Zero and low-tax residencies: the real list

The phrase "zero tax" gets used loosely. In practice there are three distinct regimes that bring personal income tax to or near zero for residents: fully zero-PIT jurisdictions, territorial taxation systems, and headline-grabbing expatriate regimes that are generous but time-limited. This guide sorts them.

Genuine zero-PIT jurisdictions

These countries simply do not levy personal income tax. Corporate tax may still apply, and sales/consumption taxes (VAT) usually do.

UAE — no personal income tax for residents. Corporate tax of 9% on profits above AED 375,000 introduced June 2023. Residency via employment, Golden Visa, Virtual Working, or free-zone company.
Bahamas, Bermuda, Cayman, BVI, Turks & Caicos — no personal income tax. Residency typically requires real estate investment (Bahamas) or specific programmes. BVI BC and Cayman structures pair with tax residence.
Monaco — no personal income tax for residents (with narrow French-citizen exceptions under the 1963 Franco-Monégasque tax treaty). Residency requires substantial proof of means, bank deposits typically €500k+, and a local address.
Vanuatu, Antigua, St Kitts, Nevis — Caribbean CBI jurisdictions with no or minimal personal income tax on foreign income. See St Kitts CBI.

Territorial taxation — foreign income untaxed

Territorial systems tax only locally sourced income; foreign-source income received from abroad is generally untaxed at the individual level for residents.

Panama — purely territorial. Foreign-source income and gains are not taxed for residents. See Friendly Nations and Pensionado routes.
Costa Rica — territorial; foreign-source pensions and investment income generally untaxed. Rentista and Pensionado routes.
Singapore — territorial for individuals; foreign-source income not taxed unless remitted and sourced from employment or business in Singapore.
Malaysia — near-territorial; 2022 reform introduced tax on remitted foreign-source income for residents, with an exemption window extended to December 2026 under guidelines.
Georgia — territorial with a 1% Individual Entrepreneur regime on Georgian-sourced business turnover up to GEL 500k; foreign-source personal income generally outside Georgian tax.
Thailand — was remittance-based on prior-year income but Por 161/2566 (effective 1 January 2024) closed that loophole: same-year foreign remittances by residents staying 180+ days are now taxable.

Expatriate regimes — time-limited exemptions

Not zero tax, but deep exemptions for new arrivals.

Italy HNWI flat tax — €200,000/yr flat tax on all foreign-source income for up to 15 years. Raised from €100k for new entrants from 7 August 2024.
Portugal IFICI — successor to the closed NHRregime. 20% flat rate on Portuguese-source income from qualifying high-value activities plus foreign-income exemptions for up to 10 years. Narrower than old NHR: new pension-income exemption is gone.
UK FIG regime — replaced the non-dom regime from 6 April 2025. New UK residents pay no UK tax on foreign income and gains for their first 4 years of residence.
Ireland remittance basis — retained for non- domiciled residents indefinitely. Foreign income taxed only when remitted to Ireland.
Cyprus non-dom — 17-year exemption from tax on dividends and interest for non-domiciled residents. Combined with domestic non-residence rules creates a low-tax package for HNWIs.
Netherlands 30% ruling — 30% of gross salary tax-free for qualifying skilled migrants. Phased down in 2024 then restored to flat 30% for 5 years in 2025. Paired with Kennismigrant.
Israel Ola-Hadash — 10-year exemption on foreign income and gains for new immigrants and returning residents.

Important caveats

Most of these regimes require genuine residency — not just registration. The OECD Multilateral Instrument and local anti-avoidance rules can challenge artificial arrangements. The US and Eritrea tax citizens regardless of where they live, so "zero tax residency" does not solve the US citizen problem. Consult a cross- border tax specialist before restructuring.