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Before we start with the list of countries, it’s important to note that lots of these countries have corporate income tax, but today we are focusing on personal income tax.
Many of these countries will have social security, they may have payroll taxes, VAT (Value added tax), property taxes, etc.
Just because they have zero personal income tax, doesn’t mean that they don’t have any taxes at all.
We will not include countries that have a special regime, where you can take advantage of some loopholes so you end up paying no income tax. We are talking about countries that are straight ZERO income tax countries.
Having all that in mind, here is our list:
1. Brunei
Brunei has no income tax. They have a 5% tax in social contribution (contribution to the state fund). This is the only country in South East Asia where there’s no income tax!
2. Bermuda
A small country in the Atlantic has no income tax. However, they do have payroll tax.
3. Cayman Island
Pure zero income tax country. They don’t have social security tax, no payroll tax.
4. British Virgin Islands (BVI)
BVI has payroll tax, however, if you don’t have any payroll you will not get taxed.
5. Bahamas
Well-known island in the Caribbean is on our list of zero income tax countries. However, they still have VAT and social security.
6. Anguilla
Anguilla was the place where we would form lots of companies, as an alternative to BVI. Anguilla is a genuine zero tax country, just like the Cayman Islands.
7. Turks and Caicos
This tiny nation has no income tax, but they have some sort of national insurance. So this means that there are some costs, but no personal income tax.
8. Nevis and St Kitts
A country that is very famous for trusts, is also zero income tax! This country also offers Citizenship by investment.
9. Monaco
Monaco is the only zero personal tax country left in Europe! Andorra also used to be zero tax, but this is unfortunately not the case anymore. If you want to live in Europe and pay no income taxes, Monaco is the only straight forward option!
10. United Arab Emirates (UAE)
Probably the most well-known place in the Middle East for zero taxes. UAE recently introduced a 5% VAT. UAE is a place where it’s easy to get and maintain residency.
11. Saudi Arabia
Saudi Arabia is also traditionally known as zero tax country, however, their VAT rate just increased from 5% to 15%. They also have a withholding tax.
12. Oman
Oman is planning to introduce VAT in 2021. For individuals, the Sultanate of Oman does not have any taxes on personal income, including income from capital gains, wealth, death, or property. Foreigners might be subject to withholding taxes at a rate of 10%.
13. Qatar
Qatar is another Middle Eastern country that has zero taxes on personal income. There are social security contributions of 10% that are paid by the employer. They also just implemented a VAT of 5%.
14. Bahrain
Similarly to previous countries on the list, Bahrain recently introduced 5% VAT. There are social securities contributions as well, 7% per locals, and 1% for foreigners which covers unemployment. The maximum monthly earnings subject to contributions are capped at BHD 4,000.
15. Kuwait
The last country on our zero income tax list is Kuwait. There are some social contributions and VAT of 5% will be implemented in 2021.