16 Nations Exempt from Personal Income Tax payments
In the pursuit of a tax-friendly and expat-friendly environment, high-net-worth individuals often find themselves considering various countries around the world. Here's a guide to some of the popular destinations that offer attractive opportunities for investment and residency.
Kuwait, while being expat-friendly, does not have a significant need for foreign investment, making citizenship by investment impossible. On the other hand, Bahrain requires retirement, investment in property or local business to establish permanent residence.
The United Arab Emirates (UAE), particularly Dubai, is renowned for its entrepreneurial spirit and encourages foreign investment. The UAE is the 22nd-freest economy in the world and the first in the Middle East/North Africa region, thanks to its openness to trade and low taxes.
Monaco, a tax-free country on the French Riviera, offers a straightforward residency process for wealthy expats. It's a popular choice for those seeking a luxurious lifestyle and cultural experiences.
Bermuda has a payroll tax but no income tax, while The Bahamas offers a temporary residence permit that can be renewed annually, but permanent residence requires investment in property or businesses.
Oman, known for its oil and gas industry, has no income tax and has made efforts to diversify its economy and open it up to new opportunities. However, living in Oman can be a major adjustment due to its conservative culture.
Qatar, a small, wealthy country that made its fortune through the oil industry, offers permanent residence for expats, but requirements are strict and few lawyers specialize in the area. To be eligible for permanent residence in Qatar, you must have lived in the country for over 20 years and have a good command of Arabic.
Somalia, unfortunately, is not a viable option due to ongoing conflicts and a devastating humanitarian crisis.
The Cayman Islands require earning 120,000 Cayman Island Dollars per year and investing at least US$1.2 million in real estate or local companies for residency, and five more years to apply for citizenship. St Kitts and Nevis offers a citizenship-by-investment program with two options: a donation of US$250,000 to the Sustainable Growth Fund or an investment in a government-approved real estate project starting at US$325,000.
Nauru is a small island country in the southwest Pacific Ocean that is one of the world's tax-free countries but is not considered an island paradise. Western Sahara isn't a war zone, but its unstable legal status makes living and investing there difficult.
Vanuatu, a country that relies on tourism revenue to fund its government, is one of the few countries with no taxes where you can get a second passport quickly, easily, and relatively cheaply.
Bahrain, Brunei, and Saudi Arabia are also among the countries with no personal income tax. However, Brunei is difficult to live in and secure permanent residence or citizenship, while Oman isn't considered a viable long-term option for Nomad Capitalists.
In conclusion, finding the best place depends on personal preferences such as city living, sunshine, banishing winter, cultural experiences, culinary delights, travel opportunities, or a backup strategy. It's crucial to weigh these factors against the specific requirements and cultural adjustments each country presents. As the motto of Nomad Capitalist suggests, "go where you're treated best."
