10 Countries Without Income Tax 

There are fewer than 20 countries across the world that don’t have income tax. These countries use other income streams, for example from their natural resources such as oil and gas, or from thriving industries such as tourism to generate revenue.

Below are some of the best countries without income tax, if you’re looking to move abroad and benefit from no income tax.

The Bahamas makes its money through tourism and international banking, so it does not need to impose income taxes. The Bahamas is an enticing choice, with a low cost of living, decent infrastructure, warm climate and beautiful sandy beaches. One area where expats might find standards to be below par is in healthcare – many expats in The Bahamas choose international health insurance to ensure access to the best possible facilities and treatments.

You don’t need to be a citizen of The Bahamas to benefit from no income tax either – you just need to be a resident. To become a resident, you need to invest at least $750,000 in property in The Bahamas. You can go to The Bahamas as a non-resident for up to two months, and you can make your residency application during this time, although sometimes the process can take up to three months.

You need to live in The Bahamas for at least 90 days each year and retain your property for ten years to maintain your residency status. After 10 years as a permanent resident, you have the right to apply for citizenship, if you wish.

Bahrain has become one of the wealthiest countries in the world thanks to its vast oil and natural resources, and so does not impose income tax. Bahrain is a vibrant hub of business, offering lucrative employment opportunities and high earning potential, with many expats enjoying a great quality of life there. Almost half of the people in Bahrain are expats, a testament to its multicultural society.

In order to qualify for permanent residence, and so benefit from the no income tax rule, you will either need to invest at least $530,000 in property, or earn a basic salary of more than $10,600, or be retired with the necessary income.

Bermuda has a thriving tourist industry and well-developed financial sector, and so is able to benefit from no income tax. The country has a lot to offer residents, with pink sandy beaches and warm sub-tropical climate. Bermuda has a slightly higher cost of living than some other countries of the Caribbean, such as The Bahamas, but with a high-earning potential, residents can still enjoy a great standard of living.

Residency in Bermuda is obtainable by investing at least $2.5 million in a government-approved project, such as real estate or government bonds. This will entitle you to an Economic Investment Certificate which is valid for five years and will allow you to live and work in Bermuda, as well as give residency to your spouse and children. After five years, you will be able to apply for the right to live and work in Bermuda indefinitely.

The Cayman Islands is another location offering gorgeous beaches, a warm, sunny climate, and 0% income tax. It’s tourist industry makes enough contributions to the economy that the government does not need to impose any type of income tax.

Getting residency in the Cayman Islands is expensive, even if you just want a temporary residence permit. One way to get a residence permit is to invest at least $1.2 million in the country, with at least $610,000 of that going to property on the island. You will also need to have an annual salary of at least $150,000 that’s sourced from outside the Cayman Islands and maintain a Cayman bank account with at least $500,000 in it.

If you want permanent residency, you will need to invest at least $2.4 million, all of which must go to real estate. Only around 250 of these types of visa applications are available every year.

Like the other countries on this list located in the Gulf, Kuwait can negate income tax thanks to its large oil reserves. It’s another popular location for expats, with around two-thirds of the Kuwait population being from abroad.

To live in Kuwait, you need to have sponsorship and employment from a Kuwaiti company or government organisation, and they will apply for the visa on your behalf. You can also apply for a dependency visa if you have Kuwaiti family members, as long as a citizen earns the minimum salary requirements.

Monaco is known for its luxury, glamour and elegance, as well as its 0% income tax. With beautiful scenery and architecture, it attracts high earners and the elite of Europe. It’s also incredibly safe, with one of the lowest crime rates of any country in the world. A possible drawback is that it has a particularly high cost of living, but for those who can afford it, it provides an opulent lifestyle.

To obtain a residency visa for Monaco, you will need to have a clean criminal record, pass an individual interview, and proof of sufficient income and/or savings and investments. You will need to make a substantial investment – either by renting a property on an annual basis, purchasing a property, or maintaining a Monaco bank account with at least $500,000 deposited. You can also found a business in Monaco that creates at least 10 new jobs as an alternative option.

Qatar is able to benefit from no income tax thanks to its vast oil and gas industry. It has one of the highest income rates per capita in the world, and many consider it to be the most developed country in the Middle East.

Qatar has a permanent residency by investment programme, to encourage foreign investment in the country. Expats are able to purchase property worth at least $200,000 in various areas of Qatar and can then apply for temporary residence. Expats who invest at least $1 million in property are able to apply for permanent residence.

Saint Kitts and Nevis is a country that offers a relaxed but high-quality lifestyle, with a temperate climate and no income tax. The economy is bolstered by tourism, as well as finance and telecommunications.

Saint Kitts and Nevis’ has a citizenship by investment programme to attract foreigners. To qualify, an expat would need to either make a minimum donation of $250,000 to the country’s Sustainable Island State Contribution fund, or a $400,000 property investment. They would also need to pass an individual interview at a consulate or embassy, or in Saint Kitts and Nevis. The entire process can take around a year to complete.

The United Arab Emirates is a hugely popular location for people looking to benefit from no income tax. The economy is bolstered by a thriving oil industry, and it has become a hub for international and financial industry.

There are a few ways to get a residence permit in the UAE, and so become a tax resident. An expat could invest at least $200,000 in real estate, establish a UAE business, invest at least $136,000 to $545,500 in a UAE business, or be employed by a UAE company. How much you invest can affect how long your visa is valid for, for example, investing $136,000 in a UAE investment can give you a five-year visa, but investing $545,500 can qualify you for a ten-year visa.

Vanuatu might not be the first country you think of when considering no income tax locations, but it could be a great choice. Located in the South Pacific Ocean, it can be tricky to get to, however, it has a lot to offer residents, with golden sandy beaches, relaxed way of life, and warm climate.

Vanuatu has one of the fastest citizenship programmes in the world. An expat can obtain a second passport in just one to three months after investing at least $130,000 to the National Development Fund and provide proof of a bank account balance of at least $250,000.