Countries with no income tax 2026: all 11

Eleven countries charge no personal income tax in 2026: the UAE, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Brunei, Monaco, the Bahamas, Bermuda and the Cayman Islands. On a US$100k salary, an expat employee pays 0% all-in in the UAE, Brunei, Kuwait, Oman, Qatar and Saudi Arabia, about 1% in Bahrain and about 2% in the Bahamas.

No income tax doesn't always mean nothing comes out of your pay. Bermuda charges payroll tax on salaries, the Cayman Islands makes a pension and health insurance compulsory, and Monaco takes about 14.8% in social contributions. Qatar and Saudi Arabia don't tax salaries but do tax a foreigner's business profit, at 10% and 20%. Oman has passed a 5% income tax that starts on 1 January 2028.

This guide covers all 11 for the 2026 tax year: what each one taxes instead (social security, VAT, property and business taxes), how you get the right to live there, the catches, and how each rates for six types of mover. At the end we look at three low-tax alternatives, clearly labelled, because they aren't zero-tax.

What's changed: Oman's Personal Income Tax Law (Royal Decree 56/2025) is now law and starts on 1 January 2028, at 5% on gross income above OMR 42,000 (about US$109,000). Bermuda's new payroll tax bands took effect on 1 April 2026, cutting the employee portion on a $100,000 salary from $5,080 to $4,270. The Bahamas raised its National Insurance wage ceiling to $830 a week on 1 July 2026, and its 2026/27 Budget bills would change real property tax for foreign home owners (Proposed, not law). Monaco's new social contribution rates apply from 1 October 2026. In the Cayman Islands, stamp duty on property from CI$2 million rose to 10% on 1 January 2026, and new work permits from 1 May 2026 tie you to your employer for two years. Saudi Arabia's law letting non-Saudis own property came into force on 22 January 2026.

Which countries have no income tax in 2026?

The table shows what each country charges an individual instead of income tax, and how it rates across our six profiles. Every one of the 11 rates Excellent for investment income, and nine rate Excellent for retirees (Bermuda and Brunei rate Good because of their duties at death).

📋 Countries with no income tax in 2026

The graphic splits the 11 countries into two groups. In the UAE, Kuwait, Oman, Qatar, Saudi Arabia and Brunei an expat employee on US$100k pays 0% all-in, in Bahrain about 1% and in the Bahamas about 2%. In the Cayman Islands (about 5% pension), Bermuda (about 8.7% in payroll tax, social insurance and health insurance) and Monaco (about 14.8% social contributions) there's still no income tax, but more comes out of your pay. Oman's 5% tax above OMR 42,000 starts in 2028.

How we compare countries

Our ratings are relative to the 153 countries TaxPilot covers, use 2026 rules and count the all-in cost, including compulsory social security and health contributions. That matters here, because in a zero-tax country the contributions are often the whole bill. Each profile has its own scenario:

• Employees: a US$100k salary. Excellent is 10% or less, Good up to 20%, Moderate up to 30%, Poor over 30%. Each band includes its upper bound, so exactly 20.0% is Good.

• Freelancers: US$100k of self-employed income, on the same bands.

• Retirees: a US$40k foreign pension plus US$20k of investment income. Excellent also needs no death tax payable by a spouse or children.

• Crypto gains: a US$100k gain on crypto held for more than 12 months. Untaxed but with a trading risk is Good, not Excellent; no personal income tax at all is Excellent, even where crypto dealing is banned, because a ban isn't a tax.

• Investment income: a US$1m portfolio earning 4% income and 4% realised gains.

• Digital nomad visa: whether a remote worker has a practical way to live there.

A few judgement calls are worth knowing. Monaco rates Excellent for retirees because its inheritance duty is 0% for a spouse, children and parents. Bermuda and Brunei rate Good: Bermuda's stamp duty at death reaches children (legacies to a spouse are deductible), and Brunei's 3% estate duty over BND 2 million has no spouse or child exemption. In Kuwait and Brunei, freelancers rate Excellent on tax alone, although there's no freelance permit or freelance visa for foreigners. Bahrain's freelancers also rate Excellent, but you need a commercial registration or an LMRA permit to work for yourself. Saudi Arabia's 20% on freelance profit sits exactly on the line, so it rates Good.

What each country taxes instead

UAE

The UAE has no personal income tax on salary, pensions, dividends, interest, capital gains or crypto, and no inheritance, gift or wealth tax. Expat employees don't pay into the pension system, which covers UAE and GCC nationals only; your employer pays an end-of-service gratuity instead. What you do pay is 5% VAT and property fees such as the land transfer fee.

The one income tax that can reach you is the business tax on the self-employed: 9% on profit above AED 375,000, and only once turnover passes AED 1 million (about US$272,000) in a calendar year. Getting in is easy: you're tax resident after 183 days, or after 90 days with a residence visa and a home or job. The virtual work visa needs US$3,500 a month from an employer outside the UAE. The catch is the treaty certificate, which needs 183 days.

👉 UAE Legislation: Cabinet Decision No. 85 of 2022 on tax residence

👉 UAE expat tax guide

Bahrain

Bahrain taxes no personal income of any kind. The only deduction from an expat's salary is 1% unemployment insurance, so the all-in rate on US$100k is about 1%. VAT is 10%, and there's no wealth or inheritance tax.

There's no nomad visa. The long-stay routes are a job, your own company, or Golden Residency, for example by owning property worth at least BD 130,000 (about US$346,000). Two catches: a certificate of residence for treaty claims needs 183 days in the year, and freelancers need a commercial registration or an LMRA permit and must register for VAT once sales pass BD 37,500.

👉 Bahrain expat tax guide

Kuwait

Kuwait doesn't tax individuals' income of any kind, and expat employees aren't insured with the Public Institution for Social Security, so the all-in rate is 0%. Your employer pays an end-of-service indemnity instead. There's no inheritance, gift or wealth tax.

The catch is treaty residence. Several of Kuwait's treaties, including those with the UK and Canada, only count Kuwaiti nationals as Kuwaiti residents, so a British or Canadian expat can't use the treaty to settle a claim from home. Residence is usually tied to a sponsor, there's no nomad or retirement visa, and the Capital Markets Authority bans dealing in virtual assets as an investment. That ban is regulation, not tax, so crypto gains still rate Excellent.

👉 GOV.UK: the UK and Kuwait double taxation agreement

👉 Kuwait expat tax guide

Oman

Oman has no personal income tax in 2026 or 2027, and expat workers pay no social insurance from their pay (employers pay 1% maternity and 1% sick leave insurance). VAT is 5%, and there's no inheritance or wealth tax.

From 1 January 2028, residents (more than 183 days in a calendar year) pay 5% on worldwide gross income above OMR 42,000, about US$109,000. New residents get a one-off 18-month exemption on foreign income, and from 2028 you file a return at least 60 days before you leave. All our example incomes stay under the threshold, so the ratings don't change. There's no nomad visa; the 10-year Golden Residency starts from OMR 200,000.

👉 Oman Tax Authority: Personal Income Tax Law and regulations

👉 Oman expat tax guide

Qatar

Salaries, wages and allowances are outside Qatar's Income Tax Law, and non-Qatari employees aren't in the social insurance system, so the all-in rate on a salary is 0%. Bank interest and gains on property and securities are exempt for individuals without a taxable activity. The General Tax Authority lists no VAT, only excise on tobacco, energy drinks and sugary drinks.

What Qatar does tax is business activity: a non-Qatari resident pays 10% of net profit, including rental profit from Qatari property. You're resident with a permanent home available in Qatar or more than 183 days in the year, so keeping a Doha home can keep you resident. There's no nomad visa, but buying property from QAR 730,000 (about US$200,000) gives a sponsor-free residence permit if you spend 90 days a year there.

👉 Qatar expat tax guide

Saudi Arabia

Saudi Arabia doesn't tax employment income, and non-Saudi employees pay no social insurance (the employer pays 2% for occupational hazards cover). Pensions, dividends, interest and gains aren't taxed for individuals who aren't running a business. You'll meet 15% VAT and a 5% real estate transaction tax, paid by the seller.

The catch is self-employment. A non-Saudi resident pays 20% on net business profit, and the freelance work document is for Saudi nationals, so you need investor registration or Premium Residency to trade in your own name. Residence is easy to trigger: a permanent home and 30 days in the tax year, or 183 days. Premium Residency at SAR 100,000 a year (about US$26,700) is the main route without a Saudi employer.

👉 Saudi Arabia expat tax guide

Brunei

Brunei's Income Tax Act taxes only companies, so salary, self-employment, pensions, dividends, interest and capital gains are all untaxed for individuals. The SPK pension scheme covers citizens and permanent residents only, so a foreign employee pays 0%; a permanent resident would pay 8.5%.

Two duties remain under the Stamp Act: estate duty of 3% on estates over BND 2 million, with no exemption for a spouse or children (which is why retirees rate Good), and stamp duty on documents such as property and share transfers. The harder part is getting in. There's no nomad, remote work or retirement visa, so you need an employment visa and pass, a dependant's pass or another sponsored route.

👉 Brunei expat tax guide

Monaco

Monaco stopped taxing personal income in 1869, and there's no wealth tax, annual property tax or council tax. The exception is French nationals, who stay taxed in France under the 1963 Franco-Monegasque convention. VAT is charged at the same rates as in France.

Social contributions are the real cost: about 14.8% of a US$100k salary (about €87,000) for an employee, and roughly 10.4% to 15.6% for the self-employed, which is why both rate Good. Inheritance duty only reaches assets in Monaco and is 0% for a spouse, children and parents, 8% to 16% for others. Getting in is expensive: a residence card needs a home, proof of means and, from outside the EEA, a long-stay visa.

👉 Monaco Government (MonServicePublic): tax in Monaco

👉 Monaco expat tax guide

The Bahamas

The Bahamas has no tax on salary, freelance profit, pensions, dividends, interest, capital gains or crypto, and no inheritance tax. You'll pay 10% VAT, real property tax if you own a home, and National Insurance if you work: 4.65% for employees (about 2% all-in on US$100k) and 10.3% for the self-employed (about 4.4%), both capped at $830 a week. Businesses with turnover over $100,000 pay business licence tax from 0.5% of turnover.

It's the only country here, apart from the UAE, that rates Excellent for remote workers. The BEATS permit costs US$1,025 for a year, can be renewed up to three years and sets no minimum income. The catch: there are no double tax treaties, so nothing can settle a claim from your home country.

👉 Bahamas expat tax guide

Bermuda

Bermuda has no income tax and no capital gains tax, so investment income and foreign pensions are untaxed. But pay for work done in Bermuda carries payroll tax, with the employee portion at 0.25% to 12.5% in bands. Add social insurance of $39.25 a week and your share of the health premium, and a US$100k salary costs about 9% all-in, or about 14% if you're Bermudian or married to one and must join the occupational pension.

The self-employed pay payroll tax at 9.75%, both halves of social insurance and the full health premium, about 24% all-in, so freelancers rate Moderate. Stamp duty of up to 20% is charged at death on Bermuda assets, and children pay it, so retirees rate Good. Work From Bermuda closed to new applicants on 28 February 2025, so remote workers now need permission to reside.

👉 Government of Bermuda: payroll tax, who pays and when

👉 Bermuda expat tax guide

Cayman Islands

The Cayman Islands has no direct taxes: no income, capital gains, inheritance or wealth tax. Instead, employees pay 5% into a private pension once they've worked there for nine months (on earnings up to CI$87,000), and employers can deduct up to half the compulsory health insurance premium. On US$100k that's about 5% plus your health share. The self-employed pay the full 10% pension and their own cover, just over the 10% line, so freelancers rate Good.

The government raises money through stamp duty on property (7.5% under CI$2 million, 10% from CI$2 million), import duty and immigration fees. Getting in is hard: you need a work permit from a Cayman employer or a residency certificate, and the Global Citizen remote work programme closed to new applications on 31 October 2022.

👉 Department for International Tax Cooperation: FAQs (Cayman does not have direct taxes)

👉 Cayman Islands expat tax guide

☑️ Ratings and residence for all 11

All 11 countries rate Excellent for investment income, and all but Bermuda and Brunei (Good) for retirees, so this table shows the four profiles where they differ most, with the all-in cost on US$100k where it isn't zero.

☑️ Ratings for countries with no income tax, 2026

Crypto rates Good rather than Excellent in Qatar and Saudi Arabia. Personal gains aren't taxed, but trading on a business scale could be taxed as business profit. Kuwait rates Excellent: it has no personal income tax at all, and its ban on crypto dealing is a regulatory rule, not a tax.

☑️ Getting in and leaving: countries with no income tax

None of the 11 has an exit tax. A clean break on their side doesn't mean your old country has let you go, which is the biggest trap below.

Near-zero alternatives (not zero-tax)

These three countries do have an income tax, so they aren't on the list above. They're territorial in practice for most expats, and they rate Excellent for employees, so the all-in cost on a US$100k salary is still under 10%.

Near-zero alternatives in 2026 (these countries do tax income)

The Maldives taxes residents on worldwide income, but temporary residents (foreigners permitted to stay who aren't married to a Maldivian) are taxed on Maldives income only, and the first MVR 720,000 (about US$46,700) is tax free. In Macao, a 25% deduction, the MOP 144,000 exempt slice and the 30% cut bring the 12% top rate down to 6.3% at the margin. Singapore's figure is for a resident foreigner on a work pass, who pays no CPF. None of the three has a digital nomad visa.

Traps and what to check

• Your old country. Zero tax abroad doesn't stop your home country taxing you if it still treats you as resident. The Bahamas and Bermuda have no comprehensive tax treaties and the Cayman Islands only a limited one with the UK, so nothing settles a dual claim. Break residence under your home country's own rules and keep your travel records.

• Treaty certificates. The UAE needs 183 days for a treaty certificate, as does Bahrain's certificate of residence. Many Kuwait treaties only count Kuwaiti nationals as residents.

• French nationals in Monaco stay taxed in France.

• Business profit is taxed in some. Qatar charges 10% and Saudi Arabia 20% on a foreigner's business profit, the UAE 9% on larger self-employed businesses, and the Bahamas a business licence tax on turnover over $100,000.

• The right to work for yourself. Kuwait, Brunei, Qatar and Saudi Arabia have no freelance visa or permit open to foreigners, and Bahrain needs a commercial registration or an LMRA permit, so check your route before you plan to freelance.

• Social security still counts. Monaco, Bermuda and the Cayman Islands take a real slice of pay through contributions, pension and health insurance.

• Duties at death. Bermuda (up to 20% on Bermuda assets), Monaco (8% to 16% for heirs outside the close family) and Brunei (3% over BND 2 million) still charge them; in Bermuda and Brunei your children can pay. In the UAE, local inheritance rules can apply to UAE assets without a registered will.

• Oman from 2028: 5% above OMR 42,000 for residents, with a return due before you leave.

• Proposed changes. The Bahamas property tax change for foreign home owners is Proposed, not law, and a request to raise the Cayman health insurance premium by about 25% was still under review in June 2026. Proposals in Kuwait to tax money expats send home are not law.

Frequently asked questions

Which countries have no income tax in 2026?

Eleven: the UAE, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Brunei, Monaco, the Bahamas, Bermuda and the Cayman Islands. Qatar and Saudi Arabia still tax a foreigner's business profit, Bermuda charges payroll tax on salaries, and Oman's 5% income tax starts in 2028.

Which country with no income tax is cheapest for an employee?

An expat on a US$100k salary pays 0% all-in in the UAE, Brunei, Kuwait, Oman, Qatar and Saudi Arabia, because there's no income tax and no employee social security for foreigners. Bahrain is about 1% and the Bahamas about 2%.

Is there a country in Europe with no income tax?

Yes, Monaco. Residents pay no income tax, except French nationals, who stay taxed in France. Employees still pay about 14.8% in social contributions. See our Monaco expat tax guide.

Is Oman introducing income tax?

Yes. From 1 January 2028, residents pay 5% on gross income above OMR 42,000 (about US$109,000) under Royal Decree 56/2025. There's no personal income tax in 2026 or 2027.

Which zero-tax countries have a digital nomad visa?

The Bahamas and the UAE. The Bahamas BEATS permit costs US$1,025 for a year with no minimum income, and the UAE virtual work visa needs US$3,500 a month from an employer outside the UAE. Bermuda's Work From Bermuda certificate closed to new applicants in February 2025.

Do I still owe tax at home if I move to a country with no income tax?

You can. If your old country still treats you as resident, it can tax your worldwide income, and several zero-tax countries have few or no tax treaties to settle a dual claim. Break residence under your home country's rules first.

Where to go next

👉 Countries that don't tax foreign income

👉 Lowest-tax countries for employees

👉 Best digital nomad visas

👉 Best countries for retirees

👉 Hardest countries to stop being tax resident

👉 Lowest-tax countries for expats: 153 ranked

👉 UAE expat tax guide

👉 Bahamas expat tax guide