The Safest Low Tax Countries in the World
May 2, 2025
Many of us have been raised to believe that, to live in a safe country with a stable economy, you have to hand over considerable amounts of money in taxes to the government.
But that’s simply not true. There are several safe, low-tax countries in the world offering a high quality of life for little in return aside from a visa or small investment.
At Nomad Capitalist, we’ve examined which countries offer both security and low taxes. After all, why should you compromise when you don’t have to?
That’s pretty much the overriding theme of what we do at Nomad Capitalist.
If you’re looking for ways to keep you and your family secure while safeguarding your wealth, talk to our team today about creating a holistic, offshore Action Plan to ensure you’re fully prepared for whatever life throws at you.
While you are preparing to go where you’re treated best, keep scrolling to see which countries we believe, after years of helping clients just like you, are the safest low-tax countries in the world.
Why You Should Prioritise Safety When Moving Abroad
High-net-worth individuals need to understand the tax laws of the country they wish to move to and plan accordingly. Ultimately, if you’re not careful, you could end up with a massive tax burden.
The best way to ensure that this doesn’t happen to you is by moving to one of the safest low-tax countries in the world.
Unsure if a move that big is right for you? Here are some of the top and most obvious reasons for moving abroad.
Your Country Probably Isn’t as Safe as You Thought it Was
If you’re from the United States, United Kingdom or Australia, you probably think that your country is very safe. You’ve likely been told that people are just lining up to move to your country because it’s one of the safest countries in the world.
While that may have been true once, unfortunately, it isn’t anymore. In particular, if you look at these countries from a global perspective, they’re just not as safe as many other nations.
The data doesn’t support what we’ve been taught. The US, the UK and Australia are all outside the top 20 of the Global Peace Index. So, it makes total sense to move abroad.
Better Lifestyle as a High-Net-Worth Individual
In a similar vein to what we just said, many people have been taught that countries like the UK, US and Australia offer the best in terms of lifestyle. When in fact, there are many countries that have a better standard of living than any of these.
Why would you live in a boring city when you could be living in a tropical paradise? Or try out the famed Michelin-starred food stalls in Singapore? Or live like a king in Istanbul?
It just doesn’t make sense to stay. To increase your wealth, you should also look for a country that offer you more for less. A place where you can enjoy a high standard of living, with less than you would spend on a mediocre lifestyle in the UK, US or Australia
The Safest Low-Tax Countries in the World
You can enjoy the most luxurious lifestyle in most of the countries listed below, as well as peace of mind. Not only are these countries great for tax savings, they also have the lowest percentage of violent crimes, such as murder.
Prepare to be surprised because even we didn’t expect some of the countries on this list.
Monaco
Monaco is often regarded as a haven for the wealthy, due to its 0% personal income tax rate and the fact that it has one of the highest GDPs per household in the world. It’s also considered one of the safest countries in Europe, with residents enjoying a high level of personal security.
You’re likely to rub shoulders with millionaires and billionaires in this exclusive enclave. However, it can feel a bit restrictive, considering its total area is a mere 2.1 km sq.
If you’re willing to put half a million euros in the bank for investment purposes (real estate or otherwise), then you can easily move to Monaco.
Andorra
Despite the challenges in obtaining citizenship, Andorra is an alluring country to reside in. If you are seeking a secure haven with remarkably low tax rates ranging from 0 to 10%, this nation stands out as an ideal destination.
Like Monaco, you will have to invest a lot of money to get residency in Andorra. But its safety record and the peace of mind it will give you will more than compensate for any initial outlay. It’s so safe that residents report leaving their cars and homes unlocked.
Switzerland
The third country on this list is Switzerland.
Well known for being a safe country, what most people don’t realise is that Switzerland 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 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, while those who are already well-established should consider Switzerland.
Portugal
Portugal is a popular destination among nomads and entrepreneurs and is known for its financial, cultural and lifestyle benefits.
It’s long been a preferred location for many due to its low tax rates and relatively low crime rate when compared to the rest of Europe.
Until recently, expats were able to take advantage of a ten-year Non-Habitual Resident (NHR) program that exempted up to 100% of their income from Portuguese tax.
However, for political reasons, namely a housing crisis and rising inflation, Portugal changed the NHR tax regime and removed incentives for investors to buy real estate through Portugal’s Golden Visa program.
The changes mean that Portugal is no longer accepting NHR applications, and those who become tax residents in Portugal in 2024 will no longer be eligible to register.
However, a new tax incentive for research and innovation has been created for 2024: the Tax Incentive Scheme for Scientific Research and Innovation (IFICI).
This new regime, sometimes referred to as NHR 2.0, aims to attract individuals involved in specific professions such as teaching, scientific research and other high-tech or innovation-led fields.
Key features include a flat tax rate of 20% on professional income generated in Portugal and a wide-ranging exemption on most foreign-sourced income.
Like the original NHR scheme, it’s designed for a 10-year duration. To qualify, applicants must not have been tax residents in Portugal for the preceding five years or can’t have benefited from the former NHR scheme.
Georgia
Georgia is a very tax-friendly country at the intersection of Europe and Asia.
If you decide to get 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 also one of the safest and cheapest places to live.
Georgia is considered one of the most stable jurisdictions for offshore banking, and its tax policies make it an attractive place to settle down.
Qatar
If you want to move to Asia, then you should consider Qatar. Ranked 29th on the Global Peace Index, it’s one of the safest countries in the world.
Admittedly, it’s not the most exciting place to live, but it has all the amenities you could ask for along with a high standard of living.
In terms of taxes, you don’t have to pay anything. It has a staggering 0% tax rate, on all forms of taxes. However, getting permanent residency in Qatar can be difficult since they only seem to permit it for specialised workers.
United Arab Emirates
The same goes for Qatar’s neighbour, the UAE, which has a similar income tax policy of 0%. Things are changing somewhat, and the recent introduction of a 9% corporate tax rate may be a sign of greater developments afoot on the taxation front.
However, unlike Qatar, which might be regarded as a boring place to live, Dubai is very exciting. It’s one of the most visited cities in the world, attracting millions of tourists each year.
A noticeable trend in Gulf countries is their reputation for being very safe. That’s because they have strict laws in place to combat crime, which has significantly reduced the crime rate.
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.
Singapore
Singapore is a world-renowned financial hub, making it a smart choice for entrepreneurs and investors. It’s also currently the third-safest place to live on the Safe Cities index, as well as one that lacks government corruption.
On top of that, the government also has great tax incentives.
Depending on your personal circumstances, you may need only to pay single-digit tax rates.
Colombia
Many people have a poor impression of South America and firmly believe that nations there suffer from a lot of violent crime.
While we understand where they’re coming from, such impressions are only accurate with regard to certain areas and frankly, if you’re a seven- or eight-figure investor or entrepreneur, you are not going to move to any of those kinds of locations.
As with anywhere in the world, it’s all about knowing the right neighbourhoods and which ones to avoid. The city centres and urban areas of South America are perfectly safe, and the continent is quickly becoming a booming market with great potential and attractive tax laws.
Colombia has worked 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, with other principal cities throughout the country’s coffee region, namely Manizales and Pereira, gaining popularity as a tranquil respite from the hustle and bustle of Bogotá.
If South America sounds appealing, then check out our guide for more on obtaining residency and citizenship in Colombia.
Chile
Chile is not a tax haven, but it has several tax perks and a low crime rate, which appeals to many foreigners.
Santiago, the capital of Chile, is an excellent destination for anyone looking to settle down, start a business or simply have a good time. The city is full of life and energy, and Chile has one of the most powerful passports, allowing holders to travel to over 106 countries without needing a visa.
Unfortunately, taxes here aren’t the lowest, but foreigners have a three to six-year tax exemption. By that time, you will probably be eligible for a Chilean passport – if that’s your goal.
Paraguay
Not far from Chile lies Paraguay, which has favourable tax laws that exempt foreign-sourced income.
Many people associate Paraguay with the black market, but that’s an outdated perspective that has been banished by the development of a modern, safe country.
In fact, according to the GPI, Paraguay outranks the US with a GPI score of 2.0 vs 2.6.
Uruguay
Uruguay has excellent tax systems for those looking to put down some roots in Latin America.
Not many people talk about Uruguay, which is a shame considering its safety and favourable tax policies.
On top of that the country offers several ways to get residency, with the psosibilty of entually obtaining citizenship. If you are interested in living there full-time, then you’ll get the benefit of a 10-year tax holiday for all foreign-sourced income, and after that, you only have to pay 12%.
Ecuador
Ecuador is very affordable which might be why so many people choose to retire there.
Do note that while it doesn’t have a lot of violent crimes, it does have petty crimes, and in 2023, there was some political unrest. Still, if you avoid venturing into the bad neighbourhoods, you should have little to worry about.
It has a complicated tax system, but if you have foreign-sourced income, there are legal ways around restrictions and incentives that allow you to pay little to no tax in Ecuador.
Costa Rica
If you are hoping to go off the grid for a while, then Costa Rica could be perfect for you.
In addition to being the top retirement destination in the world, Costa Rica is ideal for investors, entrepreneurs and digital nomads, thanks to its diverse and sizeable expat community, favourable tax laws and business regulations that are designed to protect your privacy.
On top of all that, it has a lovely seaside atmosphere with a beachy living environment that is very laid back. Regardless of whether you want to stay for a while or limit your visits to a certain amount of time every year, it’s a great place.
The Safest Low Tax Countries in the World: FAQs
Some countries have territorial tax systems or no personal income tax. Tax residency can be based on other factors such as domicile or substantial connections rather than a specific number of days.
Countries like Portugal and Italy offer special tax regimes that attract foreigners, where the minimum stay required for beneficial tax treatment can be less than the standard 183 days.
Countries with the lowest personal income tax rates include tax havens and countries with no personal income tax, such as Monaco, the Cayman Islands and the United Arab Emirates.
Some countries, such as the Cayman Islands, do not impose income or corporate taxes, making them attractive for both individuals and businesses looking for tax efficiency. These countries often provide financial privacy, simplified tax regulations and business-friendly environments that attract both individuals and companies.
According to the 2024 Global Peace Index, Iceland is the safest country in the world. It has maintained this position for a number of years due to its low crime rate, lack of military forces and stable political environment.
Following Iceland, other countries that are highly ranked for safety include Denmark, Ireland, Austria and New Zealand, which are known for their stable societies and low levels of crime. Unfortunately, there are also high-tax countries.
According to recent data, Qatar has the lowest crime rate in the world, with a rate of 14.8 incidents per 100,000 citizens.
Both countries have progressive tax systems with different tax brackets. However, the thresholds and rates differ, with England having fewer brackets but a higher top rate than the US federal rate.
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 low-tax countries in the world and Nomad Capitalist is here to guide you through it all.
We have years of experience in offshore banking, tax planning and helping people get their second passports. So, if you’re thinking about moving to the safest low-tax countries in the world, you can rely on us.
Nomad Capitalist helps high-net-worth individuals find better places to live and grow their wealth. We work on a case-by-case basis, and it’s our experience that there’s a solution for everyone.
Our team is more than happy to help create a personalised solution that suits you. If you are interested in learning more about our services, don’t hesitate to contact us today.
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