Tax Free Countries In The World

Business | 2020-12-13 20:26:41.0 | By Sunita Pathak

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.

What Type Of Tax Is Income Tax?

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.

How Do Tax Free Countries Work? Can A Country Survive As 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.

List Of Tax Free Countries In The World

1.The Bahamas



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.

Related: How Can You Get A Work Permit In Canada?


2.Bahrain



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.


3.Brunei



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.

Related: 10 Top Best Destinations In The World


4.Bermuda



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.


5.Cayman Islands



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.


6.Maldives



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.


7.Somalia



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.


8.United Arab Emirates



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.


9.Pitcairn



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.

Related: Top 10 Best Private Islands For Sale In 2020


10.Qatar



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.


tax free Tax Free Countries In The World freetaxusa irs free file taxact free tax preparation credit karma tax melsham

Comments

You may also like

Best Apps To Find Lost Or Stolen Android Phones

Best Apps To Find Lost Or Stolen Android Phones

Programming | 2020-12-28 15:18:14.0

Losing a phone doesn't only make you lose money but there is another thing that hurts more and that is losing data. The loss of data on your phone is the worst

Websites And Stores Selling Branded Clothes In Cheaper Price

Websites And Stores Selling Branded Clothes In Cheaper Price

Business | 2020-12-12 23:11:29.0

Online shopping is easier than in person but it is not as easy as going to the restaurant and eating food. It does need some research and it does take some time

20 Best Countries To Visit  And Travel In Africa In 2021

20 Best Countries To Visit And Travel In Africa In 2021

Travel | 2021-02-07 08:58:27.0

Best Countries To Visit And Travel In Africa. Africa is the second massive continent of this world after Asia. Loaded with diverse cultures, landscapes,

Scan For Mobile Version


Recent Post

26 Best Places to Visit in Australia

26 Best Places to Visit in Australia
Travel | 2021-02-18 09:23:39.0

Australia is the smallest one. It is also the world's largest island country. Australia comprises six states, New South Wales, Queensland, Victoria, Tasmania

2021 51 Best Wedding Destinations In The World

2021 51 Best Wedding Destinations In The World
Travel | 2021-02-17 08:49:55.0

Best Wedding Destinations In The World. If one of your biggest dreams is the destination wedding then, you are not the only one. When people are asked about one

Top Private Islands For Sale In Europe

Top Private Islands For Sale In Europe
Travel | 2021-02-19 19:24:18.0

Most of the people visiting islands are the ones with the motive of relaxing and spending some quality time with friends and families. But, in addition to that

43 Countries In The World That Are Islands

43 Countries In The World That Are Islands
Travel | 2021-02-11 10:22:27.0

Island countries are the countries that are actually an island formed in between several seas and oceans. As most of the part of the Earth's surface, around 71%

Trending Post

Artificial Intelligence - The Future Ruler of The World

Artificial Intelligence - The Future Ruler of The World
Programming | 2020-12-12 23:02:06.0

Artificial Intelligence and might want to explore more on what actually an artificial intelligence is and its different branches or divisions. Going through th

How To Get Free Land Anywhere In The World

How To Get Free Land Anywhere In The World
Business | 2020-12-12 23:54:07.0

Offering free land with the contract of building a house or a company in that area within certain years will push the owner of the land to establish something

Countries In Europe With Best Living Standard

Countries In Europe With Best Living Standard
Travel | 2020-12-13 20:39:11.0

Countries In Europe With Best Living Standard. When it comes to the best living standard, only a high-income job is not what satisfies. All that matters is how

Top 40 Universities Of USA 2021 | Admission Requirements For Undergraduate

Top 40 Universities Of USA 2021 | Admission Requirements For Undergraduate
Education | 2021-01-18 10:58:29.0

Top Universities Of USA, Admission Requirements For Undergraduate. There are a lot of universities in the USA holding top positions not only in the US but also

Best Ways To Learn Coding Online With No Extra Efforts

Best Ways To Learn Coding Online With No Extra Efforts
Programming | 2020-12-12 22:55:00.0

Programming languages are the leading skills to learn in this modernized and digitalized world. In today's generation if you want to work for a huge company and

© 2020, Melshams | All Rights Reserved
   Melshams Facebook Twitter  Instragram LinkedIn