In which territories (countries, potentially sub-country entities) is there no personal income tax from any administration (neither federal, state, local, nor any other level) levied on the income of permanent residents of that territory?

One example is Monaco. Are there any others? Can we try to make a complete list?


  • I am not interested in examples like some U.S.-states with no state income tax, but where federal income tax still applies - I declare such and similar answers as off-topic.

  • I also exclude territories with no permanent residents - such as oceans, the Arctic, the Moon, the ISS, etc. Only territories that do have permanent human residents and are on the land surface of planet Earth count.

  • What about remote islands with native people still living in barter world. Do these count? :) – Dheer Nov 2 '11 at 7:13
  • 1
    @Dheer if the jurisdiction under which the island lies, does not levy income tax on its residents, then of course it counts. – miernik Nov 2 '11 at 7:22
  • So would something like Sealand make to your list? Kidding ;) en.wikipedia.org/wiki/Principality_of_Sealand – Dheer Nov 2 '11 at 8:07
  • @Dheer I assume it would, but if it does I think it makes the question a lot less interesting. – Nicole Nov 2 '11 at 23:50

Monaco is a very unique and extraordinary country. It compensates on the lack of personal income tax with a very hefty corporation tax from the employers (many employees in Monaco are actually French residents, and Monaco residents who are French citizens pay French taxes).

There aren't many places like Monaco.

Andorra, another European city-state, is one of the few.

Another example is UAE, they have enough oil for all their needs.

Wikipedia - Tax rates around the world covers all you need.

Note that being resident of a country with no income tax is not enough. ManyThere are countries (US included) that tax their citizens on the world-wide income. Thus, US citizens living as residents in Monaco still have to pay the US income taxes.

  • 4
    "many countries"? actually is there any other country besides the US which taxes its citizens on world-wide income? – miernik Nov 2 '11 at 8:59
  • 3
    @miernik Most 1st world countries do. Canada is another example. – Saideira Nov 2 '11 at 12:13
  • 2
    "Canada is another example". Do you have a reference for that? I find that "As a non-resident of Canada, you pay tax on income you receive from sources in Canada" only. cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html – DJClayworth Nov 2 '11 at 13:34
  • 2
    @littleadv and the poster here, the US taxing citizens around the world sounds like a lot, but you can't forget about the IRS' foreign earned income exclusion (if you work for wages), where over $90,000 of yearly income is tax free to the US, you still have to pay local authorities and be mindful of tax treaties, but if you are a resident of a jurisdiction with no income tax, then $90,000 to the bank! of course this is too low to live in Monaco, but the UAE or Cayman Islands is a good bet. You don't have to consider renouncing US citizenship for this – CQM Nov 2 '11 at 18:13
  • 1
    @littleadv: source that Israel has income tax on its citizens living permanently abroad? AFAIK the only countries that has income tax on its citizens living permanently abroad is United States and Eritrea, and contrary to what you write there are no countries "moving towards" that. In fact the opposite: Philippines abolished such tax. – miernik Nov 2 '11 at 22:47

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.