There are several income tax-free countries around the world. Their governments do not need to collect taxes from their citizens. This article discusses detailed ideas of the best tax-free countries in the world.

Tax-free Countries

United Arab Emirates

UAE is a tax-free country. Apart from having no tax implications on personal income, this nation has no obligations for tax registration or reporting. 


The Bahamas

The Bahamas is one of the most attractive countries with no tax in the West Indies. Here, obtaining citizenship is not mandatory for enjoying a tax-free life. For permanent residents, there is a minimum residency requirement of 90 days. 

Expatriates must own a residence for at least 10 years. Moreover, that residence must also meet a minimum purchase amount greater than BSD 750,000 to get “speedy consideration”.

Furthermore, Bahaman citizens do not have any tax obligations on income, capital gains, inheritance, and gifts. Instead, the government of this nation uses VAT and stamp tax revenue to take care of its expenses.


Panama is a Central American country with a wide array of skyscrapers, beaches, and casinos. It has tax-saving laws and an extremely flexible legal structure, making it a coveted tax haven. Offshore companies that engage in business only outside the nation’s jurisdiction enjoy a range of benefits like no income, and corporate or estate taxes.

Furthermore, they even do not have to pay taxes on capital gains. Only when these companies take part in local businesses, do they have to pay local taxes. This nation also has strict banking secrecy laws that protect the privacy of the account holders. 


Kuwait does not impose any personal taxes on its citizens. However, foreign companies are applicable for corporate taxes.


Singapore is not a tax-free nation. It follows a progressive taxation policy that ranges from 0% to 22% (for income above S$320,000). But, there is no taxation on inheritance or capital gain.

Cayman Islands

The Cayman Islands are a tax haven in the Caribbean Sea. Apart from having no income tax, this country also has no payroll, capital gains, and withholding tax. This island nation has no corporate tax, making it a haven for multinational companies to have subsidiaries that will protect them from taxation. Thus, you can say that this country is one of the best tax-free countries for business. 


Dubai is a tax-free nation when it comes to imposing income tax on most of its citizens. However, if you own an oil business, there is a tax rate of 55%. There are entertainment taxes and import duties. 


Monaco is one of the most well-known tax havens and is synonymous with a high standard of living. There is no tax on individual income, and as long as a company makes 75% of its profits within Monaco, they are also exempt from any tax.

British Virgin Islands

The British Virgin Islands (BVI) is another hugely popular tax haven. There is currently no capital gains tax, inheritance tax, gift tax, or sales tax. The BVI is often used for international business structuring and asset protection.


Another island territory providing a tax haven for businesses and individuals, Bermuda does not impose any tax on individuals or corporations. Much of its income comes from import duties, payroll tax, and social insurance contributions. Bermuda is often used by offshore insurance and financial services.


Oman is a tax-free nation, as there is no taxation on personal income. Moreover, there are no taxes on income from property, wealth, capital gains or death. 

However, the Oman Government is currently evaluating a Personal Income Tax Regime as a part of its 2020-2024 Medium Term Fiscal Plan.  



Dominica is another nation on the list of countries with no tax on income. There are no corporate, estate, or withholding taxes in this nation. Furthermore, there is no taxation on gifts, inheritance, and income earned abroad. 

It has legislative policies that facilitate the creation of offshore foundations, trusts, and corporations. It provides privacy-protected and tax-friendly offshore banking services.

Saudi Arabia

Saudi Arabia has become a popular tax haven in recent years, and currently charges no income tax, and only 2% corporate tax for all nationally owned businesses – 15% for all other ownership.

Leave a Comment

Your email address will not be published. Required fields are marked *