Countries with No Income Taxes and Why do Expats Choose Them?
Countries with no income tax are a growing choice for expats and investors who want to retain more of their income. These jurisdictions don’t levy personal income taxes on residents. Here’s what that means:No monthly deductions: retain more of your wealth (salaries, dividends, rental income)- No year-end filings or complex audits
- Fewer reporting obligations and bureaucracy
- Ideal environments for remote entrepreneurs and retirees
- Multiple investment opportunities with potentially high returns
Keep in mind no income tax countries may attract wealthy individuals not just because they’re tax-free but because they also offer:
- Political and economic stability
- Financial privacy
- Relaxed lifestyles
- High quality of life
- Lower costs of living
However, there're drawbacks. Several jurisdictions across the globe have enshrined tax free policies into their laws, quietly drawing high-net-worth individuals seeking financial efficiency and strategic domicile. Some include the known wealthy Middle Eastern countries of the United Arab Emirates and Qatar, as well as the Caribbean countries of Antigua & Barbuda, Dominica, Grenada, Saint Kitts & Nevis, and Saint Lucia.
While these destinations attract attention for being countries with no income tax, they present certain limitations in terms of infrastructure, services and lifestyle. These are all worthwhile factors to consider, especially when there’s low-tax countries that circumvent these disadvantages, offering more comprehensive solutions. For those weighing countries with no income tax against other strategic options, it’s worth comparing them to low-tax nations that offer investment visas and long-term advantages.
Portugal: A Low-Tax Alternative to Countries with No Income Tax
Portugal isn’t a zero tax country, but it has an attractive combination of advantages: it’s one of the safest countries in the world, it has a high quality of life, a lower cost of living, and a clear path to EU citizenship.
One of its greatest benefits, though, is its tax flexibility. You only become a tax resident in the country after spending 183 days in the country. If you do decide to settle down in Portugal, you can take advantage of IFICI – Incentivo Fiscal à Investigação Científica e Inovação, also known as the NHR 2.0 regime, which enables highly qualified professionals to optimize tax obligations. Some of the major benefits include:
- Modest flat rate of 10% on foreign pensions, far below that of most Western jurisdictions
- Certain exemptions on other foreign-sourced forms of income, including interest and dividends
- 20% flat tax on eligible Portuguese-sourced income—substantially lower than the country’s standard progressive rates
To qualify, you must not have been a tax resident in Portugal in the last five years. All of this is achievable by becoming a Portuguese resident through the Golden Visa.
Key Details
- Minimum investment: €500,000 in funds
- Tax Benefits in Portugal
- Visa-free travel through the EU Schengen Zone
- Fast 5-year path to EU citizenship
- Low stay requirements
- Full family inclusion
Golden Visa holders who choose to spend less than 183 days in the country are not considered tax residents, which retaining all the EU residency benefits while maintaining tax residency elsewhere.
While Portugal may not be a no tax country, the Golden Visa + NHR combination can significantly reduce your tax obligations.
Greece: A Residency Program with Tax Perks vs. No Income Tax Countries
Like Portugal, Greece isn’t a country without income tax, but it does offer a similar assortment of benefits, which includes elevated standards of living, safety, excellent healthcare and education systems, and attractive tax benefits.
For those seeking tax optimization, Greece boasts an appealing non-dom tax solution specifically tailored for high-net-worth individuals. Here are the details:
- Qualifying individuals benefit from a flat annual levy of €100,000 on all foreign-sourced income.
- Being a non-Greek tax resident for 5 out of the 6 years preceding applying to the non-dom system.
- You need to apply by March 31st of the calendar year.
Far from being the only Greek tax incentive, the non-dom regime, accessing this regime only has one caveat. You need to make a €500,000 investment in Greece, which pairs up quite well with the Golden Visa program. It blends in the following benefits:
Key Details:
- Minimum investment: €250,000 in real estate – though you must reach €500,000 to qualify
- Visa-free travel throughout the EU Schengen Zone
- No physical stay requirements (for the program itself, but you must be a tax resident to enjoy the flat annual tax)
- Full family inclusion
- Path to EU Citizenship after 7 years
Though Greece doesn’t offer a tax-free environment, this regime favors high-income earners who want to relocate to Europe without surrendering your global wealth.
Alternatively, if you don’t wish to live in Greece, you can retain tax residency elsewhere while enjoying full Greek residency rights. Greece offers an attractive alternative to countries with no income tax for those who prefer living in the EU while still optimizing tax burdens through residency-by-investment.
Should You Choose Tax-Free or Go for the Gold? Investment Visa Can Help You
Choosing between countries with no income tax and countries that offer long-term lifestyle value and lower taxes is a matter of deciding what best aligns with your goals. Not all tax-free jurisdictions offer long-term stability or global access.
Countries without income tax offer financial relief, but may lack infrastructure, security, or high quality of life standards. Meanwhile, countries like Portugal and Greece offer Golden Visa programs that help you optimize taxes, gain EU residency and a path toward EU Citizenship, and keep your global mobility open.
Talk to us before you commit to a tax free country or start a new residency journey. Our experts will help you align your wealth, goals, and future with the right residency or citizenship solution.
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Countries With No Income Tax and Why Golden Visas Are the Smarter Choice
For high-net-worth individuals, entrepreneurs, and investors and retirees, living in countries with no income tax is a strategic approach to...
