Best Tax Free Countries To Move in 2022

Everyone desires to avoid paying their dear pennies to the government. However, pure tax havens are a rarity these days. As a US citizen, you can’t avoid paying taxes altogether. The US tax code requires you to pay taxes from every part of the world. That’s why most US citizens dream of living in a tax-free country.

For most people, tax is an inevitable part of life. But no one is fond of giving away their hard-earned money to Uncle Sam. For that reason, we’ve gathered a list of the best tax-free countries where you can conveniently spend your life with minimum tax issues. Moving to these countries may need extensive research, paperwork, and meeting requirements, but; it’s worth it.

Top Tax-Free Countries

Moving to a tax-free country can be complex and tricky. It may result in monetary loss and several financial problems. It can also permanently harm your financial status. That’s why one can get confused when choosing the best tax-free countries. But don’t worry; we have all the relevant information you need. Here is a list of 5 best tax free countries to move in 2022.

1. The United Arab Emirates (UAE)

On the top of the list, we have UAE, the most popular country in Western Asia. With a twisted taxation history, the 5th most prosperous country in the middle east has been the most beloved by people willing to live in a tax-free haven. The UAE doesn’t levy income or capital gains tax on individuals. However, being in the top 10 oil producers of the world, it applies a tax on oil companies and foreign banks.

For the first time in January 2022, the UAE government imposed a solid 9% federal corporate tax for businesses with a net annual profit of or over AED 375,000. But still, it is relatively low when we compare it to other tax-free countries. Immigration here is simple to arrange with no irrelevant plot holes or black-hat techniques. The UAE is the best place for a peaceful and top-notch tax-free life.

2. Monaco

Monaco is known as a “playground”of rich and famous people. It has made its mark on the globe even after being the 2nd smallest nation by numbers. Monaco is a tax haven for people willing to own property after immigration. There is no kind of property tax whatsoever. But rental properties will be taxed at 1% of the annual rent. In terms of real estate, Monaco is calculated to be the richest in the world.

People residing in Monaco don’t pay any form of income tax or capital gains tax. Everyone of all three people in Monaco is a millionaire. So, there is no inheritance tax as well. Only French people residing in Monaco for less than five years are subjected to the French income tax system. All the other populations live a peaceful, taxation-free life, making it a great choice among the best tax-free countries.

3. Bahrain

Next on the list is Bahrain, a beautiful Middle Eastern country rich in oil and gas. It is located on the Persian Gulf and counts as one of the highly developed economies by the UN definition. Bahrain has no income tax; however, employees contribute 6% of their wages as “social insurance”. The sales tax rate is expected to reach 10% by the end of 2022.

Bahrain is a rich and tax-free country with a handful of exceptional qualities. But getting Permanent Residence (PR) is another story. Bahrain government demands that you be retired, invest $135,000 in property, or invest $270,000 in a Bahraini company to establish a permanent residence. If you can tackle that, Bahrain is an excellent option for a soothing tax-free life.

4. Brunei

The number fourth on the list is Brunei, an Asian country famed for its luxurious rainforest rich in flora and fauna. Brunei is also known as the “Abode of Peace”and is a renowned peaceful Sultanate. Brunei doesn’t imply an income tax, but it won’t be considered a tax haven as it levies corporate income taxes. In addition, Brunei requires a 5% contribution to the state social fund.

Brunei’s Corporate Income Tax (CIT) rate is 18.5%; that’s why it’s unsuitable if you’re planning to move your business or start a business from scratch in Brunei. In addition, Brunei is notorious for not being foreigner-friendly. Permanent Residence (PR) is also out of the question, as you need to get approval from the Sultan. Brunei may have tax relaxation, but it’s not a perfect place due to its compromised economic freedom.

5. Andorra

Last but not least country on the list is Andorra. It is a tiny, independent, wealthy European country between Spain and France. Andorra may not be a recognised tax haven, but it has a unique tax system. There are no capital gains and inheritance taxes. In addition, imports and exports are also free from any financial chains by the government. It makes Andorra a fantastic choice for setting up a business.

Andorra has no sales tax; however, income and corporate taxes are capped at only 10%. Andorra has a tax structure specifically designed to encourage foreign investors and entrepreneurs. Moreover, it has a VAT rate (IGI) of 4.5% for most goods and services. Andorra ceased to be a tax haven several years ago, but it’s still one of the best tax-free countries in the world.

Final Take

Having no tax or a low tax rate can be game-changing for your business and personal lives. Taxes are directly connected with financial literacy and business knowledge. One can drastically scale up their life by playing the tax game correctly. That’s why double-checking your facts and information on the internet is necessary. We hope you found the information in our article helpful and relevant.

Tax havens are forever changing, with tax policies being updated every once in a while. With multiple other tax havens worldwide, we gathered a list of the top five tax-free countries to move to in 2022. All the countries mentioned above have unmatched taxation reliefs. You won’t need any special tricks or a massive amount of money to gain residency.

Check out the Best Digital Nomad Visas to potentially gain residency in several different countries.

Thomas Raynott

Thomas Raynott

Similar Posts

One Comment

Leave a Reply