Have you ever heard of tax-free countries? If you are a business owner or entrepreneur, these countries open their doors to you, as many global investors are looking for countries that do not impose an income tax, seeking to reduce the tax burden.
Therefore, some wealthy people obtain second citizenship in a tax-free country.
On the other hand, some countries compete to minimize taxes or not impose them at all as a way to attract investors and business owners.
Income tax-free countries
There are some countries that do not impose income tax, as they depend on other sources of financing other than taxes, such as oil, tourism, and others. These are the top 6 tax-free countries.
1-United Arab Emirates
When mentioning tax-free countries, the UAE is the first to come to mind, as it is the most developed and attractive tax-free country. Therefore, many business owners and investors seek to start companies in the United Arab Emirates or expand business there, not only because of zero taxes, but thanks to the thriving economy, investment incentives and business opportunities.
Not only is this what makes the UAE, and especially Dubai, one of the most attractive investment destinations, but it is also that it is very welcoming to foreigners as more than 80% of the population of Dubai are foreigners.
Starting in 2023, the UAE imposes a corporate tax of 9%, but free zone companies doing business outside the UAE will not be charged any tax.
The Bahamas is not only one of the most popular tourist destinations around the world, but it is also one of the best tax free countries as it does not impose any corporate tax or income tax and is characterized by strong infrastructure and good services.
The Bahamas relies on tourism as a primary source of income and not taxes, so residents of The Bahamas pay absolutely no tax on their earnings, regardless of where they generate their income. The Bahamas also grants its residence permit easily and for a small fee, and it also offers to obtain permanent residence in exchange for investing in real estate of at least $ 250,000.
3-Saint Kitts and Nevis
St. Kitts and Nevis is another option for investors and wealthy people who want to obtain a second citizenship for a tax-free country, as it grants its citizenship through investment. St Kitts and Nevis enjoys no tax on personal income, gifts, wealth or capital gains.
Although St. Kitts and Nevis resident corporations are taxed on worldwide income, non-resident corporations are not subject to any tax on all income from sources outside the country. The investment environment in the country is also welcoming to foreigners through open investment policies and a business-friendly market.
Another Middle Eastern country on the list of countries is tax free, because it does not depend on taxes for financing, but rather derives expenses from the banking and tourism sector, in addition to having one of the largest oil reserves in the world.
Many global investors and international companies are heading to Bahrain, which does not impose taxes on personal income and can easily obtain residency through the official government portal. Even though the long-term value-added tax rate has increased to 10%, the rate is still competitive compared to other countries.
Bahrain also enjoys a strategic location on the Arabian Gulf, next to other important countries in the region such as Saudi Arabia, Qatar, the UAE and Kuwait.
This charming European country is the destination for the elite of the wealthy and the richest business owners, who are looking for a luxurious and safe lifestyle on the beaches of the French Riviera and hours away from other European cities.
Monaco’s government tends to attract wealthy people by imposing zero tax on residents and citizens, and allows them to easily obtain residency.
This small country that is located on the Persian Gulf and enjoys one of the highest per capita incomes in the world, and is considered one of the most developed countries in the Middle East, does not impose on its citizens and residents to pay a single penny as income tax.
Oil and gas revenues allow the government to stay afloat without relying on taxes, as Qatar has one of the largest natural gas reserves in the world.
Qatar also attracts foreigners not only thanks to its open economic policies and investment incentives, but also thanks to its advanced infrastructure, high-quality services, and a welcoming cosmopolitan atmosphere that makes it one of the best countries in the Middle East to reside for foreigners.
The bottom line: There are some tax free countries that levy zero income taxes such as the United Arab Emirates, Saint Kitts and Nevis, Qatar and Monaco. Some of these countries grant residency on easy terms, such as the UAE, and some are limited to the elite of the wealthy only, such as Monaco. Those countries that do not impose income tax on citizens and residents depend mainly on their other income from tourism, gas, oil, banks, and so on