I spent the past year bouncing between Europe, the Middle East, and a few island nations, and one thing I kept noticing was the sheer number of people talking about leaving their home countries behind…not just for adventure, but for financial freedom. With inflation creeping up, new wealth taxes on the horizon, and governments tightening rules on foreign investments, the search for tax-friendly destinations has exploded. That’s what led me to dig into the handful of countries where expats can live well without paying capital gains taxes in 2025.
I didn’t just look at the tax codes. I weighed everything from quality of life and visa options to healthcare, infrastructure, safety, and whether an expat could actually feel at home there. Some of these places I’ve experienced firsthand, sipping coffee with locals or talking shop with digital nomads who’ve already made the leap. The results might surprise you, because the best places to keep more of your money aren’t always the ones you’d expect.
Disclaimer: This article is for informational purposes only and should not be taken as tax or legal advice. Tax rules change often and can differ based on your personal situation and country of residence. Before making any decisions, be sure to consult a qualified tax advisor or other trusted professional who can give you guidance tailored to your circumstances.
What are capital gains taxes?
Capital gains taxes are what you pay when you sell something for more than you spent to buy it. Think about when you sell stocks, a piece of real estate, or even a valuable painting. If you sell any of these for a profit, that profit is what’s known as a capital gain.
For example, if you buy a house for $300,000 and sell it later for $400,000, the $100,000 you made is subject to capital gains tax. Different countries have different rules about how much tax you need to pay on these gains.
Some countries, like those we’ll explore in this guide, don’t charge any capital gains taxes at all. This can be a big benefit for expats looking to maximize their investments. Now, let’s take a closer look at Singapore, where vibrant living meets zero capital gains tax.
1. Singapore
Singapore is honestly my top pick for expats wanting to avoid capital gains taxes while living somewhere that actually functions well. The city-state doesn’t charge capital gains tax on personal investments like stocks, bonds, or shares – unless you’re trading so frequently that they consider it your business (which is pretty hard to trigger). I love how straightforward their system is compared to other places that have endless exceptions and loopholes.
Getting tax residency is pretty achievable too. You need to be physically present for at least 183 days in a calendar year, or work there continuously for three years. My research shows that with a valid work pass for at least one year, you’re automatically treated as a tax resident. The cost of living is definitely high, but when you’re keeping 100% of your investment gains and paying reasonable income tax rates (maxing out at 24%), it works out well. The 9% GST isn’t terrible, and honestly, the infrastructure and quality of life you get for your tax dollars is impressive. Singapore’s also great for international investing since most foreign-sourced income received by individuals is exempt from tax.
2. Switzerland
Switzerland has this amazing setup where private capital gains on movable assets like stocks and bonds are completely tax-exempt at both federal and cantonal levels. I’ve researched this extensively, and as long as you’re not classified as a professional securities dealer (which requires some serious trading volume), your investment gains are yours to keep. The wealth tax situation is interesting – yes, you’ll pay annual wealth taxes, but my research shows these are generally reasonable at 0.1% to 1% depending on your canton and wealth level.
Real estate is where it gets more complex. Switzerland does tax capital gains on property, but here’s what I love – the longer you hold it, the less tax you pay. Most cantons have rates that decrease significantly after 5+ years of ownership, and some cap the relief after 20-35 years. The federal income tax reduction that kicked in from January 2025 (thanks to that November 2024 referendum) means you’re saving between 5.3% and 11.4% depending on your income bracket. Cities like Zurich and Geneva aren’t cheap, but when you’re not paying capital gains tax on your portfolio, the math works out pretty well for most people.
Read also: My 20 favorite destinations to visit in Switzerland
3. The Bahamas
The Bahamas is basically a tax paradise – no capital gains, no income tax, no estate taxes, and no gift taxes. The only real tax you’ll deal with is National Insurance contributions if you’re working, which funds local benefits and isn’t unreasonable. To get residency and access these benefits, you need to either buy property worth at least $750,000 or get a work permit, which honestly isn’t too bad considering what you get in return.
I’ve visited multiple times, and the lifestyle is pretty incredible if you’re into island living. Places like Nassau and the Exumas can be pricey, but when you’re not paying any major taxes, your money goes much further. The banking system is solid (it’s a major offshore financial center), and you’re only a short flight from the US if you need to travel for business. The biggest adjustment for most expats is probably the slower pace of life and higher cost of imported goods, but that’s the trade-off for living somewhere with zero capital gains taxes and beautiful beaches year-round.
4. New Zealand
New Zealand got way more attractive for investors in 2024 when they reduced the bright-line test back to just 2 years (down from 5-10 years). This means if you buy property and hold it for more than 2 years before selling, any capital gains are generally tax-free. For other investments like stocks and bonds, there’s still no general capital gains tax, though they do tax certain financial instruments and some investment income depending on your situation.
My research shows the main home exclusion is pretty solid – if you use a property as your main home for at least half the period you own it, you won’t pay bright-line tax even if you sell within 2 years. Auckland, Wellington, and Queenstown are the go-to spots for expats. Auckland has the most job opportunities and is super diverse, Wellington has that cool capital city vibe with great culture, and Queenstown is unbeatable if you’re into outdoor adventures. The quality of life is genuinely excellent, healthcare is solid, and honestly, the people are some of the friendliest I’ve encountered anywhere.
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5. United Arab Emirates
The UAE remains one of the best no-tax destinations globally – zero personal income tax, zero capital gains tax, zero inheritance tax, and zero wealth tax. Getting tax residency is straightforward: spend at least 183 days per year in the country (doesn’t have to be consecutive), have a residence visa, and maintain a UAE address. My research shows you can get that Tax Residency Certificate from the Federal Tax Authority for about $272 for individuals, which is useful for dealing with your home country’s tax authorities.
Dubai is perfect if you want that high-energy, international business hub experience, while Abu Dhabi is more family-friendly and culturally rich. The 9% corporate tax that kicked in for businesses earning over AED 375,000 doesn’t affect individuals, and the 5% VAT is pretty reasonable. The weather takes some adjustment if you’re coming from cooler climates – summers are brutal – but the winter months are actually perfect. Free zones offer additional benefits for businesses, and the banking system is top-notch. I love that there are no restrictions on repatriating money, so moving funds in and out is hassle-free.
6. Barbados
Barbados keeps things simple with no capital gains tax, no wealth tax, no inheritance tax, and no gift taxes. The 17.5% VAT isn’t too bad, and the 9% corporate tax rate is competitive if you’re running a business. Non-residents only pay tax on local income, capped at 28.5%, which is pretty reasonable. I’ve researched the expat communities in Bridgetown, Holetown, and Speightstown, and each has its own vibe.
Bridgetown is where the action is – it’s the capital with modern amenities and historical charm. Holetown on the west coast is more upscale and quieter, perfect if you want that luxury beach lifestyle without too much hustle and bustle. Speightstown up north gives you more of that authentic Caribbean experience and tends to be less touristy. The cost of living can be high since a lot of goods are imported, but when you’re not paying capital gains taxes on your investments, it balances out. The banking system is solid, and there are good flight connections to North America and Europe.
7. Hong Kong
Hong Kong doesn’t have a general capital gains tax, but here’s the catch – if your asset sales look like trading activities based on frequency and intent, they might tax those gains. My research shows this mainly affects people doing high-frequency trading or property flipping. For most expats with normal investment portfolios, capital gains are tax-free. The territorial tax system means you only pay Hong Kong tax on income sourced there.
Living options vary widely across the city. Central is perfect if you want to be in the thick of the business and nightlife action. Mid-Levels offers a good balance for families – quieter but still accessible to everything. Tsim Sha Tsui gives you that authentic Hong Kong experience with amazing harbor views and cultural diversity. The cost of living is definitely high, especially housing, but salaries tend to be competitive. The political situation has been evolving, so that’s something to factor in, but from a pure tax perspective, it’s still attractive for certain situations.
8. Belgium
Belgium‘s capital gains tax situation is actually pretty favorable if you understand the rules. Private capital gains on shares are generally tax-exempt if they’re part of normal private wealth management. The key is not looking like you’re speculating – if you’re buying and selling quickly or making huge profits, they might hit you with a 33% tax rate. Real estate is more straightforward: sell your primary residence after living there at least a year and it’s tax-free. Other property is taxed at 16.5% if sold within 5 years, but tax-free after that.
I love Belgium for expats because of its central location in Europe – you can be in Paris, Amsterdam, or London in a few hours. Brussels is great if you’re working in EU institutions or international business, while Antwerp and Ghent offer more manageable cost of living with great quality of life. The corporate tax rate is 25% (16.5% for qualifying participations), which isn’t terrible. The weather can be gloomy, but the culture, food, and beer scene more than make up for it. Plus, you’re in the heart of Europe with excellent transport connections everywhere.
- Read next: Best Countries to Visit in Europe
9. Bahrain
Bahrain is another Gulf state with minimal taxation – no income tax, no capital gains tax, no sales tax, and no estate taxes for individuals. The only businesses that pay significant taxes are those in oil and gas (which makes sense). Getting residency is achievable through employment, business investment, or property purchase, and the process is generally straightforward compared to other Gulf states.
What I really like about Bahrain is how it balances modern amenities with traditional culture. The cost of living is reasonable compared to Dubai or Singapore, and the expat community is welcoming and established. Manama has a good mix of business opportunities and entertainment options. The education system is solid if you have kids, and healthcare is modern and accessible. The island is small enough that nothing is too far away, but you’re well-connected to the broader Gulf region. The cultural scene is more relaxed than some of its neighbors, which many Western expats appreciate.
10. Monaco
Monaco is the ultimate no-tax destination if you can afford it – no capital gains tax, no personal income tax, and no wealth tax (though French citizens still get taxed by France on their worldwide assets). Getting residency requires securing a local address and spending at least 183 days per year there, or having it as your primary residence. The Carte de Residence process isn’t too complex if you meet the requirements.
Obviously, Monaco isn’t cheap – it’s one of the most expensive places on earth. But if you’re already wealthy and want to preserve that wealth without paying taxes, it’s hard to beat. The lifestyle is incredible if you’re into luxury – world-class restaurants, the Monte Carlo Casino, the Grand Prix, and you’re right on the French Riviera with easy access to Nice airport. The banking services are top-notch, and you’re dealing with a stable, established system. My research shows that most residents love the security, the events, and the international community, though it’s definitely not for everyone given the cost and somewhat artificial environment.
- Read next: Best Spots in the South of France
- You may also like: Stunning Areas to Live in France
FAQs about countries with zero capital gains tax
Find answers to your questions about countries with no tax on capital gains in my FAQs.
Is it easy to get residency in these countries?
It depends. Some places roll out the red carpet with digital nomad visas or investment residency programs, while others make you jump through more hoops. When I was in Portugal last year, I met several expats who said the paperwork was the toughest part. Once they settled in, though, life smoothed out pretty quickly.
What other taxes should I watch out for?
This is the part that trips people up. Just because a country doesn’t have capital gains taxes doesn’t mean it’s tax-free overall. You might still pay income tax, property tax, or VAT. For example, while I was in the UAE, I learned that while there’s no capital gains tax, the cost of living can be high in certain cities, which balances things out.
Can I keep my citizenship and still benefit?
In most cases, yes. Many expats maintain their original citizenship while becoming tax residents abroad. But if you’re from the U.S., it’s more complicated since the IRS taxes citizens no matter where they live. I’ve met plenty of American expats who still file U.S. returns every year, even while enjoying zero capital gains abroad.
How stable are these tax policies?
That’s the million-dollar question. Tax laws can and do change. Over the past year, I’ve seen several governments floating new tax proposals as global pressure mounts to close loopholes. That’s why I wouldn’t move to a country only for the tax benefits…I’d want to genuinely enjoy living there, too.
Which country has the highest capital gains tax?
Denmark is known for having the highest capital gains tax rates, with individuals potentially paying up to 42%.
Which countries have no tax on dividends?
Countries like the United Arab Emirates and Bermuda have no tax on dividends.
