Countries with no income tax in 2026, and what still taxes you
17 places charge no personal income tax on residents in 2026, including the UAE, Bahrain, Qatar, the Bahamas, Bermuda, the Cayman Islands and Monaco. Oman starts taxing high earners in 2028.
Payroll and social taxes can still apply, and the country you leave may keep taxing you unless you really move.
Seventeen places tax no income of the people who live there. Most lists stop at the names. The useful questions come next: how you become resident, what it costs, which payroll and social taxes still apply, and whether the country you leave keeps taxing you. Here's the 2026 list with those answers.
Key takeaways
- 17 places charge no personal income tax on residents in 2026, mostly in the Gulf and the Caribbean.
- Oman brings in 5% from 2028 above OMR 42,000; the Maldives has taxed people since 2020.
- Territorial countries such as Panama, Paraguay and Georgia don't tax foreign income.
- No income tax isn't no deductions: Bermuda, the BVI and others charge payroll or social taxes on wages.
- The US taxes its citizens and green card holders wherever they live.
- Leaving a high-tax country can trigger exit tax, and some keep taxing you for years.
Countries with no income tax in 2026
| Country | Income tax on residents | What still applies |
|---|---|---|
| United Arab Emirates | None | VAT 5%; no employee social security for most expatriates |
| Bahrain | None | VAT 10%; expatriate employees pay 1% social insurance |
| Kuwait | None | No VAT; no employee social security for expatriates |
| Qatar | None on employment; foreign income untaxed | No VAT yet |
| Saudi Arabia | None on salaries | VAT 15%; zakat for Saudi and GCC nationals |
| Oman | None until 2027; 5% from 2028 above OMR 42,000 | VAT 5% |
| Brunei | None | No VAT |
| Bahamas | None | VAT 10%; National Insurance on wages |
| Bermuda | None | Payroll tax on wages, 0.25% to 12.5% for employees |
| Cayman Islands | None | No VAT; import duty on most goods |
| British Virgin Islands | None (zero rated) | Employees pay 8% payroll tax above US$10,000 |
| Turks and Caicos | None | Social security on wages |
| St Kitts and Nevis | None | VAT 17%; social security on wages |
| Antigua and Barbuda | None on employment | Self-employment and business income taxed up to 25% |
| Monaco | None, except most French nationals | VAT as in France |
| Vanuatu | None | VAT 15% |
| Anguilla | None | Goods tax 9%, services tax 13%; social security |
Rates and charges for residents; companies can be taxed differently.
Seventeen places, from the Gulf to the Caribbean, with no income tax on residents.
Territorial tax countries: foreign income untaxed
| Country | Foreign income | The catch |
|---|---|---|
| Panama | Foreign income not taxed | Panama-source income taxed up to 25% |
| Costa Rica | Foreign income not taxed, in November 2026 | A worldwide tax reform is planned for 2027, not enacted |
| Paraguay | Foreign income not taxed | Low rates on local income |
| Georgia | Foreign income of individuals exempt | 20% on Georgian salaries; 1% status for small businesses |
| Hong Kong | Salaries tax only on Hong Kong work | Foreign employment income outside it |
| Malaysia | Foreign income exempt to 2036 if taxed abroad | Conditions apply |
| Mauritius | Foreign income taxed only when brought in | Remittance basis |
| Thailand | Foreign income taxed when brought in, since 2024 | Earned from 2024 onwards |
| Uruguay | Tax holiday on foreign passive income for new residents | Changed on 1 January 2026; investment needed |
Live there, earn abroad, pay nothing on the foreign income, with conditions.
Tax-free countries that changed, 2020 to 2028
- 2020Maldives taxes peopleResidents pay up to 15% on worldwide income. Old lists still call it tax free.
- 2024Thailand taxes foreign income brought inFor income earned from 2024, whenever it arrives.
- 2025 and 2026Residence gets dearerBahamas property route to B$1 million; Georgia's investment route to US$150,000.
- 1 January 2026Uruguay narrows its holidayNew residents now need a large investment to keep foreign passive income untaxed.
- 1 January 2028Oman taxes high earners5% on income above OMR 42,000 a year, for residents of 183 days or more.
Oman from 2028, the Maldives since 2020, Thailand since 2024.
Which tax-free country could you move to?
Entry costs are the investment or property thresholds reported for each route in 2026, before fees. Immigration rules change often: confirm with the country before you plan.
Pick a region and a budget, and see where you could become resident.
Moving to a tax-free country: will your home country still tax you?
Leaving is the hard part: residence tests, tie-breakers and exit taxes.
Payroll and social taxes in tax-free countries
Employee shares only. Bermuda bands for April 2026 to March 2027; Bahamas National Insurance at 4.65% up to the weekly ceiling from July 2026. Employers pay more on top.
No income tax isn't no deductions: payroll and social charges remain.
A company in a tax-free country is not the same as living there
- The company may pay nothing where it's registered
- Your country can tax its profit if you run it from there, or under its controlled company rules
- Dividends you take are taxed at home
- Your own income tax follows your residence
- A company there, like a UAE free zone company, can come with a residence visa
- The old country needs to agree you've left
For company tax rather than personal tax, see our list of tax haven countries.
A company in a 0% place doesn't make you tax free. Where you live does.
Tax-free residence, banks and the CRS
Banks report accounts to the tax office of the country where you're resident, under the CRS. If you move but can't show a new tax residence, your old country is where the reports go. A residence permit, a tax residence certificate where the country issues one, and a real home there make the move stick.
Banks report accounts to where you're resident, so make it official.
Tax-free countries questions, answered
Which countries have no income tax in 2026?
Is Oman still tax free?
Is the Maldives tax free?
What is a territorial tax country?
Do US citizens pay tax if they live in a tax-free country?
Is Monaco tax free for everyone?
Can a company make me tax free?
Changelog
- 11 November 2026: first published.
A company where you live, or a company that comes with residence.
From a UAE free zone company with a visa to a 0% offshore company.