Updated list of Territorial Tax Countries

[wellington]

FYI Thai treating of offshore company with resident director: Income Tax Guide for Foreign Company

For sure, Malaysia/Thailand are much more friendly when you have kids. I know couple people who were in HK for 15+ years; with kids, and eventually settled in Thailand. HK is not great when you have kids in general (as most huge cities in the world besides a few exceptions).

Problem with HK is housing - it's a far better lifestyle for the kids in my opinion. (note these are sub 2).

A decent sized one bed apartment was 10,000$ a month (right location etc) when you get in to villas etc well it skyrocketed (note that may have changed).

I have a friend who still has a property there but he's thinking of returning otherwise would be ideal.

Just checked roughly 150,000 HKD a month (Le Palais #64350 Rental Property De...)

 

[thomasparra]

FYI Thai treating of offshore company with resident director: Income Tax Guide for Foreign Company


Problem with HK is housing - it's a far better lifestyle for the kids in my opinion. (note these are sub 2).

A decent sized one bed apartment was 10,000$ a month (right location etc) when you get in to villas etc well it skyrocketed (note that may have changed).

I have a friend who still has a property there but he's thinking of returning otherwise would be ideal.

Just checked roughly 150,000 HKD a month (Le Palais #64350 Rental Property De...)

This is a 4 bedroom townhome with 1000sqm2, direct sea view in a nice estate in the most expensive area of Hong Kong after the Peak. Actually 150k for all this space is not that expensive all things considered.

A decently sized 1BR apartment usually runs for 20-30k a month. 150k for the ad you showed is almost a steal lol.

Anyways with a family, if you want a house - very expensive in HK unless you live in Lantau or far on an island/Sai Kun. Thailand / Malaysia definitely much better for value.

 

[willsun1423]

does anyone have experience with Taiwan? 6.7 million ntd a year tax free for foreign income.

 

[wellington]

This is a 4 bedroom townhome with 1000sqm2, direct sea view in a nice estate in the most expensive area of Hong Kong after the Peak. Actually 150k for all this space is not that expensive all things considered.

A decently sized 1BR apartment usually runs for 20-30k a month. 150k for the ad you showed is almost a steal lol.

Anyways with a family, if you want a house - very expensive in HK unless you live in Lantau or far on an island/Sai Kun. Thailand / Malaysia definitely much better for value.

Yes prices have collapsed in HK... they will rebound.

Wouldn't live in an apartment with kids, acre(s) garden for them now, beach etc, they wouldn't benefit from a condo lol, and a house would need land for them to run around...

 

[thomasparra]

Yes prices have collapsed in HK... they will rebound.

Wouldn't live in an apartment with kids, acre(s) garden for them now, beach etc, they wouldn't benefit from a condo lol, and a house would need land for them to run around...

I feel the same as you. Some of the people I know who moved elsewhere went to Koh Samui, and Dubai. Better places for this purpose.

 

[ActionMan]

Malaysia will also be only for remitted income starting 2026 (non remitted foreign sourced income remains tax free). Until then, most income is excempted, even if remitted (some exceptions apply)

Does this apply when you activate the Permanent Establishment (PE) laws? I don't believe so. The accurate statement should be that non-remitted money is non taxable for companies with genuine offshore substance.

For sure, Malaysia/Thailand are much more friendly when you have kids. I know couple people who were in HK for 15+ years; with kids, and eventually settled in Thailand. HK is not great when you have kids in general (as most huge cities in the world besides a few exceptions).

I respectfully disagree. Thailand is an ideal choice for those who are young, single, looking to connect with digital nomads, wanntrepreneurs, and travel bloggers. you know the crowd I'm talking about.
On the other hand, Malaysia is well-suited for the long term. It boasts more spacious accommodations compared to Thailand, an excellent healthcare system (such as the renowned Prince Court Medical Centre), exceptional cuisine (a bit better than Thailand), and offers a diverse lifestyle. You can live a metropolitan life like a "Yorkie" in Kuala Lumpur or enjoy a relaxed California-style lifestyle in George Town. Malaysia also has a commendable educational system.

Thailand may be the go-to choice for individuals aged 20-30, while Malaysia provides an appealing option for those between 30-50 years of age or people with kids such as @well.

 

[wellington]

I feel the same as you. Some of the people I know who moved elsewhere went to Koh Samui, and Dubai. Better places for this purpose.

Samui looks nice, honestly never been, the wife is absolutely against moving there, she went for one day and said it was horrible, yet all the upper middle income to upper income people i knew as a kid, went to Samui (not Phuket, Krabi, etc) for their holidays and most of the hedge fund / offshore bankers i know in Asia at some point settled in Samui.

Its dirt cheap also compared to say Phuket price wise (land/villas).

Here we pay a min of roughly 1,500$ a sqm (dirt). (compare those prices to say the Bahamas, or Caymans - never made sense).

I respectfully disagree. Thailand is an ideal choice for those who are young, single, looking to connect with digital nomads, wanntrepreneurs, and travel bloggers. you know the crowd I'm talking about.
On the other hand, Malaysia is well-suited for the long term. It boasts more spacious accommodations compared to Thailand, an excellent healthcare system (such as the renowned Prince Court Medical Centre), exceptional cuisine (a bit better than Thailand), and offers a diverse lifestyle. You can live a metropolitan life like a "Yorkie" in Kuala Lumpur or enjoy a relaxed California-style lifestyle in George Town. Malaysia also has a commendable educational system.

Thailand may be the go-to choice for individuals aged 20-30, while Malaysia provides an appealing option for those between 30-50 years of age or people with kids such as @well.

Not sure i can agree with this.

My main residence is roughly 1,200 SQM, Farm residence something like 45,000 SQM, beach obviously much smaller (400 SQM).

These 'were' affordable prices for the average person (in some of my case inheritance in family), whereas in Malaysia from what i've seen/experienced (stayed in Langkawi for a month) it felt dated (like colonial and i don't mean the buildings), beaches (offshore islands) were stunning but no vibe/life, George Town was pretty cool but again tiny - slightly better sizing on condos/property in general but style/design just dated.

KL was pretty cool but again no real vibe outside of certain areas.

I know the Burmese started about a year ago going to Malaysia to build (better income) as they were earning 500-600 thb a day in Phuket but earning 700 in Malaysia, but that just pushed up the wages in Thailand, without their building you are reliant on Malaysians and well - they seem to be ill-equipped for design/construction so its very boring in the towns/mini-cities etc.

I think the Big short scenes were Malaysia or one of the films, never found the area where the property was.

Thailand is good for all age groups, the problem you have the Government are increasingly utilising Chinese/Western teachniques coupled with the statements of 'bad farang' it just doesn't make Thailand a place you feel comfortable in.

Caribbean has a lot to offer but it's too islandly - on phuket you only feel like you are on a island when you are on a yacht, feels very much like a mini Bangkok with the international style malls, restaurants etc.

- I am looking for a slice of land in El-Zonte. Willing to take a gambit there and try it out, otherwise Caymans (little Cayman) and spread my life around the Globe (Carib-Asia with a touch of Afrikana).

---

Ref the appeal Malaysia (kids) i have to disagree with this also.

- Set aside Thailand has some fantastic international schools, which Malaysia to my understanding doesn't on the same scale.
- Singapore is like an hour flight from Phuket (slightly more) - sending the kids to boarding or back and forth weekly around Schooling is quite common (this is our way of thinking)

 

[Liam13]

Very interesting discussions as I am currently struggling with were to relocate in Asia. Thanks for sharing!!
HK: residence is not possible as I need to open a company, get approval etc. AND US clients are now banning me from working from HK!
Taiwan: I went there for a month, very little English spoken and a lot of tension around China choking it slowly. Often gray and raining.
Malaysia: never been, and it feels weird to be in a muslim country but learning about its other sides here
Thailand: favorite options so far but unsure where to live: chiang mai seems to check many boxes BUT i am also turned off by the digital nomad crowd, I am passed that, that's what annoyed me in Cyprus
Philippines: Actually seems so much easier than Thailand (paper, language etc) but the infrastructure seems so bad

 

[Radko]

Thailand, Chiang Mai

Chiang Mai is a great option, but you have to leave during the months of February, March, and part of April. The Smokey season is horrendous, terrible air quality, but great excuse to get a bungalow by the beach during those months.

 

[Liam13]

Chiang Mai is a great option, but you have to leave during the months of February, March, and part of April. The Smokey season is horrendous, terrible air quality, but great excuse to get a bungalow by the beach during those months.

Oh thanks for the info!!!

 

[ecool]

Malaysia: never been, and it feels weird to be in a muslim country but learning about its other sides here

Malaysia is Muslim country but not like Middle East ones. Malaysia is more relaxed because there are a lot of Chinese and Hindus living here, so it’s a mix a non Muslim cultures living with Muslim.

Personally I’ve travelled extensively in the Middle East and also in Malaysia and Malaysia doesn’t look like a Muslim country except when you venture to tiny villages.

One advantage of Malaysia versus Thailand is that in Malaysia English is widely spoken, restaurant menus are in English, customer support is in English, official communications are done in English, etc. you cannot say the same from Thailand where even in Bangkok most of shops and restaurants don’t speak English and signs are in Thai (which doesn’t even use the same alphabet)

 

[Dictator]

Thailand ONLY taxes world wide IF remitted.

What is remitted money precisely? Any money sent from outside of Thailand to it? Does it have to be for any commercial activity in order to be considered remitted?

One advantage of Malaysia versus Thailand is that in Malaysia English is widely spoken, restaurant menus are in English, customer support is in English, official communications are done in English, etc. you cannot say the same from Thailand where even in Bangkok most of shops and restaurants don’t speak English and signs are in Thai (which doesn’t even use the same alphabet)

Where does one get this myth "speak English"? An average malaysian will know perhaps 50-100 words in English. It's far from being able to speak English

 

[wellington]

Very interesting discussions as I am currently struggling with were to relocate in Asia. Thanks for sharing!!
HK: residence is not possible as I need to open a company, get approval etc. AND US clients are now banning me from working from HK!
Taiwan: I went there for a month, very little English spoken and a lot of tension around China choking it slowly. Often gray and raining.
Malaysia: never been, and it feels weird to be in a muslim country but learning about its other sides here
Thailand: favorite options so far but unsure where to live: chiang mai seems to check many boxes BUT i am also turned off by the digital nomad crowd, I am passed that, that's what annoyed me in Cyprus
Philippines: Actually seems so much easier than Thailand (paper, language etc) but the infrastructure seems so bad

Generally speaking. From a education/intellectual perspective.

Labourers -> Philippines
Salesman -> Thailand
Upper Management -> Malaysia

Sure there's a mix of all in all... but predominantly you will find the vast majority in these countries (expats) to be centred around those prior positions in life.

Which gives you a indicator of the 'intellectual stimulation' available.

Fortunately for me, we have a little area where we were all former aviation engineers or finance/tech sector, plus all into boating so have a lot of different types of discussions, but i remember living in another part of the island and well... not much 'intellectual stimulation'.

What is remitted money precisely? Any money sent from outside of Thailand to it? Does it have to be for any commercial activity in order to be considered remitted?


Where does one get this myth "speak English"? An average malaysian will know perhaps 50-100 words in English. It's far from being able to speak English

Not sure where you are coming from on the language.

I once was heading to Penang island, unbeknown to me we took a slow train (sightseeing holiday) and the train kicked us (stopped at the border) and we thought it was going all the way to Penang, it was around 1 am in the morning.

Some Malaysians (youth) were there, and well they drove us 50klm to the next major city - free of charge - and to a hotel so we were safe.

Never had an issue with language and very friendly people...

I like Malaysians - i just don't like how dated Malaysia is compared to Thailand (in some parts) - i am not referring to infrastructure but 'feeling'.

Ref remittance use Google.

 

[JackAlabama]

Very interesting discussions as I am currently struggling with were to relocate in Asia. Thanks for sharing!!

In the same boat somewhat. checking out that region these days.

HK: residence is not possible as I need to open a company, get approval etc. AND US clients are now banning me from working from HK!

You gotta put in some real work there for the residency ive been told. The path is in theory like in Dubai, but hk will check up on your company and you providing local jobs. Plus its costly, albeit cost is justified id say for what you get there.

Taiwan: I went there for a month, very little English spoken and a lot of tension around China choking it slowly. Often gray and raining.

Well yah, if you fancy living on a potential geopolitical fault line and speak Chinese (or willing to learn), good spot. Upside is great food and somewhat orderly, but slightly more expensive than the others ex HK.

Malaysia: never been, and it feels weird to be in a muslim country but learning about its other sides here

its chill. Good spot, just more laid back (some say boring) than Thailand. More open and accepting of foreigners, so thats nice.
Pickpocketing can happen easily, more than Thailand.
On the upside, you get around in English mostly. I once went to Police station even for stolen passport and stuff could be handled in English, thats often not possible in Asia.

Thailand: favorite options so far but unsure where to live: chiang mai seems to check many boxes BUT i am also turned off by the digital nomad crowd, I am passed that, that's what annoyed me in Cyprus

Sweet spot and pretty high quality for the price, except air and the murky visa situation (which now became like 5x more costly). The gov is pretty populistic and the falangs get the short end of the stick. So you gotta know a thing or two to get things done. Not ideal to be taken as a gazillionaire falang, best to blend in with the majority of retired folks.

Philippines: Actually seems so much easier than Thailand (paper, language etc) but the infrastructure seems so bad

It is a lot cheaper and the visa is easy. Depends on where you from you will like it. Think of it of being a mix between Us and Latam with a large dose of Asia thrown in. English works to some degree everywhere.
Infrastructure and security overall is a challenge but you can isolate yourself from that largely. Food depending on where you go can be a challenge too if you fancy smth else than oily or fried.

Laos/Cambo are emerging, but on the rougher side overall. Language tricky and almost everything too. Myamnar is pretty wild.

Indonesia is a sweet spot too being a combo of Thailand and Malaysia but featuring both negatives (murky visa situation and the development situation) but folks are very lovely.

At the end of the day it boils down to your personal preferences id say.

 

[Dictator]

Some Malaysians (youth) were there, and well they drove us 50klm to the next major city - free of charge - and to a hotel so we were safe.

What's this supposed to prove or disprove? Good English? Alright, it may prove that there're at least 2-3 or 4 malaysians in the country of 20mln who speak decent English. And they were polite to you.

I once decided to go from Pattaya to Laos completely by autostop. I made it to Udong Thani: with a policeman and with a worker.... who half of the way would go "Thailand number 1, Russia number .... 5", "Russia number ..... 7, Thailand number 1", "Thailand number 1, Russia number ..... 10!"

And there was other thai man actually caught a car for me with the worker. I myself wouldn't have succeeded - nobody would stop.


Then some thai offered me money, because they, supposedly didn't understand the concept of autostop

 

[inector]

Salesman -> Thailand
Upper Management -> Malaysia

Can you advise which parts of the country?

Is it English-speakers or locals in that industry?

 

[JackieTsan]

For sure, Malaysia/Thailand are much more friendly when you have kids. I know couple people who were in HK for 15+ years; with kids, and eventually settled in Thailand. HK is not great when you have kids in general (as most huge cities in the world besides a few exceptions).

Schools in Thailand are very very expensive (good schools) compared to other options.. check the costs

 

[uplana]

Now that Thailand and Malaysia tax worldwide income, many good options are running out, a lot of lists are outdated.

- Hong Kong
- Macau
- San Marino
- Cayman Islands (many other offshore islands)

We could as well add 0% personal tax countries.

It's only a matter of time before the end of country-specific taxation. Soon, all countries around the globe will change their rules so that one is taxed on everything they earn, regardless of where in the country they reside.

 

[JackAlabama]

It's only a matter of time before the end of country-specific taxation. Soon, all countries around the globe will change their rules so that one is taxed on everything they earn, regardless of where in the country they reside.

thats not so easy to do. Not even the eu is at that level besides being culturally somewhat close.

 

[OCT2023]

The following countries either have a traditional territorial tax system or elements of one at the time of this writing: Updated: August 23, 2022

Andorra- Territorial taxation, only of nonresidents.

Angola – Territorial taxation.

Anguilla – Territorial taxation.

Bhutan – Territorial taxation.

Botswana – Territorial taxation.

Costa Rica – Territorial taxation.

Cuba – Residential taxation of citizens, territorial taxation of foreigners. Does not tax nonresidents.

Democratic Republic of the Congo – Territorial taxation.

Djibouti – Territorial taxation.

French Polynesia – Territorial taxation.

Georgia – Territorial taxation.

Gibraltar – Territorial taxation.

Guatemala – Territorial taxation.

Hong Kong – Territorial taxation.

Lebanon – Territorial taxation.

Macau – Territorial taxation.

Malawi – Territorial taxation.

Malaysia – Territorial taxation.

Marshall Islands – Territorial taxation.

Micronesia – Territorial taxation.

Namibia – Territorial taxation.

Nicaragua – Territorial taxation.

North Korea – Residential taxation of foreigners, territorial taxation of nonresidents. Does not tax income of resident citizens.

Palau – Territorial taxation.

Palestine – Territorial taxation.

Panama – Territorial taxation.

Paraguay – Territorial taxation.

Philippines – Residential taxation of citizens, territorial taxation of foreigners.

Saint Helena – Territorial taxation.

San Mari – Territorial taxation.

Saudi Arabia – Residential taxation of citizens, territorial taxation of foreigners.

Seychelles – Territorial taxation.

Singapore – Territorial taxation.

Somaliland – Territorial taxation.

Syria – Territorial taxation.

Taiwan – Territorial taxation in general, but residential taxation under the alternative minimum tax.

Tokelau – Territorial taxation.

Tuvalu – Territorial taxation.

Zambia – Territorial taxation.

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