The wealth tax is levied on an individual’s net assets—total assets minus liabilities—once a statutory threshold is exceeded. For example, with a $1 million exemption, a net wealth of $2.5 million would be taxed on the $1.5 million above the threshold; at a 5 % rate the tax bill would be $75 000.
While several jurisdictions (e.g., Colombia, France, Norway, Spain, Sweden) impose such a tax, a number of countries currently do not tax net wealth. These jurisdictions often pair the tax advantage with citizenship‑by‑investment (CBI) or residency programs that grant strong passports and visa‑free travel.
Countries with No Wealth Tax
| Country | Passport strength (visa‑free destinations) | CBI / residency options | Minimum investment* | Key conditions |
|---|---|---|---|---|
| Antigua & Barbuda | 153 countries (EU, UK, Schengen) | Citizenship by investment | • National Development Fund – US $100 k (single applicant) • University of the West Indies Fund – US $150 k • Real estate – US $400 k, hold 5 years • Business – US $1.5 m (single) / US $5 m (two applicants) |
Application 3–6 months; must spend ≥5 days per year in the country for 5 years |
| Saint Kitts & Nevis | 150 countries (incl. UK, Ireland, Russia) | Citizenship by investment | • Donation – US $150 k • Real estate – US $400 k |
Interview required (virtual or in‑person); processing ~120 days; due diligence may extend timeline |
| Bahamas | 157 countries | Citizenship by investment (Golden Visa) | • Real estate – US $1.5 m • Business – US $750 k |
Residency granted upon approval; must be present 90 days per year; citizenship after 10 years of residency |
| Vanuatu | 130 countries | Citizenship by investment | • Direct contribution – US $130 k | Must show US $250 k liquid funds; processing as fast as 1 month; no physical‑presence requirement |
| Malta | EU passport (full Schengen access) | Citizenship by investment | • Government contribution – €600 k (36‑month residency) or €750 k (12‑month residency) • Real estate – €700 k, hold 5 years |
Requires prior residency period; thorough due‑diligence; passport grants EU travel rights |
| Monaco | High‑net‑worth residency, strong passport | No CBI program; residency only | – | Residency requires substantial financial means and proof of accommodation; no wealth tax for individuals |
| United Arab Emirates (UAE) | Visa‑free travel to many destinations (depends on passport) | Various residency schemes (investment, company formation, real estate) | Varies by scheme (e.g., real‑estate ≥ AED 1 m) | No individual wealth tax; only residency, not citizenship, is offered |
*Amounts are as stated in the source material and may be subject to change.
Practical Considerations
- Investment type vs. liquidity – Real‑estate options lock capital for several years (typically 5 years) and expose investors to market risk, whereas donation or contribution routes provide immediate citizenship but are non‑recoverable.
- Physical‑presence requirements – Antigua & Barbuda, Bahamas, and Monaco impose annual stay obligations; Vanuatu and Saint Kitts & Nevis have none, making them attractive for frequent travelers.
- Processing speed – Vanuatu’s program is the quickest (≈ 1 month). Saint Kitts & Nevis and Antigua & Barbuda typically take 3–6 months; Bahamas and Malta may require longer due to residency prerequisites.
- Due‑diligence and interview – Most CBI schemes require background checks and, in some cases, personal interviews (e.g., Saint Kitts & Nevis). Applicants should be prepared for documentation of source of funds and possible travel for interviews.
- Tax residency – Obtaining a second passport does not automatically change tax residency. Individuals must still consider where they are deemed tax resident based on physical presence, domicile, and local tax laws.
- Future policy risk – While these jurisdictions currently have no wealth tax, political shifts could introduce new levies. Diversifying assets across multiple jurisdictions can mitigate this risk.
Decision Checklist
- Determine primary goal – pure wealth‑tax avoidance, passport strength, or lifestyle considerations?
- Assess capital availability – donation vs. real‑estate vs. business investment.
- Evaluate residency obligations – can you meet annual stay requirements?
- Consider processing time – urgency may favor Vanuatu or fast‑track programs.
- Review long‑term tax implications – ensure the new jurisdiction aligns with overall tax planning, including income, capital gains, and estate taxes.
By matching investment capacity, desired travel freedom, and lifestyle preferences with the specific requirements of each no‑wealth‑tax jurisdiction, high‑net‑worth individuals can structure a tax‑efficient international presence while securing a valuable second passport or residency.
