A study by the expat insurance team at William Russell has sought to find some of the cheapest destinations around the world for expats to relocate to where they won’t face having a cut of their income taken in tax. In the UK, most types of income are taxed at 20 percent, but for some people with higher levels of income, tax rates of 40 and 45 percent can apply.
However, in some destinations, including a popular holiday hotspot, residents do not pay any income tax at all, leaving them to spend their money on other things.
The team at William Russell have ranked popular tax-free destinations based on relocation cost factors such as flights, rent and utility bills to reveal the world’s most affordable tax-free countries to relocate to this year.
Both the United Arab Emirates, home to popular Dubai, made it into the top 10 list.
According to the research, Oman was named the most affordable tax-free country for expats from around the world to move to in 2024. “Oman is the cheapest country to purchase or rent an apartment in, as it boasts the lowest monthly living costs,” said the report.
It is also the third cheapest country for monthly utility bills, costing around £83.”
Currently, Oman is a tax-free nation, as there is no taxation on personal income. Moreover, there are no taxes on income from property, wealth, capital gains or death.
Kuwait ranked as the second most affordable tax-free country to move to this year.
The report explained: “Single economy flights to the country range from £131 to £544 and Kuwait is also the second most affordable country for both monthly costs and utility bills.”
In Kuwait, there is no individual income tax for residents.
Bahrain ranks in third place as the most affordable tax-free country to relocate to in 2024, earning a relocation score of 6.36. “Bahrain is the second cheapest country to purchase an apartment in, costing £139 per square metre, on average,” said the report.
“It is also the fifth most affordable country for both monthly costs and utility bills.”
There are no taxes in Bahrain on income, sales, capital gains, or estates, with the exception, in limited circumstances, of businesses that operate in the oil and gas sector or derive profits from the extraction or refinement of fossil fuels in Bahrain.
The United Arab Emirates came in fourth place, according to the research, with the average cost to buy an apartment coming in at £192 per square metre. The cost to rent an apartment, per month, totalled £818 on average.
While the UAE does not levy income tax on individuals, it levies a five percent value-added tax on the purchase of goods and services, levied at each stage of the supply chain and ultimately borne by the end consumer.