Yahoo Finance Top 7 Countries With Zero Income Tax
Amid the discussions about the United States economy, inflation and higher prices this presidential election season, one key point for candidates has been their views on taxes.
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While many voters would rather pay less or even none in taxes, most understand that the money generated helps support governmental resources and programs.
If you’re tired of paying income tax, perhaps you’re considering moving to a country without it. According to Insider Monkey, “Unlike the countries that generate the majority of their revenue from income taxes, the countries with no income taxes in the world rely on other taxes such as sales tax, property tax, excise tax, and social security tax, among others.”
Here’s a look at seven countries with zero income tax.
Also check out which states to move to if you don’t want to pay taxes on social security.
Bermuda
In addition to the beautiful beaches and waters, you may be considering Bermuda for financial reasons. The government derives its revenue from customs duties, payroll taxes and other indirect taxes.
“Apart from value added tax (VAT) and stamp duties, you won’t pay much in taxes to the Bahamas, but you’ll need to spend a substantial amount of money to live there,” per Nomad Capitalist. “In the long run, though, it could be worth it to pay no income taxes while lounging on the beach.”
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Monaco
Nestled on the French Riviera, this tiny, glamorous principality has long been a magnet for the wealthy, partly due to its zero personal income tax policy. Moreover, Monaco is known for being safe and luxurious. It’s also among tax-free countries where it’s relatively easy to become a citizen.
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Cayman Islands
A major global tax haven, the Cayman Islands boasts no direct taxes. This includes no inheritance tax, value-added tax, or capital gains tax. The government generates revenue through trade tariffs, work permit fees, and financial sector taxes.
Bahamas
With an economy heavily reliant on tourism and offshore banking, the Bahamas does not levy a personal income tax on its residents. It also doesn’t impose inheritance, capital gains, or value-added taxes. Instead, a value-added tax (VAT) on certain goods and services is in place.
United Arab Emirates (UAE)
With its booming economy, modern infrastructure, and high living standards, the UAE is an attractive destination for many expatriates. Part of this allure is the zero personal income tax, although a corporate tax is imposed on foreign banks and oil companies.
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Qatar
Another Gulf state with vast hydrocarbon wealth, Qatar provides residents with several tax advantages, including no personal income tax. However, it imposes corporate taxes on foreign companies in certain sectors like the UAE.
Oman
Oman is among the Gulf states that don’t impose personal income tax on individuals. The state’s revenues predominantly come from the oil and gas sector, although efforts are ongoing to diversify its economy and reduce dependence on oil.
While the idea of zero income tax is appealing, potential expatriates should consider other aspects, such as the cost of living, indirect taxes, and the overall quality of life. Additionally, businesses and individuals should always consult with tax professionals to fully understand the implications of relocating to a tax haven.
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This article originally appeared on GOBankingRates.com: Top 7 Countries With Zero Income Tax
