Nobody wants to lose half their paycheck to the tax man. This is especially true if you’re retired or semi-retired and have a fixed income. One of these 18 countries may be the place for you if you want to reduce your income tax burden.
Turkmenistan
Known for ancient ruins and a strong fossil fuel industry, this former Soviet Republic also boasts a surprisingly low-income tax rate, with individuals paying only 10% to the government. While this may seem like a great deal, remember that Turkmenistan has been cited for human rights concerns lately. Their restrictions on free and open communication are also troubling for many people. But if your primary goal is saving on taxes, it’s worth looking at this former stop on the Silk Road.
Kazakhstan
Bordering Turkmenistan, Kazakhstan is another former Soviet Republic. With a similarly dicey history when it comes to human rights, some may shy away from this central Asian nation despite it also having a personal income tax rate of about 10%.
Romania
This Central European nation is also a former Soviet Bloc country. Romania continues the trend of borderline repressive governments that can boast low taxes relative to the public services provided. Romania may be your spot if you like Old World architecture and Orthodox Christianity.
Bulgaria
Near Greece, nestled in the Balkan Mountains, lies the country of Bulgaria. Close to the Mediterranean, Bulgaria is yet another former Soviet Republic that shed socialist government and the high taxes typical of collectivist societies. You may feel more at home in the mountains of Bulgaria, knowing they have a very modest income tax.
North Macedonia
Not far from Bulgaria is the tiny nation of North Macedonia. Historically, Macedonia was home to great warriors and conquerors. Today, the small country is known for a modest gross domestic product and a tax rate lower than most others in the world.
Kosovo
The landlocked Republic of Kosovo has endured many hardships in its time. From Soviet occupation to the Serbian genocide, it has been to hell and back, coming through the other side a growing economy in southeastern Europe. If you’re looking to the Balkans for a new home, Kosovo’s rock-bottom tax rate makes it as appealing as almost any place on this list.
Bosnia and Herzegovina
Rounding out the Eastern European roster is the minuscule nation of Bosnia and Herzegovina. Formed after the dissolution of the USSR, this small country has to offer what many other former Soviet Bloc countries do: an appealing tax rate and modest cost of living. It’s worth considering if Eastern Europe is the region for you.
Paraguay
Let’s shift focus to Latin America with our next candidate. Paraguay, a former Spanish colony and burgeoning economy in development, is on many expats’ shortlist due to the familiarity with the local language, Spanish, and the small tax burden imposed by the government. Businesses and individuals alike have been moving to Paraguay for tax benefits for some time, and the trend will likely continue.
Guatemala
In Central America’s Northern Triangle, Guatemala sits on the coast, wedged between Mexico and the South American continent. The country has its share of troubles, from narcos and corrupt governments to tropical diseases and poisonous snakes. However, for those with the means to live in a well-developed area, Guatemala’s practically nonexistent income tax leads many to pick up and move to this oceanside gem.
Costa Rica
An old favorite of American expats, Costa Rica has many amenities and public services one would expect in a modern context. With good schools and hospitals and a crime and corruption rate lower than many nations in the region, it’s an ideal place to make your second home. Brush up on your Spanish and prepare to save on your taxes living in this Latin American up-and-comer.
Saudi Arabia
Half a world away, one of the world’s wealthiest countries offers its citizenry practically no tax burden. Built on oil money and the resulting tax base, Saudi Arabia can provide modern comforts without burdening their people with a high tax rate. Consider this Middle Eastern kingdom if you like a dry heat.
Kuwait
Another nation carried by its fossil fuel industry is the tiny nation of Kuwait. Though it has been through a lot historically. Like the Gulf War of the 1990s, the Kuwait of today offers another nearly tax-free personal life. Enjoy the sand, sun, and savings living in this Arabic nation.
Oman
The Sultanate of Oman is located on the southeastern coast of the Arabian Peninsula, bordering Saudi Arabia. Like its neighbor, it offers its people low taxes and an oil-driven economy. While they may not enjoy the same freedoms as those of us in the West, they do have a government that keeps its hands out of the purses of its people.
Qatar
Yet again, the pattern of an oil-bearing Arabic kingdom with minuscule taxation repeats itself. Qatar is home to some of the wealthiest people and companies, all of whom enjoy their lower-than-dirt tax rates. Again, if free speech and women’s rights are your thing, consider elsewhere. Still, those in the fuel or finance industries may find it a comfortable enough home.
United Arab Emirates
The United Arab Emirates is a small, arid nation whose economy is based on- you guessed it- vast reserves of crude oil. This OPEC partner is known for an authoritarian government and nonexistent personal income taxes.
Bahrain
The Kingdom of Bahrain is an island nation in the Persian Gulf; this country is a semi-constitutional monarchy. The third smallest country in the world, bigger only than the Maldives and Singapore, its people receive equally small tax bills.
The Bahamas
The quintessential Caribbean nation, the Bahamas was formerly a British colony. As such, there is little language barrier to overcome for British or American expats looking to avoid crippling taxes. The Bahamas is known as a financial haven, for better and worse- Sam Bankman Freud set up his fraudulent company, FTX, in the Bahamas. Anyone in finance would feel right at home loving in this tropical paradise and would keep ahold of the vast majority of their income by doing so.
The Cayman Islands
Another favorite tax shelter, the Cayman Islands, is another English-speaking nation where Brits and Yanks would do well to retire should they want to protect their assets by moving out of their home country. Many financial institutions and other corporations are headquartered in the Cayman Islands for the same reason, and the Caymans have long been a favorite of tax avoiders looking for a lavish lifestyle.
Ireland
Less flashy than the Bahamas and the Caymans but closer to home for citizens of the United Kingdom, Ireland is known for low personal and corporate tax rates without sacrificing quality of life by way of authoritarian government or human rights concerns. Without the corruption of the former Soviet Republics, the social repression of the Middle East, or the threat of narcoterrorism prevalent in Latin America, Ireland makes a good compromise position for many looking for a lower tax burden. While they charge more than most nations on this list, they balance that with robust social services, safety, and liberty.