Countries with no income tax
10 jurisdictions in GlobalTaxBook charge no personal income tax on salaries. They fall into two groups: oil-rich Gulf states — the United Arab Emirates, Qatar, Kuwait, Saudi Arabia and Bahrain — and offshore financial centres such as the Cayman Islands, Bermuda, the British Virgin Islands, the Bahamas and Monaco. Most still tax companies, consumption (VAT/GST) or payrolls, so "tax-free" is rarely literal. These are statutory rates and not tax advice.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
All 10 no-income-tax jurisdictions
| Country | Region | Corporate tax | VAT/GST | Capital gains |
|---|---|---|---|---|
| Bahamas | Caribbean | 0% | 10% | No capital gains tax |
| Bahrain | Middle East | 0% | 10% | No personal capital gains tax |
| Bermuda | Caribbean | 15% | No personal income tax; 15% corporate tax for large MNEs from 2025 | No capital gains tax |
| British Virgin Islands | Caribbean | 0% | No income tax, corporate tax or VAT; payroll tax up to 14% | No capital gains tax |
| Cayman Islands | Caribbean | 0% | No income tax, corporate tax or VAT (import duties instead) | No capital gains tax |
| Kuwait | Middle East | 15% | No personal income tax; no VAT yet | No personal capital gains tax |
| Monaco | Europe | 25% | 20% | No personal capital gains tax |
| Qatar | Middle East | 10% | No personal income tax; no VAT yet | No personal capital gains tax |
| Saudi Arabia | Middle East | 20% | 15% | No personal capital gains tax (general) |
| United Arab Emirates | Middle East | 9% | 5% | No personal capital gains tax |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
The catch with "tax-free" countries
Zero income tax is the headline, but the full cost of living somewhere is shaped by corporate tax, consumption taxes, social-security contributions, residency requirements and — for US citizens — citizenship-based taxation that follows you abroad. Read each country's full page for the complete picture, and see the lowest corporate tax ranking for where companies, not just individuals, pay least.
Frequently asked questions
Which countries have no income tax?
10 jurisdictions in GlobalTaxBook levy no personal income tax on salaries: Bahamas, Bahrain, Bermuda, British Virgin Islands, Cayman Islands, Kuwait, Monaco, Qatar, Saudi Arabia, United Arab Emirates. Most are Gulf states (UAE, Qatar, Kuwait, Saudi Arabia, Bahrain) or offshore financial centres (Cayman Islands, Bermuda, BVI, Bahamas, Monaco). Several still charge corporate tax, VAT or social-security contributions.
Do no-income-tax countries have other taxes?
Usually, yes. Many tax consumption through VAT/GST (the UAE, Saudi Arabia and the Bahamas all have it), levy corporate tax (the UAE 9%, Bermuda 15% for large multinationals from 2025), charge payroll or social-security contributions, or rely on import duties and fees. 'No income tax' rarely means 'no tax'.
Can I just move to a tax-free country to avoid tax?
It is far more complex than relocating. Your tax liability depends on tax residency rules, where your income arises, exit taxes in your old country, and citizenship-based taxation (US citizens are taxed worldwide regardless of where they live). This page is general information, not tax advice — consult a cross-border tax professional.
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Last updated: 2026-06-20