Nineteen countries currently allow residents to pay 0% tax on foreign income, and five of them charge no personal income tax on any income at all. These policies apply only at the local level: US citizens remain taxed on worldwide income regardless of residence under citizenship-based taxation, while Canadians and Europeans can reduce their total tax burden to zero if they sever tax ties at home and establish genuine tax residency elsewhere. A second citizenship by investment does not by itself create tax residency; that requires actually establishing ties (typically physical presence) in the new country.
For US citizens, two tools reduce tax liability without renunciation:
- Foreign Earned Income Exclusion (FEIE): excludes about $130,000 per spouse of earned income (salary or business income) from US tax once a person establishes tax residency abroad or spends fewer than 35 days in the US in any rolling 12-month period. A working couple can exclude over $260,000, plus more via the housing exclusion and foreign tax credits. Passive income — pensions, Social Security, dividends, interest, capital gains — does not qualify.
- Renunciation: the only way to eliminate US tax entirely, and largely irreversible.
The 19 countries fall into four categories: zero income tax (no tax return exists), territorial tax systems (foreign income untaxed), tax holidays (zero tax for a defined period), and conditional systems (zero tax depending on domicile or remittance status).
Zero income tax countries
These five countries tax no one’s income, local or foreign.
UAE: A 10-year Golden Visa costs $550,000 invested in property from a licensed developer or regulated fund, processed in under three months with a single 2–3 day trip for biometrics. Investment isn’t required to become tax resident, but non-citizens/non-residents must spend 183 days per year in the country; Golden Visa holders need only 90 days per year. There is no personal income tax on salary, dividends, rent, or gains. Businesses pay a 9% corporate tax (introduced 2023) on profits above 375,000 dirham (about $100,000). Citizenship is not available — only renewable residency — and premium housing and schooling cost as much as US coastal cities.
St. Kitts and Nevis: No income tax statute; revenue comes from duties, consumption taxes, and a citizenship-by-investment (CBI) program (the world’s oldest). Citizenship costs $250,000 donation (family of four), $325,000 in approved property (7-year hold), or $600,000 for a private home, processing in 4–8 months. Investment thresholds doubled in recent years under US/EU pressure. The passport offers visa-free access to over 150 destinations. Six months’ presence is required to establish tax residency.
Antigua and Barbuda: CBI costs $230,000 donation for a family of four, processing in 6–12 months; no personal income tax since a 2016 policy update. Family inclusion is the most generous in the Caribbean — spouse, children, parents, and siblings on one application. Families of six or more can instead use the University of the West Indies route at $260,000, which includes a year of tuition.
Vanuatu: CBI costs $130,000 for a single applicant (about $200,000 for a family of four), with a passport issued in under three months — the fastest program on Earth. Few investors relocate there in practice. The EU suspended Vanuatu’s Schengen visa-free access several years ago (the UK followed), leaving mobility to about 90 destinations versus 140–150 for Caribbean passports.
Nauru: CBI requires a non-refundable $90,000 contribution for a single applicant, with a passport in about 6 months; proceeds fund coastal protection. No tax on income, gains, wealth, or estates for residents, though almost no investors actually relocate there.
Territorial tax countries
These tax only local-source income; foreign earnings are untaxed even for residents.
Costa Rica: Foreign income is untaxed for tax residents spending over six months a year in-country. Residency requires either a $150,000 property investment, proof of about $1,000/month in pension income, or a $60,000 local bank deposit with monthly distributions. Crime has risen somewhat in the past decade due to drug trade, though the country remains comparatively safe in the region. Citizenship is available after seven continuous years of residency, plus a Spanish test and civics exam.
Georgia: Under Article 82 of the tax code, foreign income is exempt while local income is taxed at a flat 20% (registered small businesses pay 1% of turnover up to about 500,000 lari, ~$200,000). Tax residency requires 183+ days of physical presence in a rolling 12-month period, or — without any physical presence — residency status plus at least $500,000 in a Georgian bank and either $1.1 million in worldwide assets or three years of $75,000+ annual income. Americans get a visa-free year to trial the country before committing. Residency is available via a $100,000 property purchase.
Paraguay: No tax on foreign-sourced income. Permanent residency requires $70,000 invested in a local business, $150,000 in a local tourism project, or $200,000 in real estate (or $60,000 down on financed property with a three-year payment commitment). A free route exists for those showing roughly $1,500/month in income. Residency processing takes 30–90 days; one visit every three years maintains status. Citizenship is possible after 3 years of permanent residency, though 4–5 years with demonstrated language proficiency and roots is more realistic.
Grenada: CBI does not tax foreign-sourced income. Options: $235,000 donation, $270,000 in hotel shares/units, or $350,000 in titled real estate, with a passport in under 12 months. Grenada has E-2 visa treaty access with the US, but requires 3 years of domicile in Grenada before applying for that visa. Citizenship passes by descent to children and grandchildren without reinvestment.
Panama: Considered one of the most tax-friendly countries in the Western Hemisphere. Residency routes include the Qualified Investor (Golden) Visa ($300,000 property investment or $750,000 bank deposit, permanent residency in under 90 days), the Friendly Nations Visa ($200,000 in property or self-employment, temporary residency converting to permanent after year 2), and the Pensionado Visa ($1,000/month documented passive income, permanent residency). Citizenship is available after 5 years of permanent residency (subject to presidential signature). Tax residents spending 6+ months a year owe no tax on foreign-sourced income, dividends, or capital gains.
Time-limited tax holidays
Chile: New tax residents get 3 years of zero foreign income tax, extendable to 6 in qualifying cases; foreign pensions remain exempt permanently. After the holiday, worldwide income is taxed at rates up to 40%. Residency requires either the Rentista route (~$1,500/month passive income) or a $500,000 merit-reviewed investment in a job-creating business — no digital nomad or property-investment visa exists. Permanent residency begins at year 2; citizenship at year 5.
Uruguay: Exempts foreign income, dividends, interest, and capital gains for 11 years. Tax residency requires either 183+ days/year presence, a property investment over $2 million (as of a 2026 reform), or committing $100,000/year to the national innovation fund for 11 years. After the 11-year holiday, a 5-year transitional period taxes at 6% then 12%, with foreign tax credits. Residency approval takes 8–12 months; $1,500/month documented income qualifies for immediate permanent residency. Citizenship is available after 3 years (married) or 5 years (unmarried) of full-time residency.
Cyprus (EU): Taxes new non-domiciled residents at 0% on worldwide dividends, interest, and rental income for 17 years. Tax residency requires either 183+ days presence, or just 60 days plus owning a home/having significant local ties or business/employment. The Golden Visa grants direct permanent residency for a €300,000 property purchase plus €50,000/year proven income, requiring only one visit every 2 years to maintain — though claiming the tax benefit requires at least 2 months/year in-country.
Turkey: As of 2026, exempts new tax residents from foreign income tax for 20 years — the longest active holiday in the world. Citizenship requires a $400,000 property investment (can be split across multiple properties), covering the investor, spouse, and children under 18, in under 6 months with no additional investment needed. The tax exemption is separate from citizenship and requires living in Turkey at least 6 months/year to claim. Inheritance and gift tax drops to a flat 1% (from a standard rate up to 30%) for qualifying residents.
Conditional systems
Dominica: CBI costs $200,000 for a family of four, processing in under a year. Zero tax applies only to non-residents; anyone spending more than 6 months/year on the island becomes tax resident and, starting in 2027, faces a flat 10% income tax.
St. Lucia: CBI options: $240,000 donation, a $300,000 government bond (refundable at year 5 — one of the only refundable CBI options anywhere), or $300,000 in property. Passport processing takes up to 16–18 months, the slowest in the Caribbean. Tax treatment depends on domicile status: a resident non-domiciled person owes tax only on local income plus foreign income remitted onshore.
Dominican Republic: Direct permanent residency from day one via a $200,000 investment in property, a local business, or a 24-month recoverable bank deposit. Naturalization is possible after 2 years of full-time residency — among the fastest in the hemisphere. Foreign-source income is generally tax-exempt, but foreign financial income (dividends, interest, capital gains) becomes taxable starting the third year of residency unless structured beforehand. Pensioner/rentista visa holders ($1,500/month pension or $2,000/month passive income) retain the exemption indefinitely.
Ireland (EU): Applies a remittance-basis tax to resident non-doms with no time limit or annual charge. Foreign income and gains kept offshore are untaxed from day one for those who retain foreign domicile (typical for US-born residents). Remittance is interpreted broadly — even paying an Irish bill from a foreign card counts. After 3 years of tax residency, Irish tax residency follows a person for another 3 years after departure. Immigration is difficult: the investor visa was eliminated, leaving the Stamp 0 route requiring €50,000/year in passive income plus reserves, which does not count toward citizenship.
Malta (EU): Uses a simpler remittance-based system than Ireland. Foreign income left offshore is untaxed with no time limit, and foreign capital gains remain exempt even when remitted — a feature unique among the systems covered. Non-dom residents with foreign income over €35,000 pay a minimum tax of €5,000/year; only remitted income is taxed locally. The Global Residence Program (GRP) taxes remitted foreign income at a flat 15% with a €15,000/year minimum, requiring a leased or purchased property and no minimum presence in Malta (provided under 183 days are spent in any other single country). Permanent residency requires a 5-year lease (€14,000/year) or a €375,000 property purchase, plus a €50,000 government fee, €37,000 donation, and €2,000 NGO donation — but does not lead to citizenship. Citizenship by merit is a separate 18–24 month process requiring a €1–1.5 million donation or a significant contribution (e.g., high-value job creation), decided case by case.
