Top 13 Places to Live Without Income Tax

2

Looking for a tax-free lifestyle? I’m here to share the best places to live without income tax. Say goodbye to taxes and hello to financial freedom!

Ready to ditch income taxes and wondering where to move? Let me guide you through the top spots where your paycheck remains wholly yours. I’ve explored the best places to live with no income tax, and I’m here to share the details. These 13 spots range from sandy beaches to bustling cities —all with zero income tax.

Living without income tax is possible and it’s happening in corners of the world that offer great lifestyles too. I’m here to break down the best spots for you, showing what each has to offer.

Ready to find out where you can enjoy your income in full? Let’s get into it and find your ideal spot for enjoying more of what you earn!

Best countries with zero income tax

Ready to dive deeper? Let’s start by exploring Bermuda, a great choice for its blend of beauty and benefits.

1. Bermuda

Thinking of moving to Bermuda? Aside from not having to pay personal income tax, there’s a lot to love about this island. You’ll find yourself basking in mild, subtropical weather all year round—though do keep an eye out for hurricanes from June to November.

In terms of living, while Bermuda isn’t the cheapest place, you get what you pay for. For a good quality one-bedroom apartment in Hamilton, expect to pay around $2,000 a month. But trust me, the views and the community are worth it. The island is well-connected too, with an efficient and affordable public transport system of buses and ferries.

If you’re considering working here, you’ll need to land a job before arriving. Your employer will sort out your work permit. You cannot job hunt on a visitor’s visa.

For me, the best part about considering Bermuda as a new home is its vibrant expat community. However, the cost of living can be a challenge, so it’s something to think about before making the move.

2. Oman

Next up on our list of countries with no income tax is Oman. This Middle Eastern gem is an intriguing option, not just for the financial perks but also for its rich culture and stunning landscapes. Oman’s weather can be quite warm, with long, hot summers and mild winters, perfect for those who love sunshine.

Muscat, the capital, is where I’d recommend starting your Omani adventure. It combines modern amenities with historical sites, all set against a backdrop of dramatic mountains and the Arabian Sea. Living here means you’re at the heart of it all, with good quality one-bedroom apartments starting at around OMR 550 ($1,500) per month.

However, it’s not all easy going. If you’re moving with kids, be prepared for steep schooling costs. International schools in Muscat can charge around $18,000 per year for teenage students, which is something to consider.

For expats, Oman is relatively welcoming, though the lack of a personal income tax is balanced by the fact that you won’t contribute to social security unless you’re Omani. This might be a downside if you’re used to more comprehensive social benefits.

All in all, if you’re looking for a place with a slower pace of life, rich history, and no income tax, Oman might just be the spot. Just weigh the cost of living and schooling if you’re bringing the family.

3. The Bahamas

In my opinion, The Bahamas is one of the best places to live with no income tax. The country offers clear blue seas and vibrant island life just a stone’s throw from Miami. This proximity makes it ideal for remote workers or anyone looking to stay connected with the US while enjoying a laid-back island vibe.

Nassau, the capital, is particularly appealing with its blend of local culture and modern amenities. It’s perfect for those who want the best of both worlds—relaxation and convenience. The Bahamian weather is another huge plus, featuring sunny skies and warm temperatures year-round, ideal for anyone tired of harsh winters.

However, living in paradise comes with its costs. The Bahamas is known for its high cost of living. This is largely due to import taxes that drive up prices for goods and services. While there’s no income tax or capital gains tax, you’ll still contribute to social security, with caps on payments to keep things manageable.

For anyone considering this beautiful archipelago, it’s a trade-off between higher living expenses and the luxurious benefit of no income tax. It’s definitely a place where you can work during the day and relax on the beach as the sun sets—truly a dream for many!

4. Monaco

Monaco, one of the best places to live without taxes, has been a tax haven since 1869. It’s perfectly perched on the French Riviera, which makes it super easy to jet off to other parts of Europe whenever you fancy.

The weather here is pretty much what you’d dream of when thinking about the Mediterranean: mild winters and delightfully warm summers, perfect for soaking up some sun on your days off.

But living in this slice of luxury comes with a hefty price tag. Expect to shell out about $2,200 each month on living expenses alone, not including rent. Speaking of which, renting a one-bedroom in the city center can set you back around $7,100.

Monaco is definitely high-end living with all the perks of no income tax. It’s important to note, though, that French nationals living here might still need to pay income taxes back in France, unless they’ve been residents since before 1957.

If the upscale lifestyle and quick trips around Europe sound like your thing, Monaco could be just the spot for you. Just make sure your wallet is prepared for the impact!

5. United Arab Emirates

The United Arab Emirates (UAE) is a magnet for professionals and expats seeking a vibrant, dynamic place to live and work. It stands out with its mix of traditional Arab culture and ultra-modern urban environments, especially in cities like Dubai and Abu Dhabi.

Unlike Oman’s quieter, nature-focused setting, the UAE offers a fast-paced, modern lifestyle. Both have zero income tax, but your choice depends on whether you prefer Oman’s tranquility or the UAE’s energy. As someone who loves the outdoors and a more laid-back environment, I’d lean towards Oman.

The weather here is consistently sunny and warm, which is perfect if you love the heat. But be ready for some intense summer temperatures, though thankfully, everywhere you go is air-conditioned.

One thing to note: while there’s no income tax here, everything you buy has a 5% VAT added on. It’s a small price to pay, though, especially compared to VAT rates like the UK’s 20%. Sure, the cost of living is on the higher side, but the lack of income tax and the generous salary packages often balance that out.

If you’re after a place where career opportunities meet a tax-free salary, the UAE is definitely worth considering. It ranks as one of the top places to live for no income tax, where you can enjoy a luxurious lifestyle alongside the financial perks.

6. Antigua and Barbuda

If you’re looking for countries with no taxes, Antigua and Barbuda offers a great mix of lifestyle and financial perks. It’s an ideal choice if you’re chasing the sun and some tax breaks, making it one of the top places to live and visit in the Caribbean.

7. Brunei

Brunei might not be the first place that pops into your head when thinking about relocating. But believe me, it has a lot to offer beyond zero income tax. It’s one of the places in Asia with the fewest taxes: no export, payroll, or manufacturing taxes either.

For those looking for a quieter life, Brunei is appealing due to its excellent security, clean air, and unspoiled jungle perfect for nature lovers. Petrol is incredibly cheap here, and the central location makes regional travel easy. You’ll also find good schools and readily available domestic help, which can make daily life quite comfortable.

However, Brunei has a conservative lifestyle, even compared to zero-tax countries like the United Arab Emirates. There are no bars or clubs, and alcohol is restricted. Non-Muslims can import it in limited quantities for personal use, but that’s about it. The beaches, while beautiful, aren’t ideal for sunbathing or water sports due to marine pollution and sandflies.

Another thing to consider is that foreigners are definitely in the minority, which can be a different experience if you’re used to more cosmopolitan environments.

If you’re looking for a peaceful place with financial benefits and don’t mind a more subdued social scene, Brunei could be a great choice. It’s one of the best places to live in Asia with no income tax, offering a unique lifestyle that’s quite different from the usual expat hubs.

8. Cayman Islands

If you’re wondering where to live without income tax, consider the Cayman Islands. Here, not only can you enjoy zero income tax, but you also get the stunning Caribbean lifestyle as a bonus.

There are plenty of incredible places to live in the Cayman Islands. I recommend Seven Mile Beach if you love vibrant, tourist-friendly spots with beautiful stretches of sand and upscale amenities. For a quieter, more local feel, the East End offers peace away from the usual hustle and bustle.

The weather is mostly sunny and glorious, although you’ll want to prepare for the hurricane season that runs from June to November. It’s just part of the trade-off for living in paradise.

And here’s a big plus: the 0% tax rate on income applies to everyone living here. As a U.S. expat, you’ll still deal with some taxes back home, like Social Security. Locally, your financial burden is light with no property, capital gains, or corporate taxes.

Living in the Cayman Islands offers a fantastic blend of relaxation and financial benefits. It’s a unique place to call home.

9. Qatar

Qatar could really be a great fit if you’re eyeing a move to a place with no income tax on your salary. In Doha, where most expats land, you’ll find yourself in the middle of a vibrant city that’s a mix of modern life and rich traditions.

Central neighborhoods like West Bay or The Pearl are on the pricier side, with two-bedroom apartments going for about 13,000 QAR ($3,500) a month. But, with the Doha Metro expanding, living in the suburbs is becoming a viable option that can save you a substantial amount in housing costs.

Expect the weather to be hot, much like in the UAE and Oman. Qatar offers a more conservative environment, so there’s a bit of an adjustment there, especially if you’re coming from a more liberal country. Dress codes and public behavior are areas where you’ll want to adapt.

The expat community in Qatar is active and really helpful, which is great for smoothing out those initial bumps in settling into a new country. Overall, Qatar is a solid choice if you’re after a blend of new opportunities, significant financial perks, and a chance to immerse yourself in a new culture.

10. St Kitts and Nevis

With daily flights to the U.S., staying connected with friends or hopping back for business is easy. Really, St Kitts and Nevis offers a sweet deal for anyone looking to balance a relaxed lifestyle with great financial benefits. It’s a top choice if you’re scouting for the best countries to live with no income tax.

11. Vanuatu

Vanuatu is a gem for anyone looking to escape not only income tax but also capital gains and inheritance taxes. The cost of living might be higher due to its island status and the need to import many goods, but the trade-offs can be well worth it for the right person.

The climate here is tropical. You’re in for beautiful, warm weather year-round. This makes Vanuatu a playground for outdoor enthusiasts—think unspoiled, uncrowded beaches and some of the world’s best snorkeling spots where the sea life is just stunning.

For settling down, Port Vila, the capital, is the most practical choice. It’s where you’ll find more expats, amenities, and social activities. If solitude and nature are more your thing, consider the more remote areas where you can really soak in the peace and natural beauty of the islands.

One thing to note, though, is the occasional threat of natural disasters like cyclones, which are part and parcel of many Pacific Island nations. Regular flights to New Zealand and Australia make it easier to stay connected or get away if needed.

In all, Vanuatu offers a relaxed pace of life with incredible natural beauty. It’s a spot that invites you to enjoy life outdoors and appreciate a slower, more deliberate pace of living.

12. British Virgin Islands

The British Virgin Islands (BVI) offer a unique opportunity for those looking to live in a country with no income or capital gains tax. While this financial perk is attractive, there’s more to the BVI than just tax benefits.

Life in the BVI is centered around the stunning natural environment. The weather is typically Caribbean. It’s warm and sunny most of the year, which is ideal for anyone who loves outdoor activities like sailing, snorkeling, and enjoying the beaches. However, being in a hurricane zone means you’ll need to be prepared for storm seasons.

Road Town is the largest city and acts as a hub of activity. It’s where you’ll find the most amenities and expat communities. For a quieter lifestyle, Virgin Gorda offers a more laid-back atmosphere but with fewer services.

Living here does come with challenges. The cost of living can be steep—around $3,000 per month on average—and job opportunities are more limited, particularly for expats. The lack of public transportation means you’ll likely need a car to get around comfortably.

Despite these drawbacks, the BVI remains a top choice for those seeking a peaceful island life alongside financial benefits. It stands out as one of the best places to live with no income tax. I’d recommend it highly for those who can embrace the slower pace and the beauty of island living.

13. Saudi Arabia

Wrapping up our list, Saudi Arabia is another great option for living tax-free. Like its Gulf neighbors, Saudi offers tax-free salaries, but it also pairs this with a lower cost of living and some pretty plush expat compounds.

In cities like Riyadh and Jeddah, you’ll find loads of shopping, good food, and cultural events that can make life there quite dynamic. These cities are especially geared towards expats. You’ll find compounds that often feel like little resorts, featuring everything from pools to tennis courts.

The climate is mostly hot and dry, a big shift if you’re coming from a cooler place. Saudi Arabia is also incredibly safe and offers a high standard of living. However, it’s a lot more conservative culturally. The role of religion is significant and touches on many aspects of daily life, including what you wear and how you interact socially.

For expat families, international schools are usually the go-to, but they’re expensive and often have waitlists.

So, if you’re looking to maximize your earnings and can adjust to the cultural settings, Saudi Arabia could be a fantastic choice. It offers a unique blend of financial benefits and a high-quality lifestyle.

Frequently asked questions (FAQs) about countries with no income tax

Which EU country has the lowest income tax?

Why is Dubai tax-free?

Dubai keeps things tax-free to draw businesses and skilled people from around the world, helping diversify its economy beyond just oil.

Is income tax higher in the UK or the USA?

What’s the highest-taxed country in the world?

Belgium often tops the list as the highest-taxed country, where high earners can see over half their income go to taxes.

Related