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Tax-Free Countries 2024

Income tax is a tax levied by a government on income generated by individuals and businesses. In at least half of the world's countries, income taxes comprise approximately 80% of all government revenues, funding public services, the military, and the government itself. In some highly-taxed countries income taxes exceed 50%. On the other hand, some countries have no national income tax at all. The governments of income-tax-free countries typically enjoy a lucrative alternate source of income, such as a nationalized oil industry or tourism sector. In many cases, it is possible for a person to move to one of these countries, establish residency (and in some cases citizenship), and live free of income taxes in their own personal tax haven.

Countries That Have No Personal Income Tax:

Anguilla*Brunei**Oman**United Arab Emirates
BahamasCayman Islands*QatarVanuatu
BahrainKuwait*Saint Kitts and NevisWestern Sahara*
British Virgin Islands*Monaco*Turks and Caicos*

_Entries marked with * are classified as territories, not countries, but the United Nations.

Entries marked with ** have no personal income tax, but do collect corporate income taxes._

Income taxes in the United States

In the United States, both the federal and state governments may levy an income tax, although some states choose not to do so. Income can include not only wages and salaries, but also winnings from lottery prizes, interest on savings bonds, profits from stock sales or other investments, and so on. Income taxes are typically paid annually, with citizens filing an income tax return each year to determine the amount of taxes they owe. In some cases, a person may have overpaid their taxes and will be due a refund.

Relinquishing one's tax responsibility is not as easy as simply moving to another country. In order to be accepted by the new country, one must usually establish permanent legal residence there, spend at least half the year living in the new country, and submit any needed paperwork. Even then, one would often still owe taxes to the U.S. government on any income over $120,000 USD unless they were to completely renounce their U.S. citizenship.

Most countries utilize a progressive income tax system in which individuals with higher incomes are taxed at a higher percentage than those who earn less. For example, a person earning $100,000 in a year might be taxed at 25% (leaving $75,000), while a $40,000 earner would pay something closer to 15% (leaving $34,000). The logical principle driving this system is that the person who earned $100,000 could afford to pay a higher percentage of that income than someone who earned only $40,000.

No-tax countries vs low-tax countries

In addition to no-tax countries, which charge no personal income tax at all, there also exist "low-tax" countries, which either charge very low income tax rates (below 10%) or charge taxes only on profits earned locally. Singapore, for example, does not tax foreign income, so a person living there would pay no taxes on profits made on the U.S. stock market, but would pay taxes if they rented out their home in Singapore.

Profiles of countries and territories with zero personal income tax:

Anguilla (territory)

Like several of its fellow British Overseas Territories, this tiny Caribbean island chain is a known tax haven and levies no income taxes upon its permanent residents. Establishing permanent residency requires an individual donation of $150,000 USD or a $750,000 investment in real estate. One must also live in Anguilla at least half of the year.

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.


Located on the Persian Gulf, Bahrain is a tax-free nation that receives much of its wealth and government revenues from its oil industry. While the country levies no personal income tax, it does require Social Insurance and Unemployment contributions. Those looking to establish residency in a tax-free country should know that citizenship in Bahrain is very difficult. Permanent residency requires that you be retired, invest $135,000 in property, or invest $270,000 in a Bahraini company.

Bermuda (territory)

Another British Overseas Territory, Bermuda has no income tax—though it does levy a payroll tax upon employers (and the self-employed), who may deduct up to 6% from employees’ salary to pay it. Land owners are also subject to property taxes.

British Virgin Islands (territory)

This British Overseas Territory does not charge individuals any form of income tax. That said, it does charge employers (and self-employed individuals) a payroll tax, which could be passed on to employees in whole or in part.


Brunei does not have an income tax, though it does require a 5% contribution to the state social fund and does levy corporate income taxes. Moreover, Brunei is considered a fairly difficult place for non-citizens to live. Brunei is ruled by a dictatorial regime and is known to be unwelcoming to foreigners—prospective residents would need the official approval of the Sultan himself to establish permanent residency.

Cayman Islands (territory)

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’s large oil industry enables its government to operate with no need to levy personal income taxes. The country does levy 15% corporate income taxes as well as both social contributions and a value-added tax (VAT) of 5%. Permanent residency in Kuwait is often difficult to establish because it typically requires that individuals have either Kuwaiti relatives or a formal employment contract in the country.


Located just south and west of India, this island nation's tourism industry is so strong that the government has no need to levy an income tax on its people. However, establishing citizenship or permanent residency is effectively impossible: The country has no program by which a foreigner can become a permanent resident—and if it did, the first requirement would be to be a Sunni Muslim.


The last remaining tax-free country in Europe, this affluent city-sized nation is one of the easier tax-free countries in which to establish citizenship. The monetary investment, however, is substantial. A residence permit can take as little as three months to obtain, but requires the applicant to deposit 500,000-1,000,000 euros (approx $514,000-1,028,000 USD) in a Monaco bank, in addition to buying or renting a home there.


Like other tax-free countries in the Middle East, Oman’s government has no need to levy income tax on its residents thanks to the profits from its national oil and gas industry. However, Oman does charge value-added taxes (VAT) on certain products, as well as taxing corporate incomes at up to 15% and may charge foreigners a 10% withholding tax. The move is also challenging. Expats looking to establish residency usually require either a job or relatives already living in the country. Moreover, Oman is a very conservative culture—purchasing a single bottle of wine requires a police liquor permit—which could be a difficult adjustment for many expats.


Similar to its Persian Gulf neighbors, Qatar accumulates substantial wealth from its oil industry and so does not levy an income tax upon individuals (though it does charge a 5% value-added tax (VAT) and employers must pay a 10% social security tax). Qatar has a diverse and modern economy and is relatively peaceful, making it a great location for those looking to avoid income taxes. However, establishing residency can still be challenging, and requires the applicant to become fluent in Arabic.

Saint Kitts and Nevis

This Caribbean multi-island nation has not charged personal income taxes since 1980. It also offers an easy path to residency in the form of citizenship by investment. One can receive full citizenship, including a passport and full residency rights, for a $150,000 donation to the country's Sustainable Growth Fund, a $200,000-400,000 investment in an approved real estate project, or a $175,000-200,000 investment in one of the country's alternative investment opportunities.

Saudi Arabia

Income earned in this oil-rich nation is not taxed. However, self-employed expats may have to pay up to 20%, particularly on non-employment income (such as overseas investments).


Although Somalia does not have income taxes, it is not recommended that one attempt to move here for tax-free purposes. Somalia plunged into civil war in the 1990s and has yet to fully recover. Civil unrest, terrorism, and political instability are common and portions of the country are still controlled by insurgents. As a whole, the country is currently an unsafe living environment and unstable investment platform.

Turks and Caicos (territory)

Although the government of this British Overseas Territory does mandate payment into a national insurance system, it does not levy income taxes upon individuals.

United Arab Emirates

With a very strong and free economy supported by a wealthy oil industry, the United Arab Emirates does not levy an income tax on its residents. It does levy a 5% value-added tax (VAT) on many goods and services. While the country lacks a program by which foreigners can become permanent residents, its visa process is more welcoming than that of most other gulf countries.


Vanuatu, like many other island nations, funds its government via tourism, which enables its citizens to enjoy a life free of income tax. Vanuatu also boasts one of the most welcoming citizenship-by-investment programs in the world, making the process of obtaining a passport and residency in Vanuatu both simple and relatively inexpensive.

Western Sahara (disputed territory)

Western Sahara is in the unique position of being both an income-tax-free nation and a disputed territory—the United Nations does not formally recognize the region as a sovereign country. Western Sahara is also unique in that it has no alternate source of income, such as prolific tourism or a nationalized oil industry. As such, Western Sahara's non-tax policy is likely the result of territorial disputes between local rulers (primarily Moroccan authorities and members of the Sahrawi Arab Democratic Republic). Compared to other, more stable options, Western Sahara seems a risky choice for a tax-avoidance residency.

  • Tax law may change at any time. Data is presented for educational purposes and should not be considered authoritative for legal purposes.

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MonacoThe only remaining zero-income-tax country in Europe. Expensive, but obtaining citizenship is a straightforward process.
AnguillaTerritory. Permanent residency requires a donation of $150,000 USD or a $750,000 investment in real estate. Resident must spend at least half the year in Anguilla.
Cayman IslandsTerritory. No personal or corporate income tax. However, residency requires personal income of $145,000 per year and investment of at least $600,000 in real estate or local companies. Permanent residence can be established after eight years.
BermudaTerritory. Employers (and self-employed) must pay payroll tax and may deduct up to 6% from employees’ salary to pay it.
British Virgin IslandsTerritory. Does charge employers a payroll tax.
Western SaharaTechnically not a country but a disputed territory not formally recognized by UN. As such, living or investing there can be difficult and risky.
BahamasTax-free status extended to those with established residency, no citizenship required. May charge up to 8.8% Social Security deposit. Long-term residence requires purchase of at least $250,000 in property.
SomaliaPoor livability. Country is a failed state in which large areas are ruled by insugents.
Saint Kitts and NevisOffers citizenship by investment, requiring an investment of $150,000-400,000 in any of several qualifying investment programs.
Saudi ArabiaNo taxes for salaries earned in the country. Self-employed ex-pats do have to pay, however.
BruneiNo personal, but corporate income taxes are 18.5%. Also has a 5% tax in social contribution (contribution to the state fund). Difficult place to live. Unfriendly to foreigners and ruled by dictatorial regime.
KuwaitNo personal, but corporate income taxes are 15% and does levy both social contributions and VAT of 5%. Very expat-friendly, though permanent residency typically requires formal employment or Kuwaiti relatives.
OmanMay levy VAT (value-added taxes) on products, foreigners may incur 10% withholding tax, and corporate income taxes are 15%. Very conservative culture that may be a difficult switch for many Europeans and westerners.
BahrainMay charge up to 5% VAT as well as Social Security dues. Permanent residency requires investment of $135,000 in property or $270,000 in a Bahraini company.
United Arab EmiratesLevies a 5% value-added tax (VAT) on most goods and services. Charges taxes to certain corporations. Establishing residency easier than in other gulf countries.
PanamaHas tax-saving laws and an extremely flexible legal structure that make it a coveted tax haven. Offshore companies that engage in business only outside the nation’s jurisdiction enjoy a range of benefits like no income, corporate or estate taxes. Furthermore, they even do not have to pay taxes on capital gains.
MaldivesEstablishing long-term residency functionally impossible due to very strict requirements (first of which is to be a Sunni Muslim) and a lack of formal process.
VanuatuEstablishing citizenship and obtaining passport is relatively affordable and straightforward.
QatarEmployer must pay 10% social security tax. VAT = 5%. Permanent residence requires requiring fluency in Arabic.
DominicaDominica is another nation on the list of countries with no tax on income. There are no corporate, estate or withholding taxes in this nation. Furthermore, there is no taxation on gifts, inheritance, and income earned abroad.
Antigua and BarbudaAside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.

Which countries do not pay taxes?

There are several countries that do not have a personal income tax: Anguilla, Antigua and Barbuda, Bahamas, Bahrain, Bermuda, British Virgin Islands, Brunei, Cayman Islands, Dominica, Kuwait, Maldives, Monaco, Oman, Panama, Qatar, Saint Kitts and Nevis, Saudi Arabia, Somalia, United Arab Emirates, Vanuatu and Western Sahara.

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