Taxes are a bore! Especially if you are a perpetual traveller. Most of us have to pay taxes if we earn over a certain income, and if you are a freelancer or self-employed it can be a headache at the best of times filling in a tax return. Couple that with roving around several different countries every year and you could be forgiven for getting completely confused about where to pay your taxes!
However, unless you are from a country like the US (which insists its citizens pay taxes no matter where they live in the world) you can potentially look to avoid paying taxes if you set up residency in a tax free country. Read on for our list of some of the world’s few tax free countries!*
The Cayman Islands
Probably one of the best known for its tax free status, the Cayman Islands would be one to consider if you wished to not pay resident-based income tax. So in theory, any income earned would be yours to keep. As with many tax free nations you do however pay tax indirectly – imported goods for example carry up to 25%, but the Cayman Islands has no VAT and you don’t have to pay social security if you don’t want to
Like the Cayman Islands, the government of Bahamas gets most of its tax income from imposing duties on imports, but residents do not pay any income tax. A small percentage of your salary would need to be allocated to social security payments however.
Similarly Bermuda offers the same tax free lifestyle, and again tax revenue is generated from imports and other means. In addition, it may be next to impossible for many to even get a permit to work there, as it is very costly.
Unless you are unfortunate enough to be French, you can live in Monaco tax free! However, it’s probably not a great option for most of us – you need a serious fortune to be accepted for legal residency and Monaco is incredibly expensive to live in even with the tax break
United Arab Emirates
With an economy bolstered by oil, it’s no surprise that the UAE doesn’t feel the need to tax its citizens and residents. With a bit of local help in setting up as a foreign owned company you can set yourself up here tax free.
British Virgin Islands
Another exotic tax haven, the British Virgin Islands imposes no income tax, but getting temporary residency may be tricky – they only grand a handful of temporary residents visas annually!
Turks and Caicos
Again, sun, sand and no taxes abound on Turks and Caicos. Well, there is the usual import tax and some VAT of course. This island nation may work out to be slightly cheaper to live in than the others tax free havens in the region.
Disclaimer: Information accurate as per time of writing. We strongly recommend seeking professional financial advice regarding tax law for your personal circumstances and residency status