The English Proficiency Index (EPI) ranks 112 countries by how well non‑native speakers use English, based on test results from roughly 2 million adults. The index groups nations into five proficiency bands—very high, high, moderate, low and very low—and is often consulted by expatriates and investors who need to know how easily they can communicate in English abroad.
Very high proficiency (top of the list)
| Country | English use | Tax/immigration notes |
|---|---|---|
| Netherlands | Consistently ranked #1 for non‑native English speakers. | Offers a “golden‑visa” style residence program, but taxes are high and the scheme is costly for individuals. |
| Austria | Strong English skills, especially in urban areas. | Residence programs exist but are relatively expensive and lack significant tax incentives. |
| Denmark | High English fluency. | Taxes are among the world’s highest, making it less attractive for tax‑focused expatriates. |
| Singapore | English is the lingua‑franca (often called “Singlish”). | Immigration is selective and costs are high, but the jurisdiction has a low‑tax regime compared with many developed economies. |
| Norway | Very good English proficiency. | No specific tax incentives mentioned; overall cost of living is high. |
| Belgium | Strong English usage, especially in Brussels. | Some niche tax incentives exist, but they are limited in scope. |
| Portugal | English is widely spoken, particularly in tourist and expat circles. | The Non‑Habitual Resident (NHR) regime can reduce personal taxes to single‑digit percentages, and in some cases to zero for crypto‑related income. |
| Sweden | High English competence. | Tax rates are high; no major tax‑friendly programs highlighted. |
| Finland | Similar to Sweden in English ability and tax environment. | |
| Croatia | Good English, especially in coastal and tourist regions. | Taxes are relatively high; immigration costs are moderate. |
| Germany | English is common in business and academic settings. | No major tax‑friendly schemes noted for individuals. |
| South Africa | English is an official language; proficiency is solid in urban centers. | Tax regime is standard; no special incentives mentioned. |
| Luxembourg | English is widely used in finance and EU institutions. | Tax environment is favorable for certain high‑net‑worth individuals. |
High proficiency
- Serbia – English is common in Belgrade and other major cities; immigration is straightforward.
- Romania – English is increasingly spoken, especially among younger professionals.
- Poland – English proficiency is growing; immigration is possible, though tax incentives are limited unless one has Polish ancestry.
- Philippines – English is an official language; tax policies are not especially favorable for high‑income expatriates.
- Greece – New tax incentive program aimed at attracting foreign residents.
- Estonia – Attractive for tech entrepreneurs; English is widely used in the startup ecosystem, and reinvested business income can benefit from favorable tax treatment.
- Bulgaria – Among the lowest personal tax rates in Europe; English is sufficiently spoken in urban areas.
- Switzerland – English is common in business circles; certain cantons offer tax incentives for high‑net‑worth individuals, but residency costs are high.
- Latvia – English is increasingly used in business; tax environment is moderate.
- Czech Republic – English proficiency is decent in Prague; tax rates are average.
- Malaysia – English is widely spoken, especially in business and tourism; tax incentives are limited.
- Argentina – Immigration is relatively straightforward; English is less common outside major cities, and tax benefits are modest.
- France – English is spoken in business and tourism hubs; tax regime is not particularly favorable for high earners.
Moderate to low proficiency (but still viable)
- Hong Kong, Spain, Moldova, Albania – English is functional in tourist areas and among younger populations; tax regimes vary, with some offering flat‑tax or low‑rate options (e.g., Albania, Georgia).
- Costa Rica, Paraguay, Chile, Georgia, Russia, Uruguay, El Salvador – English is less pervasive, but many expatriates manage with basic proficiency; several of these countries provide tax incentives for foreign investors or digital nomads (e.g., Costa Rica’s territorial tax, Uruguay’s low‑rate regime, El Salvador’s crypto‑friendly policies).
Very low proficiency (generally not recommended for long‑term residence)
Countries such as Iraq, Libya, Rwanda, DRC, South Sudan, Cambodia, Thailand, Ecuador, Armenia, Colombia, Nicaragua, Panama, and parts of Mexico rank at the bottom of the EPI. In many of these locations, English is limited to tourist enclaves; daily life typically requires at least basic Spanish or the local language.
Practical considerations for expatriates
- Communication – In very high‑proficiency countries, English is sufficient for everyday tasks, banking, and government interactions. In high‑proficiency nations, English works well in urban centers but may be limited in rural areas.
- Tax environment – Countries like Portugal (NHR), Bulgaria, Georgia, and certain Swiss cantons offer low personal tax rates or specific incentives for foreign income, making them attractive for high‑net‑worth individuals.
- Immigration ease – Nations with “golden‑visa” or residency‑by‑investment programs (e.g., Portugal, Malta, Cyprus) simplify entry but often require substantial financial commitments.
- Cost of living – High‑proficiency, tax‑friendly jurisdictions such as Singapore and Switzerland have high living expenses, whereas Bulgaria, Georgia, and some Eastern European states combine decent English use with lower costs.
- Business climate – For entrepreneurs, Estonia’s e‑Residency, Portugal’s NHR, and Malaysia’s digital‑nomad visas provide both English‑friendly environments and favorable tax treatment for reinvested profits.
When choosing a destination, weigh English proficiency against tax rates, immigration requirements, and cost of living to find a balance that matches personal and financial goals.
