Are you one of those who continuously question high tax rates and that you don’t get enough in return when you pay such high taxes – let us tell you that you are not alone, and our list of 10 countries with the lowest tax rates might help you in more ways than you can think at this moment. Some of these countries are a great spot for people who are looking to settle abroad, escape high taxes and live a comparatively better life.
There are a few things in life that are certain, the biggest one is “death” and probably the second one is “taxes.” As much as businesses and individuals hate paying it, we have to face the reality that it is what which keeps the country and government function properly. It provides the basic infrastructure of public health, education and more. What hurts the most is when the tax rate is so high that it becomes a point of concern for an ordinary person. It is a fact for everyone living in United States, UK and majority of countries in Europe that your tax rate is almost impossible to fall unless of course you, unfortunately, head to lower income group. What is the way out then? The answer is surprisingly simple – think about relocating to a country that puts less burden in the form of taxes. It could get more exciting if you occupy a place in the upper tier income in these countries. The money you save annually can surprise and this will make it easier for you to live your dream life. Other than the individuals, some companies are also on a continuous look out to avoid taxes. Here you might also be interested in looking at our list of 10 cheapest countries to live in the world
Without much of a delay, let us quickly focus on the countries that offer lowest tax rates and where people from the west can settle easily – here is our list of some of the most cheapest countries when it comes to tax rates.
10. Bahrain
Bahrain is one of the more financially stable Muslim countries of the world. It is extremely rich and one of the major oil producing nations of the world. It has a total tax rate of 15% (which includes labor and other taxes).
9. Kingdom of Saudi Arabia
Another major oil producing country of the world, Saudi Arabia is also very friendly when it comes to tax rates. With labor and profit tax percentage of 12.4 and 2.1, Saudi Arabia is a country which doesn’t rely too much on its tax collection.
8. Zambia
Number eight on our list of 10 countries with lowest tax rates is Zambia. A former British colony, Zambia is quickly coming up as a force to in terms of economy. It has a total tax burden of 14.5%.
7. United Arab Emirates
UAE is probably the fastest developing economic regions of the world. It is also very easy to its citizens and businesses when it comes to tax. With zero tax on profits, UAE has a total tax rate of 14.1%.
6. Qatar
Qatar is one of the richest countries in the world. It is also extremely peaceful and very rich in natural resources. If you live in Qatar, the tax rate won’t trouble you ever. Same like UAE, it has no tax on profits and total tax rate is only 11.3%.
5. Namibia
Number five on our list is Namibia which got its independence in 1990 when it was separated from South Africa. It is one of the less populated countries of the world but very rich in agriculture. The total tax rate here is only 9.8%.
4. Macedonia
Got independent in 1991, Macedonia is one of those countries which will put a smile on your face all because of its unbelievably low tax rate. With zero percent labor tax, profit tax of 6.3% and a few other taxes of 3.4%, Macedonia has a total tax rate of only 9.7%.
3. Maldives
Maldives is a beautiful country consisting of many islands. Tax rate here is bound to surprise you – it’s only 9.3%.
2. Vanuatu
Vanuatu is also an island which is mainly an agricultural and tourism economy. What is worth mentioning here is that it has only 1% labor tax. Total tax burden is only 9.8%.
1. Timor Leste
The top spot in our list of 10 countries with lowest tax rates goes to this newly found country Timor Leste. It got separated from Indonesia in 2002 and only charges and unbelievable 0.2% as total tax.
