Tax-free residency? Which two non-GCC countries without income tax

The UAE is one of the few places in the world where expats can live, earn and keep those well-earned dirhams, as income tax is still not in sight.

This benefit has earned the country many rankings as one of the best immigration destinations in the world.

Apart from good living conditions, the great weather and accessibility, the absence of income tax and tax filing has been celebrated by many consultants as key benefits of living an expat life in the UAE.

“The UAE is a very good option due to the absence of income tax and tax filing, said Yann Mrazek, Managing Partner of the Law Firm M / Advocates of Law earlier.

“The UAE is not just some beaches. It is a cosmopolitan city with great facilities and a good healthcare system. Added to that is that Dubai is easy to access, as it is no longer a place in the remote Middle East.”

Emirates 24|7 looked around the globe to spot other places where expats can find a tax-free life.

The Bahamas

To many it will come to mind as a place where you would go on holiday. But what if you made your holiday place a home? Without paying taxes?

It is possible if you have the financial means to invest in the local economy of the tropical island.

The Bahamas runs an investment programme offering the opportunity to gain permanent residency, with or without the right to work.

For a minimum investment of $250,000 (Dh900,000) you will be granted permanent residency without the right to work, while $500,000 (Dh1.8 million) will permit you to live and work on the island.

The investment must be made in property or in a local business, but in either case, the investor must reside in the country.

It is not the fastest route to residency in another country as the application may take 6-12 months, but once permanent residency is granted, it does not have to be renewed.

The new resident will have the same rights as citizens of the Bahamas, except for the right to vote.

And yes, this means enjoying the tax haven of the region, with no income tax, no capital gains tax, no wealth/net worth tax and no gift/inheritance tax.

Monaco

Similar to the Bahamas but with the price-tag a little higher, this small but reputed country offers investors a route towards residency and eventually citizenship on its soil.

Through its investment programme, wealthy individuals can obtain residency by investing €1 million (Dh4 million) in the local economy.

Half of this amount must be invested in property, while the other half must be deposited onto a local bank account.

Although the investment amount is somewhat higher than that of the Bahamas, the benefits may be more interesting if visa-free travel is what you are looking for; the Schengen zone can be accessed without the prior arrangement of a visa.

Also interesting is the fact that citizenship can be obtained, although this will require long-term residence and can be done after 10 years of naturalisation.

A resident of Monaco must reside in the country for at least 3 months in a year.

Although Monaco is generally considered as a tax haven in Europe, it is not completely void of taxation as a gift/inheritance tax may be applicable if the assets are Monaco assets. Other than that taxation is a thing of the past.

Noteworthy is that French citizens will be taxed in France on their income and capital gains.

(Image via Shutterstock)

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