23 Countries Without Income Tax: Your Ultimate Guide for 2025

For many people, the idea of living in a country where you don’t have to pay income taxes is a dream. After all, it sounds like a paradise—keeping all the money you earn without a significant portion going to the government. If you’re someone living in a country with high taxes, like the United States or Australia, the idea of a tax-free country might seem almost too good to be true.

While some may view “tax havens” negatively, assuming they are just tools for the ultra-wealthy and big corporations, the truth is far from that. Many of these countries without income taxes focus on other forms of revenue, such as tourism, natural resources, or corporate taxes. With the rise of digital nomadism and global mobility, these nations are increasingly attracting entrepreneurs and remote workers who want to keep more of their earnings.

Here’s a breakdown of 23 countries and territories with no income tax in 2025:

1. Anguilla

Located in the Caribbean, Anguilla is a British Overseas Territory that doesn’t charge personal income tax, capital gains tax, or estate duty. While there are no taxes, the cost of living can be high, and the country relies on tourism and offshore businesses to generate revenue. Foreigners can easily register businesses here without needing physical presence.

2. Bahamas

Known for its stunning beaches, the Bahamas attracts people with its tax-free status on income and capital gains. The country depends on tourism for revenue. Though residency is relatively simple to obtain through property investment or a temporary permit, the high cost of living may offset the tax savings.

3. Bahrain

Bahrain stands out in the Gulf region, offering a favorable environment for remote workers and entrepreneurs. To get residency, you’ll need to invest in property worth at least 50,000BD ($130,000). However, securing citizenship can be quite difficult. Bahrain primarily generates revenue from oil and corporate taxes.

4. Bermuda

Bermuda is a luxurious destination with a hefty price tag. While it’s tax-free, the country earns most of its income from tourism and the insurance industry. Residency options include work permits for different categories, but a permanent residency requires significant investment and years of residence.

5. Brunei

Brunei is known for its immense wealth from oil resources. However, it’s also one of the more restrictive places to live, with a tightly controlled government and limited personal freedoms. Obtaining citizenship or permanent residency is near impossible for outsiders, making it an impractical choice for most digital nomads.

6. British Virgin Islands

The British Virgin Islands is a renowned tax haven with no income tax. It mainly relies on tourism and offshore business services for its revenue. However, it can take up to 20 years to apply for permanent residency, making it a long-term commitment.

7. Cayman Islands

Famous for being a hub for offshore companies, the Cayman Islands is another British overseas territory offering a tax-free status. However, it’s an expensive place to live, with residency requirements including a $600,000 investment in property and a $145,000 annual income.

8. Kuwait

Kuwait’s wealth comes from oil, allowing it to be income tax-free. However, obtaining residency requires employer sponsorship, and it can be difficult for entrepreneurs or digital nomads to secure long-term visas under current laws.

9. Maldives

The Maldives, a tropical paradise, offers no income tax but is difficult to live in for most expatriates. Citizenship is not available to foreigners, and the country heavily relies on the hospitality industry for revenue. Expats in the Maldives typically work in the tourism sector.

10. Monaco

Monaco is famous for its wealth and luxurious lifestyle. While the country doesn’t levy income taxes, living there requires a substantial investment—such as purchasing property worth at least €500,000 and maintaining a bank deposit of the same amount.

11. Nauru

Nauru, once the wealthiest country per capita due to phosphate mining, now struggles with an economy based largely on aid and asylum detention. Its tax-free status is its only remaining appeal.

12. Oman

Oman, an oil-rich country in the Middle East, is also working to diversify its economy by attracting expats. Residency can be obtained through investment, but the cost is high. Oman’s government relies on oil and other industries for revenue.

13. Pitcairn Islands

Located in the South Pacific, the Pitcairn Islands is one of the most remote places in the world. While its tax-free status is appealing, it has a population of only 50 people and is known for being difficult to reach. It offers a simple immigration process, but residents have limited options for work and leisure.

14. Qatar

Qatar, with its high per capita income, doesn’t need to tax its citizens. Securing permanent residency is a challenging process, and the country is known for having a significant number of expatriates working in various sectors.

15. Saint Kitts and Nevis

Famous for its citizenship-by-investment program, Saint Kitts and Nevis offers no income tax. For those willing to invest $150,000 or more, this could be an appealing tax-free destination. The country also allows for simple residency processes, making it attractive for entrepreneurs.

16. St. Barthélemy

This French overseas territory in the Caribbean has no income tax after the first five years of residency. While the initial years require a 30% tax rate, you can enjoy tax-free living afterward. St. Barthélemy is popular for tourism, but the cost of living can be high.

17. Turks and Caicos

The Turks and Caicos Islands are known for their beautiful beaches and tax-free status. While residency is relatively easy to obtain for remote workers, the cost of living is high, and permanent residency requires independent means or substantial financial resources.

18. United Arab Emirates (UAE)

The UAE, particularly Dubai, has become a hotspot for digital nomads and remote workers. The country’s wealth from oil has allowed it to stay income tax-free. It’s easy to obtain residency by setting up a company or securing an employment sponsorship.

19. Vanuatu

Vanuatu in the South Pacific has no income tax and offers a relatively simple citizenship program. The country relies on tourism and private investment for revenue, though the island’s remote location can make it difficult to access.

20. Vatican City

Vatican City, the smallest country in the world, has no income tax. However, it’s only home to a small group of religious leaders and employees of the Catholic Church. Residency is generally reserved for high-ranking officials.

21. Wallis and Futuna

Wallis and Futuna, a French overseas territory, benefits from French financial backing and relies on fishing for its revenue. While residency isn’t overly strict, it is not a popular destination for expats due to its isolation and limited tourism infrastructure.

Conclusion: Tax-Free Living—Is It Right for You?

While the idea of living in a tax-free country is tempting, it’s important to consider other factors such as cost of living, residency requirements, and economic stability. For remote workers and entrepreneurs, countries with no income tax can offer significant financial benefits. However, some of these nations have high living costs, tough residency requirements, or limited opportunities for business owners. If you’re looking to make a move, weigh the pros and cons of each country and determine which one fits your lifestyle and business needs best.