Many of us have been brought up to believe that, in order to live in a safe country with a stable economy, one has to hand over considerable amounts of money in taxes to the government. But that’s simply not true.
Which is why we decided to put together this list of countries which offers both, security and low taxes. After all what should you have to compromise when you don’t have to?
If you’re looking for ways to keep you and your nomad family safe, while also safeguarding your wealth, talk to our team about creating a holistic, offshore Plan De Acción today to ensure you’re fully prepared for whatever life throws at you.
Why Should You Prioritize Safety When Moving Abroad
It’s important to know all the facts before moving somewhere.
As a high-net-worth individual, you need to understand the tax laws of the country you want to move to and make a tax plan. Some countries are quite strict about taxes.
If you are not careful, you will end up paying taxes at home and abroad.
The best way to ensure that this doesn’t happen to you is by moving to one of the following safest low-tax countries in the world.
After all, why shouldn’t you move abroad for safety reasons? Here are our reasons for moving abroad.
1. Your Country Probably isn’t as Safe as You Thought It was
If you are from the United States, United Kingdom, or Australia, you probably think that your country is very safe. We’ve been told that so many people want to move to our country because it’s one of the safest countries in the world.
While that used to be the truth, unfortunately, it isn’t anymore. Especially if you look at these countries from a global perspective, these countries aren’t as safe as many other countries.
2. Better Lifestyle as a High-Net-Worth Individual
Don’t you want a better lifestyle? Many countries have a better standard of living than the United States, and you should take advantage of them.
Why would you live in a boring city when you could be living in a tropical paradise? Or trying out the famed Michelin-starred food stalls in Singapore?
It just doesn’t make sense to stay. To increase your wealth, you should also look for a country that doesn’t make it difficult for you to move your money. You need to look for a low-tax country with a high standard of living.
The Safest Low-Tax Countries in the World
You can enjoy the most luxurious lifestyle in the majority of these countries. Do note that for this list, we’ve included countries with the least percentage of violent crimes, or even nonexistent, such as murder.
Generally speaking, other crimes are also lower here, making them some of the safest low-tax countries. You will find yourself wanting to move here immediately. Prepare to be surprised because even we didn’t expect some of the countries on this list.
If you are willing to put in half a million euros in the bank, for investment (real estate or otherwise), then you can easily move to Monaco. It has a 0% personal income tax rate and one of the highest GDPs per household in the world.
You are likely to run into quite a few million and billionaires in Monaco. It’s regarded as one of the safest low-tax countries in Europe. On the downside, it can feel a bit restrictive, considering its total area is around 2.1 km sq. But in terms of safety, you can’t be in a safer place than Monaco.
Like Monaco, you will have to invest some amount of money to get residency in Andorra. But its safety makes up for it. Residents report leaving their cars and homes unlocked – that’s how safe it is.
It’s a lovely country to live in as well. It’s difficult to get citizenship there, but if you are looking for a place with a lot of safety and a 0 to 10% tax rate, this is the place for you.Apart from that, the government has plenty of tax incentives for foreigners, and you can get quite a bit from that.
The third country on this list is Switzerland.
Switzerland’s already quite well known for being safe. But what most people don’t know is that it has a flat lump sum tax system for high-net-worth individuals. Basically, all you have to do is pay a certain amount to the government, and then you can make as much money as you want.Of course, we understand that Switzerland isn’t for everyone. This is why we recommend that those starting their business ventures should opt for countries with a low to zero tax rate, and those who are already well-established should opt for Switzerland.
Portugal gets a lot of attention for various reasons, financially, culturally and also the lifestyle. It’s preferred by many nomads due to its low tax rates and reasonably low crime rate compared to the rest of Europe.
Of course, there’s a way to pay almost no tax in Portugal. You need to do some extensive tax planning for that, but honestly, it’s worth it.
Despite having one of the highest tax rates in the world, the country offers a tax scheme to help you pay 0% tax on various types of income.
Moreover, the country has several residency options for investors, entrepreneurs, and digital nomads.
Next, we have Georgia.
Georgia is a very tax-friendly country at the intersection of Europe and Asia.
If you decide to gain residency here, you can become part of a private entrepreneurship scheme where you can pay a 1% tax every year.
Most income outside the country is exempted, and with proper planning, you can go quite a long way in Georgia. It’s one of the cheapest places to live in as well.
Georgia is also one of the most stable jurisdictions for offshore banking and with its tax policies, it’s quite the place to settle down.
If you want to move to Asia, you will be very happy to know that Qatar is the place to move to. Why? Ranking 23rd on the Global Peace Index, it’s one of the safest countries in the world.
While it’s not the most exciting place to live, it has all the amenities you could ask for, the standard of living is great, and, as mentioned, it’s very safe.In terms of taxes, you don’t have to pay anything. It has a staggering 0% tax rate which is unbeatable. There’s no loophole or set income after which you need to pay taxes. There’s none.
United Arab Emirates
The same goes for Qatar’s neighbor, the UAE. It has a similar income tax policy of 0%.
But unlike Qatar, which might be regarded as a boring place to live, UAE’s Dubai is very exciting.
It is one of the most visited cities in the world, attracting millions of tourists. There’s always something going on in Dubai.
A common trend you will notice with gulf countries is that they are very safe. They have strict laws when it comes to crime, which has reduced the crime rate drastically. You don’t even need to worry about petty crimes if you are living in the UAE, as even that is very rare.Dubai is also regarded as a business hub, so if you want to start your own business, it’s a pretty good place to settle.
Next on our list is Singapore.
Like Dubai, Singapore is considered a major financial hub. If you are an entrepreneur or an investor, it makes sense to move to Singapore.
It’s currently the third-safest place to live in the safe cities index.
Law and order are very strong in Singapore because there’s no corruption.
The government has great tax incentives as well. A lot of people store their assets in Singapore, thanks to its stable economic and political landscape.
Depending on your personal circumstances you may need only pay single-digit tax rates, but this can go up to the teens. Remember, wherever you go, a good tax plan can save you a lot of money each year. So if you need help with planning your taxes and offshore strategies in general, talk to us about becoming a Nomad Capitalist client.
People don’t have a good impression of South America. Most people think that these countries have a lot of violent crimes, and while we understand where they’re coming from, it’s only designated to a certain area.
If you are a seven or eight-figure investor or entrepreneur, you are not going to move to any of these places. The city centers and urban areas of South America are perfectly safe. As with anywhere in the world, it’s all about knowing the right neighborhoods and which ones to avoid.
Colombia has worked really hard to bring solid reforms to the country and is gradually but consistently cleaning up its act. Medellin is also emerging as a popular digital nomad hub in the region.
But we would recommend Colombia if you don’t plan on staying there full-time. It doesn’t have the friendliest tax system, but it definitely can be worked around.
Chile’s capital Santiago is a great place to settle, start a business and have a great time. It’s vibrant and Chile has one of the strongest passports, so you can set out to more than 100 countries with no visa needed.Unfortunately, the taxes aren’t the lowest, but foreigners have a three to six-year tax exemption. By that time, you will probably get the passport – if that is your goal.
Of course, not far from Chile, we have Paraguay. Many people associate Paraguay with the black market, but that’s very strange, considering that it’s a modern, safe country.
It also has very low-tax rates at 10% for local income, and most foreign income isn’t taxed at all.
Not many people talk about Uruguay, which is a shame considering its safety and favorable tax policies.
The country offers several ways to get residency. Some routes can also lead to citizenship.If you are interested in living there full time, then you will get a tax holiday for ten years for all foreign-sourced income, and after that, you only have to pay 12%. It has a beautiful coastline and is very safe for you to move to.
Ecuador is very affordable, and most people prefer to retire there. Do note that while it doesn’t have a lot of violent crimes, it does have petty crimes. But if you are at the right place and don’t venture to the bad neighborhoods in town, you are safe.
That being said, this still doesn’t guarantee that it won’t happen to you. But most people overlook the overall atmosphere of the country. It has a complicated tax system. If you have foreign-sourced income, you have to pay a certain amount in taxes there, so you don’t end up paying in Ecuador.
If you are hoping to go off the grid for a while, then Costa Rica is perfect for you.
In addition to being the top retirement destination in the world, Costa Rica is perfect for investors, entrepreneurs, and digital nomads, thanks to its diverse and sizable expat community, favorable tax laws, and business regulations that protect your privacy.
It has this lovely seaside, beachy living environment, very laid back. If you want to stay there for a while or for a certain amount of time every year, then it’s a great place.
Nomad Capitalist is Here to Make Things Easier for You
There are so many ways of growing your wealth, legally lowering your taxes, and acquiring residencies to live in some of the safest countries in the world. Nomad Capitalist is here to guide you through it all.
We’ve got years of experience in offshore banking, tax planning, and helping people get their second passports. So, if you are thinking about moving to the safest low-tax countries in the world, you can rely on us.
Nomad Capitalist is here to help high-net-worth individuals looking for a better place to live and make the most of their money the correct way.
So, if you are interested in learning more about our services, don’t hesitate to contact us today. We work on a case-by-case basis and believe that there’s a solution for everyone. Our team is more than happy to help create a personalized solution that suits you.
Our goal is to help you go where you are treated best.