What comes to your mind when you hear “zero income tax country”? It may sound appealing for you who seek ways to optimize your tax burden.
While choosing to live in these low-tax countries can help you have a better standard of living, gain desirable lower corporate taxes, and give you a good start for retirement, there are things you must consider when choosing a low-tax country. Things like the lifestyle of the country, other taxes to pay to its residents, and availability of residency.
Let’s hop to the list of countries where you can live tax-free or with low tax!
United Arab Emirates (UAE)
Famous for its exclusivity, UAE has no personal income tax, corporate tax, or even value-added tax (VAT). However, they plan to introduce a 9% federal corporation tax for businesses with high net profits.
With all exclusive trust/high living things you can obtain in the UAE, you need to do your research because there are some fees and charges associated with living in the country. Things like Residence Visa Fees which depends on the type of visa and how long you stay, health insurance, housing cost, utilities like water, electricity, and gas that are usually expensive in the UAE, school fees (if you have any children goes out to school), and transportation especially if you own your car.
Even with these fees and charges, you still get the best facilities of multiple entertainment and education facilities like no other. When you decide to live in this country, you need to be aware of the rules and traditions you have to follow.
Living in a warm country with beautiful scenery can be the reason why many want to live in The Bahamas. With many popular beautiful beaches, crystal-clear water, and warm climate is the perfect location for those who enjoy outdoor activities like swimming, boating, and fishing. Just getting in touch again with nature.
Yes, this beautiful country is one of many countries you can live in tax-free. This is one of the reasons many want to live in The Bahamas for people who want to keep more of their earnings and investments. However, it’s important to note that you need to pay a value-added tax (VAT) of 12% on most goods and services. 3% for business license, and 1-10% for property.
The huge point of living in this country is, it is an English-speaking country which can make it an attractive option for those who don’t speak other languages and the Bahamas has a stable political and economical environment so it’ll be a perfect country to spend on your retirement.
Note that if you want to save more money, try to avoid living in Nassau or Freeport because they’re known for a high cost of living, housing, transportation so make sure to consider all factors when making a decision to move to the Bahamas.
As the second smallest independent-state country, Monaco is desirable for those wealthy people who want to live luxuriously while having the tax benefits to pay no tax income to its residence. Even though Mocano has no personal tax to pay, you have to pay 33% for companies earning more than 25% of their turnover outside of Monaco, VAT of 20%, but you pay no tax for properties which attract people to live in Monaco.
Other than the taxes, Monaco attracts people to live there because it offers favorable business opportunities. It has low corporate taxes and a thriving financial sector which is perfect for business owners and entrepreneurs looking to expand their businesses. Another thing you may want to consider Monaco on your list is the high standard living and luxurious lifestyle. Monaco has excellent healthcare, educational institutions, new cultural opportunities, high-end shopping destinations, fine dining restaurants, and many exclusive events!
While living in Monaco can be expensive, it offers a unique and attractive lifestyle for those who can afford it. It’ll be great for your business opportunities with low tax income charges. Make sure to consider all factors before you choose to live in Monaco.
Antigua & Barbuda
Another high-end country with beautiful scenery where you don’t have to pay income tax! What’s great about Antigua & Barbuda you are free from paying taxes on wealth, capital gains, and inheritance.
Companies that are registered as International Business Companies (IBC) are exempt from paying 50 years of taxes including your corporate tax and income taxes from real estate, securities, and other assets. You only need to pay the annual fee depending on your capital area. However, when you get a citizenship there you will still need to pay taxes in another passport’s country.
Living with no income taxes, you may have a huge benefit to enjoy the beautiful island state with pink and white sand beaches, coral reefs and blue lagoons. Consider your research again if you decide to live here!
The Cayman Island
As an English-speaking country, it may be your opportunity to live without paying income tax, no VAT tax, capital gains tax, and corporate tax. This is a great opportunity for you wealthy high income people to keep more of your earnings and investments.
However you need to pay 7.5% of property tax for housing. The great thing about living in the Cayman Islands is that it is accompanied by excellent healthcare, educational institutions, and civil services. The Cayman Island is a safe and clean environment with a mild climate and beautiful scenery. Other than the beauty of virgin nature, Cayman Island attracts many business owners and entrepreneurs to start looking to expand their businesses especially in offshore business sectors. It makes sense with a thriving financial sector and favorable business environment, you’ll find many international companies having their businesses operate here.
With very little taxes to pay but have a high standard of living, try to consider living in Grand Cayman because it can be expensive living there. For non-Caymanians, you may need to obtain a work permit or residency status to live and work in this country.
While there are still several countries that offer tax-free living or low-tax options, it’s true that some countries are making changes to their tax laws and regulations.
It’s important to note that tax laws and regulations can change rapidly in some countries, and it’s essential to stay informed and up-to-date on any changes that could impact your financial situation if you’re considering a move to a tax-free or low-tax jurisdiction. It’s also important to consider other factors beside taxes when deciding where to live, such as the cost of living, quality of life, and employment opportunities!