Where Would You Move to Legally Reduce Taxes? A Country-by-Country Overview
Our poll asks: To which country would you move to optimize taxes legally.?
Tax rules change often and depend on your residency, citizenship,
income source, and treaty network. This page gives a high-level overview only.
Nothing here is legal or tax advice. Always confirm with a qualified adviser
before making decisions.
How tax residency usually works (quick primer)
- Residence vs. citizenship: Most countries tax residents (not citizens) on worldwide or local income. The U.S. is the major exception—citizens are taxed on worldwide income even if living abroad.
- 183-day rules & ties: Many systems look at days present, home/“center of vital interests,” spouse/kids, and permanent home. Tie-breaker rules in treaties can apply.
- Exit costs: Some countries impose exit taxes on unrealized gains when you leave. Understand this before you move.
- Source matters: Territorial systems tax only local income. “Remittance basis” systems tax foreign income only when brought in. Investment gains are often treated differently from salary/business income.
Country snapshots (in poll order)
Malta
- Regime: EU country with non-dom rules. Foreign-source income remitted to Malta is taxable; foreign capital gains are generally not taxed even if remitted. Malta-source income is taxed.
- Who it suits: Individuals with foreign investment income and limited remittances to Malta.
- Notes: Remittance rules are technical; residency permits/programs have minimums and fees.
Cayman Islands
- Regime: No personal income, capital gains, or wealth tax. Government revenue comes from duties/fees.
- Who it suits: HNWIs ready to meet residency/real-estate or investment requirements.
- Notes: High cost of living; immigration status is essential for long-term stays.
Malaysia
- Regime: Historically light on personal capital gains (exceptions exist, e.g., real property). Treatment of foreign-sourced income for residents has been evolving—check the latest rules.
- Who it suits: Individuals with primarily investment income and moderate living costs in mind.
- Notes: Rules for foreign-sourced income and share gains have seen updates; verify current guidance.
United Arab Emirates (UAE)
- Regime: No personal income tax on wages or most personal investment gains. Corporate tax introduced (generally 9%) for companies.
- Who it suits: Employees and entrepreneurs seeking zero personal income tax in a global hub (Dubai/Abu Dhabi).
- Notes: Residency visas (employment, free-zone, property, or “Golden Visa”) are the gateway.
Puerto Rico
- Regime: U.S. territory with special laws (often referred to as “Act 60”). U.S. citizens who become bona-fide Puerto Rico residents may access low rates on PR-sourced income and favorable treatment for certain post-move capital gains.
- Who it suits: U.S. citizens; non-U.S. persons generally look elsewhere.
- Notes: Strict residency tests, sourcing rules, and compliance; federal obligations can remain for non-PR-source income.
El Salvador
- Regime: Standard income taxes exist. With Bitcoin as legal tender, the government has indicated no capital gains tax on BTC treated as currency for residents; however, business/trading income can still be taxable.
- Who it suits: Bitcoin-focused individuals/companies comfortable with an emerging market.
- Notes: Treatment depends on facts (payments vs. trading vs. mining). Check current statutes and rulings.
Belarus
- Regime: Historically offered temporary tax relief for some crypto activities. Base personal income tax is flat and relatively low.
- Notes: Geopolitical and sanctions risk; confirm banking and residency practicality.
Georgia
- Regime: Competitive taxes; popular for entrepreneurs. Special statuses (e.g., small-business regimes) can lower tax on locally sourced business income. Individuals have enjoyed favorable treatment on some crypto transactions in the past.
- Notes: Not a tax haven; rules depend on source and activity. Residency and bank access are straightforward.
Bermuda
- Regime: No personal income or capital gains tax. Government relies on payroll duty (employer-side), customs, and fees.
- Notes: High cost of living; residency/work permissions required.
British Virgin Islands (BVI)
- Regime: No personal income tax. Revenues from fees/duties. Famous for company formation.
- Notes: Residency rights are limited; lifestyle infrastructure is smaller than big hubs.
Panama
- Regime: Territorial tax—foreign-sourced income generally not taxed. Panama-source income is taxed; local capital gains can apply.
- Who it suits: Remote earners and investors with offshore income. Multiple residency routes (e.g., Friendly Nations).
Gibraltar
- Regime: No VAT, no capital gains tax; personal income tax applies on employment/locally sourced income.
- Notes: Special Category 2 / HEPSS statuses cap or reduce certain liabilities for qualifying individuals.
Vanuatu
- Regime: No personal income, capital gains, or wealth tax.
- Notes: Remote island nation; options include residency and citizenship-by-investment programs.
Saint Kitts and Nevis
- Regime: No personal income tax. Property and stamp duties exist. Well-known citizenship-by-investment program.
- Notes: Physical presence and banking relationships are practical considerations.
Andorra
- Regime: Low personal income tax (top rate around 10% in recent years), no wealth tax; low VAT (IGI). Capital gains rules vary by asset (property vs. financial).
- Who it suits: EU-adjacent lifestyle with comparatively low rates and good safety.
Germany
- Regime: Taxes residents on worldwide income. Crypto is typically treated as a private asset; gains can be tax-free after a holding period under current guidance (details depend on use such as staking/lending).
- Notes: Strong treaty network; comprehensive reporting. Expatriation may trigger exit-tax-like rules for certain holdings—get advice before moving.
“Other” or “I wouldn’t move”
- Plenty of countries offer competitive regimes (Portugal, Monaco, Dubai/UAE already listed, etc.). But stability, banking, healthcare, safety, and family ties matter as much as tax.
- Many investors choose to optimize within their home system (e.g., using allowances, long-term holding periods, tax-advantaged accounts) rather than relocate.
Compliance checklist before relocating
- Confirm residency pathway (visa, investment, employment) and minimum stay days.
- Model exit tax and timing of gains (pre- vs. post-move).
- Review treaties, CFC/controlled-foreign-company rules, and reporting (bank accounts, trusts, companies).
- Test your banking & brokerage setup for the new address before you move.
Cast your vote above, then share the poll. The more diverse the responses, the more informative the crowd signal becomes.
