out of the question for those looking to establish themselves in a tax-free country, as you would need to gain the approval of the Sultan.

Cayman Islands

Like the Bahamas, tourism in the Cayman Islands is enough to provide the government with enough revenue without taxing its residents. Those looking to seek permanent residency in the tax-free Cayman Islands, one must make $145,000 per year and invest at least $600,000 in real estate and wait eight years for permanent residency.

Kuwait

Kuwait’s large oil industry allows its residents to not pay income taxes. Permanent residency in Kuwait is generally difficult because it typically requires that individuals have a relative in the country or former employment.

Maldives

The Maldives has a strong tourism industry that gives the island country little reason to levy an income tax on its people. Establishing citizenship or permanent residency is essentially impossible since the country doesn’t have a program for foreigners to become permanent residents. If it did, one would need to be a Sunni Muslim.

Monaco

Monaco is one of the easier tax-free countries to establish citizenship in. Those looking to become residents will typically need to spend several million dollars. Because the zero income tax tends to attract very wealthy people, Monaco is likely to remain tax-free for the foreseeable future.

Nauru

While Nauru does not have any income tax, it is not a good destination for those looking to live tax-free. Nauru’s economy is struggling and being tax-free is the country’s government’s last effort to keep its economy afloat.

Oman

Like other tax-free countries in the Middle East, Oman’s government has no need to levy income tax on its residents because of its oil and gas industry. Expats looking to move to Oman would usually need a job or family living there to do so easily.

Qatar

Similar to its Persian Gulf neighbors, Qatar does not levy an income tax thanks to the wealth it accumulates from its oil industry. Qatar has a diverse and modern economy and is relatively peaceful, making it a great location for those looking to avoid taxes; however, it is still difficult to establish residency.

Saint Kitts and Nevis

Saint Kitts and Nevis is a tax-free country that, unlike many others, is easy to establish a residency at. To gain citizenship by investment, the price is far lower than in other nations s well. One can receive a passport and permanent residence for a $150,000 donation to its hurricane relief fund.

Somalia

Although Somalia does not have income taxes, it is not recommended that one tries to live here for tax-free purposes. Somalia is a dangerous nation burdened by civil war and terrorism, as well as political instability.

United Arab Emirates

With a very strong and free economy provided by a wealthy oil industry, the United Arab Emirates does not levy an income tax on its residents. Unlike other Gulf countries, establishing residency is a little easier in the UAE through visa policies.

Vanuatu

Vanuatu, like other island nations, relies on tourism to fund its government, allowing its citizens to enjoy no income tax. It is generally easy and relatively less expensive to get a passport and residency in Vanuatu, as its citizenship by investment program is one of the easiest in the world.

Western Sahara

Western Sahara is also an income tax-free country, however, it a disputed territory. Western Sahara does not have income from natural resources or a tourist industry, and its territorial disputes are likely the reason that they do not levy a tax.

Tax Free Countries 2021

Rank Country 2021 Population
China1,444,216,107
India1,393,409,038
United States332,915,073
Indonesia276,361,783
Pakistan225,199,937
Brazil213,993,437
Nigeria211,400,708
Bangladesh166,303,498
Russia145,912,025
Mexico130,262,216
Japan126,050,804
Ethiopia117,876,227
Philippines111,046,913
Egypt104,258,327
Vietnam98,168,833
Dr Congo92,377,993
Turkey85,042,738
Iran85,028,759
Germany83,900,473
Thailand69,950,850
United Kingdom68,207,116
France65,426,179
Tanzania61,498,437
Italy60,367,477
South Africa60,041,994
Kenya54,985,698
Myanmar54,806,012
South Korea51,305,186
Colombia51,265,844
Uganda47,123,531
Spain46,745,216
Argentina45,605,826
Sudan44,909,353
Algeria44,616,624
Ukraine43,466,819
Iraq41,179,350
Afghanistan39,835,428
Canada38,067,903
Poland37,797,005
Morocco37,344,795
Saudi Arabia35,340,683
Uzbekistan33,935,763
Angola33,933,610
Peru33,359,418
Malaysia32,776,194
Mozambique32,163,047
Ghana31,732,129
Yemen30,490,640
Nepal29,674,920
Venezuela28,704,954
Madagascar28,427,328
Cameroon27,224,265
Ivory Coast27,053,629
North Korea25,887,041
Australia25,788,215
Niger25,130,817
Taiwan23,855,010
Sri Lanka21,497,310
Burkina Faso21,497,096
Mali20,855,735
Malawi19,647,684
Chile19,212,361
Romania19,127,774
Kazakhstan18,994,962
Zambia18,920,651
Syria18,275,702
Guatemala18,249,860
Ecuador17,888,475
Senegal17,196,301
Netherlands17,173,099
Cambodia16,946,438
Chad16,914,985
Somalia16,359,504
Zimbabwe15,092,171
Guinea13,497,244
Rwanda13,276,513
Benin12,451,040
Burundi12,255,433
Tunisia11,935,766
Bolivia11,832,940
Belgium11,632,326
Haiti11,541,685
South Sudan11,381,378
Cuba11,317,505
Dominican Republic10,953,703
Czech Republic10,724,555
Greece10,370,744
Jordan10,269,021
Azerbaijan10,223,342
Portugal10,167,925
Sweden10,160,169
Honduras10,062,991
United Arab Emirates9,991,089
Tajikistan9,749,627
Hungary9,634,164
Belarus9,442,862
Papua New Guinea9,119,010
Austria9,043,070
Israel8,789,774
Switzerland8,715,494
Serbia8,697,550
Togo8,478,250
Sierra Leone8,141,343
Hong Kong7,552,810
Laos7,379,358
Paraguay7,219,638
Libya6,958,532
Bulgaria6,896,663
Lebanon6,769,146
Nicaragua6,702,385
Kyrgyzstan6,628,356
El Salvador6,518,499
Turkmenistan6,117,924
Singapore5,896,686
Denmark5,813,298
Republic Of The Congo5,657,013
Finland5,548,360
Norway5,465,630
Slovakia5,460,721
Oman5,223,375
Palestine5,222,748
Liberia5,180,203
Costa Rica5,139,052
Ireland4,982,907
Central African Republic4,919,981
New Zealand4,860,643
Mauritania4,775,119
Panama4,381,579
Kuwait4,328,550
Croatia4,081,651
Moldova4,024,019
Georgia3,979,765
Eritrea3,601,467
Uruguay3,485,151
Mongolia3,329,289
Bosnia And Herzegovina3,263,466
Jamaica2,973,463
Armenia2,968,127
Qatar2,930,528
Albania2,872,933
Puerto Rico2,828,255
Lithuania2,689,862
Namibia2,587,344
Gambia2,486,945
Botswana2,397,241
Gabon2,278,825
Lesotho2,159,079
North Macedonia2,082,658
Slovenia2,078,724
Guinea Bissau2,015,494
Latvia1,866,942
Bahrain1,748,296
Equatorial Guinea1,449,896
Trinidad And Tobago1,403,375
Timor Leste1,343,873
Estonia1,325,185
Mauritius1,273,433
Cyprus1,215,584
Eswatini1,172,362
Djibouti1,002,187
Fiji902,906
Reunion901,686
Comoros888,451
Guyana790,326
Bhutan779,898
Solomon Islands703,996
Macau658,394
Luxembourg634,814
Montenegro628,053
Western Sahara611,875
Suriname591,800
Cape Verde561,898
Maldives543,617
Malta442,784
Brunei441,532
Belize404,914
Guadeloupe400,020
Bahamas396,913
Martinique374,745
Iceland343,353
Vanuatu314,464
French Guiana306,448
New Caledonia288,218
Barbados287,711
French Polynesia282,530
Mayotte279,515
Sao Tome And Principe223,368
Samoa200,149
Saint Lucia184,400
Guam170,179
Curacao164,798
Kiribati121,392
Micronesia116,254
Grenada113,021
Saint Vincent And The Grenadines111,263
Aruba107,204
Tonga106,760
United States Virgin Islands104,226
Seychelles98,908
Antigua And Barbuda98,731
Isle Of Man85,410
Andorra77,355
Dominica72,167
Cayman Islands66,497
Bermuda62,090
Marshall Islands59,610
Northern Mariana Islands57,917
Greenland56,877
American Samoa55,100
Saint Kitts And Nevis53,544
Faroe Islands49,049
Sint Maarten43,412
Monaco39,511
Saint Martin39,234
Turks And Caicos Islands39,231
Liechtenstein38,250
San Marino34,017
Gibraltar33,698
British Virgin Islands30,421
Palau18,169
Cook Islands17,565
Anguilla15,117
Tuvalu11,931
Wallis And Futuna11,094
Nauru10,876
Saint Barthelemy9,907
Saint Pierre And Miquelon5,766
Montserrat4,977
Falkland Islands3,533
Niue1,619
Tokelau1,373
Vatican City800

Tax Free Countries 2021