13 Countries Where Expats Can Pay Zero Tax

If you are looking to protect your wealth by moving to a low-tax country, international consultancy firm KPMG has published the information you need.

A new database lists the tax rates of every country between 2003 and 2019.

The surprise is only 13 nations out of more than 190 have a zero tax regime and they are almost exclusively in the Gulf States or Caribbean – except for tiny Brunei Darussalam in the Asia Pacific.

Without fail, each offers a splendid , sunshine climate – it seems tax havens don’t go to cold places.

Another nine countries have a top income tax rate between 7% and 10% – they are Guatemala, Central America, (7%) and Montenegro (9%), while taxpayers in Bosnia and Herzegovina, Bulgaria, Kazakhstan, Macedonia, Mongolia, Romania and Serbia all enjoy a rate of 10%.

Seven of the 10 most highly taxed nations are in Europe, with Japan, Israel and the small tropical paradise of Aruba in the Caribbean.

The global average tax rate is 31.23%, rising to a high of 38.27% in the European Union and a low of 27.99% in Africa.

The research also offers information about social security rates paid by employers and employees in each country.

The  full table shows the top rates of income tax paid in each country dating back to 2003

Countries with zero tax

  • Anguilla
  • Antigua and Barbuda
  • Bahamas
  • Bahrain
  • Bermuda
  • Brunei Darussalam
  • Cayman Islands
  • Kuwait
  • Oman
  • Qatar
  • St Kitts & Nevis
  • Saudi Arabia
  • United Arab Emirates

Source: KPMG

Countries with 10% or less top tax rates

  • Guatemala (7%)
  • Montenegro (9%)
  • Bosnia and Herzegovina, Bulgaria, Kazakhstan, Macedonia, Mongolia, Romania and Serbia (All 10%)

Source: KPMG

Top 10 countries with the highest income tax rates

  • Sweden (57.19%)
  • Japan (55.95%)
  • Denmark (55.89%)
  • Austria (55.00%)
  • Finland (53.75%)
  • Aruba 52.00%)
  • Netherlands (51.75%)
  • Belgium (50.00%)
  • Israel (50.00%)
  • Slovenia (50.00%)

No other countries have income tax at a rate of 50% or more.

Source: KPMG

Stay Connected

Latest News

Non Resident Landlord Scheme Explained for Expats

The UK Non-Resident Landlord Scheme (NRLS) is the way HM Revenue & Customs collects tax on rents from property owners who spend...

OECD Explained

The Organisation of Economic Co-Operation and Development (OECD) is a forum for the governments of 37 developed countries to discuss economic and...

QROPS List – June 1, 2020

The number of Qualifying Recognised Overseas Pension Scheme (QROPS) across 28 countries has hit 1,917 – with 13 opening during the past...

FATCA List – June 2020

The US Internal Revenue Service’s list of foreign financial institutions (FFI) reporting under the Foreign Account Tax Compliance Act (FATCA) increased by 1,854...

Economic Impact Payments for US Expats

The US government is paying millions of dollars into the bank accounts of American expats as coronavirus economic impact payments and this guide will...

HMRC Explained

HMRC is short for Her Majesty’s Revenue and Customs. The HMRC collects the taxes and customs duties that the British government spends...


Please enter your comment!
Please enter your name here