Tax free countries? Surprised to know that there are tax free countries in the world?
You might need to pay income taxes in your country, but there are other countries where people are free of taxes. Thus, they are called tax free countries.
Income tax is the tax charged on the income or the salaries of people or specifically on any profit that an individual gets. Income taxes can be charged on wages, salaries, earnings from lotteries, royalties, interest, dividends, and many more. In the United States, there are only a few states that do not levy income taxes. Otherwise, you must be paying both the state as well as federal taxes.
In many countries, income taxes are imposed progressively. The ones earning more should pay more taxes. But, it is not true in all of the countries as different countries have different income tax systems.
For most countries, income taxes account for more than 75% of government revenues. This holds for around half of the total countries in the world. The sum of money generated from the income taxes is thereby used or funding the public services and paying government obligations. For such countries, it is extremely hard to operate by making it a tax free country.
You might be wondering if income taxes contribute such a huge percentage of government revenues for a lot of countries, then how do tax free countries operate?
If you are from countries where income taxes are skyrocketing like the USA, Australia then, it might be hard for you to believe the existence of tax free countries in the world.
It might look like the tax-friendly countries or the tax free countries operate in an underfunding environment. But, this doesn't need to be the case for all. If a country has another strong source of revenue then, making it a tax free county wouldn't affect it much. For example, the top few tax free countries in the world are rich in crude oils and thus, can operate even without imposing income taxes. Moreover, even though a country is free in income taxes, this doesn't mean the people in that country are living a tax free life. Those countries could charge Value Added Taxed (VAT), casino taxes, tariff taxes, etc.
Let's move on to finding out the tax free countries in the world.
The Bahamas is the country in North America and is officially known as the Commonwealth of The Bahamas. The Bahamas is one of the border countries of the Caribbean Sea. It is famous for the gigantic hotels nearby the beautiful beaches.
The Bahamas is a tax free country in the world where there are no income taxes or wealth taxes. Regardless of the source of income and the amount of their income, the residents are not bound by income taxes.
Bahrain is a country in the middle east and is officially known as the kingdom of Bahrain. With a population of around 1.6 million, Bahrain is one of the island nations in the world consisting of 40 natural islands and 51 artificial islands.
Like the Bahamas, Bahrain is another tax free country in the world. Influenced by its beauty and tax- free system, you might want to settle and explore your business in Bahrain. But, here is the thing you need to know, the governmental system in Bahrain makes it one of the hardest countries to get citizenship. Also, there needs to be a huge investment or you need to be a retired person to get a permanent residency in Bahrain.
Brunei is a small nation situated on the island of Borneo. Brunei is a rich country where 95% of the export is from the oil and gas industry.
Being a rich country with other sources of revenues, Brunei is a tax free country in the world. Though being a rich country with no income taxes, if you have dreamt of settling in Brunei then, it will hardly be true. There is a special permission system in which the Sultan is the one who grants the permission to get the citizenship and residency in Brunei.
Bermuda is a British overseas territory well known for its pink sand beaches. Bermuda is an island country consisting of 181 islands.
Bermuda doesn't levy income taxes to its residents. Instead, the country has a huge revenue from the tourism industry and other financial services sectors which thus make it a tax free country.
Cayman Island is a British Colony territory surrounded by three small islands. It is extremely famous for beach hotels and various scuba diving and snorkeling sites.
Cayman Island is a tax free country where you people are not bound by the income taxes. The flourished tourism industry of this country proved enough revenues that there is no need for income taxes.
The Maldives is a small island country with strong tourism industry. The tourism industry is the main reason why the Maldives is successful in being a tax free country in the world.
The Maldives has a very strict system when it comes to providing permanent residency or citizenship to foreigners. There is hardly any program for it and even any program exists then, one must be a Sunni Muslim. Therefore, being a country with no imposed income taxes is not very beneficial for foreigners.
Somalia is an East African country with a unique flag consisting of just one star in the middle.
Somalia is a tax free country with political instability and thus is not the safest place to live in. The severe civil wars that occur in Somalia make it a dangerous place to move in even though it doesn't levy income taxes.
The United Arab Emirates is a Middle Eastern country with more than 9 million population. The two main cities in the UAE, Dubai, and Abu Dhabi, attract millions of tourists every year.
Rich in oil and gas industries and tourism industries the UAE is one of the tax free countries in the world. It is also the best place to flourish in your business as there will be no income taxes levied. Moreover, it has easier visa policies in comparison to other Gulf countries.
The Pitcairn Islands is a British Overseas Territory with a population of around 100. It comprises four volcanic islands with active volcanoes.
Though it is a tax free country, the environment is not very suitable for moving in. Thus, considering the unsafe environment of volcanoes, a country with no income taxes is not enough to attract people.
Qatar is one of the middle eastern countries with more than 2 million population. Did you ever know that Qatar and Bahrain have the same flag just with slightly different colors?
Qatar accumulates enormous wealth from its oil and gas industry and thus is a tax free country. Moreover, its peaceful environment and diverse, advanced economy make it a great place with no income taxes. But, getting a permanent residency is quite hard in Qatar.
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