Tax-Free Countries Around The World

Business LoungeAugust 17, 2017

If you’re a US citizen, you know how annoying taxes can be. It’s a burden that you can’t avoid, and if you mess it up, you could end up in serious trouble. Some people who are tired of high taxes sometimes decide to get a second citizenship from a country that has low or even no taxes. However, as long as you’re an American citizen, you’re obliged to pay the taxes even if you don’t live in the American territory. Most countries, however, tax their subject based on a residential basis, and people who want to avoid paying taxes know that there are two paths they can take:

1.Become residents of a country that’s tax-free, one that doesn’t inflict income taxes, capital gains, and dividends. When they’ve done that, they simply move their income from corporate to a personal level.

2.Become residents of a country that only imposes territorial tax on the income they earn within the borders of that country, but not on the income they earn abroad.

The Bahamas

Stefan Ugljevarevic/Shutterstock

Since this is such a popular tourist attraction, and that’s how the country earns most of its money, it’s completely tax-free. If you’re considering moving there, you can get temporary residence for just $1000, and you can renew it every year. Moreover, if you’re looking to get permanent or long term residence, you can invest $250, 000 in the country’s real estate.

The British Virgin Islands

The home of a lot of entrepreneurs from all around the world that are seeking a place to make their money while avoiding taxes in a completely legal way. If you want to get a residency permit, all you will need to do is to pay a security bond of $1000 and present your bank statements to show your personal wealth.

Cayman Islands

It’s not exactly cheap living here. You will need a yearly income of $150, 000 and about $500, 000 invested in local companies or real estate. However, these rules are a bit more flexible if you live on one of the smaller islands. This is why this place is better for fund management than offshore companies that still hold an active business.

Monaco

If you’re looking for an amazing place to live while having adventures, this country (that doesn’t even have an airport) will attract you with its beauty, as it’s a part of the breathtaking French Riviera. You can’t get there by plane, but you can drive there or take a boat ride.

Oman

It’s a bit hard to apply for residency here, but most people use two ways. You can be employed there, or go through a family member that’s already a citizen there. However, before you can even apply for residency in this country that doesn’t tax personal revenues, you need to get a Non-Objection certificate that has to be signed by the government and the sponsor.

Turks and Caicos

This country is completely tax-free and has an economic residency program that helps foreigners get residence quickly. The two conditions you need to fulfill for this is to either invest $300, 000 by building a house there or invest $750, 000 in a company that is owned by locals.

The United Arab Emirates

Iakov Kalinin/Shutterstock

When it comes to getting residence in the United Arab Emirates, all you need to do is set up a company that is completely owned by foreigners in one of its free trade areas. This shouldn’t be too hard considering the fact there are over 40. You can also set up an offshore company in Dubai and even own real estate in some development projects there. The United Arab Emirates are tax-free when it comes to personal income.

Vanuatu

There’s an interesting way to get residency here. You can obtain it by donating to the country through a residency program that has been relaunched this year. However, it won’t be cheap. You will need to invest approximately $89, 000 for a residence visa that will last for one year and that can be renewed annually. If you want a longer residency, you can get a visa that will last you for five, ten, or 15 years, but you will be required to make a larger donation. Vanuatu is an offshore financial center that’s located in the South Pacific, so if you think a sizable donation would be more profitable for you than paying taxes, go for it.