Here’re Some Havens Where You Can Still Live Tax Free
While pure tax havens that you where you actually want to spend some time can be somewhat of a rarity nowadays there are plenty of countries where it’s possible to live tax free with a little planning. Normally it’s necessary to ensure that you don’t have any local income. That’s generally not a problem for anybody who’s able to work remotely. Any country that has a territorial tax system is a tax haven for all those in that category.
So, which are the 11 best countries where you can live tax free in 2022?
Monaco is one of the few pure tax havens that’s actually liveable year round. It’s also the most expensive country on our list. Located on the French Riviera it has no income tax or capital gains tax. Monaco is the second smallest country in the world after Vatican City. There are no annual property taxes and no inheritance tax if you leave your estate to your spouse or children.
Monaco is a great place to live. It’s easy to make new friends and there are always lots of social events like Galas, Opera, and Parties to keep you entertained. There is a lot of commentary online about how expensive it is to get a residence card in Monaco. In my experience the process was simple. After you have a Schengen Visa, which is not required for EU residents, you need a letter from your bank, confirming that you can afford to live in the Principality and proof that you have a residence available for you to live in. Find out how to obtain residency in Monaco here.
Many people I know use Monaco as a European base and spend 6 months there, spending the remainder of the year in other locations.
While Singapore is not a pure tax haven like Monaco it has become a wealth haven for the rich. Singapore is a territorial tax country so, in most cases, you won’t pay tax on income earned outside Singapore. That will allow anybody with business outside Singapore to live there tax free. There is also no Capital Gains Tax and no inheritance tax. Eduardo Saverin, one of the founders of Facebook, renounced his US citizenship and became a resident of Singapore. In this way he’s able to enjoy the fortune he made from Facebook and live tax free in Singapore. A perfect solution for a high net worth individual.
Singapore offers a special visa for Entrepreneurs, known as EntrePass. This allows entrepreneurs with a funded business to relocate to Singapore. You can find out more here.
Singapore offers sophisticated living for high net worth investors. British billionaire inventor James Dyson recently relocated there too. The city state offers every facility you can think of and for those considering Asia to live tax free it’s the premier choice in the region.
Panama is located in Central America to the South of Costa Rica. Panama City is a modern city populated by skyscrapers, with every conceivable service available. Panama has a territorial tax system so if your income is generated outside the country you will pay no tax there.
Panama is open for business and one of the easiest residences in the world to obtain if your home country is on it’s list of ‘Friendly Nations’. You will get immediate permanent residence by depositing $5,000 in a local bank and proving at least one economic tie to the country. This is achieved by incorporating a Panamanian company. After 5 years of residency you can apply for citizenship. This program is due to change in late 2021, making it a little more difficult but there are still numerous visa options to move to Panama and live tax free.
4. The Bahamas
The Bahamas is the third richest country in the Americas after the USA and Canada. There are no taxes on income, capital gains or inheritance. The Bahamas is a member of the British Commonwealth and has been independent since 1973. It is home to around 400,000 English speaking inhabitants. It’s politically stable and real estate purchase and rental prices are moderate compared to places like Monaco and The Cayman Islands.
Permanent residency is easy to obtain if you buy a home on The Bahamas. According to the government, applications from homeowners who have a home worth more than $1.5m will be fast tracked. There are other residence schemes including The Annual Residence Permit. This is simple to obtain and does not require any investment. There is an annual fee of $1,000. This seems like a small price to pay to live in a tax free paradise a short 20 minute hop from Miami.
If you want the opportunity to live tax free in a sunny country in western Europe Portugal has much to offer.
From the beaches of the Algarve to the historic city of Lisbon, Portugal has something for everybody.
For many, that something is the Non Habitual Resident’s Scheme (NHR). Anyone who has not habitually resided in Portugal during the last 6 years can apply to the tax authorities to become a non habitual resident of Portugal. Once accepted, the Portuguese authorities will give you a 10 year guarantee of no taxes on certain types of income. Provided you structure your affairs to make sure that any income you have is paid as a dividend from your Company it will be free of Portugal’s otherwise high tax rates.
There may be something to be said for living in a ‘real’ European country that’s not an obvious tax haven. At least 10,000 people in Portugal are non habitual residents. It’s good for the Portuguese economy as these people are spending money and investing in Portugal.
For those looking for a European option which will also lead to a coveted EU passport within 5 years Portugal is an ideal country to consider to live tax free.
For non-EU residents Portugal offers a golden visa for those buying a property for at least €500,000. There are other options too, such as creating 10 jobs or investing in a venture capital fund. Contact our team here for help getting a Portuguese golden visa.
6. Costa Rica
Back to Latin America we have Costa Rica, located between Nicaragua to the North and Panama to the South. In the Central Valley area around the capital city of San Jose it has an almost perfect year round climate. Temperatures are never more than 25C or less than 20C. There is a tropical climate with a dry season from November until April. The rest of the year you will find sunny mornings and rain for an hour or two in the afternoons.
Costa Rica has 2 coast lines with magnificent beaches. You can drive from the Pacific coast to the Caribbean in a few hours.
Costa Rica has a territorial tax system, so any income from outside Costa Rica isn’t taxed there. The bureaucracy here, like much of Latin America, moves slowly. After you submit your residency application you are allowed to stay indefinitely but it will take around a year to get your residence card.
Costa Rica recently introduced a new visa for digital nomads, making the residency process easier if you-re able to prove income of $3,000 per month and have health insurance. You can find out more here.
7. The United Arab Emirates
The United Arab Emirates has no income tax or capital gains tax. Until recently it didn’t have sales tax either. It’s home to thousands of European ex-pats who mostly stay in the cities of Dubai or Abu Dhabi. Air links to the rest of the World from these cities are amongst the best in the World thanks to the expansion of Ethiad and Emirates airlines.
You can live a very comfortable life here. You will find mega malls and familiar chain restaurants like Cheesecake Factory and PF Changs as well as Michelin star restaurants.
Immigration here involves starting a Company and getting a residence permit as an investor or employee of the Company. It’s straightforward to arrange. The Emirates are keen to attract new investment. It is a perfect location to live tax free for many entrepreneurs. In some cases the government of The UAE will even offer funding for entrepreneurs who relocate there.
8. The Cayman Islands
Another traditional tax haven, The Cayman Islands are in the Western Caribbean. There are 3 islands – Grand Cayman, Cayman Brac and Little Cayman. The Caymans are one of the most famous tax havens and renowned for having no income, capital gains or inheritance taxes.
You will enjoy an amazing climate here and as one of the most developed countries in the Caribbean there is no shortage of good restaurants and other friendly ex-pats.
Property is expensive here. A 3 bedroom apartment with ocean views will cost upwards of $5,000,000.
To get a residence permit to live on The Cayman Islands you will have to demonstrate annual income of CI$120,000. Alternatively you can deposit CI$400,000 in a local financial institution and invest CI$1,000,000 of which CI$500,000 must be in real estate.
Given the close proximity to the US, the sophisticated financial services available and the political stability as a British Overseas Territory the Caymans are one of the most attractive tax havens, giving European havens a run for their money. A perfect location to live tax free.
Georgia is located right between Europe and Asia and borders Azerbaijan, Armenia, Turkey and Russia. Georgia’s Capital is the ancient city of Tbilisi. It is home to excellent food and under-rated Georgian wine. Georgia is very liberal on immigration. You can stay for a whole year without any kind of residence permit or intrusive questions. After that year you can pop across the border to Turkey or Armenia for a few days and then return for another year. Georgia has a territorial tax system so any income you earn outside Georgia will be tax free.
Georgia has a pleasant beach resort, situated on the Black Sea. Batumi is not well known to western tourists but it’s very popular with Russians, Turks and Iranians. Property is relatively inexpensive. You can still buy apartments in Batumi or Tbilisi for $50,000. You will need to invest $100,000 though, if you want a longer term residence permit. Georgia may be an option for the more adventurous who want to live tax free in a more non-traditional place with fewer western residents.
It’s a little known fact that Ireland can be a tax haven to some thanks to its remittance tax system which they inherited from the British. Ireland has much to offer for those seeking to live tax free provided you don’t mind the dire climate of the British Isles. The remittance tax system will only tax non-Irish residents on income that they remit to Ireland. Any money earned outside Ireland is not taxed by the Irish tax authorities.
Ireland has something to offer for all from the cosmopolitan city of Dublin to the beautiful jagged coastline. Property prices can be expensive in Dublin but are more reasonable in other areas. Residents are able to apply for Irish citizenship after 5 years of residence in Ireland.
11. The Turks and Caicos
Another more traditional tax haven for those looking for a more peaceful place to live tax free are The Turks and Caicos.
The Turks and Caicos is an archipelago of 40 islands in the Atlantic Ocean to the South East of The Bahamas. Most of the activity in The Turks and Caicos is on the island of Providenciales. This is the most developed island where you’ll find most of the shopping and government offices. The other islands are less developed.
The Turks and Caicos is a zero tax country. It’s a British protectorate and you can live here without ever filing a tax return. It’s definitely for those who prefer a peaceful and quiet existence though.
You can easily get a residence permit if you are of independent means to live tax free in The Turks and Caicos. There are several categories but the most attractive for ex-pats is the annual residence permit which costs $1,500 per year. You can find out more about getting a residence permit for The Turks and Caicos here.
Above we have listed just a few of the best tax-free countries. If you’d like to find out more about how to live tax free book a call with us here. Alternatively buy our Special Report – Bullet Proof Asset Protection here. You’ll discover dozens of ways to avoid paying taxes legally no matter where you live. You’ll also find the latest information on how to make sure nobody can ever seize your assets.
Where can you live without paying taxes?
If you structure your affairs carefully the whole world can be a tax haven. There are ways to live in almost every country tax free. We help our clients structure their affairs so that they can live tax free wherever they choose.
How do I legally pay no taxes?
You can legally live tax free by relocating outside your home country and carefully structuring your affairs so that no taxes are payable in any country.
How long can you live in the US without paying tax?
You can safely spend up to 4 months per year in the US without paying tax, provided you’re not a US citizen or green card holder.
How do you live in the US and not pay taxes?
There are a number of ways that US citizens can minimize their taxes, even if they live full time in the US. The exact strategies will depend on individual circumstance.
How can I contact someone?
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