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Countries with NO Income Tax (They do exist!)

June 23, 2016

Check out these countries with NO income tax (yes, I’m serious!). Now before you start packing your bags, remember as a US citizen or green card holder you are still required to file and report worldwide income yearly on your US tax return. That being said, if you qualify for the Foreign Earned Income Exclusion, then it’s possible that in some of these countries you would still end up paying less in taxes vs. living in the US. Enjoy!

 

Qatar – The world’s richest country by GDP per capita;  No tax is charged on personal income.

Oman – Located on the coast of the Arabian Sea;  No tax on individual income or capital gains.

United Arab Emirates – UAE’s most populous city is Dubai; There is no personal income tax or capital gains tax.

Saudi Arabia – The world’s largest oil producer and exporter;  Personal income is not taxed.

Bahrain – An island country in the Persian Gulf;  No personal income tax;  Expats pay 1% of income to social security, while citizens pay 7% to social security.

Kuwait – Located on the coast of the Persian Gulf; The Kuwaiti Dinar is the highest-valued currency in the world.  Kuwait charges no income tax.

Bermuda – A British Overseas Territory located in the Atlantic Ocean, 665 miles off the coast of North Carolina, USA;  No tax is paid on income, capital gains, sales tax, or VAT (transfer tax). Other taxes make Bermuda one of the most expensive places in the world to live.

Cayman Islands – Located in the Caribbean Sea, this British Overseas Territory charges no income or capital gains tax. Social security contributions are not mandatory.

Bahamas – Located southeast of Florida, USA, and consists of more than 700 islands, cays, and islets. No tax on income or capital gains.

Monaco – The most densely populated country in the world, bordered by France and the Mediterranean Sea. Monaco charges no income tax (except for Citizens of France). Social Security taxes paid by employees average 13%.

Brunei – Located on the island of Borneo on the coast of the South China Sea;  No personal income tax for individuals who live in Brunei for 183 days or more of the tax year. Also, no capital gains, wealth, or sales tax.

 

Sources:

http://www.telegraph.co.uk/expat/money/countries-that-dont-have-income-tax-in-pictures/

http://www.expatfocus.com/expatriate-brunei-taxation

Wikipedia.org

 

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