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
1China1,444,216,107
2India1,393,409,038
3United States332,915,073
4Indonesia276,361,783
5Pakistan225,199,937
6Brazil213,993,437
7Nigeria211,400,708
8Bangladesh166,303,498
9Russia145,912,025
10Mexico130,262,216
11Japan126,050,804
12Ethiopia117,876,227
13Philippines111,046,913
14Egypt104,258,327
15Vietnam98,168,833
16Dr Congo92,377,993
17Turkey85,042,738
18Iran85,028,759
19Germany83,900,473
20Thailand69,950,850
21United Kingdom68,207,116
22France65,426,179
23Tanzania61,498,437
24Italy60,367,477
25South Africa60,041,994
26Kenya54,985,698
27Myanmar54,806,012
28South Korea51,305,186
29Colombia51,265,844
30Uganda47,123,531
31Spain46,745,216
32Argentina45,605,826
33Sudan44,909,353
34Algeria44,616,624
35Ukraine43,466,819
36Iraq41,179,350
37Afghanistan39,835,428
38Canada38,067,903
39Poland37,797,005
40Morocco37,344,795
41Saudi Arabia35,340,683
42Uzbekistan33,935,763
43Angola33,933,610
44Peru33,359,418
45Malaysia32,776,194
46Mozambique32,163,047
47Ghana31,732,129
48Yemen30,490,640
49Nepal29,674,920
50Venezuela28,704,954
51Madagascar28,427,328
52Cameroon27,224,265
53Ivory Coast27,053,629
54North Korea25,887,041
55Australia25,788,215
56Niger25,130,817
57Taiwan23,855,010
58Sri Lanka21,497,310
59Burkina Faso21,497,096
60Mali20,855,735
61Malawi19,647,684
62Chile19,212,361
63Romania19,127,774
64Kazakhstan18,994,962
65Zambia18,920,651
66Syria18,275,702
67Guatemala18,249,860
68Ecuador17,888,475
69Senegal17,196,301
70Netherlands17,173,099
71Cambodia16,946,438
72Chad16,914,985
73Somalia16,359,504
74Zimbabwe15,092,171
75Guinea13,497,244
76Rwanda13,276,513
77Benin12,451,040
78Burundi12,255,433
79Tunisia11,935,766
80Bolivia11,832,940
81Belgium11,632,326
82Haiti11,541,685
83South Sudan11,381,378
84Cuba11,317,505
85Dominican Republic10,953,703
86Czech Republic10,724,555
87Greece10,370,744
88Jordan10,269,021
89Azerbaijan10,223,342
90Portugal10,167,925
91Sweden10,160,169
92Honduras10,062,991
93United Arab Emirates9,991,089
94Tajikistan9,749,627
95Hungary9,634,164
96Belarus9,442,862
97Papua New Guinea9,119,010
98Austria9,043,070
99Israel8,789,774
100Switzerland8,715,494
101Serbia8,697,550
102Togo8,478,250
103Sierra Leone8,141,343
104Hong Kong7,552,810
105Laos7,379,358
106Paraguay7,219,638
107Libya6,958,532
108Bulgaria6,896,663
109Lebanon6,769,146
110Nicaragua6,702,385
111Kyrgyzstan6,628,356
112El Salvador6,518,499
113Turkmenistan6,117,924
114Singapore5,896,686
115Denmark5,813,298
116Republic Of The Congo5,657,013
117Finland5,548,360
118Norway5,465,630
119Slovakia5,460,721
120Oman5,223,375
121Palestine5,222,748
122Liberia5,180,203
123Costa Rica5,139,052
124Ireland4,982,907
125Central African Republic4,919,981
126New Zealand4,860,643
127Mauritania4,775,119
128Panama4,381,579
129Kuwait4,328,550
130Croatia4,081,651
131Moldova4,024,019
132Georgia3,979,765
133Eritrea3,601,467
134Uruguay3,485,151
135Mongolia3,329,289
136Bosnia And Herzegovina3,263,466
137Jamaica2,973,463
138Armenia2,968,127
139Qatar2,930,528
140Albania2,872,933
141Puerto Rico2,828,255
142Lithuania2,689,862
143Namibia2,587,344
144Gambia2,486,945
145Botswana2,397,241
146Gabon2,278,825
147Lesotho2,159,079
148North Macedonia2,082,658
149Slovenia2,078,724
150Guinea Bissau2,015,494
151Latvia1,866,942
152Bahrain1,748,296
153Equatorial Guinea1,449,896
154Trinidad And Tobago1,403,375
155Timor Leste1,343,873
156Estonia1,325,185
157Mauritius1,273,433
158Cyprus1,215,584
159Eswatini1,172,362
160Djibouti1,002,187
161Fiji902,906
162Reunion901,686
163Comoros888,451
164Guyana790,326
165Bhutan779,898
166Solomon Islands703,996
167Macau658,394
168Luxembourg634,814
169Montenegro628,053
170Western Sahara611,875
171Suriname591,800
172Cape Verde561,898
173Maldives543,617
174Malta442,784
175Brunei441,532
176Belize404,914
177Guadeloupe400,020
178Bahamas396,913
179Martinique374,745
180Iceland343,353
181Vanuatu314,464
182French Guiana306,448
183New Caledonia288,218
184Barbados287,711
185French Polynesia282,530
186Mayotte279,515
187Sao Tome And Principe223,368
188Samoa200,149
189Saint Lucia184,400
190Guam170,179
191Curacao164,798
192Kiribati121,392
193Micronesia116,254
194Grenada113,021
195Saint Vincent And The Grenadines111,263
196Aruba107,204
197Tonga106,760
198United States Virgin Islands104,226
199Seychelles98,908
200Antigua And Barbuda98,731
201Isle Of Man85,410
202Andorra77,355
203Dominica72,167
204Cayman Islands66,497
205Bermuda62,090
206Marshall Islands59,610
207Northern Mariana Islands57,917
208Greenland56,877
209American Samoa55,100
210Saint Kitts And Nevis53,544
211Faroe Islands49,049
212Sint Maarten43,412
213Monaco39,511
214Saint Martin39,234
215Turks And Caicos Islands39,231
216Liechtenstein38,250
217San Marino34,017
218Gibraltar33,698
219British Virgin Islands30,421
220Palau18,169
221Cook Islands17,565
222Anguilla15,117
223Tuvalu11,931
224Wallis And Futuna11,094
225Nauru10,876
226Saint Barthelemy9,907
227Saint Pierre And Miquelon5,766
228Montserrat4,977
229Falkland Islands3,533
230Niue1,619
231Tokelau1,373
232Vatican City800

Tax Free Countries 2021