23 Countries Where you do not Pay Income Tax (and how you could emigrate to them.)

Don’t you want to pay taxes anymore? Do you hate that the State takes and uses your money for what its leaders want? You are certainly not the only one.

In this article we are going to talk about some options you have to live without paying taxes, presenting you 23 different countries and territories.

1. Somalia

Somalia – for many understandable reasons is at the bottom of our list. It is simply a failed state attempt with leaders trying to cling to power. Tax freedom is probably a consequence of this, as if it weren’t for this even the last few like minded would flee Somalia.

An additional problem in the case of Somalia is access to the country unless you own your own sailboat or don’t mind being mugged. Mogadishu, the capital, is possibly the most expensive city in the world for tourists.

Tourism in Somalia? Well yes, it is possible.

You will have to inform yourself well and then have a budget of around $ 900 to $ 1,100 per day.

Without a military escort it is not possible to leave the airport. You also have to take into account the costs of safe hotels, armored cars, interpreters and tour guides.

You can count on the services of 6 soldiers paying $60 a day per military , which is relatively cheap. Exploring Somalia escorted by 10 armed men certainly has its charm. Although it may not be the best way to live like this in the long run.

2. Vatican City

Unless you are about to be named Pope, entry to the Vatican will be very limited for you. Of course you could join the Swiss Guard, become a priest, or get some other job on Vatican soil. But if you are not very Catholic, surely the activities offered by the Vatican are not the most interesting. Of course, you have Rome next door, a city where you could find everything.

3. Brunei

Brunei is a small and wealthy caliphate island in the Borneo Islands, surrounded by Malaysia. Thanks to its natural resources (oil), the country is not only rich, but can also afford to be totally closed to foreigners who wish to stay there for long periods of time.

While tourists can easily enter, the reality is that the only people who have any chance of getting a permanent residence permit in Brunei are the employees of large corporations. Of course, it must be borne in mind that it is a Muslim state, which means that there are many prohibited activities for its inhabitants.

4. Bermuda

Bermuda is one of those tax havens for the rich. This makes it one of the most expensive countries in the world. The small Atlantic island is located in the northern Caribbean and is home to a rich financial services sector. Emigration is quite complicated.

A 1-bedroom apartment can cost around $ 2,500 per month, a 2-bedroom apartment costs $ 3,500, and a 3-bedroom apartment costs $ 5,500. One with an ocean, garden, and pool view can easily cost $ 15,000 per month, and this is just the beginning.

Virtually any other good or service there costs at least 3 times more than in Canada or the US, countries that are not exactly cheap.

There are 3 ways to obtain a right of residence:

  1. Through a global work permit: the company sends its employee to one of its branches in the Bermuda Islands.
  2. New business permits: an existing company creates a new headquarters in Bermuda
  3. Global entrepreneur permit: a private investor opens a new business there.

Therefore, tax exemption in Bermuda is only possible if you have a very well paid job in the financial sector or a great fortune to start a company in this sector.

5. Qatar

Qatar is a very rich country thanks to its oil reserves, also relatively open to the West. Be that as it may, it remains difficult for foreigners to benefit from the country’s tax exemptions. If you do not wish to marry a local Muslim, you still have the possibility of being sent by your company.

Despite the fact that it is a Muslim country, for non-Muslim foreigners the way of life can still be quite “western”.

6. Western Sahara

Western Sahara is the largest unrecognized state in the world. Located in the south of Morocco and despite its attempts at independence, it is still quite dependent on its neighbor.

As the name implies, most of the territory is desert, through which Bedouins travel with their camels, the lack of government and the number of nomadic individuals makes collecting taxes very difficult.

In short, it turns out that Western Sahara is not attractive to emigrate, even though the attractive Canary Islands are only a few kilometers to the northwest.

Other than phosphate and the fishing industries, there is very little in this poor Muslim country. so you will hardly end up benefiting from the income tax exemption there.

7. Kuwait

Another duty-free state in the Persian Gulf. Again, the abundance of oil reserves allow tax exemption but, as in most other Gulf states, acquiring a permanent residence permit is very complicated. In practice, the only option is to enter the country as sent by a company.

8. Oman

Oman is not that different from the other Gulf states. Of course, there in addition to the option of entering as an employee of a large corporation, you can also obtain an investor visa. This visa does require that you submit to the arbitrariness of the Omani Ministry of Finance and is reserved only for extremely wealthy individuals with the relevant contacts.

9. The Maldives

The Maldives are widely regarded as an unattainable dream destination. Be that as it may, it is not really difficult or expensive to enter the country as a tourist. Almost anyone can afford it and spend their honeymoon there, flights are available from € 400 and hotels are also reasonably priced. Of course not those hotels overlooking the beautiful Indian Ocean.

Living permanently in this Muslim country is already more difficult. If you don’t want to get married, the other option is to try to work in one of the luxurious 5-star hotels to obtain a residence permit. The price levels in the Maldives are really high.

10. Monaco

The small Principality of Monaco on the French Riviera, which many of the famous and wealthy move to, is quite an expensive option, as is the backyard of the super-rich . It boasts of having one of the most impressive marinas in the world, and with the most exquisite casinos, in addition to having its own formula 1 track.

Monaco is not much bigger than Vatican City, and yet it has managed to attract a large audience. The virtual non-existence of crime is of course one of its strengths: hundreds of cameras monitor every step of its citizens. Citizens who largely do not mind being seen: eating with Prince Albert, buying expensive jewelry, sitting on his yachts or gambling in the casino.

All of this assembly naturally comes at a price. In the worst possible area and hopefully, you can find a small studio for € 1500 a month. The already high prices on the French Riviera are easily tripled in Monaco. Ultimately, Monaco is only suitable for those with good bank accounts.

Emigration is not really that complicated, you have to deposit €500,000 in a local bank and acquire a property for at least another €500,000 . Keep in mind, however, that finding a property for sale is not easy in a small city-state that only increases its prices.

To get tax exemption in Monaco you will have to spend a minimum of 6 months a year.

11. Nauru

Nauru is not much different from Monaco, or at least it was not in the past. It is one of the smallest countries in the world and was the richest state. This was so thanks to the phosphate mines, mines that are now depleted, which has led the island to a new era of much less splendor.

We find here a good example of what not to do. Wealth was consumed at the time without investing anything and without thinking about the long term. So now Nauru appears as a refugee camp for those trying to enter Australia.

Tax exemptions still exist in Nauru. Until not long ago there was also an attractive program to acquire citizenship through investments and donations. This option is no longer available due to pressure from the United States.

In any case, life on Nauru is no longer as interesting as it was in the past, also given its environmental problems.

12. The United Arab Emirates

We have an article on the United Arab Emirates in which we explain the opportunities that this state offers for entrepreneurs and investors. In any case, we will briefly present this Status to you here.

The Emirates are well known for their oil riches, mega projects and high standard of living. To be exact, this country is made up of many small Gulf States, of which Dubai and Abu Dhabi are the most famous. But others also offer exciting opportunities.

For those interested in emigrating there, there is the possibility of acquiring a visa by registering a company in the free zone and of course also if you have a work contract there.

13. The Pitcairn Islands

Also the Pitcairn Islands are another option to avoid direct taxes. Pitcairn is without a doubt the most isolated (semi-sovereign) state in the world.

It is located in the central Pacific 5,000 km from New Zealand and 5,700 km from South America.

Most of the people of Pitcairn are descendants of the survivors of the famous ‘Mutiny in Bounty’. They face problems like incest etc.

Pitcairn hardly makes any case for long-term residency there. Even Great Britain, whose last overseas territory in the Pacific is these islands, would rather get rid of these islands.

Immigration is not a problem, in fact, they will probably welcome you with open arms. However, the islands do not have an airport, so apart from 4-6 freighters per year and the occasional cruise, there is no way to get to it.

14. Norfolk Island

Blessed with a certain independence from Australia, the inhabitants of this island live a tax-free life and are easily accessible from Australia or New Zealand.

The inhabitants here are relatively wealthy thanks to the strong tourism sector, which also means opportunities for potential immigrants.

Although part of Australia, Norfolk Island has its own immigration regulations, which are more lax than Australia’s.

However, what makes this country really interesting is the possibility of obtaining Australian citizenship by staying long enough on Norfolk Island. Of course, the first thing you will have to do is obtain a residence permit for this island.

15. Cayman Islands

The reason we haven’t mentioned any of the Caribbean Islands yet so far is because they are at the top of the ranking. The Caribbean offers not only fabulous beaches but also many tax-free island states, including the most famous of them all: the Cayman Islands.

The financial services industry is thriving in the Cayman Islands, making this island, like Bermuda, somewhat more expensive.

Of course, if you decide to have something more than a mailbox for your company, that is, if you want to emigrate, you can. However, apart from good beaches, the island does not offer much variety of activities.

With an annual income of around € 125,000 and an investment of € 500,000, of which € 250,000 must go to real estate, you can obtain a residence permit on the island of Grand Cayman.

The smallest islands of the archipelago only require an annual income of around € 80,000 and half the investment (€ 250,000).

16. British Virgin Islands

The British Virgin Islands are only slightly inferior to the Cayman Islands, at least in terms of tax exemption. However, immigration has become very difficult. The government grants only 25 residence permits per year, which require a minimum residence of 270 days a year on the islands.

17. Bahrain

After the United Arab Emirates, Bahrain is probably the most attractive state in the Gulf. There you can become a resident without an employment contract and without the need to marry a local. Here’s how to obtain a residence permit for this small Gulf state.

In general, you should acquire a property worth approximately € 120,000, deposit around € 35,000 in a local bank and have income of at least € 1,200 per month (according to the current exchange rate).

In addition to complying with the other conditions, it is also essential to have a certificate of good conduct and a valid health certificate. For the rest, there are not many more obstacles for those who want to live in this area of ​​the Persian Gulf.

For retired people who have worked in the public or private sector for more than 15 years, the process is even easier; they simply have to show that they have a pension of around $ 1,300.

18. Vanuatu

Vanuatu is another Pacific island about which we have already written more thoroughly, it is undoubtedly a very attractive option.

Living there is like being in paradise, something that attracts many retirees. The exemption of course helps to make the island more interesting.

Regarding emigration to Vanuatu, in addition to the usual marriage, employment and investment options, Vanuatu also offers opportunities for landowners and retirees. Acquiring land for an approximate value of € 80,000 and with an income of about € 2,000 per month you will be able to access the residence permit.

19. Wallis and Futuna

The islands of Wallis and Futuna are French, a so-called “Collectivité d’outre-mer” of France in the Pacific Ocean.

These islands near French Polynesia voted for greater independence a few years ago, allowing them to determine their own fiscal matters. They are tax-free thanks to the generous financial support of the homeland (France).

Of course, isolated island life is nothing exciting, and in this case, it has little more than tax exemption.

However, the islands are so high in our ranking because access for EU citizens is so easy. Since they are part of France, having a European passport you can settle there in the same way as in any other European state.

20. Saint Bartholomew (Saint Barts)

St. Barts, the islands of the French Caribbean, are practically the opposite of Wallis and Futuna. Similar to Monaco, the French overseas territory is probably the most attractive playground for the wealthy in the Caribbean.

Of course, this is reflected in the price level making it more difficult to settle there even though immigration is not a problem for EU citizens.

High-end tourism brings a lot of wealth to the island and, of course, tax exemption. Otherwise, surely no one would go….

However, there is a problem: new residents are taxed in France for their first year, and we already know that taxes there are no joke. Of course, from the second year on, residents will enjoy exemption from local income taxes.

21. Turks and Caicos Islands.

Located in the north of the Dominican Republic, the Turks and Caicos are also part of the British Overseas Territory. This territory was once independent from the United Kingdom, but in recent years, due to internal problems, their freedom has been restricted.

The quality of life is high and it is not difficult to get tax exemption there. Be that as it may, in the long run the island becomes very boring.

You can get a residence permit without having a work contract paying around € 1,000 per year. After 5 years there and with a certain cost, you can convert these temporary permits into a permanent residence permit. The cost depends on whether you are an employee, employer or retiree.

22. Saint Kitts and Nevis

We have already talked on the blog about the advantages of having a business in Nieves . These islands also often occupy a position on the black lists of tax havens, but if you are willing to relocate there, it certainly has a lot to offer fiscally speaking.

Like other Caribbean islands, it has a program for acquiring its citizenship through investment or donation.

Saint Kitts and Nevis allow the rapid acquisition of your passport for a donation of $ 250,000. Taking into account the additional fees, you will need a total of $ 300,000 per person, $ 400,000 in the case of couples.

You can also access citizenship by investing in real estate. Of course, the procedures here are less clear and you depend a lot on the wishes of the government.

The passport there gives you visa-free access to about 130 countries, making Saint Kitts and Nevis a very attractive option for wealthy people from the Middle East, Russia or China.

Those who do not want to invest so much money can also choose to emigrate to the island. This process is pretty straightforward as long as you come from the right country.

According to the government website, applying for a residence permit costs just under $ 200 and only requires you to fill out several forms. Perhaps this is because no one wants to live on these rather unattractive islands.

23. The Bahamas

And we come to the best option in our ranking, the Bahamas. This archipelago off the coast of Florida has a high standard of living and is very close to the United States. It owes its relative wealth to the Americans, and also its high prices compared to other Caribbean islands.

For years, to get residency in the Bahamas you will have to pay an annual fee (starting at $ 1,000) or acquire a property. Naturally, the more expensive the property, the faster you will have access to a permanent residence permit.

In addition to the dozens of beaches, where you can see beautiful mermaids emerging from the water in the style of James Bond (as in Thunderball or Never Say Never Again ), you can also enjoy a diverse variety of entertainment.

While the capital Nassau has a bad reputation in terms of crime, the many foreign-friendly residential areas with high security attract expats willing to pay.

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