13 Best Countries With Zero Or Less Income Tax On Foreign Investments

There are some other countries with no VAT, property or income tax. It's worth mentioning, though, that some offer citizenship by investment. You can obtain residency by investment in some of them, but it is usually a lot more expensive. Moreover, not all these countries are advisable to live in or even visit. 

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The Cayman Islands flag

The Cayman Islands 

The Cayman islands have a warm tropical climate, many international companies, and good healthcare. There is no corporate tax and VAT is 0%. 

Property taxes include stamp duty at 7.5%. Citizenship is not possible but residency can be obtained by investment from $2.4 million. 


Bermuda has a humid subtropical climate, nice beaches and expensive groceries. Bermuda is an even more attractive Caribbean income-tax-free destination, however, it is also a much more expensive country to live. Its relatively isolated location makes Bermuda one of the most expensive living spots in the Western world.

There is annual company fee based on share capital levels, VAT is 0%, and property or land tax is based on assessed annual rental value. Citizenship is not possible but residency can be obtained through investment from $2.5 million.

Bermuda is much more developed than most Caribbean islands, with excellent roads and public transportation. From its famous pink sand beaches to its upscale restaurants, Bermuda is considered one of the most scenic and pleasant countries in the Caribbean. 

Bermuda flag

Many U.S. expatriates living in Bermuda are employed in the well-developed financial sector that exists in the country.

Bahrain flag

Citizenship is not possible but residency can be obtained by investment from $270,000, buying property or being a retiree with sufficient income. 


Bahrain has mild winters and hot summers. Almost half of the population are expats and 70% of the population is Muslim so respect for religious practices and local customs is required. 

Corporate income tax is 46% only for companies operating in the gas and oil sector. VAT is 10%, property taxes include stamp duty at 1.7-2%, municipality tax for rental to expatriates at 10%. 


Located on the French Riviera, Monaco has extensive, well-developed marinas that are usually occupied by a selection of yachts from around the world. 

Monaco is well-known as a perennial vacation playground for ultra-high-net-worth European elite individuals. It has long been considered one of the most beautiful, luxurious, and one of the most expensive places to live in the world. 

A favorite of the rich is the Monaco Grand Prix, with many apartments renting for $10,000 or more a night during the event. Corporate tax is up to 33% for companies earning more than 25% of their turnover outside of Monaco. VAT is 20% and there is no property tax. 

Monaco is a city-state that is not much larger than the Vatican. It has one of the lowest crime rates of any country in the world. However, accessing Monaco's income tax-free financial environment is quick but not cheap. 

Monaco flag

Citizenship is not possible but residency can be obtained by investment from Euro 1 million. 

A legal residence permit can be obtained in less than three months but requires depositing at least 500,000 euros in a Monaco bank.

Kuwait flag


Kuwait is a relatively safe country with a dry, hot climate, and strong Muslim traditions. Corporate income tax is 15%, VAT is 0%, but there are plans to introduce 5% VAT in 2023. 

There are no property taxes and citizenship or residency is not possible to obtain. 


Qatar has a hot climate with quite strict Muslim traditions regarding dressing, public displays of affection, and drinking alcohol. 

Corporate income tax is at 10%, VAT is 0% but there are plans to introduce 5% VAT in 2023, and property fees are levied on lease registrations. Citizenship and residency is not possible to obtain.

Qatar flag
The Bahamas flag

As Caribbean islands go, the Bahamas is one of the relatively less-expensive ones in which to live. The country has good infrastructure and services. 

Many U.S. expats who have chosen to make the Bahamas home still travel back to the U.S. for significant medical care.

The distance to the U.S. and the beautiful atmosphere make the Bahamas a great place for many tax expats.

The Bahamas 

The Bahamas is a famous Caribbean island with warm climate, go with the flow attitude and a large expat community. 

Enjoying the benefit of not having to pay income taxes in the Bahamas depends on residency, not on actually obtaining citizenship, making it one of the easier countries in which to access an income tax-free life. 

There is a minimum residency requirement for permanent residents of at least 90 days, and expats must maintain ownership of a residence for a minimum of ten years. 

The residence must also meet a minimum purchase amount that is prescribed by the Minister with persons that purchase a residence for more than BSD $750,000 getting "speedy consideration."

The license for business operation is up to 3% of the turnover, VAT is 0-12% and property taxes include stamp duty at 1-10%, and real property tax from 0.75-2%.


Brunei has a hot and wet climate. It is a Muslim country and respect for religious practices and local customs is required. 

Corporate income tax is 18.5%, VAT is 0%, and property taxes vary depending on the municipality. Citizenship and residency is not possible to obtain. 

Brunei flag
Andorra flag

Andorra has one of the most well-developed offshore banking industries in the world.


Located in the Pyrenees mountains between France and Spain, Andorra enjoyed a reputation for many years as a tax haven that did not impose personal income taxes.

That changed in 2015 when the country introduced a scalable tax rate capped at 10% for individuals making over 40,000 euros each year.

Andorra's mountain location makes it a scenic spot for skiers and mountain climbers. Life in Andorra is relatively quiet and easygoing. Andorra is renowned for not only low tax rates but also for the lack of inheritance and gift taxes. 

Antigua and Barbuda 

Antigua and Barbuda is a beautiful island state with pink and white sand beaches, coral reefs and blue lagoons. Apart from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance. 

Companies registered as IBC (international business companies) are exempt from paying taxes for 50 years, including corporate tax and tax on income from real estate, securities, and other assets. They only pay an annual fee, depending on the authorized capital size.

Antigua and Barbuda don't have many tax treaties, and most of them are with the Caribbean countries. This means that when getting citizenship there, you will still likely have to pay taxes in your other passport's country.

Wealthy foreigners may obtain Antigua and Barbuda citizenship by the investment of $100,000 or more. The investor must be over 18, with legal income and no crime record.

It is also possible to include the family in the application: a spouse, financially dependent children and parents, and unmarried siblings. 

Antigua and Barbuda citizenship is not inherited automatically, so an investor has to make sure to add all eligible family members within the first five years of obtaining citizenship.

Antigua and Barbuda flag

The Antigua and Barbuda passport also allows its holders to:

. enter the Schengen countries visa-free and stay there for up to 90 out of 180 days;

. visit the UK visa-free and stay there for 180 days;

. get a B-1/B-2 US 10-year visitor visa; and

. travel visa-free to 150 countries altogether.

Apartments, villas and shares in a coastal resort are government approved for Antigua and Barbuda citizenship. This means you can get citizenship and a profitable rental property.

UAE flag

As a primarily Islamic country, the Emirates does have rules and traditions to respect: women are advised to dress modestly everywhere, but in the beach area, public displays of affection are generally frowned upon, and alcohol purchasing is often regulated.

United Arab Emirates 

There are a number of oil countries in the Middle East that have no income or corporate tax, and the UAE is considered one of the most attractive with a relatively stable government and economy. 

The UAE has a thriving economy and a more multicultural environment than the majority of countries in the Middle East. 

The United Arab Emirates offers multiple entertainment and educational facilities, investment options for businesses from all around the world and support for expats from the government.

Aside from zero income tax, UAE currently has no taxes for legal entities, but they plan to introduce a 9% federal corporation tax for businesses with high net profits. There is also a corporate tax on oil companies and foreign banks.

The Emirates does not offer citizenship by investment, but it is possible to obtain a renewable residence visa by investment from $205,000.

In the UAE, every foreigner with a residence visa is considered a tax resident. But a Tax Residency Certificate, one needs to stay in the country for 180+ days. 

You'll need this certificate if you earn income in another state and want to use a double tax treaty to reduce your taxes there.


Vanuatu has the fastest citizenship program and the second passport can be obtained in 1-3 months by investing from $130,000. There are no taxes on personal income, inheritance, capital gains, and capital export for individuals. 

Companies can be exempt from corporate and other taxes for 20 years, only paying $300 annual fee. Vanuatu hasn't concluded tax treaties with most of the states globally, so one with a Vanuatu passport or a company may be obliged to pay taxes in another country.

The Vanuatu passport allows visa-free entry to 96 countries, including the UK, Singapore, and Hong Kong. It also allows you to apply for a multi-entry 5-year tourist visa in the US. However, Vanuatu citizens will still need a visa for visiting Schengen countries.

Vanuatu flag

Vanuatu allows investors to obtain its citizenship in as little as 1-3 months. Expats are attracted by its wonderful nature, sand beaches, waterfalls, diving spots and decreased tax burden.

St Kitts and Nevis statehood flag

Saint Kitts and Nevis citizenship is hereditary, meaning if you have a passport, your children may also obtain citizenship.

Saint Kitts and Nevis 

Saint Kitts and Nevis islands are famous for their picturesque nature: mountains, rainforests, and beautiful beaches with black volcanic sand. Travelers go to St Kitts and Nevis to sunbathe, dive, go on a yacht along the coasts and try local foods. 

There are no taxes on income, dividends, royalties, or interest for residents in Saint Kitts and Nevis. Corporate tax is 33%, VAT is 10-15%, and property ownership is taxed at 0.2 to 0.3%.

Saint Kitts and Nevis citizenship is obtainable by investment from $150,000. The investor must be over 18, with legal income and no criminal record. It is also possible to include the family in the application: a spouse, financially dependent children and parents, and unmarried siblings.

In terms of visa-free traveling, Saint Kitts and Nevis passports are among the strongest Caribbean ones. It allows one to travel to 157 countries visa-free, including some less accessible ones such as Singapore, Hong Kong, the UK, Ireland, and all of the Schengen countries.