Zero Income Tax! Residents Of These Countries Don't Pay Income Tax

In the UAE, residents benefit from a tax-free income environment thanks to its oil-rich economy. Instead of income tax, there's a 5 per cent VAT on goods and services. The visa process for foreigners is relatively straightforward compared to other Gulf nations.

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The Bahamas offers a tax-free lifestyle with no income, capital gains, inheritance, or gift taxes. To obtain permanent residency, you need to stay at least 90 days annually and own property valued at over BSD 750,000 dollars. The country funds itself through VAT and stamp taxes.

 

Qatar exempts individuals from income tax on salaries and wages, applying taxes only to earnings sourced within Qatar. The country does have a 5 per cent VAT and a 10 per cent employer social security tax. Residency can be challenging, often requiring fluency in Arabic.

Vanuatu provides a tax-free environment for most income sources, with only a 12.5 per cent tax on property rental income. Companies enjoy a twenty-year tax exemption on profits. Citizenship by investment is available for 130,000 dollars, granting access to 97 countries.

Bahrain does not impose personal income tax, thanks to its oil wealth. However, residents must contribute to Social Insurance and Unemployment funds. Residency options include retiring, investing 135,000 dollars in property, or 270,000 dollars in a Bahraini company. Obtaining citizenship is challenging.

 

Currently, Somalia does not impose income tax, but ongoing conflict and instability make it a difficult place to live. The future of its tax policies may change as the country works to recover from conflict and address foreign debts.