Best low-tax countries for expats
The most tax-friendly destinations for a foreigner who moves in fall into three groups: no-income-tax states (the UAE, Qatar, Monaco, the Bahamas, Cayman Islands), territorial-tax countries that ignore foreign income (Panama, Costa Rica, Georgia, Malaysia, Singapore, Hong Kong), and countries with a generous special regime (Italy's lump-sum flat tax, Greece's 7% pensioner tax, Cyprus non-dom, Portugal's IFICI). The table below ranks our top picks on income tax rate, tax basis and special regimes. Headline rules, 2026; not tax advice.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Top 20 low-tax destinations for expats
| # | Country | Tax basis | Top income tax | Special regime | Verdict |
|---|---|---|---|---|---|
| 1 | Cayman Islands | Territorial | 0% (no personal income tax) | Residence by independent means | Very expat-friendly |
| 2 | Oman | Territorial | 0% (no personal income tax) | 18-month foreign-income exemption (from 2028) | Very expat-friendly |
| 3 | The Bahamas | Territorial | 0% (no personal income tax) | Economic Permanent Residency (real estate) | Very expat-friendly |
| 4 | Bahrain | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 5 | Bermuda | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 6 | British Virgin Islands | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 7 | Kuwait | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 8 | Monaco | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 9 | Qatar | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 10 | Saudi Arabia | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 11 | United Arab Emirates | Territorial | 0% (no personal income tax) | — | Very expat-friendly |
| 12 | Georgia | Territorial | 20% | Small Business Status (1% turnover) | Expat-friendly |
| 13 | Hong Kong | Territorial | 17% | — | Expat-friendly |
| 14 | Singapore | Territorial | 24% | — | Expat-friendly |
| 15 | Belize | Territorial | 25% | QRP (Qualified Retired Persons) | Expat-friendly |
| 16 | Costa Rica | Territorial | 25% | Pensionado / Rentista visas (not a tax regime) | Expat-friendly |
| 17 | Malaysia | Territorial | 30% | Malaysia My Second Home (MM2H) | Expat-friendly |
| 18 | Panama | Territorial | 25% | Pensionado retiree visa (not a tax regime) | Expat-friendly |
| 19 | Andorra | Worldwide | 10% | Passive (non-lucrative) residency | Expat-friendly |
| 20 | Philippines | Territorial | 35% | Special Resident Retiree's Visa (SRRV) | Expat-friendly |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Ranked by our transparent expat-friendliness score (top income tax rate + tax basis + special regime). A navigation aid, not advice — see the methodology.
The catch with "low-tax" destinations
A low or zero income tax rate is the headline, but the full cost of relocating is shaped by VAT and consumption taxes, property and social-security charges, how easily you trigger residency, exit taxes in your old country, and — for US citizens — citizenship-based taxation that follows you abroad. Read each profile for the complete picture, and see the best countries for foreign-pension retirees if you are retiring on a pension.
Frequently asked questions
What are the best low-tax countries for expats in 2026?
The most tax-friendly destinations for a foreigner who moves in are the no-income-tax states (UAE, Qatar, Monaco, the Bahamas, Cayman Islands, Bermuda), the territorial-tax countries that ignore foreign income (Panama, Costa Rica, Georgia, Malaysia, Singapore, Hong Kong), and countries with generous special regimes (Italy's lump-sum flat tax, Greece's 7% pensioner tax, Cyprus non-dom, Portugal's IFICI). The right choice depends on your income type, nationality and where you can get a visa.
How is this ranking calculated?
We score each of the 65 destinations on three transparent factors: the top personal income tax rate (no/low rates score higher), the tax basis (territorial and remittance beat worldwide), and whether a special expat or retiree regime exists. It is a navigation aid, not a precise ranking and not advice — see the methodology page.
Is a low-tax country always cheaper to live in?
No. Many low-income-tax places still levy VAT, property, payroll or social-security charges, and headline 'no tax' rarely means 'no tax at all'. Cost of living, healthcare, visa requirements and your home country's exit rules all matter — tax is just one input.
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Last updated: 2026-06-21