When talking about money and living a luxurious life, no one wants to pay off a huge sum in taxes when they can use them on themselves instead! This is why many people are considering moving and working in low-tax countries, where they do not have to worry about paying high taxes.
While some countries rely on taxes to generate income, other countries have other sources of income that help them cut down on taxes.
Here are 10 countries with the lowest income tax:
Another Gulf country that is keeping its citizens happy when it comes to taxes is Bahrain. Bahrain also relays on oil exports to keep its economy flourishing and thus does not have any income taxes.
Bahrain is also offering foreigners the Golden Residency Visa, which applies to those owning property worth BHD 200,000 ($530,000) or more, are retired and have a monthly income of BHD 4,000 or have certain talents and meet the country’s requirements.
The country has become the second country in the Gulf to open its doors to foreigners!
Attractive Caribbean island, Bermuda is one of the countries that does not impose taxes on its citizens. However, the country is known for being developed and quite expensive.
Being a beautiful and attractive touristic place, Bermuda relies on tourism to keep its economy going.
Even though it is a tiny nation, Brunei makes enough wealth from its oil to skip on income taxes. However, employers are expected to pay 5% of local employees’ wages.
When it comes to corporate taxes, oil and gas companies are subject to a 55% income tax rate.
4. The Cayman Islands
The Cayman Islands are among the countries that use tourism and financial services to enrich their economies. In fact, it is reported that more than 99K companies are registered in it, making it a global offshore financial center.
Known for its petroleum, Kuwait is one of the richest countries in the world that does not need income tax to keep its economy floating. Therefore, Kuwait does not impose any income tax on its citizens.
Well-known for being the go-to place to some of the world’s richest people, Monaco is not only a safe haven for the rich to enjoy but also a tax haven! While the country brings in wealthy people, it does not have any income tax laws in place.
The only available taxation in Monaco is on businesses that have a turnover of more than 25% outside of the country. The tax can reach up to 33.33% on profits obtained both inside and outside of Monaco.
While an employee’s salary, wage, and allowance are not subject to income tax, any individual is subject to taxes if they have a qualifying Qatar-source income. Whereas, businesses are subject to a flat tax rate of 10%.
8. The Bahamas
We have all heard, visited, or dreamed of The Bahamas! While most of us think about a relaxing and luxurious vacation when thinking about it, The Bahamas is also a smart place for investors because it does not have any income taxes.
Being considered as a “tax haven”, The Bahamas generates its revenue from VAT, tax stamps and by attracting foreign investors.
9. United Arab Emirates
One of the MENA countries that are known for generating revenue from their oil exports is UAE. This helps the country grant its citizens a tax-free life!
UAE is a great place for investors and business people to set up their businesses not only because it does not have any income tax, but also because it offers them a 10-year residence visa!
10. Western Sahara
While Western Sahara does not have natural resources that generate enough income, the country does not impose any income tax on its citizens.
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