13 Dreamy Places With Zero Income Tax Where You’ll Actually Want to Live

307

Imagine living in a place where your hard-earned money actually stays in your pocket. No hefty tax bills and endless deductions…just more freedom to spend on the things you love. Over the years, I’ve traveled to 70 countries, and some of the most exciting places I’ve visited also happen to be tax havens for everyday living. From sunny islands to sleek modern cities, these destinations prove you don’t have to sacrifice lifestyle for financial freedom.

When I put this list together, I looked at more than just the tax code. I considered quality of life, infrastructure, safety, ease of residency, and cost of living. After all, it doesn’t matter if a country has no income tax if it’s impossible to build a fulfilling life there. You’ll see patterns too…many tax-free havens are in the Gulf States, the Caribbean, or small but wealthy hubs that rely on tourism, oil, or financial services instead of taxing residents.

In this guide, I’m sharing the 13 most livable places without income tax. These are spots I’ve explored firsthand, where I’ve seen their mix of affordability, culture, and quality of life. From futuristic cities like Dubai to laid-back island nations in the Caribbean, these spots combine financial freedom with real lifestyle perks you can feel every day.

Most Livable Countries Without Income Tax

Looking for the best countries without income tax? The Cayman Islands offers a tax-free lifestyle with stunning beaches and a strong financial sector. The Bahamas combines zero income tax with a tropical paradise, perfect for entrepreneurs and retirees. Dubai, UAE provides a booming economy, luxury living, and a business-friendly environment. Monaco is a prestigious destination with no income tax, a high standard of living, and a glamorous lifestyle. Whether you seek financial freedom, luxury, or business opportunities, these tax-free countries are top choices.

• Best for families: The Cayman Islands
• Best for young adults: Dubai, UAE
• Best for city lovers: Monaco
• Best for coastal living: The Bahamas
• Best for entrepreneurs: Qatar
• Best for retirement: Antigua and Barbuda

1. Bermuda

• 💰 Average Monthly Cost: $4,500 – $8,000
• 🌟 Unique Features: Crystal-clear waters, high salaries, tax benefits
• 📅 Best Time to Live There: Spring & summer ☀️
• 🏆 Perfect For: Finance professionals 💼, beach lovers 🏝️, expats 🌍

Dreaming of island life with no income tax? Bermuda delivers just that, along with pink-sand beaches, turquoise waters, and a lifestyle that blends British charm with tropical ease. This island paradise boasts a mild, subtropical climate year-round—though hurricane season (June–November) is something to keep in mind.

Living in Bermuda isn’t cheap, but the quality of life is top-tier. A one-bedroom apartment in Hamilton can run around $2,000 a month, but in return, you get stunning ocean views and a welcoming expat community. The island is compact, making transportation easy with a reliable bus and ferry system.

If you’re considering working here, be aware that job opportunities for expats require employer sponsorship. But once you’re settled, Bermuda offers a lifestyle that balances career and relaxation—think morning meetings with a coffee in town and sunset beach walks to end the day.

2. Oman

• 💰 Average Monthly Cost: $1,500 – $3,500
• 🌟 Unique Features: Rich cultural heritage, stunning desert landscapes, low crime rate
• 📅 Best Time to Live There: October–April 🌤️
• 🏆 Perfect For: Adventure seekers 🏜️, history buffs 🏛️, expats 🌏

For those seeking a mix of financial perks and rich cultural heritage, Oman is an underrated gem. With no personal income tax and a cost of living lower than many Gulf nations, it’s an appealing choice for professionals and entrepreneurs alike.

Muscat, the capital, is where most expats settle, offering modern infrastructure, a thriving job market, and breathtaking scenery. The city sits between the rugged Al Hajar Mountains and the sparkling Arabian Sea, making weekend getaways to the desert or the coast a breeze. Housing is reasonable, with good one-bedroom apartments starting at around OMR 550 ($1,500) per month.

While Oman’s warm climate appeals to sun lovers, its international schools can be pricey—something to factor in for families. However, if you’re looking for a destination with friendly locals, a slower pace of life, and no income tax, Oman is an excellent option.

• Read next: 12 Insanely Gorgeous Places in the Middle East You Need To See

3. The Bahamas

• 💰 Average Monthly Cost: $2,500 – $6,000
• 🌟 Unique Features: Stunning beaches, tax advantages, relaxed island life
• 📅 Best Time to Live There: Winter & spring 🌴
• 🏆 Perfect For: Retirees 🏝️, entrepreneurs 🚀, remote workers 💻

If you picture yourself working by day and lounging on the beach by evening, The Bahamas might be your dream destination. Just a short flight from Miami, this Caribbean paradise offers zero income tax, stunning scenery, and a relaxed island lifestyle.

Most expats settle in Nassau, the country’s bustling capital, which combines vibrant culture with modern conveniences. From crystal-clear waters to lively street markets, there’s no shortage of ways to enjoy island life. The year-round tropical weather is a major perk—no snow or freezing temperatures to worry about here!

However, paradise comes at a price. Due to high import taxes, groceries and rent can be costly. While there’s no income or capital gains tax, you’ll still pay into social security, though with capped contributions. If you’re willing to trade a higher cost of living for the benefits of tax-free earnings and breathtaking beaches, The Bahamas is hard to beat.

4. Monaco

• 💰 Average Monthly Cost: $5,000 – $10,000
• 🌟 Unique Features: Luxury living, no income tax, exclusive events
• 📅 Best Time to Live There: Year-round 🌞
• 🏆 Perfect For: High-net-worth individuals 💰, yacht enthusiasts 🚤, business elites 🏦

For the ultra-wealthy, few places rival the glitz and glamour of Monaco. Nestled on the French Riviera, this tiny tax haven has been attracting millionaires and entrepreneurs since 1869 thanks to its zero income tax policy.

Monaco offers Mediterranean weather, high-end restaurants, and luxury shopping, but it comes with an equally high price tag. Rent for a one-bedroom apartment in the city center can soar to $7,100 per month, and daily expenses are steep. However, for those who can afford it, Monaco delivers unmatched prestige, security, and access to the best of Europe.

One thing to note: French nationals who moved to Monaco after 1957 still have to pay income tax in France. But if you’re looking for a playground for the rich with financial benefits to match, Monaco is as elite as it gets.

5. United Arab Emirates

• 💰 Average Monthly Cost: $2,800 – $7,000
• 🌟 Unique Features: Tax-free salaries, modern skyscrapers, luxury lifestyle
• 📅 Best Time to Live There: October–April 🌤️
• 🏆 Perfect For: Expats 🌍, entrepreneurs 🚀, luxury seekers 🏙️

If you’re after tax-free salaries and a fast-paced, ultra-modern lifestyle, the United Arab Emirates (UAE) is tough to beat. Cities like Dubai and Abu Dhabi are global hubs for finance, tech, and luxury living—where expats can thrive in sleek skyscrapers, dine at Michelin-starred restaurants, and shop at world-class malls.

But it’s not all about business here. The UAE offers stunning beaches, desert adventures, and a buzzing nightlife scene. The country’s infrastructure is top-notch, from futuristic public transport to some of the best healthcare in the region. While the 5% VAT adds a small dent to purchases, the lack of income tax and generous salary packages more than make up for it.

The only catch? The cost of living can be high, especially in prime areas. But if you can land a high-paying job or run a successful business, the UAE is a financial playground where you can earn big, save big, and live lavishly.

• Read next: 12 Best Places To Live in Asia for High Living Standards

6. Antigua and Barbuda

• 💰 Average Monthly Cost: $2,000 – $4,500
• 🌟 Unique Features: Caribbean charm, dual-island lifestyle, tax incentives
• 📅 Best Time to Live There: December–April ☀️
• 🏆 Perfect For: Retirees 🏝️, digital nomads 💻, investors 📈

Imagine waking up to crystal-clear waters and powdery beaches while knowing your paycheck is untouched by income tax. That’s life in Antigua and Barbuda, a laid-back Caribbean paradise with a surprisingly business-friendly edge.

This twin-island nation doesn’t just offer zero personal income, capital gains, or inheritance taxes—it also has a straightforward residency program. If you spend 183 days a year here (or just 30 days if you pay a flat $20,000 tax), you’re all set to enjoy tax-free living. The capital, St. John’s, offers modern conveniences, while English Harbour is perfect for a quieter, upscale lifestyle.

Of course, island life isn’t without its challenges. Imported goods can be pricey, and hurricane season is something to consider. But for those seeking a mix of financial freedom and tropical tranquility, Antigua and Barbuda is a dream come true.

7. Brunei

• 💰 Average Monthly Cost: $1,800 – $4,000
• 🌟 Unique Features: Wealthy economy, no income tax, strong safety
• 📅 Best Time to Live There: November–March 🌤️
• 🏆 Perfect For: Oil industry professionals ⛽, families 👨‍👩‍👧‍👦, business investors 💼

Looking for a place with zero income tax, cheap fuel, and a quiet, stress-free lifestyle? Brunei might surprise you. While it’s often overshadowed by its glitzier Gulf neighbors, this tiny Southeast Asian nation is a hidden gem for those seeking financial stability and a slower pace of life.

Brunei’s low crime rates, high-quality healthcare, and clean environment make it appealing to families and retirees. The cost of living is reasonable, especially compared to Singapore, and there’s little traffic or pollution. If you love lush rainforests, pristine beaches, and peaceful surroundings, this could be your ideal home base.

However, Brunei is deeply conservative, with strict laws on alcohol and nightlife. Expats who thrive on an active social scene might find it too quiet. But for those who prioritize safety, savings, and serenity, Brunei delivers a financially stress-free way of life.

• Read next: 13 Amazingly Beautiful Countries in Asia That Feel Unreal

8. Cayman Islands

• 💰 Average Monthly Cost: $3,500 – $7,500
• 🌟 Unique Features: Offshore banking hub, strong expat community, pristine beaches
• 📅 Best Time to Live There: December–April 🏖️
• 🏆 Perfect For: Finance professionals 💼, retirees 🌴, beach lovers 🏝️

If you want a tax-free tropical paradise, the Cayman Islands delivers. With no personal income, capital gains, or corporate taxes, this Caribbean gem attracts entrepreneurs, remote workers, and high-net-worth individuals looking to maximize their earnings.

Seven Mile Beach is the go-to spot for luxury living, while East End offers a quieter escape. Beyond the financial perks, the island boasts stunning beaches, world-class diving, and a vibrant expat community. The social scene is buzzing, with top-tier restaurants, beach clubs, and cultural festivals keeping things lively.

That said, paradise comes at a price. The cost of living is steep, and residency requires a significant investment. But if you can afford it, the Cayman Islands offer a life of financial freedom, natural beauty, and upscale island living—a dream destination for those chasing the high life.

9. Qatar

• 💰 Average Monthly Cost: $2,500 – $5,500
• 🌟 Unique Features: High salaries, tax-free income, modern infrastructure
• 📅 Best Time to Live There: November–April 🌞
• 🏆 Perfect For: Expats 🌍, professionals 💼, entrepreneurs 🚀

Qatar is one of the world’s wealthiest nations, and with zero personal income tax, it’s a prime destination for expats looking to maximize their earnings. The capital, Doha, is a futuristic city filled with skyscrapers, luxury malls, and a thriving business hub. It’s particularly attractive for professionals in finance, engineering, and energy.

Living here comes with perks—high salaries, excellent healthcare, and world-class infrastructure. The West Bay and The Pearl districts are home to modern, high-end apartments, while more affordable housing is available in the suburbs.

That said, Qatar’s scorching summers and conservative culture might require some adjustment. Dress codes and alcohol restrictions are in place, and while the expat community is strong, social norms are different from Western countries. But if you’re after financial freedom, career growth, and an international lifestyle, Qatar delivers in spades.

10. St Kitts and Nevis

• 💰 Average Monthly Cost: $2,200 – $4,800
• 🌟 Unique Features: Citizenship by investment, untouched beaches, laid-back living
• 📅 Best Time to Live There: December–April ☀️
• 🏆 Perfect For: Investors 💰, retirees 🏝️, remote workers 💻

A Caribbean island paradise with no income, capital gains, or inheritance tax? St. Kitts and Nevis makes it possible. This dual-island nation is perfect for entrepreneurs, retirees, and remote workers who want to enjoy a tropical lifestyle while keeping more of their money.

For those looking to settle permanently, the Citizenship by Investment Program offers a passport in exchange for a real estate investment. St. Kitts is the busier of the two islands, with more modern conveniences, while Nevis is quieter and more nature-focused.

The downsides? A high cost of living and the occasional hurricane threat. Plus, while the island is breathtaking, it’s a slower pace of life, which isn’t for everyone. But if your dream is turquoise waters, lush mountains, and warm weather year-round—without the tax burden—St. Kitts and Nevis is a top-tier option.

• Read next: Save Big on Flights: 2025’s Cheapest Airlines in the US

11. Vanuatu

• 💰 Average Monthly Cost: $1,500 – $3,500
• 🌟 Unique Features: Island paradise, relaxed visa policies, tax benefits
• 📅 Best Time to Live There: May–October 🌴
• 🏆 Perfect For: Digital nomads 💻, retirees 🏝️, adventure seekers 🌊

If you’re looking for a remote tax haven with breathtaking scenery, Vanuatu is one of the most underrated choices. With zero income, corporate, or capital gains tax, this Pacific island nation is a magnet for those wanting to escape both hectic city life and heavy taxation.

Most expats settle in Port Vila, where you’ll find international schools, restaurants, and a small but welcoming community. Life here is laid-back, with stunning beaches, lush jungles, and world-class diving spots right at your doorstep.

The trade-off? Higher import costs and occasional cyclones, which can disrupt daily life. Healthcare is limited compared to Western standards, so it’s best for those who don’t need frequent medical care. But for anyone craving a tropical lifestyle, warm weather year-round, and financial freedom, Vanuatu is a hidden gem worth considering.

• Read next: 10 Best Airlines to New Zealand for Your 2025 Travels

12. British Virgin Islands

• 💰 Average Monthly Cost: $3,000 – $6,500
• 🌟 Unique Features: Sailing paradise, offshore banking, strong expat scene
• 📅 Best Time to Live There: December–April ⛵
• 🏆 Perfect For: Yacht lovers 🚤, finance professionals 💼, entrepreneurs 🚀

If sailing through crystal-clear Caribbean waters while paying zero income tax sounds appealing, the British Virgin Islands (BVI) might be your perfect home. With no personal, corporate, or capital gains tax, it’s a major draw for entrepreneurs, investors, and remote workers.

Road Town, the capital, offers modern amenities and a strong expat community, while Virgin Gorda provides a more secluded, high-end escape. The beaches here are world-class, and the local culture is a mix of Caribbean charm and international influence.That said, the cost of living is high, and job opportunities outside of finance, law, and tourism are limited. Imported goods are expensive, and getting around requires a car since public transportation is scarce. But if you have the means to make it work, the BVI offers an unmatched combination of luxury, lifestyle, and tax benefits.

13. Saudi Arabia

• 💰 Average Monthly Cost: $1,800 – $4,000
• 🌟 Unique Features: Rich cultural heritage 🏰, modern cities 🌆, and vast deserts 🏜️
• 📅 Best Time to Live There: October – April ❄️
• 🏆 Perfect For: Expats 🌍, professionals 💼, and history enthusiasts 📜

Saudi Arabia is a standout for expats chasing a high salary with zero income tax. Cities like Riyadh, Jeddah, and the rapidly developing NEOM offer competitive job markets, particularly in finance, healthcare, construction, and tech. Many expats receive generous benefits like housing allowances, flights home, and private healthcare.

Living costs are relatively affordable compared to Dubai or Doha, and you can live well on a moderate budget. Housing is spacious, food is cheap if you shop local, and transportation is improving with new metro systems and rideshares.

Outside of work, the kingdom is opening up fast. Explore the ancient tombs of AlUla, dive in the Red Sea, or camp under the stars in the Empty Quarter. Cultural norms are evolving too…cinemas, concerts, and mixed-gender events are now common in major cities. If you’re looking to save money while leveling up your career, Saudi Arabia delivers.

FAQs about countries with no income tax

Want to know more about tax-free countries? Explore my FAQs and get the answers you’re looking for!

Which EU country has the lowest income tax?

Bulgaria offers the lowest income tax rate in the EU at a flat 10%. However, it’s worth mentioning that some places like Monaco, though not an EU member, enjoy zero income tax.

Why is Dubai tax-free?

Dubai keeps things tax-free to draw businesses and skilled people from around the world, helping diversify its economy beyond just oil.

Is income tax higher in the UK or the USA?

Typically, you’ll find higher income tax rates in the UK than in the USA, especially if you’re earning more.

What’s the highest-taxed country in the world?

Belgium often tops the list as the highest-taxed country, where high earners can see over half their income go to taxes.