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 (or almost don't have to) pay taxes. Today we'll tell you about such tax havens, whose benefits you can use.

A reasonable question: how do such countries survive if they do not collect taxes? They simply have other sources of income that are sufficient to cover the necessary expenses. Such sources can be oil production, tourism, mining, etc.

Such tax-free countries are ideal for diversifying your income and optimizing your tax burden. We will give examples of such tax-free countries and tell you about the nuances that are worth considering.

Countries with Zero or Near Zero Taxes

Let's make it clear right away that it is worth paying attention to whether the tax-free country and the country of your citizenship have an agreement on the avoidance of double taxation. It will allow you to pay taxes at a preferential rate or be completely exempt from them.

We will also note that we will list countries with zero or almost zero taxes, to which it is possible and worthwhile to move. We will not mention countries with low taxes but to which it is dangerous to move (such as Western Sahara and Somalia).

United Arab Emirates

The UAE is known for its favorable tax regime and 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.

Real estate:

• Average cost of buying an apartment in the UAE (one bedroom, 50 sq.m.) in the center: $125,000.
• One-bedroom apartment rent: $950–$1500.

Note. Every foreigner with a residence visa is considered a tax resident of the UAE.

Bahrain

Bahrain offers attractive tax conditions and is renowned for its stable economy.

• Income tax: not available for individuals.
• Corporate tax: 46% (for the oil and gas sector only).
• VAT: 10%.
• Property tax: stamp duty 2% on purchase.
• Double taxation agreements: with 45 countries.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.) in the center: $85,000.
• One-bedroom apartment rent: $700–$900.

Note.  A municipal tax of 10% is charged when renting out property to foreigners.

Bahamas

The Bahamas are known for their beaches and favorable tax climate:

• Income tax: absent.
• Corporate tax: up to 3% of turnover (business license).
• VAT: 0–12%.
• Property Tax: 0.75-2%.
• Double taxation agreements: are absent.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.) in the center: $100,000.
• Rent for a one-bedroom apartment: about $1000.

Note. Stamp duty on property purchases ranges from 1-10%.

Bermuda

Bermuda also has many tax-free areas:

• Income tax: absent.
• Corporate tax: annual commission based on the authorized capital.
• VAT: 0%.
• Property tax: calculated based on the annual rental value.
• Double taxation agreements: with 4 countries.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.) in the center: $440,000.
• One-bedroom apartment rent: $2200–$3300.

Note. Bermuda is known for its high standard of living but also for its high cost of living.

Cayman Islands

The Cayman Islands are a popular offshore financial haven:

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

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.) in the center: $500,000.
• One-bedroom apartment rent: $1900–$2700.

Note. Stamp duty on property purchases is 7.5%.

Monaco

Monaco is known as a tax haven for the rich:

• Income tax: absent.
• Corporate tax: up to 33% (only for companies earning more than 25% of their turnover outside Monaco).
• VAT: 20%.
• Property Tax: absent.
• Double taxation agreements: with 10 countries.

Real estate:

• Average price of a one-bedroom apartment (50 sq.m.) in the center: $4,000,000.
• One-bedroom apartment rent: $3700–$6100.

Note. Monaco is known for its very high cost of living and property.

Panama

Panama has favorable conditions for business and low taxes:

• Income tax: absent from foreign income.
• Corporate tax: absent from foreign income.
• Double taxation agreements: with 17 countries.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.) in the center: $90,000.
• One-bedroom apartment rent: $500–$800.

Note. Companies pay taxes when they participate in local business.

Dominica

Dominica offers a citizenship by investment program and low taxes on foreign income:

• Income tax: up to 35% (only on local income).
• Corporate tax: 25% (local income only).
• VAT: 10–15%.
• Double taxation agreements: it is with the CARICOM (Caribbean Community) countries.

Real estate:

• Rent for a one-bedroom apartment: about $350.

Note. Tax resident status is obtained by living in the country for at least 183 days a year.

Antigua and Barbuda

Antigua and Barbuda offer citizenship by investment program and low taxes.

• Income tax: absent.
• Corporate tax: 25% (for local companies).
• Property Tax: 0.1–0.5%.
• Double taxation agreements: are absent.

Real estate:

• One bedroom apartment rent: $700–$1000.

Note. Companies registered as IBC (International Business Company) are exempt from taxes for 50 years.

Vanuatu

Vanuatu offers a citizenship by investment program with low taxes:

• Income tax: absent.
• Corporate tax: 20-year exemption (annual contribution from $300).
• VAT: 12.5%.
• Property tax: registration fee 2%.
• Double taxation agreements: are absent.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m): $40,000.
• Rent for a one-bedroom apartment: about $1000.

Note. Stamp duty is 5%.

Saint Kitts and Nevis

St. Kitts and Nevis is known for its citizenship by investment program and low taxes:

• Income tax: absent.
• Corporate tax: 33%.
• VAT: 10–15%.
• Property tax: 0.2-0.3%.
• Double taxation agreements: with several countries.

Real estate:

• One-bedroom apartment rent: $600–800.

Note. Residents are not subject to taxes on income, dividends, royalties and interest.

Saudi Arabia

Saudi Arabia is known for its rich oil resources and low taxes for individuals:

• Income tax: not available for individuals.
• Corporate tax: 20% of net profit (50–85% for the oil and gas sector).
• VAT: 15%.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.): $250,000.
• Rent for a one-bedroom apartment: about $500.

Note. Permanent residency can be obtained by investing at least $1.1 million.

British Virgin Islands

The British Virgin Islands are a popular offshore financial haven:

• Income tax: absent.
• Corporate tax: absent.

Real estate:

• One-bedroom apartment rent: $1300.

Turks and Caicos

Turks and Caicos is a British Overseas Territory with an attractive tax regime:

• Income tax: absent.
• Corporate tax: absent.
• Property tax: absent.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m): $110,000.
• One-bedroom apartment rent: $1500.

Brunei

Brunei is a small but rich country in Southeast Asia:

• Income tax: absent.
• Corporate tax: 18.5%.
• VAT: 0%.
• Property tax varies depending on the municipality.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.): $155,000.
• One-bedroom apartment rent: $600.

Kuwait

Kuwait is an oil-rich state in the Persian Gulf:

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

Real estate:

• Average price for a one-bedroom apartment (50 sq. m): $270,000.
• One-bedroom apartment rent: $800.

Qatar

Qatar is another wealthy Gulf state with an attractive tax regime:

• Income tax: absent.
• Corporate tax: 10%.
• VAT: absent.
• Property tax: None, but there is a rental registration fee.

Real estate:

• Average price for a one-bedroom apartment (50 sq.m.): $245,000.
• One-bedroom apartment rent: $1000–$1500.

Low Tax Countries

Although these countries are not completely tax-free, they are renowned for their attractive tax regimes.

Singapore

Singapore is known for its stable economy and favorable business climate:

• Income tax: progressive scale from 0% to 22%.
• Corporate tax: 17% (with partial exemption for the first SGD 300,000 of profit).
• VAT: 7%.
• Property tax: progressive scale.

Malta

Malta offers attractive tax conditions for foreign residents:

• Income tax: progressive scale from 0% to 35%.
• Special tax regime for participants of the Global Residence Programme: 15% on income received abroad and transferred to Malta.
• Corporate tax: 35% (with the possibility of a refund of up to 6/7 of the tax paid).
• VAT: 18%.

Cyprus

Cyprus is attractive for businesses and individuals due to its tax system:

• Income tax: progressive scale from 0% to 35%.
• Corporate tax: 12.5%.
• VAT: 19%.
• Property tax: cancelled in 2017.

Montenegro

Montenegro offers low tax rates and a simple tax system:

• Income tax: 9%.
• Corporate tax: 9%.
• VAT: 21% (standard rate), 7% (reduced rate).
• Property tax: 0.25% to 1%.

Andorra

Andorra is a small country in Europe with an attractive tax system:

• Income tax: 10% (base rate for residents).
• Corporate tax: 10%.
• VAT: 4.5% (the lowest in Europe).

Comparison Table

*Only for companies earning more than 25% of their turnover outside Monaco.

**Only on foreign income.

*** Only for local income.

****For local companies, IBC is exempt for 50 years.

***** 20-year exemption (annual fee from $300).

N/A – No data available.