When taking an additional nationality the choice of country will depend on personal, business and financial circumstances. One of the major factors, particularly for high earners, will be the differences between countries in their approach to income tax.
Several countries do not tax income and this may make the ultimate destination an easier decision to make.
Meanwhile here is a list of the top 15 countries who charge no income tax.
The Bahamas – One of the easier countries for foreign investors to enable tax-free income, with its proximity to the USA and good infrastructure adding to its appeal. Prices are high and there is a slightly higher reputation for crime, however areas where foreigners live have good security.
1. Saint Kitts&Nevis – One of the lower investment thresholds and a relatively quick time to residency, making it a very competitive destination.
2. Turks&Caicos Islands – With an inexpensive temporary residency permit the Turks&Caicos Islands, a British dependent in the Caribbean is one of the easiest countries to reside in and pay no income tax.
3. St Barthelmy – A French dependent in the North Caribbean with an immigration process easy to navigate for EU citizens and no income tax. However there are other taxes which must be paid to France for the first year.
4. Wallis&Futuna Islands – Situated in the Pacific Ocean, the islands of Wallis&Futuna are a tax-free French dependency and officially part of France, making it easy for EU citizens to obtain citizenship.
5. Vanuatu – Vanuatu in the South-West Pacific Ocean has a speedy and relatively inexpensive citizenship process, giving citizens the ability to travel visa-free to the Schengen Zone with access to almost 100 countries.
6. Bahrain – With zero income tax and permanent residency relatively easy to obtain, Bahrain is a popular choice. With its extensive oil reserves, Bahrain
attracts a high level of investment into its banking and tourism sectors.
7. The Cayman Islands – With no income tax and no VAT, the Cayman Islands are an attractive option. However, the wait for residency can be a long one and requires substantial investment. The ability for foreign investors to set up offshore exempted companies does add to the Cayman Islands’ appeal.
8. Monaco – Monaco’s preferential tax rules along with fast access to residency, a high standard of living and low crime rate make it one of the most popular destinations for international investors, particularly those in the super-high income bracket.
10. Bermuda – An excellent infrastructure and lack of income tax make Bermuda a popular choice with many foreign residents, particularly from the USA, employed in its large financial sector. However, being relatively isolated makes it an expensive place to live.
11. Anguilla – Advantageous tax rules for offshore exempted companies, who pay no income tax, estate taxes or capital gains tax. Residency can be an expensive factor.
12. United Arab Emirates – With a relatively stable economy and government favourable lifestyle factors increase the UAE’s appeal, along with a multicultural, and high English-speaking population.
13. Panama – Panama’s residency program is one of the easiest and cheapest in the world. This, together with the climate and good standard of living make
it an attractive destination. The country is particularly popular with offshore exempted companies and their owners, with favourable tax regulations.
14. Oman – Lucrative oil and gas industries ensure there is no need to charge income tax. Residency is difficult though not impossible to achieve. Oman is business-friendly to the West so there are opportunities for investors.
15. Qatar – Income per capita is the highest in the world. The only country in the Gulf to offer permanent residency for citizens of other countries.
