The Countries with No income Tax for Expatriates
When a person is a US Person and earns significant personal income, they will presumably have a large US tax bill. The United States’ progressive tax rate maximum is 37% but then there are those pesky state taxes, self-employment taxes, etc. And, as long as a person is considered a US Person and has not formally expatriated, they are still subject to US tax on their worldwide income – even if they reside abroad and earn all of their money from foreign sources. But, if a person is considering expatriating from the United States, it is good to know that if the stars align just right (with some proper tax planning), they may be able to avoid income tax – although most tax-free countries have other taxes to consider as well. Let’s take a look at eight countries with no income tax:
UAE (United Arab Emirates)
The United Arab Emirates do not impose income tax for income generated in the UAE — and there does not appear to be any rumblings of the UAE implementing an income tax system anytime soon as there have been in other countries. Despite the fact that there is no income tax, there are corporate taxes and excise taxes for certain goods to consider.
While Bermuda does not impose any personal income tax for individuals, there are several other taxes that may be imposed such as payroll and employment-related tax – noting that there is no corporate tax.
The British Virgin Islands do not issue much of any tax for matters including gifts, profits, wealth, and capital gains. While there is technically an income tax for individuals generating income, the income is set at 0%.
The Cayman Islands do not have any type of income tax, payroll tax, capital gains, and most other taxes. There are duty taxes and those duty taxes can be significant depending on the specific item – upwards of 20%.
Monica does not have any income tax, although it does levy some corporate tax and there may be some minimal rental taxes on residences used as rentals.
The Bahamas is another country that does not have any sort of income or wealth tax, but there are other taxes at are required such as Social Security taxes to consider.
Turks and Caicos
Turks and Caicos do not have income or capital gains tax as well as not having any type of estate/inheritance tax — although there are certain contributions that must be made by residents into the healthcare system.
Saint Kitts and Nevis
As with all of the countries identified above Saint Kitts and Nevis is also has no personal income tax, but does Levi a sales tax referred to as VAT (Value Added Tax), which is typically about 17% (and there is some reduction depending on the specific type of goods).
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