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When you think about international tax havens the first countries probably to come to your mind are Switzerland, Luxembourg, Monaco, Lichtenstein or even Portugal. Fortunately or unfortunately (depending on how you look at it), these are not the tax havens we are covering in this article. In this article we will cover tax havens where you don’t need to be a billionaire oligarch to afford to move.
When you think about international tax havens the first countries probably to come to your mind are Switzerland, Luxembourg, Monaco, Lichtenstein or even Portugal. Fortunately or unfortunately (depending on how you look at it), these are not the tax havens we are covering in this article. In this article we will cover tax havens where you don’t need to be a billionaire oligarch to afford to move.
1. Taxes
2. Weather
3. Cost of living
Everyone knows where you can find good weather and year-round sunshine, but where can you live at ease because taxes are low or non-existent. That’s the question we will be exploring in this article.
Many people ask us “What is the least taxed country’ in the world?” Our answer always is that the best tax regimes are ‘No taxes at all’ – meaning it doesn’t exist. Of course, ZERO taxes sounds great on paper but there are a lot of other factors which can affect it such as source of income, type of income, and the amount of time somebody can claim tax free status.
What are the variables we are considering in ranking our top tax-friendly countries where Canadians can save on taxes?
Here are the 10 key characteristics of our ranking system to identify the best countries to move to save on taxes. These are all self-explanatory and the key factors anyone should consider when moving out of their current country mainly due to saving on taxes. The ranking system used in this article would be 1-10 (1 being the highest)
1. Rate of Personal income taxes
2. Ease & cost of becoming a resident in that jurisdiction
3. Cost of living
4. Time limitations of the tax benefits
5. Quality of Life (which also includes weather)
6. Size of the country
7. Infrastructure & Connectivity to the rest of the world
8. Path to citizenship
9. Double taxation with USA and Canada
10. Economic & Political stability
Although many islands in the Caribbean can provide tax free havens, we do consider many of our readers would like to live in larger jurisdictions and not be confined all their lives on an island. For the sake of this comparison we will include a few islands, but the largest ones. Even if you saved millions in taxes, you don’t want to be stuck on a tiny island for the rest of your life just because you saved a few million – it almost feels like Alcatraz but without the chains.
Here is our table of the top tax-friendly countries and a comparison of each of our categories (reminder: 1 is the highest score, and 10 is the lowest). We have thoroughly explained each country in the continuation of this article below this table.
|
Monaco |
Saint Barthélemy |
UAE (Dubai) |
Panama |
Andorra |
Spain |
Singapore |
Italy |
Cayman Islands |
Malta |
|
|
Personal Tax rate |
0% |
0% |
0% |
0% foreign sourced income |
10% |
0% Beckham law |
7% pension or flat tax regime |
0% |
3 |
|
|
Cost & Time to become a resident |
3 |
4 |
1 |
1 |
2 |
3 |
4 |
1 |
8 |
3 |
|
Cost of living |
9 |
6 |
7 |
3 |
2 |
2 |
7 |
2 |
8 |
1 |
|
Duration of tax benefits |
1 |
3 |
2 |
1 |
7 |
8 |
1 |
6 |
1 |
2 |
|
Quality of life |
1 |
2 |
3 |
1 |
1 |
1 |
2 |
1 |
2 |
2 |
|
Size of the country |
5 |
10 |
2 |
2 |
5 |
1 |
7 |
1 |
7 |
6 |
|
Infrastructure & Connectivity |
3 |
6 |
1 |
1 |
5 |
1 |
1 |
2 |
5 |
5 |
|
Path to Citizenship |
10 |
7 |
10 |
1 |
9 |
5 |
5 |
4 |
8 |
5 |
|
Double Taxation with Canada & USA |
10 |
10 |
3 |
3 |
10 |
1 |
1 |
1 |
6 |
1 |
|
Economic & Political stability |
2 |
3 |
3 |
2 |
2 |
1 |
2 |
4 |
2 |
2 |
Monaco is a tiny sovereign city-state on the French Riviera, bordered by France and the Mediterranean Sea. Known for its luxury lifestyle, safety, and elite tax status, it’s one of the wealthiest and most exclusive places in the world.
• Personal Tax Rate (Ranking: 1): 0% for all residents, except French citizens (who are taxed under French law due to a bilateral agreement).
• Cost & Time to Become Resident (Ranking: 3): Requires proof of accommodation (rental or ownership), a Monaco bank account with at least €500,000 deposited, and a clean criminal record. Residency can be issued in 3–6 months.
• Cost of Living (Ranking: 9): Extremely high. One of the most expensive cities globally. Expect €5,000+/month rent, and €150,000+ annual lifestyle costs for a single person.
• Duration of Tax Benefits (Ranking: 1): Tax exemption is permanent once residency is granted and maintained.
• Quality of Life (Ranking: 1): Superb. Monaco offers unmatched safety, Mediterranean climate, premium healthcare, and elite social environment.
• Size (Ranking: 5): Only 2.1 km² – very compact, but urban and highly developed.
• Infrastructure & Connectivity (Ranking: 3): Excellent road network, heliport access, and 25 minutes from Nice International Airport.
• Path to Citizenship (Ranking: 10): Highly restrictive. Requires 10 years of continuous legal residence and approval from the Prince. No guarantee of acceptance.
• Double Taxation (Canada/USA) (Ranking: 10): Monaco does not have DTAs with Canada or the U.S., meaning no treaty relief. Residents may still be taxed on global income in their home countries.
• Stability (Ranking: 2): Politically and economically stable under constitutional monarchy. High banking confidence.
Saint Barthélemy is a French overseas collectivity in the Caribbean, known for its white-sand beaches, upscale resorts, and tax autonomy. It blends French culture with island life and is a haven for ultra-high-net-worth individuals.
• Personal Tax Rate (Ranking: 1): 0% income tax after qualifying as a tax resident. You must reside at least 183 days/year for 5 consecutive years to become tax-resident.
• Cost & Time to Become Resident (Ranking: 4): Requires a French long-stay visa, valid housing contract, and financial self-sufficiency. Residency permit is issued in 2–4 months.
• Cost of Living (Ranking: 6): Among the highest globally. High luxury real estate prices and imports push average living costs to €8,000–€12,000/month for a couple.
• Duration of Tax Benefits (Ranking: 3): Once granted, tax exemption is permanent as long as 183-day presence per year is maintained.
• Quality of Life (Ranking: 2): Beautiful island, French-Caribbean fusion lifestyle, top-tier privacy, and ultra-high-net-worth community.
• Size (Ranking: 10): Only 25 km². Island life may feel restrictive for some.
• Infrastructure & Connectivity (Ranking: 6): Good by Caribbean standards. No international airport; connections through Martin.
• Path to Citizenship (Ranking: 7): Governed by French nationality law. Requires 5 years of continuous legal residence, B1 French language, and successful integration test.
• Double Taxation (Canada/USA) (Ranking: 10): No DTA applies. The France–U.S. and France–Canada treaties do not extend to Saint Barthélemy. Global income remains taxable in home country.
• Stability (Ranking: 3): Stable under French oversight. Part of the French constitutional framework.
The UAE is a federation of seven emirates in the Middle East, with Dubai and Abu Dhabi as its major cities. It’s a global hub for business, luxury, and innovation, offering zero personal income tax and futuristic infrastructure.
• Personal Tax Rate (Ranking: 1): 0% personal income tax for residents. No tax on salaries, capital gains, or global income.
• Cost & Time to Become Resident (Ranking: 1): Golden Visa (10-year) and Employment Visa are the two main routes. Processing takes 1–2 months.
• Cost of Living (Ranking: 7): Variable. A single person can live well on €3,000/month, but premium expat lifestyles may exceed €10,000/month.
• Duration of Tax Benefits (Ranking: 2): As long as residence is legally maintained and renewed, tax benefits continue indefinitely.
• Quality of Life (Ranking: 3): High-quality amenities, low crime, world-class healthcare and schooling. Multinational expat ecosystem.
• Size (Ranking: 2): 83,600 km² (entire UAE), with Dubai as the financial hub.
• Infrastructure & Connectivity (Ranking: 1): Exceptional. Dubai International Airport is one of the busiest globally. Best-in-class roads, internet, and medical systems. The UAE (DXB + AUH) leads with ~8,500 flights weekly (~440,300/year), making it the most connected airport and city on this list.
• Path to Citizenship (Ranking: 10): Very rare and discretionary. Citizenship by decree only for specific talents (scientists, investors).
• Double Taxation (Canada/USA) (Ranking: 3):
º Canada: DTA in place — allows tax credits and withholding relief.
º USA: No DTA — U.S. citizens taxed on worldwide income regardless.
• Stability (Ranking: 3): Highly stable, with visionary leadership and diversified economic base.
Located in Central America, Panama connects North and South America and controls the Panama Canal. It’s a popular destination for expats and investors due to its territorial tax system, U.S. dollar economy, and pro-business laws.
• Personal Tax Rate (Ranking: 1): 0% tax on foreign-sourced income. Only Panamanian income is taxable (10–25% brackets).
• Cost & Time to Become Resident (Ranking: 1): Fast-track options under the Friendly Nations Visa or Investment Residency. Timeframe: 3–6 months.
• Cost of Living (Ranking: 3): Moderate. Comfortable lifestyle possible at $2,500–$3,500/month. Cheaper than most other low-tax jurisdictions.
• Duration of Tax Benefits (Ranking: 1): Permanent under Panama’s territorial tax system. No remittance issues.
• Quality of Life (Ranking: 1): Warm climate, coastal living, affordable private healthcare. Active English-speaking expat scene.
• Size (Ranking: 2): 75,000 km² — large enough for diversity in geography and services.
• Infrastructure & Connectivity (Ranking: 1): Tocumen International Airport is a hub to North/South America. Good highways, telecom, and utilities. Panama’s Tocumen (PTY), a major intercontinental hub, handled over 19 million passengers in 2024.
• Path to Citizenship (Ranking: 1): After 5 years of permanent residence, or 3 years if married to a Panamanian. Spanish language and integration required.
• Double Taxation (Canada/USA) (Ranking: 3):
• Canada: DTA in place — foreign tax credits available.
• USA: No DTA, but TIEA exists. U.S. citizens still taxed on worldwide income.
• Stability (Ranking: 2): Generally stable democracy. U.S. dollar usage enhances financial predictability.
Andorra is a small landlocked principality between France and Spain in the Pyrenees mountains. It offers a peaceful lifestyle, ski resorts, and a low-tax environment, making it popular with European retirees and entrepreneurs.
• Personal Tax Rate (Ranking: 1): Personal income tax is progressive but capped at 10% maximum. The first €24,000 is tax-exempt, and only income over €40,000 is taxed at the top rate. Capital gains and dividends are lightly taxed or exempt.
• Cost & Time to Become Resident (Ranking: 2): Residency requires a €50,000 deposit in the Andorran National Institute of Finance and proof of accommodation. Processing takes 3–6 months.
• Cost of Living (Ranking: 2): Moderate compared to Western Europe. Monthly expenses range €2,000–€3,500 for a couple, depending on lifestyle.
• Duration of Tax Benefits (Ranking: 7): Permanent, so long as residency and presence are maintained. Tax obligations begin only after exceeding 183 days of presence.
• Quality of Life (Ranking: 1): Excellent air quality, low crime, ski resorts, and private healthcare access. Appeals to digital nomads and early retirees.
• Size (Ranking: 5): 468 km² — larger than Monaco and St. Barths, but still compact.
• Infrastructure & Connectivity (Ranking: 5): High-quality roads, but no airport. Access only via Spain or France by car.
• Path to Citizenship (Ranking: 9): Very restrictive. Requires 20 years of continuous residence (10 years for those who complete schooling locally). Dual citizenship not allowed.
• Double Taxation (Canada/USA) (Ranking: 10): No tax treaties with Canada or the USA.
• Stability (Ranking: 2): Very stable politically and financially, known for financial privacy and low crime.
Spain is a large, culturally rich country in southwestern Europe known for its beaches, historic cities, and world-class food. It offers structured tax programs for expats and an attractive lifestyle across diverse regions.
• Personal Tax Rate (Ranking: 5): Progressive system ranges 19% to 47%, but under the Beckham Law, qualifying expats pay 24% flat tax on Spanish-sourced income for 6 years, with no tax on foreign income.
• Cost & Time to Become Resident (Ranking: 3): Digital Nomad Visa (2023) and Golden Visa offer fast tracks—2–4 months processing with minimal paperwork for qualified applicants.
• Cost of Living (Ranking: 2): Moderate. Major cities like Madrid or Barcelona cost €2,500–€4,000/month for a couple. Cheaper in Valencia, Malaga, or Granada.
• Duration of Tax Benefits (Ranking: 8): 6 years under Beckham Law. Afterward, residents fall under normal progressive rates.
• Quality of Life (Ranking: 1): Highly rated for food, lifestyle, infrastructure, and healthcare. Mediterranean climate and low cost make it ideal for retirees.
• Size (Ranking: 1): 505,000 km² — the largest jurisdiction on this list.
• Infrastructure & Connectivity (Ranking: 1): First-world infrastructure, major airports, and high-speed rail. Spain’s AENA network is massive, serving ~369 million passengers in 2024 with ~71 million international arrivals in just eight months. This is the 3rd most connected airport and city on our list.
• Path to Citizenship (Ranking: 5): 10 years standard, but 2 years for Latin Americans, Filipinos, and citizens of former colonies.
• Double Taxation (Canada/USA) (Ranking: 1): Yes, Spain has DTAs with both Canada and the U.S.
• Stability (Ranking: 2): Politically moderate EU member with strong institutions and protections.
Singapore is a modern city-state in Southeast Asia, connected right under Malaysia, known for its global financial center, strict laws, and ultra-clean infrastructure. It has a low-tax regime and offers one of the highest qualities of life in Asia.
• Personal Tax Rate (Ranking: 3): Progressive tax system from 0% to 22%. No tax on capital gains or dividends. Ideal for structured global investors.
• Cost & Time to Become Resident (Ranking: 4): The Global Investor Program (GIP) requires SGD 2.5M investment. Alternatively, Employment Pass routes offer 3–6 month processing.
• Cost of Living (Ranking: 7): High, especially for expat housing and private schooling. Expect €4,000–€7,000/month for an expat family.
• Duration of Tax Benefits (Ranking: 1): Indefinite as long as residency is maintained and tax obligations are met.
• Quality of Life (Ranking: 2): Extremely safe, clean, and technologically advanced. Family-friendly and efficient healthcare.
• Size (Ranking: 7): 733 km² — a compact, urban island-state.
• Infrastructure & Connectivity (Ranking: 1): One of the most connected cities globally. Changi Airport is consistently ranked #1 worldwide. Singapore Changi ranks second with ~366,000 annual movements and over 100 airlines covering 150+ cities globally, making it 2nd on the list as the most connected airport and city.
• Path to Citizenship (Ranking: 5): Permanent residents may apply for citizenship after 2–6 years, depending on contribution and integration. Dual citizenship not allowed.
• Double Taxation (Canada/USA) (Ranking: 1): Full tax treaties with both Canada and the U.S.
• Stability (Ranking: 2): World-renowned for political, financial, and legal stability.
Italy is a southern European country with a deep cultural legacy, Mediterranean coastline, and a world-renowned lifestyle. It offers special tax programs for retirees and HNWIs, and is part of the EU and Schengen zone.
• Personal Tax Rate (Ranking: 7): Base progressive rates up to 43%. HNWIs can opt for:
• Flat Tax Regime: €100,000/year on all global income.
• 7% Pensioner Regime: Available to foreign retirees moving to southern Italy.
• Cost & Time to Become Resident (Ranking: 1): Options include Elective Residence Visa (no work) or Golden Visa. Processing typically takes 3–6 months.
• Cost of Living (Ranking: 2): Ranges by region. South is affordable; Milan/Rome are mid-tier by European standards.
• Duration of Tax Benefits (Ranking: 6): Flat tax and pension schemes are valid for up to 15 years, making them ideal for long-term planning.
• Quality of Life (Ranking: 1): Italy offers rich culture, history, healthcare, and cuisine. Very attractive for retirees and remote professionals.
• Size (Ranking: 1): 301,000 km² — full-service G7 country.
• Infrastructure & Connectivity (Ranking: 2): Rail and highway systems are strong. Airports in all major cities.
• Path to Citizenship (Ranking: 4): After 10 years of continuous residence. Dual citizenship allowed.
• Double Taxation (Canada/USA) (Ranking: 1): Treaties in place with both.
• Stability (Ranking: 4): Economically stable; occasional political turnover doesn’t affect foreign resident security.
The Cayman Islands is a British Overseas Territory in the Caribbean, known for its tax neutrality, pristine beaches, and status as a global financial center. It’s a 1 and a half to 3 hour flight from the USA depending on where you are flying from, making it a very accessible for residents of North America. It's a favorite for those seeking offshore investment and luxury island living.
• Personal Tax Rate (Ranking: 1): No personal income tax, no capital gains tax, no wealth tax.
• Cost & Time to Become Resident (Ranking: 8): Permanent residency is granted via $2.4M+ investment in local real estate, and requires proof of financial self-sufficiency.
• Cost of Living (Ranking: 8): Among the highest globally. Imported goods and real estate drive up prices. €6,000+/month for HNWI lifestyle.
• Duration of Tax Benefits (Ranking: 1): Indefinite as long as residency status and local ties (property ownership) are maintained.
• Quality of Life (Ranking: 2): Excellent for financial professionals and retirees. Quiet, English-speaking, low crime.
• Size (Ranking: 7): 264 km² across three islands.
• Infrastructure & Connectivity (Ranking: 5): Good for region, but limited direct flights to Europe or Asia.
• Path to Citizenship (Ranking: 8): Very limited; usually requires 15+ years and is discretionary. British Overseas Territory status.
• Double Taxation (Canada/USA) (Ranking: 6): No DTA with either. U.S. and Canadian tax residents remain taxable globally.
• Stability (Ranking: 2): Highly stable, under UK legal system and constitutional governance.
Malta is a small island nation in the Mediterranean, part of the EU, and known for its sunny weather, English-speaking population, and historic architecture. It offers tax incentives and investment-based residency and citizenship programs.
• Personal Tax Rate (Ranking: 3): Malta taxes residents only on remitted foreign income. Foreign income kept abroad is not taxed. Remitted income taxed at 15% flat under Global Residence Program.
• Cost & Time to Become Resident (Ranking: 3): The MPRP and Global Residence Programme both offer residency via investment in real estate + government contribution (€150K+ total). 4–6 months timeline.
• Cost of Living (Ranking: 3): Moderate, with monthly cost of living for a couple ranging €3,000–€5,000 including housing.
• Duration of Tax Benefits (Ranking: 1): Valid as long as residency status is maintained. Special tax status granted indefinitely, subject to renewal.
• Quality of Life (Ranking: 2): Mediterranean climate, English-speaking, high expat satisfaction.
• Size (Ranking: 6): 316 km² — compact but well connected.
• Infrastructure & Connectivity (Ranking: 5): One international airport; strong EU digital infrastructure.
• Path to Citizenship (Ranking: 5): Citizenship via naturalisation after 1 year of residency (via investment) or 5 years for normal route. Dual nationality allowed.
• Double Taxation (Canada/USA) (Ranking: 1): Yes, treaties in place with both.
• Stability (Ranking: 2): Strong banking sector, politically consistent, and EU protected.
Bonus Ranking on the most connected cities and airports from our list and number of connections possible if you decide to reside in these tax-friendly jurisdictions:
|
Rank |
Country |
Main Airport(s) |
Estimated Annual International Flights / Movements |
Notes |
|
1 |
United Arab Emirates |
Dubai (DXB), Abu Dhabi (AUH) |
~440,000+ |
DXB is one of the world’s busiest international hubs |
|
2 |
Singapore |
Changi International (SIN) |
~366,000 |
100+ airlines, nonstop to 150+ cities worldwide |
|
3 |
Spain |
Madrid, Barcelona, AENA Network |
~369 million passengers total; ~71M international arrivals (Jan–Aug 2024) |
Multiple major international airports across the country |
|
4 |
Panama |
Tocumen International (PTY) |
~19.25 million passengers |
Central hub for flights across the Americas |
|
5 |
Italy |
Rome, Milan, Venice + other regional airports |
~49 million international arrivals (Jan–Aug 2024) |
Strong EU and intercontinental access |
|
6 |
Malta |
Malta International (MLA) |
~8 million passengers (projected 2024) |
One international airport serving all international access |
|
7 |
Cayman Islands |
Owen Roberts International (GCM) |
Limited schedule; ~15+ direct international routes |
Heavy reliance on seasonal and regional flights |
|
8 |
Monaco |
No airport (uses Nice Côte d’Azur Airport) |
None (locally) |
Accessed via France; no direct flights to Monaco |
|
9 |
Saint Barthélemy |
No international airport (via St. Martin) |
None (locally) |
Access requires regional transfer; limited to small aircraft |
|
10 |
Andorra |
No international airport (via La Seu, Spain) |
None (locally) |
No major airport; road access only from Spain or France |
After carefully evaluating the 10 jurisdictions across all essential tax, residency, and lifestyle categories, it’s clear that no single country dominates every factor—but a few consistently outperform across the board. For Canadians (and most global HNWIs), the ideal destination depends on their investment strategy, desired lifestyle, and exit strategy from their current tax regime.
Top 3 Picks:
United Arab Emirates (UAE) – For entrepreneurs, corporate owners, and digital nomads with significant global income, the UAE offers the best combination of 0% personal income tax, world-class infrastructure, and a fast, flexible residency pathway via the 10-year Golden Visa. While citizenship is virtually off the table, the Canada–UAE double taxation treaty makes this a highly tax-efficient jurisdiction for Canadians.
Panama – A top pick for long-term expats, retirees, or remote workers. With its territorial tax system (0% on foreign-sourced income), affordable real estate (Check our two articles on the real estate and lifestyle: 1. Afraid to Invest Internationally? Let us give you peace of mind. and 2. Is Panama the New Hotspot? ), and Friendly Nations Visa, Panama is one of the easiest and most cost-effective ways to legally reduce your global tax bill. Plus, you can gain citizenship in as little as 5 years, making it a rare tax-friendly jurisdiction with a clear path to nationality.
Malta strikes a rare balance with a remittance-based system, citizenship by investment, and strong ties to both Canada and the U.S., making it a fourth contender for serious investors.
Other notable mentions:
• Monaco and Saint Barthélemy are true tax havens but come with very limited citizenship options, high costs, and no tax treaty protection, which may trap Canadian or U.S. residents in dual tax exposure.
• Spain and Italy are best for those seeking cultural richness and structured exemptions (like the Beckham Law or Italy’s flat tax), but the short duration and complexity of benefits require careful tax planning.
• Singapore – For investors and families seeking maximum stability, education, and global connectivity, Singapore delivers. While the cost of living is high, the tax regime is highly favorable (no capital gains, moderate progressive rates), and PR leads to citizenship in a reasonable timeframe. Its double taxation treaties with both Canada and the U.S. make compliance easier for globally-mobile professionals.
Ultimately, your decision should be based not only on headline tax rates, but on legal residency structures, mobility rights, infrastructure, and long-term planning. At INGWE, we tailor every recommendation based on your asset profile, travel needs, and future goals—so be sure to reach out to us for a private consultation.
If you have any questions or comments regarding this article or other topics related to EU, American, Canadian, Panamanian, New Zealand, Dubai or other residency programs, reach out to the author of this article here or send him a direct message on LinkedIn.
If you are ready to put your Plan ‘B’ into action, for yourself, your family or perhaps your clients, you can reach out to us here. Join our online live stream every Thursday at 11am EST, or 8am PST, to share your feedback, post your questions, and engage with others who are also exploring these opportunities – just by clicking on our YouTube channel link down below.
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