9 Expat-Friendly Countries With No Capital Gains Tax in 2025

If you’ve ever thought about relocating to a country that doesn’t tax your capital gains, you’re not alone. The possibility of living in a place where your investment profits aren’t taxed is highly appealing, especially for those who invest heavily in real estate, stocks, or other assets. While it’s not just about saving money—there are other factors to consider—avoiding capital gains tax can certainly make a significant difference in how quickly you grow your wealth.

In this guide, we’ll highlight 9 countries that do not impose capital gains taxes. However, it’s essential to understand the full tax picture and residency requirements before making a move. Let’s dive into the details!

What is Capital Gains Tax?

Capital gains tax is a tax levied on the profit made from selling an asset—like real estate, stocks, or cryptocurrency—for more than its purchase price. Depending on where you live, these taxes can significantly affect your total returns on investments.

For example, if you buy a property for $200,000 and sell it for $300,000, the $100,000 profit is subject to tax in most countries. The rate can range from minimal to substantial, depending on local tax laws.

Why Does Capital Gains Tax Matter for Expats?

For expatriates, the situation is even more critical, as many of us earn income across borders. Whether it’s dividends from foreign investments or income from selling assets abroad, keeping more of your profits is a high priority. Countries with no capital gains tax are incredibly attractive to freelancers, investors, and entrepreneurs looking to optimize their finances.

By avoiding capital gains tax, you can reinvest your profits and accelerate wealth growth, especially when compounded over time. In short, the tax-free savings you accumulate can go further in these countries, helping you achieve your financial goals more quickly.

Benefits of Living in a Country with No Capital Gains Tax

Living in a tax-friendly country allows you to retain more of your investment returns. This extra capital can be reinvested, supporting your long-term wealth-building efforts. The beauty of this strategy lies in the power of compound growth. Even minor tax savings can lead to considerable financial growth, especially if you make wise investments and take advantage of tax-free profits.

Of course, capital gains tax is just one part of the tax equation. Before making a move, ensure you understand the full tax landscape, as some countries may compensate for the absence of capital gains tax with higher income or other taxes. Additionally, check residency rules, as some countries only offer these benefits to full-time residents.

9 Expat-Friendly Countries With No Capital Gains Tax

Here’s a rundown of 9 countries where expats can enjoy the benefit of no capital gains tax. Each country has its own residency requirements, so be sure to consider lifestyle, living costs, and other factors when planning your move.

1. Singapore
   Singapore is known for its strong business environment and financial infrastructure, making it a popular choice for expats, particularly those in tech and finance. With no capital gains tax, investors can freely buy and sell assets without the tax burden. While living costs are high, especially for housing, Singapore’s tax rates are still lower compared to many Western countries. To become a resident, you can apply for an Employment Pass or explore investment-based residency options.
2. Switzerland
   Switzerland offers no capital gains tax on individual asset sales, making it an attractive destination for investors. However, Switzerland does have other taxes, such as income and wealth taxes, which vary by canton. High living costs are a consideration, particularly in cities like Zurich and Geneva, but the country offers exceptional healthcare, education, and overall quality of life. Residency can be achieved through a work permit or by demonstrating sufficient financial resources.
3. Cayman Islands
   The Cayman Islands is a British Overseas Territory known for its tax-free status, including no capital gains tax. The tropical lifestyle, combined with zero personal and corporate income taxes, makes it a prime location for businesses and retirees. However, the cost of living can be high, particularly for luxury housing. Residency typically requires an investment in local real estate or business ventures, and healthcare options may be limited.
4. Monaco
   Monaco is famous for its lavish lifestyle and zero capital gains tax. This makes it a popular destination for the wealthy, especially entrepreneurs and investors. However, Monaco has a high cost of living, and residency requirements are strict—individuals must deposit at least €500,000 in a Monaco bank account and secure property. While Monaco doesn’t impose capital gains tax, it does levy some business taxes, so individuals need to be prepared for the cost of living.
5. Bermuda
   Bermuda is another tropical paradise that offers no capital gains tax or personal income tax. While it’s a fantastic destination for expats, the cost of living is extremely high, particularly in terms of housing. Like the Cayman Islands, Bermuda relies heavily on offshore finance and tourism. To become a resident, you’ll need to invest in local real estate or business. Healthcare is private, and it’s essential to have insurance coverage.
6. United Arab Emirates (UAE)
   The UAE, especially Dubai and Abu Dhabi, offers an appealing tax environment with no capital gains tax. The country is a popular choice for freelancers, remote workers, and entrepreneurs due to its modern amenities and strong expat community. Although the cost of living can be high, it’s generally lower than places like Monaco or Bermuda. The UAE offers several residency programs, including the Golden Visa for those investing in property or businesses.
7. New Zealand
   New Zealand does not have a general capital gains tax, although some property sales may trigger tax under the bright-line test if the sale occurs within a few years. New Zealand offers an excellent quality of life, with stunning natural landscapes and a relaxed pace of life. However, the cost of living can be high in cities like Auckland. Residency options include skilled migrant visas, entrepreneur visas, and family sponsorship.
8. Belize
   Belize is known for its simple tax system and no capital gains tax, which makes it appealing for expats looking for a slower pace of life. The cost of living is generally lower compared to many countries on this list, although imported goods may be expensive. Belize’s Qualified Retirement Program offers a residency option for individuals over 45 with stable income. English is the official language, making it easier for many expats to settle in.
9. Hong Kong
   Hong Kong, while officially part of China, operates under its own tax system and does not impose capital gains tax. With low corporate tax rates and a thriving business environment, Hong Kong is a hub for finance and entrepreneurship. The city does have high housing costs, but salaries typically reflect the high cost of living. Residency can be obtained through work visas, investment visas, or specialized programs for skilled workers.

What to Consider Before Moving to a No Capital Gains Tax Country

While relocating to a country with no capital gains tax is an attractive prospect, there are several things to consider. Residency requirements can vary, with some countries requiring a certain amount of time spent within the country each year. Additionally, some countries may charge other taxes, such as income, wealth, or VAT taxes.

Cost of living is another important factor, as high living costs can offset the savings from no capital gains tax. Healthcare options and cultural fit also play a significant role in ensuring a smooth transition to life abroad. Make sure to research all aspects of your potential new home before making a decision.

Conclusion

Moving to a country with no capital gains tax can be a game-changer for your financial situation, especially if you’re an investor. Countries like Singapore, Switzerland, and the UAE offer tax-friendly environments that can help your wealth grow faster. However, it’s important to consider all aspects of life in your new home, from residency requirements to the cost of living, healthcare, and lifestyle preferences.

By carefully planning your move and understanding the full tax landscape, you can enjoy the benefits of tax-free capital gains while making the most of your global lifestyle.