A handful of countries and territories levy no personal income tax at all. Most fund their governments through oil and gas revenues, tourism, import duties, fees or consumption taxes instead. For high earners, the savings can be dramatic — but living in a zero-tax country does not automatically mean paying zero tax, and the list is changing: Oman, for example, has legislated its first personal income tax from 2028. This guide explains which countries have no personal income tax in 2026, how you can actually live in each, and the catches that matter.

Tax details below are drawn from PwC Worldwide Tax Summaries and official government sources; always check current rules before you move.

The Gulf states

### United Arab Emirates

The UAE does not tax individuals' salaries, investment income or personal capital gains. It has a 5% VAT and, since 2023, a 9% corporate tax on business profits above AED 375,000, according to the Federal Tax Authority. Dubai and Abu Dhabi offer world-class infrastructure, safety and a huge expat community. Residence is usually tied to employment, a business, or an investment such as the ten-year Golden Visa, and costs — especially rent and school fees — are high. See our guide to Dubai's tax benefits.

### Qatar, Kuwait and Bahrain

Qatar, Kuwait and Bahrain do not tax employment income. Residence is almost always sponsored by an employer, so these countries suit professionals recruited into specific jobs — energy, finance, construction, healthcare, education and aviation — rather than people who want to relocate independently. Summers are extremely hot, and social rules are more conservative than in Dubai.

### Saudi Arabia

Saudi Arabia does not impose personal income tax on salaries of individuals, although Saudi nationals pay zakat on certain business income and non-residents doing business may be taxed. It has 15% VAT. Its Premium Residency scheme offers long-term residence for investors, entrepreneurs and skilled professionals.

### Oman: tax arriving in 2028

Oman will become the first Gulf state to tax personal income: under Royal Decree 56/2025, individuals earning more than OMR 42,000 a year (about US$109,000) will pay a 5% tax on income from January 1, 2028, according to Oman's Tax Authority and EY. About 99% of residents are expected to be below the threshold.

The Caribbean and Atlantic

### The Bahamas

The Bahamas has no personal income tax, capital gains tax or inheritance tax. The government relies on VAT, import duties and fees, so everyday goods are expensive. Permanent residency is available to people who buy qualifying property, and the islands are a short flight from Florida.

### Cayman Islands

The Cayman Islands, a British Overseas Territory, has no income, capital gains or payroll tax on individuals. Its economy rests on financial services and tourism. Residence is generally through employment or investment-based residency certificates, and the cost of living — particularly housing and imported food — is among the highest in the Caribbean.

### Bermuda

Bermuda has no personal income tax, but it does levy a payroll tax, part of which is deducted from employees' pay, so it is not strictly tax-free for workers. Since 2025, large multinational groups are also subject to a new 15% corporate income tax in line with global minimum tax rules. Bermuda's economy centres on insurance and reinsurance, and its living costs are among the highest in the world.

### Saint Kitts and Nevis and other Caribbean states

Saint Kitts and Nevis has no personal income tax on individuals and runs one of the oldest citizenship-by-investment programmes, with a minimum contribution that has risen in recent years under agreements between Caribbean states and pressure from the EU and US. Several other Eastern Caribbean countries also run investment-migration programmes; check the official unit of each government before dealing with agents.

Elsewhere

### Monaco

Monaco abolished personal income tax in 1869. Residents pay none — except French nationals, who remain taxable in France under a bilateral treaty. Residency requires accommodation in Monaco and proof of substantial means, according to the Government of Monaco, in one of the most expensive property markets on earth.

### Brunei

Brunei, on the island of Borneo, levies no personal income tax, funded by oil and gas revenues. It is not a typical relocation destination: most foreigners there are employed in energy, education or healthcare on contracts.

### Vanuatu

Vanuatu, in the South Pacific, has no personal income tax and has marketed citizenship by investment. However, the EU suspended visa-free travel for Vanuatu passport holders in 2024 over concerns about its citizenship programme, a reminder that "tax-free passports" can lose value quickly.

The catches

  • Your home country may still tax you. US citizens are taxed on worldwide income wherever they live, and must keep filing US returns; the Foreign Earned Income Exclusion reduces but does not always eliminate US tax. Other countries, such as the UK, Canada and Australia, use residence tests that look at your ties — home, family, work — not just days spent abroad.
  • Exit taxes. Some countries, including Canada, Australia and several in Europe, tax unrealised gains on certain assets when you cease to be resident.
  • Indirect taxes and costs. Zero income tax is often offset by high prices, VAT, import duties, fees and very high rents.
  • Residence is not guaranteed. In the Gulf, losing your job usually means losing your right to stay. Investment-based residence can require large sums to be kept in place.
  • Social protection. Expats in the Gulf generally don't build a state pension and may not access public healthcare, so private savings and insurance matter.
  • Reputation and rules change. Tax-free jurisdictions face international pressure over tax transparency, and rules — as in Oman and Bermuda — can change.

Who benefits most

People who gain the most from zero-tax countries are high earners with portable careers, business owners who can genuinely relocate management and operations, and investors who can break tax residency at home. For middle earners with families, higher housing and school costs can cancel out much of the saving. Build a full budget, including home-country tax, before deciding.

Countries with low, but not zero, tax

If zero-tax jurisdictions don't suit you, consider low-tax or territorial systems instead: Panama, Paraguay and Costa Rica tax mainly local income; Bulgaria has a flat 10% income tax; Georgia offers a 1% turnover tax for registered small businesses; and Malaysia exempts most foreign-sourced income of residents until 2036 if it has been taxed abroad. See our guide to the best countries for low taxes.