Best 1st world countries with low to zero income tax?

[banafinfodafuggiano]

I'm looking to relocate from Canada to a new country. The new country must have all of these requirements:

- Zero to max 15% income tax
- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident
- Low to zero capital Tax gains a bonus
- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)
- Be near Europe or near Asia
- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either



It seems like East Europe or Asia can have great options but what countries are not crazy expensive and also have low taxes in these areas?

 

[Konstanz]

Cheap, low tax, 1st world country, near Europe? I don't think you will find that

 

[mrsv]

If you find it lmk …
Most low tax countries are not 1 st world countries the low tax is for a reason. It is what it is.

 

[scooterguy]

Malaysia may work for you.

Kuala Lumpur is very developed and you can find great accommodation at relatively low prices (way cheaper than Dubai).

 

[banafinfodafuggiano]

Malaysia may work for you.

Kuala Lumpur is very developed and you can find great accommodation at relatively low prices (way cheaper than Dubai).

I'm aware of Malasya, it's my first choice for now. Thanks for reminding me.

I was looking for something with a bit hotter girls and better climate, hence my thinking was related to Europe or close to Europe.

I heard some East European countries have a low income tax rates...

 

[jafo]

I heard some East European countries have a low income tax rates...

Maybe @Don can chime in here to help you out

 

[scooterguy]

I'm aware of Malasya, it's my first choice for now. Thanks for reminding me.

I was looking for something with a bit hotter girls and better climate, hence my thinking was related to Europe or close to Europe.

I heard some East European countries have a low income tax rates...

Plenty of hot girls in Kuala Lumpur, plus you're right next to Singapore and only a couple hours away from Vietnam, Thailand, etc.

East Europe may work too but you will not get tax-free foreign capital gains or income, and winters can be harsh (though maybe that's the climate you prefer?).

 

[Amandograde]

I'm looking to relocate from Canada to a new country. The new country must have all of these requirements:

- Zero to max 15% income tax
- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident
- Low to zero capital Tax gains a bonus
- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)
- Be near Europe or near Asia
- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either



It seems like East Europe or Asia can have great options but what countries are not crazy expensive and also have low taxes in these areas?

doesnt exist. Countries where everything works like a charm can demand a lot like a hot chick in the clerb.
But you should pick the place where you like the girls most then and move around during each year and worry about tax later

Dubai you can have this cheaper if you are already looking outside the tourist centers. (but you might only can do this if you spend time there and learn on the ground)

 

[Jbb1]

There are hot girls everywhere it’s up to your preferences.

Regarding taxes I think Malaysia is a good option it’s capital is developed, the rest of the country it’s not.

In Thailand you can also get tax free status and visa for up to 10 years if you work in certain sectors.

 

[andrew28fl]

I'm aware of Malasya, it's my first choice for now. Thanks for reminding me.

I was looking for something with a bit hotter girls and better climate, hence my thinking was related to Europe or close to Europe.

I heard some East European countries have a low income tax rates...

24% tax in Malaysia, if you do everything legally, correct? It looks like they don't come after foreign income/expats yet, but things might change in 2026. Not sure about how serious the enforcement of the new laws on foreign income would be. I am going to KL next month, and spending a month there.

 

[JohnLocke]

As far as I know, Malaysia is not a part of Europe, so maybe we should stick to what the OP is asking about!

 

[banafinfodafuggiano]

24% tax in Malaysia, if you do everything legally, correct? It looks like they don't come after foreign income/expats yet, but things might change in 2026. Not sure about how serious the enforcement of the new laws on foreign income would be. I am going to KL next month, and spending a month there.

I would require a Tax certificate and local Tax Returns to show to Canada since they might require them.

This is why East Europe (put on Tax return less than what I actually earn) could be an option.
Does Malasya Tax foreign income? I thought they didn't and in that case I can still get a Tax certificate from Malasyan authorities?

 

[Amandograde]

I would require a Tax certificate and local Tax Returns to show to Canada since they might require them.

can be achieved in whatever place, less the 0% tax heavens (there you can have tax cert).

 

[Don]

I'm aware of Malasya, it's my first choice for now. Thanks for reminding me.

I was looking for something with a bit hotter girls and better climate, hence my thinking was related to Europe or close to Europe.

I heard some East European countries have a low income tax rates...

- Zero to max 15% income tax -

Take for example Bulgaria with 10% rate, or even Kosovo.
Cyprus and Malta both have up to 35% personal income tax rates. Estonia has 20% flat rax.
That being said if you consider only personal income tax rate it doesn't tell you much about your overall tax burden, and make you overlook all the exemptions and structuring possibilities. You should also take into account how you earn your income, and banking.
It could open up more possibilities if you could tolerate the compromise of not staying more than 6 months/year in certain jurisdictions, e.g., splitting your time in 2-3 countries.
Your citizenship plays a fairly important part here, as well as your budget.

- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident

Not many options here, but Estonia, Latvia are examples.

- Low to zero capital Tax gains a bonus

This is often possible to be structured as 0%

- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)

Rent a villa in Albania for a bit less than 6 months a year. Manage a branch office there with e.g., 5% tax.

- Be near Europe or near Asia

Egypt: While predominantly in Africa, a small part of Egypt (the Sinai Peninsula) lies in Asia.

Caucasus Countries (Georgia, Armenia, Azerbaijan): These countries are often considered to be at the boundary of Europe and Asia, with different definitions placing them in different continents.

- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either

Live in Saudi Arabia for 30 days a year for 0 tax residence, spend rest of the time somewhere else without triggering personal tax residence.
Saudi has top level safety. No tolerance for alcohol, drugs, perverts, adulterers.
Its also near Asia.

 

[andrew28fl]

I would require a Tax certificate and local Tax Returns to show to Canada since they might require them.

This is why East Europe (put on Tax return less than what I actually earn) could be an option.
Does Malasya Tax foreign income? I thought they didn't and in that case I can still get a Tax certificate from Malasyan authorities?

People throw around the term "foreign income" casually. Generally, only passive foreign income like pensions or dividends would be tax free. Any active enterprise or employment, where the work is performed in a given country, is locally sourced income for that country, and taxable in the country of residence.

Is your foreign-sourced income exempted from tax?

With the boom of high-growth industries driven by technology, many are able to work remotely and earn income globally. As countries have different tax mechanisms when it comes to foreign-sourced income or FSI, we answer commonly asked questions so you can accord the proper tax treatment for...

www.pwc.com

 

[Moonlighter]

Move to UAE and don't pick Dubai, Sharjah or Ajman might be in your housing price range and tick a lot of boxes.

 

[Marzio]

Any active enterprise or employment, where the work is performed in a given country, is locally sourced income for that country, and taxable in the country of residence.

Exactly.

There are only a handful of countries that don't care like Panama for example so his requirements should be really filtered by which countries don't care about people creating a PE in their country.

Based on his requirements, San Marino is the best option.

https://orbitax.com/news/archive.php/San-Marino-Budget-Law-for-2021-45110

 

[Don]

Exactly.

There are only a handful of countries that don't care like Panama for example so his requirements should be really filtered by which countries don't care about people creating a PE in their country.

Based on his requirements, San Marino is the best option.

https://orbitax.com/news/archive.php/San-Marino-Budget-Law-for-2021-45110

How do you know they won't care?
An emerging tendency is that governments have started to care more.
First time in history they will have the tools (CRS and FATCA) to go after such people, and enforce their laws, and to easily tax foreign income.

Just an example here:

Brazil introduces individual income tax bill affecting taxation of foreign investment income

According to the new bill, starting from 1 January 2024, foreign investments by Brazilian residents will be reported annually and at tax rates range from 0% to 22.5% based on annual income. Profits of entities controlled by Brazilians abroad would be taxed annually, starting from 1 January 2024...

www.ey.com

To add to your example similar regimes are available in other jurisdictions too.
Even in South Korea you don't need to declare foreign income for some years.

 

[Marzio]

How do you know they won't care?

I'm talking about present day, nobody knows what will happen in the futre.

Right now Panama doesn't care about your foreign affairs.

 

[uranio]

- Zero to max 15% income tax -

Take for example Bulgaria with 10% rate, or even Kosovo.
Cyprus and Malta both have up to 35% personal income tax rates. Estonia has 20% flat rax.
That being said if you consider only personal income tax rate it doesn't tell you much about your overall tax burden, and make you overlook all the exemptions and structuring possibilities. You should also take into account how you earn your income, and banking.
It could open up more possibilities if you could tolerate the compromise of not staying more than 6 months/year in certain jurisdictions, e.g., splitting your time in 2-3 countries.
Your citizenship plays a fairly important part here, as well as your budget.

- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident

Not many options here, but Estonia, Latvia are examples.

- Low to zero capital Tax gains a bonus

This is often possible to be structured as 0%

- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)

Rent a villa in Albania for a bit less than 6 months a year. Manage a branch office there with e.g., 5% tax.

- Be near Europe or near Asia

Egypt: While predominantly in Africa, a small part of Egypt (the Sinai Peninsula) lies in Asia.

Caucasus Countries (Georgia, Armenia, Azerbaijan): These countries are often considered to be at the boundary of Europe and Asia, with different definitions placing them in different continents.

- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either

Live in Saudi Arabia for 30 days a year for 0 tax residence, spend rest of the time somewhere else without triggering personal tax residence.
Saudi has top level safety. No tolerance for alcohol, drugs, perverts, adulterers.
Its also near Asia.

Malta is 0% income if you don't bring your money inside the country no?
So if you keep money on bank accounts in other countries is 0%, why should he pay 35%?