Not everyone welcomes a visit from the taxman. Well, you would, if he were related. Income taxes are financial headaches imposed on the working class. That may probably be the most sincere definition you’ve heard so far.
yea, “imposed”! An annual patriotic debt owed to the government. But no matter how patriotic, enormous debts can be overwhelming.
Of course, countries with zero taxes exist. This doesn’t end the Taxman’s position. On the contrary, how else will you enjoy beautiful countries like the Maldives and Qatar if not with a zero-debt conscience?
Imagine sitting at a beach in the Bahamas, sipping down a straw of the famous Hibiscus Margarita, then boom! it hits you, the taxman will come collecting just when the holiday is over.
How Countries with Zero/Lower Income Tax Survive
There are countries with zero and almost insignificant tax rates. This doesn’t make the country’s economy poor. 90% of Alaska’s revenue is generated from its oil and gas industry hence boasts of a 0% income tax rate.
Another source of revenue is the tourism industry, generating enough for the economy and eliminating any need for resident taxation.
Pack your bags! inform the express company, you will relocate!
With this in mind, here’s a list of countries you might consider.
1. The United Arab Emirates (UAE)
I considered the UAE to be among the most popular countries in the middle-East. Even with its robust and stable economy, however, this government operates at a 0% income tax rate fee.
This country is very famous for its grandeur with a zero tax fee. It therefore placed levy as a corporate tax on established oil companies and foreign banks.
Excise tax is levied on specific goods harmful to human health or the environment. They collected levies on tobacco, alcohol, fuel, and airline tickets.
The Value Added Tax (VAT) is not an income-generated tax. It is however, based on consumption and placed on majority goods and services.
Blessed with oil and entertainment among several unique Arabian cultures, certain moral and religious rules are to be adhered to strictly.
Rules in the United Arab Emirates (UAE)
➢ Non-Muslim residents are to get a liquor license and follow its rules.
➢Women are required to dress modestly. Definitely, swimwears are not an excuse for body exposure.
➢ Cross-dressing is unquestionably illegal.
➢ The cohabitation of unmarried individuals is not allowed.
➢ Homosexuality and all forms of same-sex marriage are highly prohibited.
2. Zero Income Triangle Tax Policy in Bermuda
It is almost unbelievable to link Bermuda to a zero tax rate. This luxurious city offers sceneries almost impossible without income taxes.
The cost of living in Bermuda is triple that in the US, UK, and in Canada. Such high standards are because of isolation from the United States’ eastern coastline.
Living in Bermuda is quite expensive. However, with high-paying jobs, such luxuries can be afforded. This island has access to good roads, public transport, and high-end restaurants.
It is indeed affordable when compared to other Caribbean islands.
Here’s one fact that should convince you; Bermuda has been rated the second most friendly country in the world. Yes, second to Canada.
There’s no income tax but revenue is collected from other indirect taxes. There’s also a big financial body set up to provide financial help to workers.
3. Income Taxes Die of Thirst in Western Sahara
For clarity, sun-shadowed hammocks and beaches are not the necessary descriptions of a tax-free country. The tax-free status of Western Sahara results from territorial disputes.
Western Sahara is a neighbouring north-western African country operating at a zero income tax rate.
This region is noted for 40 years of war and occupation, with the Sahrawis retreating into refugee camps during such times.
Apart from its unstable legal system, it has a few natural resources. Western Sahara suffers in the hands of early Moroccans.
They isolated the occupied regions with high sand walls spanning over 2,700km through the desert.
They also placed the country at the centre of the world’s longest minefield. This might be the only instance when residents suffer from the lowest income tax country membership.
4. Somalia- Where Income Taxes are Shot At!
Somalia is considered to be less inhabitable howbeit, this country provides an opportunity to live lavishly. Inarguably, it is a tax haven but you’ll spend more recovering from the details of war and general unrest.
In the first place, the current chaos contributes a major factor to the zero tax policy. Its failure has nothing to do with foreign finances or its revenue.
The capital of Somalia-Hargeisa is considered the safest place with a population of 760,000.
Well, the Locals can be welcoming, but this depends on the nature of impending violence against foreigners. We can see underdevelopment in its naked roads having no traffic tool.
Somalia has a dress culture but this wasn’t by introducing moral inclination. Whatever their reason, you’ll miss out on the feel of fresh air.
They prohibit shorts and sleeveless shirts for men; women must be covered with long dresses or skirts. There’s zero tolerance for alcohol in Hargeisa; it is advised you get high on tea, fruit juice, or coffee.
Watch out! Somalia is one of many countries with lower income tax but, expectations might be brought low.
5. Income Taxes Submerged in the Bahamas
Speaking of countries with lower income tax, the rumours are true! The Bahamas is heavenly! why would they want to impose on the decisions to live beside sky waters and Snapchat beaches?
Tourism, as earlier explained, provides a wealth of revenue for country affairs. Such activity can be actively seen in the Bahamas. Its popularity for tourist attractions brings in its official bucks.
Certainly, its fast-growing economy (despite a zero-tax policy) and astonishing beaches make it one of the most habitable countries.
The sum of $1,000 is paid at the immigration for a temporary residence permit. This temporary residence permit is to be renewed annually.
However, the Bahamas has recently begun to collapse on foreign residents who use the temporary authorisation without making investments.
If you want to stay there in the long run, you’ll need to buy at least $250,000 on the property to be licensed for permanent residence.
It is most common, to be treated favourably by the Bureau of immigration for your huge investments in the Bahamas.
Amazing how Bahrain is recorded among the wealthiest nations in the world even with a zero income tax policy. Now if you didn’t believe Pastor Jones, hear ye now- “giving is far better than receiving”.
Being one of the first Persian Gulf cities to have discovered oil, it has developed to maintain the aforementioned title.
As you know it, ” nothing good comes easy”. It is not easy getting permanent residence in Bahrain.
Conditions for permanent residence are:
➢You must be retired! Are you thinking what I’m thinking? A community with “grey”-pounds!
➢ Second, you must have a property investment worth over $135,000.
➢ Last, have a $270,000 worth of investment in a Bahraini company.
Now citizenship is another story. While acquiring a permanent residence is possible, you need to:
➢Be fluent in Arabic
➢Be resident in the country for 25 years consecutively.
7. Cayman Island and Its No Income Tax Policy
Cities with beautiful tourist sites are a country’s jackpot. Just as the Bahamas, the beautiful and iconic beaches on the Cayman Islands are magnets to huge revenue income.
However, all good things come at a great price (in Obama’s voice). You must be ready to deposit a handsome investment, handsome!
Here’s the catch:
➢$145,000 is the required annual earning power. This should provide financial traction to enable the least $600,000 in real estate or local companies.
➢8 years is the required duration to get permanent residence.
As mentioned earlier for most Caribbean countries, permanent residence acquisition depends on your investment power.
Minor investments are possible but in places like the Cayman Brac and other obscure islands.
Cayman Island is one of several countries with lower income tax, but the real question is– can you afford that price tag?
8. Brunei and Zero Income Tax
Register this first ” Oil is the Deal”. It is the Oil wealth of this Sultanate that affords it cover over the common income tax.
Situated on the Malaysian island of Borneo, Brunei is a tax-free country that comes sadly with a free coupon- dictatorship. Confirming “not everything is free in free-town”.
Brunei, although tax-free, it is extremely difficult to live in. One would naturally shrug at the idea of living there.
The government is very dictatorial, putting fear in the minds of locals, restricting their association with immigrants.
Permanent residence and citizenship are only by the Sultan’s approval.
9. Lower Income Tax in The Maldives
The Maldives, a small country island in the Indian Ocean, offers you grandeur at zero tax. Still, on the issue of expensive tourism resorts, the Maldives sees no need for an income tax.
However, getting a permanent residence in the Maldives is almost impossible. You must become Muslim-that’s one. The second is obviously a permanent residence application.
10. Oh Man! Zero Income Tax in Oman
Oman like other middle eastern countries, possesses great wealth. Thanks to its entrepreneurial, oil, and gas industries, it has no need for an income tax.
Despite showing great wealth in its oil and gas reserves, it ventures into other areas of revenue.
This attitude of diversifying its economy and keeping open arms to opportunities displays it as a great option in the Gulf for profitable investments.
To register its dedication to development, the Omani government makes provision for Investor Residence Visa on its website.
As in Middle Eastern states, Oman culture is quite conservative. There’s almost a license to everything purchasable. You cannot buy a bottle of wine without a liquor license.
Oman doesn’t consider long-term residency.
11. Kuwait
Again, Oil! Many countries, particularly in the Gulf, own large oil Industries hence, no need to tax residents.
Kuwait is one of these countries and it is among the listed expat-friendly countries in the world. Foreign citizens in Kuwait occupy two-thirds of her population.
Getting permanent residency requires having a relative in Kuwait or having Formal employment there.
There’s no need for foreign investment, therefore, citizenship by investment is not an option.
11. Monaco
On the French Riviera, Monaco is the field of European civilization. With her tremendous wealth and development, she sits amongst countries with lower income tax rates.
With the country’s high-income ability, income tax evasion is not among its annual deliberations.
Citizenship in Monaco can begainedfreely, although several richgestures must beshown to get residency. If your choicest location is to experience the European enchantment, Monaco is an option.
12. Qatar
Two words- oil industry. Qatar’s neighbours in the Persian Gulf boast about her small size yet conservative culture.
Exceeding the bounds of rapid development with its foreign investment and wealthy influence, she, of course, earned her fortune from the oil industry.
Revenues generated from her oil and gas industries let her boast of unburdening her residents.
This country has continued to develop in leadership and political positions worldwide.
Despite her population, she’s feted with the title of the most forwardcountry in the middle east
Most times, the crown doesn’t save the King. Qatar, being autocratic still struggles with attaining diplomatic ties with other middle-eastern countries.
Witnessed by her affiliations with several rebel groups, they have left Qatar a stand-alone since the discovery of the Arab Spring’s financial support.
Altogether, Qatar still offers a tax less than the regular tax policies, hence can be included among countries with lower income tax.
Notwithstanding, Qatar still remains a relatively peaceful place to live in. She is the only country in the Gulf offering permanent residency.
Although obtainmentprocesses are strict and not multiplex professionals to get, citizenship can still begained.
20 years minimum is the required residency duration for citizenship. Acquirers must be fluent in Arabic.
13. Nauru the Zero Income Island
Very popular for the sobriquet “Pleasant Island”, European sailors- Nauru named this small island country in Micronesia.
However, the island doesn’t seem quite pleasant. It rather has become a cautionary tale; the result of colonial mismanagement.
Nauru is now most famous for the controversial detention camp business.
Nauru’s phosphate mining industry has been a major contributor to its crumbling even with its beautiful features, it stands no chance.
The Nauru government in her last efforts, placed the country among others with zero income tax.
Therefore, if you’re considering tax-free countries to live in, Nuru might be an easy option.
14. Vanuatu
Vanuatu, like other islands relies solely on the revenue it gets from tourism. It’s very possible to get a passport at a cheap price.
Earlier in 2015, her government set up a recovery program after a disastrous cyclone. This program “citizenship by investment program” was a recovery fundraiser to repair the damage.
Presently, Vanuatu’s citizenship by investment program has expanded to accepting Bitcoins for further development and restructuring.
Acquisition cost is lesser than most in the Caribbean and its passport has become solid in past years.
However, transport to Vanuatu is quite expensive and tiring. Kuala Lumpur hubs sell these cheap tickets.
Howbeit, if your choice of location is among countries with lower income tax, Vanuatu might just be right for you.
Saint Kitts and Nevis, unlike many other tax-free countries, it is easy to establish rights of residency here.
The price for citizenship is lower than most nations and comes with no future additives. To secure a permanent residence, pay $150,000 into the hurricane relief fund.
Many people are not fully aware that they could have one less tax bill to pay.
Furthermore, Zero taxation, residential taxation, citizenship-based taxation, or territorial taxation all mean different things and conditions apply to the duration of stay in one country and unique government policies.
Others might know these impositions but have not actually thought out an escape. The country’s resources inarguably can provide a quality lifestyle.
The notion that tax rates are proportional to a quality lifestyle is totally wrong.
It is true, quality comes at a great price, but don’t you forget “information is power”. You should consider empowering your friends and relatives by sharing this information with them.
