5 Countries That Have Zero Personal Income Taxes
The best tax havens are countries where income tax does not exist.
I am firmly of the view that taxation is theft. It can only be collected with the implicit threat of state violence if you don’t pay. It’s also a breach of your privacy to have to file a declaration every year with details of your income and expenditure. There are many countries where it’s possible to live tax free. I’ve written about some of the best ones here and here. But many of those countries still require you to file a tax return every year. Even if all your income is untaxable you might consider the very fact that you’re forced to file a tax return an imposition.
Let’s have a look at the best tax havens. The best tax havens are pure tax havens. In the best tax havens you’ll never have to file any paperwork with the government. The best tax havens have no obligation to file a tax return with threats of penalties if you don’t comply. They won’t ask you about your bank accounts. They have no intrusive systems like FATCA. The best tax havens will have no interest in receiving any information about your overseas bank accounts under CRS. They have all been pressured to join by global organisations like the OECD.
Monaco is one of the best tax havens where everybody dreams of living. It’s certainly the most glamorous of the tax havens on our list. There’s no shortage of parties to attend or interesting people to meet. You’ll never receive government demands to fill forms in Monaco. Once you’re accepted as a resident you’ll be left alone by the state.
There are some downsides to Monaco as we observed here. It’s small and it’s the most expensive of the best tax havens. There’s no chance of getting a coveted Monaco passport either, no matter how long you spend living there.
The Cayman Islands
The Caymans Islands is the purest of the best tax havens on our list. There are no income taxes, no property taxes, and no inheritance taxes in The Cayman Islands. This Caribbean tax haven is firmly against taxing its residents in any way. The Cayman Islands is a banking haven too. So if you want your money managed by world class asset managers in a sunny tax haven, then The Cayman Islands may be for you.
Its proximity to the US is another advantage. If you get bored with island life you’re only a few hours away from New York or Miami.
The Bahamas is another of our best tax havens. It has no personal income taxes and no corporate taxes. That together with its sunny climate makes it a very attractive location to live. The Bahamas has a VAT of 12% which is still much lower than European VAT rates.
If you decide to buy a property in The Bahamas there is a stamp duty of 10% on propertys worth more than $100,000. You’ll find a fine selection of ocean front properties. This tax may be worth paying to live in one of the worlds best tax havens.
Unlike Monaco, citizenship is possible in The Bahamas after 10 years of residence. Unfortunately they’re not keen on dual citizenship. They will insist you give up any other citizenships when you are granted citizenship in the Bahamas. It’s difficult to see how they can enforce this rule.
Bermuda is one of the best tax havens, for sure. There are no personal income taxes. There are no corporate taxes. There’s not even a VAT on Bermuda.
Bermuda is located in The Atlantic, about 600 miles off the US coast. It’s about 700 miles north of The Bahamas. It’s about a 2hr and 30min trip to New York and Miami so you can easily take weekend trips to the US if you decide to move to the tax haven of Bermuda.
Bermuda is a beautiful place to stay with incredible pink sand beaches.
Bermuda recently introduce the Global Entrepreneur Work Permit. This allows location independent people to stay in Bermuda for up to one year.
Vanuatu is located in The South Pacific Ocean. It’s around 1,000 miles east of Australia. Vanuatu is one of our best tax havens as it has no taxes at all, other than a 12% VAT rate. Vanuatu is also the only country on our list where you can become an instant citizen.
Vanuatu has a citizenship by investment program. If you pay $130,000 you can become a citizen in a few short months. They even accept payment in Bitcoin.
Vanuatu is the most remote of our tax havens. Anyone relocating here should be prepared to live a quiet and peaceful life. It is a beautiful place with a warm and sunny year round climate. Connectivity is good if you plan to work remotely.
What is the biggest tax haven in the world?
The British Virgin Islands is considered to be the biggest tax haven in the world. That’s because it has the most tax free companies incorporated there. We wrote about the disadvantages of using BVI companies here.
What state is the best tax haven?
If you want a tax free company often the US is the best choice. This is true in particular if you’re not a US resident. States like Delaware, Nevada and Wyoming offer good levels of privacy and are tax free too. The US is also not part of CRS. This can make it attractive to bank in for non-US residents.
Where is the best place to live tax free?
The whole world can be a tax haven. The choice of tax haven depends on the kind of life you want to live. You can choose glamorous Monaco if you want to have a busy social life. Or you can choose sleepy Vanuatu, or somewhere in between. They all have advantages and disadvantages. There’s no one size fits all. You could even decide to live in more tan one place depending on the season.
Can individuals use tax havens?
Yes, all the tax havens we have discussed here are for individuals to relocate. We specialise in helping individuals to relocate and reduce their tax to zero while enjoying more freedom. You can find out more here.
SECOND PASSPORT BLUEPRINT 2022
Discover how you can get a free second passport. Claim back your freedom without spending a dime.
Governments everywhere are clamping down on freedom. Travel has been completely banned in some Western countries like Australia and Canada for some people.
This report by citizenship expert Henry Hill shares secret methods of how you can obtain the ultimate insurance policy – A second passport.
With a second passport, you’ll be able to travel freely. No matter what restrictions your government imposes on you. No more closed borders or applying for permission to leave your country.
It has long been possible to buy citizenship in some countries if you’re willing to spend $100,000 and more for the privilege. While this is a good option for some there are many little-known methods to get better passports without spending any money.
Second Passport Blueprint has the most up to date information available. It includes tips and tricks available nowhere else. These include:
One Caribbean citizenship you can get in six months (Not from one of the citizenship by investment countries which sell passports for $100k+).
One Asian citizenship that’s free and instant for citizens of Commonwealth countries.
A little known method to obtain citizenship in a large EU country
Another EU citizenship you can get for free without setting foot in it or having ancestors from there.
The fastest Central American citizenship you can obtain.
A top-rate South American citizenship you can get instantly.
This new and up to date information does not involve citizenship by investment or buying overpriced real estate. Everything is absolutely legal and based on extensive research on our travels around the world.
Others charge tens of thousands for this information. You can get it here for the price of a decent dinner. If you implement the information in our report you’ll save potentially hundreds of thousands while becoming more free.