Top 5 Countries with Zero Income Tax in 2025 – Move, Invest & Live Tax-Free
Veronika Mamontova
Follow Us
Stay updated with the latest property trends and investment insights across Europe. Join our community on social media.
Frequently Asked Questions
Which countries have zero income tax in 2025?
In 2025, countries like the UAE, Bahamas, Cayman Islands, Monaco, and Bermuda have no personal income tax. These states rely on revenues from tourism, oil, or fees instead of taxing individual income.
Can I really live tax-free by moving to a no-income-tax country?
Yes, but “tax-free” doesn’t mean free of all taxes. You’ll avoid income tax but may face high living costs, VAT, and permit fees. To benefit, you must become a legal tax resident by spending enough time there and meeting visa rules.
Are there any European countries with zero income tax in 2025?
Only Monaco offers zero income tax in Europe (except for French citizens). Andorra has low taxes, but not zero. Most EU countries do tax income, though some offer special tax regimes for foreign residents or retirees.
How do zero-income-tax countries make money if they don’t tax income?
These countries earn through oil (UAE), tourism (Bahamas), business fees (Cayman), and VAT or import duties. Some charge residency or licensing fees, especially from wealthy expats and offshore companies.
What should I consider before moving to a tax-free country?
Consider residency rules, cost of living, healthcare, and legal stay options. Some tax-free countries are expensive or lack public services. Also check if your home country taxes you globally, like the U.S. does.