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January 17, 2025 | 12:25 pm
TEMPO.CO, Jakarta - The world is constantly grappling with arduous financial challenges that limit middle and lower demographics from gaining any valuable economic access. As income tax becomes a universally distressing issue, these best tax-free countries remain desirable destinations for people willing to renounce their citizenship in exchange for better welfare.
Despite the lengthy and expensive process of obtaining new citizenship, people from countries with strict tax regulations like Indonesia and the United States are becoming more adamant about fleeing to these tax havens.
5 Best Tax-Free Countries
Citing from Investopedia, Cleartax, and Global Residence Index, this article discusses the list of best tax-free countries including the United Arab Emirates, Bermuda, the Bahamas, and other nations below.
1. Bermuda
Having the most thriving environment including developed roads and public transportation than most Caribbean islands, Bermuda has been a haven for many U.S. expatriates. With no obligation to pay income tax, societies of this island enjoy outstanding seascapes, gorgeous beaches, and upscale restaurants in their daily lives. However, it is also important to note that Bermuda has one of the most expensive living costs due to its secluded location.
2. United Arab Emirates
According to Investopedia, the UAE is among the best tax-free countries in the Middle East, boasting a stable government, thriving economy, and strong English-speaking communities. Compared to other oil-producing nations in the Middle East, the UAE is more welcoming in terms of its multicultural environment. Notably, the country is also an opulent paradise for those ready to splurge large sums of money on plenty of entertainment options.
3. The Bahamas
In the Bahamas, expatriates can enjoy access to an income tax-free benefit without actually owning the citizenship of this island nation. The tax policy is considered more lenient as the requirement depends on residency.
The Bahamas allows permanent residents of at least 90 days and expats who maintain ownership of a residence for a minimum of 10 years to be excluded from the income tax category. Following the requirement, the residence must meet a minimum designed purchase amount by order of the Minister to buyers of BSD750,000.
4. Monaco
The world-renowned playground of billionaires, Monaco, is named one of the best tax-free countries. With a minimum of 500,000 euros in a Monaco bank required for a legal residency permit, expatriates are eligible to live income tax-free. Beyond its well-developed entertainment sources on the French Riviera, Monaco has one of the lowest crime rates, making it an inviting destination.
5. Panama
Unlike other countries, Panama administers a tax system that is based on a territorial concept of income. PwC highlighted that the city-state only imposes taxes on income earned from Panamanian sources. Additionally, citizens, residents, and non-residents are not taxed on exempt income such as interest on Panamanian government securities and interest on savings accounts.
In a world where financial pressures weigh heavily on individuals and families, the allure of these best tax-free countries offers a beacon of hope for those seeking economic relief and an improved quality of life. If you are interested in moving abroad, head to these best countries to get citizenship by investment here.
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