Where Can You Avoid Paying Taxes? 22 Countries with Zero or Very Low Taxation

There are several countries in the world where you don’t have to pay taxes, or the tax burden is very close to zero. Today, we review these legal tax havens and explain how you can benefit from their incentives.

A reasonable question: how do these countries survive without collecting taxes? Typically, they rely on alternative sources of revenue —  such as oil production, tourism, or mining — which are sufficient to cover government expenses.

Tax-free countries are ideal for diversifying your income and optimizing your overall tax burden. We present examples of such destinations and highlight nuances you should consider.

Countries with Zero or Near-Zero Taxes

Note: always check if your country of citizenship and the zero-tax country have a double tax treaty. This ensures preferential tax treatment or complete exemption.

We list only those tax-free countries to which moving is practical and safe (omitting places with low taxes but unstable conditions, e.g., Western Sahara, Somalia).

United Arab Emirates (UAE)

The UAE offers a highly favorable tax regime and a high standard of living:

• Income tax: not available for individuals.
• Corporate tax: 0% for most companies, 9% for companies with profits over AED 375,000.
• VAT: 5%.
• Property tax: varies depending on the emirate.
• Double taxation agreements: with 92 countries.

Example property prices:

• One-bedroom (50 m²) apartment in the UAE’s center: $125,000.
• Rent: $950–1,500/month.

Note: foreigners with a residence visa are considered UAE tax residents.

Bahrain

Bahrain is known for a stable economy and lenient taxes:

• Income tax: 0% for individuals.
• Corporate tax: 0% for most companies; 15% Domestic Minimum Top-up Tax (DMTT) for large multinationals from 2025.
• VAT: 10%.
• Property tax: 2% stamp duty on acquisition.
• Double taxation agreements: 45 countries.

Example property prices:

• One-bedroom (50 m²) apartment: $85,000.
• Rent: $700–900/month.

Note: 10% municipal tax applies to foreign rental income. From 2025, large multinationals (global turnover over €750M) are subject to a 15% minimum tax.

Bahamas

The Bahamas is famous for its beaches and tax-friendly climate:

• Income tax: 0%.
• Corporate tax: up to 3% of turnover (business license).
• VAT: 0–12%.
• Property Tax: 0.75-2%.
• Double taxation agreements: none.

Example property prices:

• One-bedroom (50 m²): $100,000.
• Rent: ~$1,000/month.

Note: stamp duty on property purchase ranges from 1–10%

Bermuda

Bermuda has no direct taxes — just fees:

• Income tax: 0%.
• Corporate tax: annual fees based on share capital.
• VAT: 0%.
• Property tax: assessed on annual rental value.
• Double taxation agreements: 4 countries.

Example property prices:

• One-bedroom (50 m²): $750,000.
• Rent: $3,500–4,500/month.

Note: Cost of living and real estate are among the highest globally. Average house price is around $1M

Cayman Islands

Global offshore finance hub:

• Income tax:  0%.
• Corporate tax:  0%.
• VAT: 0%.
• Property tax:  0%.
• Double taxation agreements: 3 countries.

Example property prices

• One-bedroom (50 m²): $650,000.
• Rent: $2,500–3,500/month.

Note: stamp duty on purchases is 7.5%; vibrant market.

Monaco

Monaco is a classic tax haven for the wealthy:

• Income tax: 0% (except for French citizens).
• Corporate tax: 25% (reduced from 33% in 2022).
• VAT: 20%.
• Property Tax: 0%.
• Double taxation agreements: 10 countries.

Example property prices:

• One-bedroom (50 m²): $4,200,000.
• Rent: $4,000–6,500/month.

Note: Monaco has the highest property prices in the world (avg. over €51,900/m²).

Panama

Panama features territorial taxation:

• Income tax: 0% on foreign income; 0–25% progressive rates on and only on domestic income.
• Corporate tax: 0% on foreign income; 25% on domestic.
• Double tax agreements: 17 countries

Example property prices:

• One-bedroom (50 m²): $90,000.
• Rent: $500–800/month.

Note: only Panama-sourced income is taxable.

Dominica

Dominica offers citizenship by investment and low taxes:

• Income tax: up to 35% (only on domestic income).
• Corporate tax: 25% (only on domestic income).
• VAT: 10–15%.
• Double tax agreements: CARICOM countries.

Example property prices:

• Rent (one-bedroom): ~$350/month.

Note: tax residency with 183+ days per year in-country.

Antigua and Barbuda

Citizenship by investment and low taxes:

• Income tax: 0%.
• Corporate tax: 25% (local companies).
• Property tax: 0.1–0.5%.
• Double tax agreements: none.

Example property prices:

• Rent (one-bedroom): $700–1,000/month.

Note: International Business Companies (IBC) enjoy a 50-year tax exemption.

Vanuatu

Known for citizenship by investment:

• Income tax: 0%.
• Corporate tax: exemption for 20 years (annual fee from $300).
• VAT: 12.5%.
• Property tax: 2% registration fee.
• Double tax agreements: none.

Example property prices:

• One-bedroom (50 m²): $40,000.
• Rent: ~$1,000/month.

Note: stamp duty is 5%.

St. Kitts and Nevis

Popular for citizenship by investment:

• Income tax: 0%.
• Corporate tax: 33%.
• VAT: 10–15%.
• Property tax: 0.2–0.3%.
• Double tax agreements: several.

Example property prices:

• Rent: $600–800/month (one-bedroom).

Note: residents not taxed on income, dividends, royalties, or interest.

Saudi Arabia

Resource-rich and tax competitive:

• Income tax: 0% (for individuals).
• Corporate tax: 20% (50–85% for oil/gas).
• VAT: 15%.

Example property prices:

• One-bedroom (50 m²): $250,000.
• Rent: ~$500/month.

Note: permanent residency starts at $1.1M investment.

British Virgin Islands

Offshore finance hub:

• Income tax: 0%.
• Corporate tax: 0%.

Rent (one-bedroom): $1,300/month.

Turks and Caicos

Lenient British overseas tax regime:

• Income tax: 0%.
• Corporate tax: 0%.
• Property tax: 0%.

Example property prices:

• One-bedroom (50 m²): $110,000.
• Rent: $1,500/month.

Brunei

Small, wealthy Southeast Asian state:

• Income tax: 0%.
• Corporate tax: 18.5%.
• VAT: 0%.
• Property tax: varies.

Example property prices:

• One-bedroom (50 m²): $155,000.
• Rent: $600/month.

Kuwait

Oil-rich Gulf country:

• Income tax: 0%.
• Corporate tax: 15%.
• VAT: 0%.
• Property tax: 0%.

Example property prices:

• One-bedroom (50 m²): $270,000.
• Rent: $800/month.

Qatar

Another oil- and gas-rich Gulf state:

• Income tax: 0%.
• Corporate tax: 10%.
• VAT: 0%.
• Property tax: none, but registration fees apply.

Example property prices:

• One-bedroom (50 m²): $245,000.
• Rent: $1,000–1,500/month.

Countries With Low Taxes

Though not fully tax-free, these countries offer attractive tax regimes.

Singapore

Reliable, business-friendly jurisdiction:

• Income tax: 0–24% progressive (updated 2025).
• Corporate tax: 17% (partial exemption on first SGD 300,000).
• GST: 9% (increased from 7% in 2024).
• Property tax: progressive rates.

Malta

Favorable regime for foreign residents:

• Income tax: 0–35% progressive.
• Global Residence Programme: 15% on foreign income remitted to Malta.
• Corporate tax: 35% (up to 6/7 tax refund possible).
• VAT: 18%.

Cyprus

Attractive for individuals and companies:

• Income tax: 0–35% progressive.
• Corporate tax: 12.5% (planned rise to 15% in 2025-2026).
• VAT: 19%.
• Cyprus property tax: abolished 2017.

Note: major tax reforms expected in 2025-2026 (corporate tax rise).

Montenegro

Simple low-rate system:

• Income tax (progressive):
  • Up to €8,400/year: 0%.
  • €8,401–12,000: 9%.
  • Over €12,000: 15%.
• Corporate tax (progressive):
  • Up to €100,000: 9%.
  • €100,001–1,500,000: €9,000 + 12% on excess.
  • Over €1,500,000: €177,000 + 15% over that.
• VAT: 21% (standard), 15% (reduced from 2025), 7% (essentials).
• Montenegrin property tax: 0.25–1%.

Note: reduced VAT (15%) applies from 2025 on books, hotels, restaurants.

Andorra

Tiny European state with highly competitive tax system:

• Income tax (progressive):
  • Up to €24,000: 0%
  • €24,001–40,000: 5%
  • Over €40,000: 10%
• Corporate tax: 10% (minimum effective 3% since 2023).
• VAT/IGI: 4.5% (lowest in Europe), 9.5% for banking services.

Comparison Table

* DMTT (Domestic Minimum Top-up Tax) 15% applies to large multinational groups (annual revenue over €750M).

** Except French nationals.
*** Only foreign-source income.
**** Only domestic income.
***** Local companies; IBCs exempt for 50 years.
****** Exemption for 20 years (annual fee from $300).
******* Pending increase to 15% by 2026.
N/A = Not available / Not applicable

Important: this information is accurate as of September 2025. Tax legislation can change — consult a qualified tax advisor and verify with official sources before making decisions.