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Countries without income tax
When it comes to moving abroad, potential expats may use income and earning potential to make a final decision on which country to move to. Moving to a country with no income tax could leave expats able to better utilise the money that they earn. Here at Santa Fe Relocation, we’re taking a closer look at the countries without income taxes that expats could choose, from the United Arab Emirates, to the Bahamas.
What Is Income Tax?
Essentially, income tax is the tax you pay on your income, however, this rate may differ depending on what type of income it relates to. Dividend income, for example, is taxed at a much lower rate compared to other types of income. In some countries, you are required to pay this tax on income such as wages from a job or money you earn from renting out a property, but in the countries mentioned below, your earnings remain unaffected by this kind of regulation.
United Arab Emirates
While there are several oil-reserve countries situated in the Middle East that do not have income tax, the UAE is said to be one of the most appealing and it’s easy to see why. Compared to a large majority of countries in the Middle East, the United Arab Emirates boasts a thriving economy and a multicultural environment that welcomes foreigners from across the globe. There are also exceptional educational facilities available here, which is just one of the country’s highest priorities, making the UAE an ideal choice for expat families. In fact, in Dubai alone, 92% of the population is made up of expatriates from around the world, many of whom are capitalising on the lack of income tax and high wages.
The requirement to pay income taxes in the Bahamas depends on residence, not on obtaining citizenship, and so when it comes to acquiring an income tax-free life, the Bahamas is considered to be one of the easiest countries in which to do so. Despite being a Caribbean island, the Bahamas is generally thought to be one of the less-expensive in which to live permanently. With good services and solid infrastructure, moving here is a dream for many. Similarly, there is no corporate tax, capital gains or inheritance tax in the Bahamas so expats will truly have control of their earnings and assets.
While the Bahamas is a highly attractive destination, Bermuda is considered to be an even more attractive tax-free destination. While living here is more expensive than living in the Bahamas, development here is skyrocketing – not to mention the efficient public transportation services and good roads already available at your fingertips! As well as it’s great transportation services, Bermuda is home to an endless list of gorgeous beaches including Horseshoe Bay Beach, Tobacco Bay Beach and Warwick Long Bay, the largest beach in Bermuda. While import tax in Bermuda is quite high, making the cost of living in the country substantially more expensive compared to many other Caribbean countries, the lack of income tax, capital gains tax, wealth tax, sales tax and VAT are seeing a number of businesses and expatriates turning their heads to the country.
Monaco is known as Europe’s tax heaven – but there’s one exception; French nationals who are a resident of Monaco are required to pay personal income tax in accordance to the French tax law. As one of the most desirable places to live in Europe, there’s much more to love about Monaco than the tax-free lifestyle. Here, you can do anything from trying your luck at Casino de Monte-Carlo, to cruising along the coast of the French Riviera in a supercar.
Whether you are moving locally or internationally, we’re here to help. For more information about how we can assist your move, get in touch with a member of our friendly expert team today.