The Safest Low Tax Countries in the World

Many of us have been raised to believe that, to live in a safe country with a stable economy, you’ll have to hand over considerable amounts of money in taxes to the government.

But that’s simply not true.

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. So, 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.

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 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 safest low-tax countries in the world. Here are some of the top, and most obvious, reasons for moving abroad:

1. 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 linking 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 theglobal peace index. So, it makes total sense to move abroad. 

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, so, if you’re a US citizen, 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 the countries listed below. Do note that for this list, we’ve included countries with the lowest percentage of violent crimes such as murder. In some nations, violent crimes are even nonexistent.

Generally speaking, other crimes are also lower in these countries, making them some of the safest low-tax nations in the world. Prepare to be surprised because even we didn’t expect some of the countries on this list – be careful, you might find yourself wanting to move to one of them immediately.

Monaco

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. It has a 0% personal income tax rate and one of the highest GDPs per household in the world.

You’re likely to run into quite a few millionaires and billionaires in Monaco which is 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 a mere 2.1 km sq. But in terms of personal security, you can’t be in a safer place than Monaco.

Andorra

Like Monaco, you will have to invest some amount 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 outlat. Residents report leaving their cars and homes unlocked – that’s how safe it is. 

Andorra’s a beautiful country to live in, though obtaining citizenship there can be challenging. Nevertheless, if you’re searching for a safe haven with a very low tax rate ranging from 0 to 10%, then this country is an ideal destination for you.

Apart from that, the government has plenty of tax incentives for foreigners, which you can get quite a bit from.

Switzerland

The third country on this list is Switzerland.

Already well known for being a safe location, 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, 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, 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 rate tax of 20% on professional income generated in Portugal and a wide-ranging example on most foreign-sourced income. Like the original NHR scheme, it’s designed for a 10-year duration and to qualify, applicants must not have been tax residents in Portugal for the preceding five years, can’t have benefited from the former NHR scheme and must be involved in one of the specified eligible activities. 

This strategic pivot reflects Portugal’s focus on developing a more innovation-led economy and leveraging its capacity in science and technology to attract foreign talent and investment.

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 also one of the 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 21st 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, 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 are just no taxes.

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 and there’s always something going on in Dubai.

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. Even petty crimes are rare in the UAE, so you can feel secure living there.

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. However, keep in mind that new corporate income tax is 9%.

Singapore

Singapore is a world-renowned financial hub, making it a smart choice for entrepreneurs and investors.  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 also has great tax incentives.  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 to pay single-digit tax rates. A good tax plan can save you a lot of money wherever you go, so if you need help with planning your taxes and offshore strategies, talk to us about becoming a Nomad Capitalist client.

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 regards 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 fast becoming a booming market with great potential and attractive tax laws. For example, Bogota is a city full of amenities and a great place to live.

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.

We’d recommend Colombia if you don’t plan on staying there full-time. Check out our guide for more on obtaining residency and citizenship in Colombia.

Chile

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. Many people associate Paraguay with the black market but that’s an outdated perspective, banished by the development 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.

Uruguay

Not many people talk about Uruguay, which is a shame considering its safety and favourable 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’ll get the benefit of a 10-year tax holiday for all foreign-sourced income and, after that, you only have to pay 12%. It has a beautiful coastline and is very safe.

Ecuador

Ecuador is very affordable and many people choose to retire there. Do note that while it doesn’t have a lot of violent crimes, it does have petty crime, and as of 2023 there is 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 designed to protect your privacy.

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, 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 and 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’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.