List of countries with zero or near zero taxes (2024)

There are several countries inthe world where you don’t haveto (oralmost don’t haveto) pay taxes. Today, we’ll discuss the tax havens whose advantages you can benefit from.

Areasonable questionis: how dosuch countries survive ifthey donot levy taxes? They simply have other sources ofprofit, enough tocover the necessary expenses. These sources could beoil production, tourism, mining, etc.

Such tax-free countries are ideal for diversifying income and optimizing tax burdens. Wewill give examples ofsuch tax-free countries and tell you about the nuances that are worth considering.

Itisworth paying attention towhether the tax-free country and the country ofyour citizenship have adouble tax avoidance agreement. Itallows you topay taxes atareduced rate orbecompletely exempt from them.

Also note that wewill belisting countries with zero ornear-zero taxes, where itmakes sense and ispossible tomove. Wewill not mention countries with low taxes but towhich itisdangerous tomove (such asWestern Sahara and Somalia).

Countries with zero (or almost zero) taxes

The UAE currently does not levy any personal income tax orcorporate income tax. However, itisworth noting that there isacorporate tax onoil companies and foreign banks.

Atax resident inthe UAE isevery foreigner who has aresident visa.

List ofcountries with which the UAE has adouble taxation treaty (92intotal): Albania, Algeria, Armenia, Austria, Azerbaijan, Andorra, Belarus, Benin, Belize, Bangladesh, Bermuda, Barbados, Bosnia and Herzegovina, Belgium, Mauritius, Canada, Bulgaria, China, Czech Republic, Egypt, Estonia, Ethiopia, Cyprus, Finland, Fiji, Georgia, Gambia, New Guinea, Germany, Greece, Hong Kong, Italy, India, Ireland, Japan, Kazakhstan, Kyrgyzstan, Kenya, Indonesia, Lebanon, Luxembourg, Latvia, Liechtenstein, Lithuania, Malaysia, Macedonia, Malta, Mongolia, Montenegro, Morocco, Mauritania, Mauritius, Mozambique, Mexico, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Palestine, Panama, Romania, Russia, Seychelles, Singapore, Senegal, Switzerland Spain, Serbia, Slovenia, Slovakia, Sri Lanka, South Korea, South Africa, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, New Zealand, Ukraine, Uzbekistan, Uruguay, Uganda, Venezuela, Vietnam, and Yemen.

The average cost ofaone-bedroom apartment (50sq m) inthe center ofcities inthe UAE— $125,000 (a "square" costs about $2500); outside the center— $95,000 (a "square" ofabout $1900).

Renting aone-bedroom apartment— $950-1500.

Bermuda

InBermuda, the situation isasfollows: VAT is0%, corporate tax isanannual fee based onthe amount ofregistered capital, and land tax iscalculated based onthe annual rental value.

The list ofcountries with which Bermuda has adouble taxation agreement (four intotal): Bahrain, Qatar, the Seychelles, and the United Arab Emirates.

The average cost ofaone-bedroom apartment (50sq m) inthe center— $440,000 ("square" isabout $8,800), outside the center— $285,000 ("square" ofabout $5,700).

Renting aone-bedroom apartment costs $2,200–3,300.

Bahamian citizens have notax obligations onincome, capital gains, inheritance, orgifts. Instead, this government uses VAT and stamp duty tocover its expenses. Here are the numbers:

VAT: O-12%.

Business license isupto3% ofturnover.

Stamp duty (property purchase tax) is1–10%; property tax is0.75-2%.

There are nodouble taxation agreements between the Bahamas and other countries.

The average cost ofaone-bedroom apartment (50sq ft) inthe center ofBahamas cities is$100,000 (a "square" isworth about $2000); outside the center, itis$70,000 (a "square" isworth about $1400).

Renting aone-bedroom apartment costs about $1,000.

Monaco also does not charge income tax.

Corporate taxes are upto33%, but only for companies that earn more than25% oftheir turnover outside Monaco.

VAT: 20%.

Notaxes onreal estate.

List ofcountries with which Monaco has adouble taxation agreement (10intotal): France, Malta, Liechtenstein, Guernsey, Qatar, the Seychelles, Luxembourg, Mali, Mauritius, and Saint Kitts and Nevis. Also, Monaco has agreements with various countries toexchange tax information.

The average cost ofaone-bedroom apartment (50sq m) inthe center ofthe cities ofMonaco is$4,000,000 (a«square» costs approximately $80,000), while outside the center itis$2,750,000 (a«square» costs approximately $55,000).

Renting aone-bedroom apartment costs $3,700 to$6,100.

Cayman Islands

The Cayman Islands have noproperty taxes, payroll taxes, income taxes, orcapital gains taxes.

VAT: 0%.

Stamp duty onthe purchase ofreal estate ischarged atarate of7.5%.

The following countries have agreements with the Cayman Islands toavoid double taxation: the United Kingdom, New Zealand, and Japan. The Cayman Islands have also entered into agreements with various countries onthe exchange oftax information.

Note. ATax Information Exchange Agreement (TIEA) isalegal document that allows the exchange oftax information upon request between two specific states.The average cost ofaone-bedroom (50sq m) apartment inthe center is$500,000 (a "square" isworth about $10,000); outside the city center, itis$300,000 (a "square" isworth about $6,000).

Renting aone-bedroom apartment costs $1,900–2,700.

Bahrain

InBahrain, there are notaxes onincome, property, orcapital gains.

Income tax applies only tocompanies operating inthe gas and oil sectors.

Corporate tax for companies: 46%.

VAT: 10%.

Stamp duty ischarged at2% ofthe value ofthe property (ontransfer and/or registration).

Amunicipal tax of10% ischarged when renting commercial and residential real estate toforeigners.

List ofcountries with which Bahrain has agreements toavoid double taxation (intotal 45): Algeria, Austria, Bangladesh, Barbados, Belarus, Belgium, Bermuda, Bulgaria, Brunei, China, Cyprus, Egypt, Georgia, Hungary, Iran, Ireland, Jordan, Lebanon, Luxembourg, Malaysia, Malta, Morocco, UK, Yemen, Czech Republic, Estonia, France, Mexico, the Netherlands, the Isle ofMan, Pakistan, the Philippines, Portugal, the Republic ofKorea, the Seychelles, Singapore, Sri Lanka, Sudan, Syria, Tajikistan, Thailand, Turkey, Turkmenistan, and Uzbekistan.

The average cost ofaone-bedroom apartment (50square meters) inthe center ofcities inBahrain is$85,000 (a "square" costs about $1700); outside the center— $75,000 (a "square" costs about $1500).

Renting aone-bedroom apartment is$700-900.

Panama

InPanama, there isnoincome tax, corporate tax, property tax, orcapital gains tax. But ifcompanies participate inlocal business, they will have topay taxes.

List ofcountries with which Panama has adouble taxation agreement (17intotal): Barbados, Czech Republic, France, Ireland, Israel, Italy, South Korea, Luxembourg, Mexico, Netherlands, Portugal, Qatar, Singapore, Spain, United Arab Emirates, United Kingdom, and Vietnam.

The average cost ofaone-bedroom apartment (50square meters) inthe city center ofPanama is$90,000 (a«square» costs about $800), and outside the center, itis$60,000 (a«square» isabout $1200).

Renting aone-bedroom apartment costs $500—$800.

Dominica

Dominica has noforeign income tax, corporate tax, estate tax, orwithholding tax. Inaddition, there isnotax ongifts, inheritances, orincome received abroad.

But. Investors pay taxes inDominica ifthey earn income there, start acompany there, buy property there, orbecome tax residents. The main tax isincome tax, which isupto35% for individuals and25% for companies. Legal entities also pay VAT atarate of10to15%.

Note. Aperson receives tax residency status only ifheorshe resides inthe country for atleast 183 days per year.

Dominica has adouble taxation treaty with the following CARICOM (Caribbean Community) countries: Antigua and Barbuda, Barbados, Belize, Grenada, Guyana, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines.

Renting aone-bedroom apartment isabout $350.

Antigua and Barbuda

InAntigua and Barbuda, individuals are exempt from income tax aswell aswealth, capital gains, and inheritance taxes.

Legal entities that are tax residents pay notaxes ondividends, interest, and royalties. There are notaxes oncapital gains, wealth, orinheritance.

However, there isacorporate income tax, for corporations ifthey are registered and operate inAntigua and Barbuda. The rate isset at25% ofthe company’s income. Non-resident companies pay this tax only onprofits earned inAntigua and Barbuda.

Moreover, ifcompanies are registered asIBCs (International Business Companies), they are exempt from tax for 50years.

The stamp duty inthe country is2.5%.

Property taxes for owners range from 0.1% to0.5%.

Antigua and Barbuda has nodouble tax treaties with most countries, but there are tax information exchange agreements with these Caribbean countries: Anguilla, Aruba, the Bahamas, Barbados, the Cayman Islands, Curaçao, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, St. Maarten, Trinidad and Tobago, and the Virgin Islands.

Renting aone-bedroom apartment isabout $700—$1000.

Vanuatu

InVanuatu, there are notaxes onpersonal income, inheritance, capital gains, orcapital exports for individuals. Companies can avoid corporate and other taxes for the next 20years bypaying anannual fee (starting at$300).

VAT inVanuatu is12.5%.

Stamp duty is5%.

The property registration fee is2%.

Vanuatu has nodouble tax treaties with most countries, but there are agreements onthe exchange oftax information with some countries: Australia, France, Sweden, Denmark, South Korea, Grenada, New Zealand, Iceland, the Faroe Islands, Norway, Finland, Ireland, and San Marino.

The average price for aone-bedroom (50sq m) apartment inVanuatu is$40,000.

Renting aone-bedroom apartment costs about $1,000.

Saint Kitts and Nevis

Residents ofSt. Kitts and Nevis are not taxed onincome, dividends, royalties, orinterest.

The corporate tax rate for companies is33%.

VAT is10to15%.

Ownership ofreal estate istaxed atarate of0.2 to0.3%.

Countries with which St. Kitts and Nevis has agreements toavoid double taxation: Monaco, San Marino and some Caribbean countries.

Renting aone-bedroom apartment costs about $600-$800 per month.

How toget avisa orresidence permit inthese countries can befound onthe sites oftheir migration services; for acomplete list ofsites around the world, see .