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
Hi there is the Isle of Man a Tax Haven?or Tax Free?
There are no capital gains, inheritance tax or stamp duty, and personal income tax has a 10% standard rate and 20% higher rate. In addition there is a tax cap on total income payable of £125,000 per person, which has encouraged a steady flow of wealthy individuals and families to settle on the Island. For this reason property prices at the higher end of the market are very buoyant.
I’m retired US citizen and would like to retire to Germany and will not work in Germany. I understand I will pay US taxes to the US government, but will I be required to also pay German tax on my US government retirements and US investments (capital gains)?
I am a Swiss early retiree, 38 years old and I need a complete list of countries where I don’t have to pay income taxes as a retiree.
Thanks for any information.
Highest tax rate country: USA
Californian example:
Federal 37%
State 13%
FICA 14%
SSDI 2%
———————-
RATE: 66%
also outrageously high property taxes and sales taxes. Why does this article lie are they stupid or propagandizing?
Which is why I left Kommiefornia years ago to live in a free state. Take your pick: Montana, Idaho, Wyoming, South Dakota. All will do nicely, if you’re seeking a lower cost option. Cheers.
Does it make sense to get tax residency in a country with lower taxes (Italy and Greece have 10 and 15 year programs with a 7 percent tax rate), then withdraw your 401ks, pay the 7 percent tax and get all the taxes out of the way at a low rate?