Countries With No Income Tax
A country-by-country breakdown of jurisdictions where you do not pay personal income tax - either because the rate is genuinely 0%, because a territorial system excludes foreign income, or because a special regime exempts foreign income for a fixed window. Each row links to a full country scorecard with residency days, corporate tax, and visa pathways.
What "no income tax" actually means
"No income tax" gets used loosely. Three very different structures produce a similar outcome for a remote worker, and they are not interchangeable. A true zero-tax country charges no personal income tax on any income. A territorial country taxes only local-source income and ignores foreign income - which is the same practical result if your clients and employer are all abroad. A special regime grants a temporary exemption for foreign income, then reverts to normal rates.
Two caveats apply across all three. First, if your home country taxes by citizenship (the United States and Eritrea are the main examples), leaving does not automatically end the obligation - you still have to file, and often pay, until you renounce or trigger an exit tax. Second, becoming tax resident in the new country usually requires spending a minimum number of days there (commonly 183), so a "no tax" country is only useful if you can actually move and establish residency.
The comparison below separates the three categories so you can see exactly what each country offers and what the catch is.
No personal income tax
These countries levy no personal income tax at all. Your income - wherever it comes from - is not taxed by these jurisdictions. The trade-off is usually a residency investment threshold, a spending-based tax (like VAT), or a requirement to base a company locally.
| Country | Personal income tax | Corporate tax | Tax system | Residency days |
|---|---|---|---|---|
| 🇦🇪 United Arab Emirates | 0% | 9% | 0% personal | 183 days |
Territorial tax (no tax on foreign income)
Territorial countries only tax income sourced inside their borders. Foreign income - remote-work salary, overseas clients, foreign dividends - is generally tax-free for residents. This is the most relevant category for location-independent workers.
| Country | Personal income tax | Corporate tax | Tax system | Residency days |
|---|---|---|---|---|
| 🇵🇾 Paraguay | 10% | 10% | Territorial | 120 days |
| 🇸🇬 Singapore | 22% | 17% | Territorial | 183 days |
| 🇵🇦 Panama | 25% | 25% | Territorial | 183 days |
| 🇨🇷 Costa Rica | 25% | 30% | Territorial | - |
Special regime (foreign income exempt)
These countries have a preferential regime for new residents that exempts or sharply reduces tax on foreign-source income for a set period (often 5 to 10 years). After it expires, normal rates apply. Useful for a fixed window, not a permanent fix.
| Country | Personal income tax | Corporate tax | Tax system | Residency days |
|---|---|---|---|---|
| 🇨🇭 Switzerland | 40% | 14.9% | Lump-Sum Taxation (Forfait / Expenditure-Based Taxation) | 90 days |
| 🇬🇪 Georgia | 20% | 15% | Small Business Status / Virtual Zone IT Company | 183 days |
| 🇵🇹 Portugal | 48% | 21% | IFICI (Incentivo Fiscal para a Internacionalização de Competências e Investimento) | 183 days |
| 🇺🇾 Uruguay | 36% | 25% | Impatriados - 11-year tax holiday on foreign capital income | 183 days |
How to use this list
Start with the residency-days column. A 0% rate is irrelevant if you cannot spend enough days in the country to become tax resident. If you stay under the threshold, you remain tax resident somewhere else - usually your previous country, which may have higher rates than you started with.
If you run a company, the corporate-tax column matters alongside the personal rate. A 0% personal rate with a high corporate rate can still trap income inside the company. Territorial countries are often the cleanest fit for a solo remote worker: foreign income is untaxed, and a local company is only needed if you have local clients.
For a side-by-side comparison of two specific countries - including the full visa pathway and cost of living - open any country scorecardand use the "compare with" list. Each pair is a dedicated comparison page.
Frequently asked questions
Which countries have no income tax at all?
A small number of countries levy no personal income tax, including the United Arab Emirates, Bahamas, Bermuda, the Cayman Islands, and Monaco. Of the countries in this comparison, the UAE has a true 0% personal income tax rate. Most other 'no income tax' countries rely on a territorial system or a time-limited special regime rather than a blanket 0% rate.
What is the difference between no income tax and territorial tax?
No income tax means the country does not tax personal income from any source. Territorial tax means the country only taxes income earned inside its borders; foreign-source income (remote work, overseas clients, foreign dividends) is not taxed. For a remote worker earning abroad, a territorial country delivers the same practical result as a zero-tax country.
Do I still pay tax if I move to a no-income-tax country?
It depends on where you are currently tax resident. Moving to a zero or territorial tax country only removes tax on income that country would otherwise charge. If your home country taxes by citizenship (the United States is the major example) or you have not cleanly severed tax residency, you may still owe tax elsewhere. You also still need to become tax resident in the new country, which usually requires spending a minimum number of days there.
Are special tax regimes permanent?
No. Special regimes like Portugal's NHR, Spain's beckham-era regime, or Italy's impatriate regime exempt or reduce tax on foreign income for a fixed window, typically 5 to 10 years. After the window expires, normal resident tax rates apply. They are a deferral, not a permanent no-tax structure.
Compare any two countries side by side
Visa pathways, tax residency triggers, cost of living, and residency days, all in one comparison. Start from any country page.
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