Which countries have no income tax?

No personal income tax means the government does not tax individuals' wages or personal income. It does not mean no taxes at all. Fees, consumption taxes and business taxes can still apply.

In the Gulf, PwC reports no personal income tax in the United Arab Emirates, Bahrain and Kuwait. Qatar does not tax employees' salaries, wages and allowances. Some self-employed income from Qatari sources can be taxed.

Oman is changing course. Royal Decree 56/2025 created a personal income tax law, scheduled to take effect on 1 January 2028. PwC notes Oman is the first Gulf Cooperation Council country to do so.

In the Caribbean, PwC reports no personal income tax in the Bahamas. The Cayman Islands, a British Overseas Territory, impose no income or withholding taxes on individuals.

Monaco's government says residents are not liable for income tax, with the exception of French nationals. They fall under a 1963 convention between France and Monaco. The exemption applies only to people genuinely established there.

Business income is a separate question. In the UAE, an individual running a business can owe the 9 percent corporate tax once turnover passes AED 1 million. Wages and personal investment income do not count toward that threshold.

For Americans, the biggest limit is at home. The IRS says US citizens are subject to tax on worldwide income from all sources. Moving to a zero tax country does not end US filing.

The foreign earned income exclusion can reduce US tax on wages earned abroad, if you meet a residence or presence test. The IRS says pensions and Social Security benefits do not count as foreign earned income.

Tax rules change often. Check current official guidance and a qualified tax professional before you plan a move around taxes.