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TOP 10 COUNTRIES WITH LOWEST INCOME TAX RATES

This article Top 10 Countries with Lowest Income tax rates looks at countries where income tax rates are comparatively lower compared to others. Although there are countries that are absolutely tax-free, it is important to take a look at these low tax countries when considering relocating to another country so as to take the best decision. These countries do not have CFC laws so they only charge tax on income made within their territory.

TOP 10 COUNTRIES WITH LOWEST INCOME TAX RATES

URUGUAY

Uruguay, a South American nation is one of the most progressive and intelligently rub countries currently in the world. The government of Uruguay recently legalized marijuana in an attempt to hijack power from drug dealers. The country has several no-tax trades zones and offers residency which is a quick path to citizenship to anyone who purchases property or invests in a business venture there. New tax residents are not obliged to pay taxes on foreign sourced income for the first five years. If you marry in Uruguay, you are eligible to gain citizenship in as fast as three years. Uruguay is a country where you can legit pay no taxes and still earn citizenship within a short time period.

THAILAND

Thailand is a country located in southeast Asia. Thailand is well-known for its tropical beaches, opulent royal palaces, ancient ruins and ornate temples displaying figures of Buddha. In the capital city of Bangkok, an ultramodern cityscape rises next to quiet canal side communities and the iconic temples of Wat Arun, Wat Pho and the Emerald Buddha Temple (Wat Phra Kaew). Beach resorts nearby include bustling Pattaya and fashionable Hua Hin. This Asian country features on this list due to its low-cost of living and absence of CFC law. If a foreign-sourced personal income isn’t remitted in the first year of receipt, it may be exempted from taxation. Qualifying for citizenship in Thailand take about years or less if you are married to a Thai national. There are a number of residency programs available for you to choose from such as setting up a BOI company, Thailand elite visa and so on. Corporate taxation policy in Thailand is also relatively competitive within the region.

TOP 10 COUNTRIES WITH LOWEST INCOME TAX RATES

TOP 10 COUNTRIES WITH LOWEST INCOME TAX RATES

SINGAPORE

Singapore is an island city-state off southern Malaysia. It is a global financial center and the Singaporean passport is one of the most powerful in the world. The population of Singapore is multicultural and the climate is tropical. The tax rate in Singapore is relatively low ranging from 0% to 17%. Startups in Singapore generally pay no tax in their first three years as there are no taxes on profits under $150,000. Mid-level workers and high-income earners on the S Pass and Personalized Employment Pass (PEP) respectively pay a flat tax rate of 20% on their salary. Gaining temporary residency in this highly civilized country may require an investment of up to $4 million. Entrepreneurs should consider obtaining the EntrePass as Singapore treats those on EntrePass and investment visas differently. All citizens and residents do not pay tax on interest, capital gains or foreign profits.

QATAR

Arabian peninsula Qatar has a terrain that comprises arid desert and a long Persian (Arab) Gulf shoreline of beaches and dunes. The Capital city Doha lies along the coast and is well-known for its futuristic skyscrapers and other ultramodern architecture inspired by ancient Islamic design, such as the limestone Museum of Islamic Art. The city’s museum sits on Corniche waterfront promenade. This Arab nation only taxes locally sourced business income at a 10% rate. Income from employment is tax-free. Foreigners seeking residency in Qatar have to be sponsored. There are very few visa options for Qatar such as work residence permit, sponsored by an employer, family residence permit for dependents of a work permit holder and real estate visa available for real estate property owners in designated areas.

PARAGUAY

Paraguay offers arguably the cheapest passport in the world. Foreigners can gain permanent residency in Paraguay by making a deposit of just $5,200 into a bank account. The laws of this South American country do not stipulate any minimum residency requirement. After a three-year period, you can apply for and obtain a Paraguayan passport by just demonstrating your fluency in Spanish. Taxes on locally sourced income are charged at 10% and the country usually does not tax foreign sourced income except for income gained from investments.  

PANAMA

This country is designed to duplicate the Singaporean model. It has become an open country for immigration as well as banking. The country is now an international business hub. The country has friendly visa programs that offer instant permanent residency to people who deposit as low as $5,000 in a bank account and also have one economic tie. This economic tie is defined usually as owning a Panamanian company or the title-deed to local real estate. Further option open to individuals desirous of living in Panama includes investing in the country’s rainforests as well as its retirement program, “Pensionado Visa”. However, it is important to state that Panama’s economic citizenship program has been halted so one should be careful of dealing with anyone promising an instant passport in Panama. Tax rates on income sourced locally in Panama are quite low.

MALAYSIA

This Asian country has a quite friendly tax system and relocating to Malaysia is also very easy. Though it is quite helpful to have connections in Malaysia, the Malaysian My Second Home (MM2H) program is pretty straightforward enough for you to apply on your own without an adviser. Actually, the program is a retirement-oriented program, but it is open to anyone provided certain basic requirements are met. You will have to tender proof of a monthly income that is above $2,300 and then deposit an equivalent of $70,000 into a Malaysian bank account to obtain a 10-year visa. It is important to note that you cannot withdraw or use the money for the 10 year period unless you cancel your visa, although there are provisions for you to invest the funds in real estate.

HONG KONG

If you want to have a view of what the future will look like, take a trip to Hong Kong. The city has everything from pristine sandy beaches to towering skyscrapers and is one of the best places in the world currently to transact business or open a bank account. If you are accepted, you are quite lucky. Due to its soaring popularity, opening a bank account, obtaining residency or even getting a corporate debit card in Hong Kong is now very difficult. But then, it is always worth trying due to the benefits attached. It is possible to obtain a Hong Kong passport through residency though you will be required to have spent a significant amount of time in the territory and have the right connections.

GEORGIA

Georgia is a tiny land bathed by the Black sea which does not tax its residents on personal income generated outside the territory. Since 2017, any company incorporated in Georgia is not obliged to pay corporate tax until its profits are distributed. This implies that if you retain or reinvest profits in your company, there will be no need for you pay taxes. The immigration policy of Georgia is quite friendly and open. Obtaining a residency permit is possible by incorporating a company or making an investment in the country. As many as citizens of 94 countries of the world can reside and work in Georgia for one-year visa-free which is quite amazing.

COSTA RICA

This beautiful country offers a residency visa to those who can prove they earn upwards of US$2,500 every month. This vacation hotspot for Americans also offers a two-year visa to anyone who can deposit US$ 60,000 in a bank account. There is also an opportunity for retirees who have a monthly pension of at least US$1,000 monthly to reside in Costa Rica. Investors who make an investment of US$200,00 in real estate or securities can obtain residency in this country. This country levies personal income tax based on territory. This means that you may be able to obtain a tax-free residency provided you do not earn income within Costa Rican borders.

THE BOTTOM LINE ON TOP 10 COUNTRIES WITH LOWEST INCOME TAX RATES 

These countries offer residents and citizens opportunities to live and work at very affordable tax rates. Some of these countries do not charge tax on income earned from foreign lands which are quite impressive as dividends earned from foreign investments are protected. It is also worthy to mention that migration programs to these countries are quite relaxed and affordable which means there is a very great chance for you to move to any of these countries if you so desire. Interestingly, Singapore one of the most advanced countries of the world features on this list which is quite tempting for any businessman or investor to cash in. Many business owners and investors are taking advantage of this already. So, if you are desirous of relocating to a safe tax haven, countries on this list should be your top candidates. Try read through again.

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Tags: Top 10 Countries with Lowest Income Tax Rates

Updated: September 14, 2018 — 8:52 am

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