Although taxes have been around ever since we’ve had governments, income taxes are a more recent development. The US had no income tax until 1913. Even then it was only for the rich and the rate of tax for most was only 1% of income. Since then most countries have introduced income taxes. But there are a few countries that have never introduced it. These are the countries with no income taxes.
Not all are necessarily liveable but nowadays taxes are so generally accepted that many people don’t realise that countries with no income taxes even exist.
Here are the countries with no income taxes for 2023:
Antigua and Barbuda
Antigua and Barbuda is an independent island nation located between the Caribbean and the Atlantic. There are 2 main islands which are separated by 63km. It’s much bigger than Anguilla, with a population of 93,000. Antigua, like other countries in the region, has a citizenship by investment program. If you want a quick passport and are prepared to pay for it this could be a good option. Antigua and Barbuda has no income taxes at all.
Anguilla is another British protectorate in the Caribbean, located east of Puerto Rico. With a population of only 14,500 those moving there should be prepared for a tranquil life enjoying the beautiful beaches. As well as no income taxes.
The Bahamas has great beaches and a wonderful climate. It has a well-developed economy. It is the richest country in the West Indies with GDP per capita of $29,000. It has amazing places to stay for expats. The Bahamas and The Cayman Islands are the best options for those seeking a Caribbean tax haven.
Bahrain is an island nation, connected to Saudi Arabia with a 25km long causeway. Bahrain offers a peaceful and laidback lifestyle for expats. The capital city Manama has been ranked as one of the best cities in the world for expats. Bahrain has no income taxes, capital gains taxes or estate taxes.
Bermuda is a British overseas territory located in the Atlantic. The nearest mainland to Bermuda is the American state of North Carolina, which is about 600 miles away. Bermuda offers a sophisticated, tax-free life. It has a mild year-round climate and good infrastructure, including some excellent banks.
British Virgin Islands
When looking at what country has no tax, the British Overseas Territories dominate the list along with the Gulf countries. While the British Virgin Islands might be near useless nowadays for offshore companies it’s a great place to have a base. As there are no income taxes, you can live here year-round tax-free and enjoy an amazing lifestyle.
Expats make up more than 40% of the population of Brunei. It’s the only country in Asia with no income taxes. Expats mainly go to Brunei to work in the oil and gas sector which makes up most of the economy. Expats enjoy a good life in this Asian tax haven.
The Cayman Islands is a tax and banking haven in the Caribbean. Not only do the Caymans have no income taxes, but they are also one of the few countries in the world that doesn’t have a property tax either. The Caymans are an expensive choice but if you have the money, it’s easy to get residency. Life on The Caymans is great but if you get bored there are regular daily flights to major US cities. Find out here how you can move to The Cayman Islands.
Another of the oil rich Gulf countries that dominate our list. Expats who live in Kuwait work in the oil and gas industry. Expats can have a good life in this country with no income taxes. It would be more of a cultural adjustment for anyone not moving there for work. The UAE would be a better option for most.
Monaco is the only pure tax haven in Europe. It’s known as a playground of Europe’s super wealthy. It offers a glamorous life style in France’s Cote d’Azur. Because it’s Europe’s only true tax haven it has the highest real estate prices in the world. Find out how you can move to Monaco here.
Oman is an underrated tax haven with much to offer. Oman is the oldest independent state in the Arab world. It has no income taxes. In common with most of the countries in the Gulf, it’s never had them. Expats enjoy a great lifestyle in Oman.
Qatar is a highly developed Gulf nation seeking to take on Dubai. It’s currently hosting the world cup which will help put it on the map. Qatar offers an appealing lifestyle for expats with beautiful beaches and almost every service you’d find in a major country.
Saint Kitts and Nevis
St Kitts and Nevis is another pure tax haven in the Caribbean. St Kitts and Nevis offers citizenship by investment. You can effectively buy a passport in this Caribbean country. Like most of the Caribbean Island nations it’s definitely for those that are seeking a quiet and peaceful life. There are no income taxes, capital gains taxor inheritance tax.
Saudi Arabia oil rich and the largest of the Arab countries. It offers a lot of opportunity with plans to build new mega cities. It still has strict Islamic laws which will put most people off. Most expats who move to Saudi Arabia go to work in the oil and gas industry.
Turks and Caicos
The Turks and Caicos are a British protectorate in the Caribbean. The Turks and Caicos have no direct taxes. There is income tax, no capital gains tax and no inheritance tax. The Turks and Caicos have very strict confidentiality laws with substantial fines for anyone sharing private financial information. Financial institutions in The Turks and Caicos will not provide information to foreign governments requesting information for criminal tax investigations.
United Arab Emirates
The United Arab Emirates offers an amazing tax free lifestyle for expats. Most expats will head to Dubai or Abu Dhabi. The UAE is easy to move to for almost anybody. It offers a warm climate, good services and a few world class banks.
This island nation is located in the South Pacific. It’s a 3.5 hour flight from Sydney. Vanuatu has its own citizenship by investment program. A family of four can become citizens of Vanuatu for $200,000. You can even pay for your citizenship with bitcoin. The citizenship programme was recently undermined when the EU removed visa free access for Vanuatu. There are some beautiful locations in Vanuatu. It could be somewhere to call home for part of the year to take advantage of the zero tax rates.
The countries listed are the zero tax countries. Countries that never got around to introducing income tax. There are many more territorial tax countries. These are countries that only tax income generated within the country. Therefore if all your income came from a different country it would be tax free in a territorial tax country.
Some major countries, that you wouldn’t associate as being tax havens offer special deals too. The UK and Ireland have the remittance system of taxation for new residents. Portugal has its Non Habitual Resident scheme, Thailand has its Thai Elite Visa scheme. Even Canada can be structured very tax efficiently for new residents.
Anyone who is paying high rates of tax in their own country should look for an alternative solution. Wealth will increase at a much faster rate without the state helping itself to 40% of your income every year. Countries with no income taxes are a good starting point in your search for a better life with lower taxes.
What does no income tax mean?
It means there’s no tax on money that you earn. There may still be other taxes like on purchases or imports but you can keep 100% of what you make.
Can US citizens move to a country with no income tax?
There are only 2 countries in the world that tax people based on their citizenship. They are the USA and Eritrea. An American who wants to completely opt out of income tax would have to renounce US citizenship. Americans do get an allowance of $120,000 for foreign income that’s not taxable in the US when they live overseas. Therefore an American couple could earn $240,000 per year tax free.
What are the states with no income tax for retirees?
Those states have no income tax. If you don’t want to pay federal taxes on at least some income a move overseas may work better.
Liberty Mundo helps high net worth clients find more freedom by setting up offshore structures to protect your assets. We help people move overseas to lower taxes and improve lifestyles. If you’d like to work with us get in touch here.