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Digital Nomad

Countries With No Income Tax in 2026 (and the Catches)

R
Ranym Garali
Published: October 29th, 2026Updated: October 29th, 2026
9 min read

Key Takeaways

  • Nine countries have no personal income tax in 2026. They are the Bahamas, Bahrain, Brunei, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates and Vanuatu, out of 152 countries in the Nostos tax data.
  • Freelancers can still owe tax in three of them. Saudi Arabia taxes a foreign resident's business profit at 20%, Qatar at 10%, and the UAE charges 9% corporate tax on profit above $102,110 (AED 375,000) once turnover passes $272,300 (AED 1 million).
  • Oman starts a personal income tax on 1 January 2028. Residents (more than 183 days a year) will pay 5% on total income above $109,230 (OMR 42,000) a year.
  • No income tax does not mean no tax. VAT runs from 5% in the UAE to 15% in Saudi Arabia and Vanuatu, and buying property costs up to 10% in fees or VAT.
  • Only the UAE has a remote work permit you can count on. The UAE visa needs a $3,500 monthly salary; the Bahamas BEATS permit ($1,025) is still advertised, but Immigration lists it as suspended.

Nine countries have no personal income tax in 2026: the Bahamas, Bahrain, Brunei, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates and Vanuatu. In all nine, a salary from a foreign employer, dividends, interest, capital gains and pensions are untaxed. Each has a catch: freelancers pay tax on profit in Saudi Arabia, Qatar and the UAE, Oman brings in a 5% income tax in 2028, and six of the nine charge VAT.

We built this list from the Nostos tax profiles, one per country for 152 countries, each checked against the tax authority or the law. Rules verified against official sources on 27 and 28 October 2026, with the Bahrain, Oman and US figures re-checked on 29 October 2026. Amounts are in US dollars at the 29 October 2026 rate, with the local figure in brackets. This is general information, not tax advice: if you are a US citizen, or your home country taxes people for years after they leave, the answer for you can be different.

Which countries have no income tax in 2026?

Of the 152 countries in the Nostos data, 101 tax residents on worldwide income, 34 tax only local income, 8 tax foreign income when you bring it in, and 9 have no personal income tax at all. Those nine are below, sorted alphabetically.

CountryIncome tax on individualsWhat you do payResidency route for a remote workerNostos city
BahamasNone10% VAT; 10% VAT on buying property as a foreigner; yearly property tax if you ownBEATS remote work permit ($1,025, 12 months) still advertised, but Immigration lists it as suspendedNassau
BahrainNone10% VAT; 2% property registration fee (1.7% within 60 days)No nomad visa; 10-year Golden Residency for 5-year residents earning $5,320 (BHD 2,000) a monthManama
BruneiNoneNo VAT; stamp duty of about 0.6% on property transfersNo nomad visa; up to 90 days visa-free for US, UK, Canada and most of Western EuropeBandar Seri Begawan
KuwaitNoneNo VAT; no social security for foreigners, so no Kuwaiti pension eitherNo nomad visa; tourist visa up to 90 days per visit for 54 nationalitiesKuwait City
OmanNone in 2026; 5% above $109,230 (OMR 42,000) from 20285% VAT; 3% property registration chargeNo nomad visa; tourist, work and residence visas onlyMuscat
QatarNone on salary or personal investments10% on freelance or business profit (non-Qatari, non-GCC); no VATNo nomad visa; property worth $200,500 (QAR 730,000) gives residence without a sponsorDoha
Saudi ArabiaNone on salary or personal investments20% on freelance or business profit (non-Saudi residents); 15% VAT; 5% property transfer taxNo nomad visa; Premium Residency from $26,670 (SAR 100,000) a yearRiyadh
United Arab EmiratesNone9% corporate tax on freelance profit above $102,110 (AED 375,000); 5% VAT; 4% Dubai property feeRemote work visa, 1 year, $3,500 monthly salaryDubai
VanuatuNone15% VAT; 12.5% rent tax on Vanuatu rental income; business license if you freelance locallyNo nomad visa; Self-funded Resident visa, $2,130 (VT 250,000) a month incomePort Vila

Sources: each country's tax authority, finance ministry or immigration department, read 27 and 28 October 2026; full list below. Every city page has a "Do you pay tax here on income from abroad?" section with the official sources.

One number sums up why these nine matter. In 140 of the 152 countries, pay for remote work done while you are physically there is taxable even when your employer or clients are abroad. All nine no-tax countries are among the 11 that leave a foreign salary untaxed.

Scouting a base first? Plan the trip free with Navoy and compare hotels in Dubai.

What is the catch in each country?

Bar chart of the VAT rate in the nine countries with no income tax in 2026: 15% in Saudi Arabia and Vanuatu, 10% in the Bahamas and Bahrain, 5% in Oman and the UAE, none in Qatar, Kuwait and Brunei
No income tax is not no tax: six of the nine charge VAT. Source: each country's tax authority, read 27 and 28 October 2026.

United Arab Emirates: is Dubai tax free?

For a salaried remote worker, Dubai is free of income tax. The UAE government states plainly that it "does not levy income tax on individuals", and the Federal Tax Authority excludes wages and personal investment income from corporate tax. The catch is freelancing: fees for work done from the UAE, even for clients abroad, count as business turnover. Once that turnover passes $272,300 (AED 1 million) in a calendar year, you pay 0% on the first $102,110 (AED 375,000) of taxable profit and 9% above it.

Living costs carry their own levies. VAT is 5%, Dubai tenants pay a 5% housing fee on their annual rent through the utility bill, and buying property costs a 4% Dubai Land Department fee. The UAE remote work visa guide covers the one-year permit, which needs a salary of $3,500 a month and covers employees of foreign companies only.

Saudi Arabia: 20% if you freelance

Salaries are outside Saudi income tax wherever the employer is. ZATCA's withholding guideline says people doing temporary work in the Kingdom owe income tax at 20% or withholding at 15%, depending on residency, unless the pay arises from an employment relationship. A non-Saudi resident (183 days, or a year-long lease plus 30 days) who freelances from Saudi Arabia therefore owes 20% on net profit. Add 15% VAT and a 5% Real Estate Transaction Tax on property sales.

Qatar: 10% on business profit

Qatar's Income Tax Law does not apply to salaries, wages and allowances, and there is no VAT. It does tax income from an activity carried on in Qatar at 10%, so a foreigner who freelances from Doha for foreign clients owes 10% on net profit, must register with the General Tax Authority, and can face a $5,490 (QAR 20,000) penalty for not registering. Qatari and GCC nationals are exempt. Letting out a Qatari flat may also attract 10% on the net rent.

Oman: a 5% income tax from 2028

Oman has no income tax on individuals in 2026 and 2027. Royal Decree 56/2025 starts a personal income tax on 1 January 2028. You will be resident if you spend more than 183 days in Oman in a calendar year, and the Tax Authority's FAQ sets the rate at 5% on total income above $109,230 (OMR 42,000) a year. Residents will be taxed on worldwide income, including foreign dividends, rent and pensions, though the law exempts a new resident's foreign income for the first 18 months (a Tax Authority Q&A booklet says 24). The executive regulations, which should settle how remote work for a foreign employer is treated, were not published as of late October 2026.

Muscat's waterfront at sunset with the rocky Hajar mountains behind the white buildings
Muscat, Oman: no income tax until 2028, then 5% on income above $109,230 a year. Photo: Eric Seddon / Pexels

Bahrain: 10% VAT, and a draft corporate tax

Bahrain's only income tax hits oil and gas companies, so salaries, freelance fees and investment income are untaxed. VAT has been 10% since January 2022. In December 2025 the Cabinet approved a draft 10% corporate tax for 2027 on businesses with revenue over $2.7 million (BHD 1 million) or profit over $531,900 (BHD 200,000), still subject to Parliament on 29 October 2026; how it would treat sole traders is not yet clear.

Kuwait: no income tax or VAT, but hard to stay

Kuwait taxes only companies, and its rules exempt an individual's trade or business income, so even freelancers pay no income tax. There is no VAT. The catch is immigration: visit visas do not allow work, and a residence permit normally comes through a Kuwaiti employer, a family sponsor or a licensed business. Foreigners are also outside the social security system.

Brunei: no income tax and no VAT, but no long stays

Brunei's Revenue Division says no tax is levied on personal income from employment or self-employment. There is no GST or VAT, and the 2026/27 budget announced no new taxes. Setting up a Brunei company, though, brings 18.5% corporate tax. The harder limit is residency: there is no remote work visa, and Long Term Passes go to relatives of citizens, investors and invited professionals.

The Bahamas: VAT and property tax

The Bahamas runs on 10% VAT, customs duties and real property tax. A foreigner buying property pays 10% VAT on the purchase, and a home you own is taxed every year. The BEATS permit was built for exactly this: remote work for an overseas employer or your own overseas business, 12 months at a time, up to three years, for $1,025. The tourism ministry still advertises it, but the Department of Immigration's 2022 annual report lists BEATS as "presently suspended until further notice", so confirm with Immigration before you plan around it.

Vanuatu: 15% VAT and a rent tax

Vanuatu has no income, capital gains or inheritance tax; individuals meet only indirect taxes. VAT is 15%, rent from Vanuatu property pays 12.5% rent tax above $1,700 (VT 200,000) per half-year, and freelancing locally needs a business license. Tourist visas last up to 120 days and bar business activity.

Can foreigners live in a country with no income tax?

Yes, but only the UAE has a remote work permit you can count on in 2026. The Bahamas built one, BEATS, but Immigration lists it as suspended. Elsewhere the realistic routes are expensive or tied to a local job:

  • Saudi Arabia: Premium Residency costs $26,670 (SAR 100,000) a year, or $213,300 (SAR 800,000) once for the unlimited version.
  • Qatar: buying property worth $200,500 (QAR 730,000) or more gives a residence permit without a sponsor; Invest Qatar also runs a long-term Entrepreneur Residency.
  • Bahrain: the 10-year Golden Residency costs $798 (BHD 300) and is open to people who have lived in Bahrain for five years earning at least $5,320 (BHD 2,000) a month, retirees with large pensions and property owners.
  • Vanuatu: the Self-funded Resident visa needs $2,130 (VT 250,000) a month of certified income ($4,260, VT 500,000, with a partner).
  • Kuwait, Oman and Brunei: no route for remote workers beyond visits.

If a permit matters more than the tax rate, compare the digital nomad visas with no income requirement and the cheapest countries to get residency.

Moving also does not end your tax residence at home by itself. Your home country's rules decide that, and US citizens stay taxable on worldwide income, with an exclusion of up to $132,900 of 2026 foreign earnings for those who qualify. Our article on which digital nomad visas make you pay tax explains the 183-day rule and the US tests.

Is "no tax on foreign income" the same as no income tax?

No. In 34 countries in the Nostos data, a territorial system taxes only income from local sources, so foreign dividends or rent go untaxed. But work you physically do in those countries usually counts as local income, even when the employer is abroad. A salary earned from a laptop in a territorial country is normally taxed there; in the nine countries above it is not.

Which countries have low income tax, 10% or less?

If none of the nine fits, nine more countries cap the top rate on wages at 10% or less, measured in the largest city and including local income taxes. Unlike the nine above, all of them can tax remote work done there.

CountryTop rate on wagesHow it worksWhat else to know
Guatemala7%5% to 7% on salary; only Guatemalan-source income is taxedWork done in Guatemala counts as local income
Andorra10%0% up to $26,710 (€24,000), effectively 5% to $44,520 (€40,000), 10% aboveWorldwide income; no wealth or inheritance tax
Bosnia and Herzegovina10%Flat 10% in the Federation; 8% on salary in Republika SrpskaSocial contributions of about 31% of pay
Bulgaria10%Flat 10% on worldwide incomeDividends 5%
Kosovo10%0% up to $3,340 (€3,000), 8% to $6,010 (€5,400), 10% aboveDividends exempt
Kyrgyzstan10%Flat 10%Registered entrepreneurs often pay a 2% to 4% single tax
North Macedonia10%Flat 10% on worldwide incomeSocial contributions of 28%; remote work is taxed monthly
Paraguay10%8% to 10%, only once gross pay passes $13,350 (G 80 million) a yearForeign investment income is untaxed
Romania10%Flat 10% on worldwide income25% pension and 10% health contributions; dividends 16%

Source: Nostos tax profiles, from each country's tax law or tax authority, read 27 and 28 October 2026.

"10%" is rarely the whole bill. In Romania, an employee's pension and health contributions take total deductions to about 41.5% of gross pay, and in Bosnia and Herzegovina contributions often cost more than the tax. Andorra, Kosovo and Paraguay are the gentlest on modest incomes because of their zero bands or thresholds.

How to choose a base

Start with how you earn. A salaried remote worker pays no income tax on wages in all nine no-tax countries. A freelancer pays no income tax on profit in Bahrain, Brunei, Kuwait, the Bahamas and Vanuatu, in Oman until 2028, and in the UAE until turnover passes $272,300 (AED 1 million), but Saudi Arabia and Qatar tax it. Then check whether a permit lets you live and work there, because a tax rule you cannot use is no help.

The full dataset is open on the Nostos data page, and each city page shows cost of living, safety and internet next to the tax section. Once you have picked a base, plan a scouting trip free with Navoy, then check hotels in Dubai and flights to Dubai for the first visit.

Frequently asked questions

Is Dubai tax free?

Dubai has no personal income tax: the UAE government states that it does not levy income tax on individuals, so salaries, dividends, interest, capital gains and pensions are untaxed. It is not free of all taxes. VAT is 5%, Dubai tenants pay a 5% housing fee on their annual rent, buying property costs a 4% Dubai Land Department fee, and freelancers pay 9% corporate tax on profit above $102,110 (AED 375,000) once business turnover exceeds $272,300 (AED 1 million) in a calendar year.

Which countries have no income tax for foreigners?

The Bahamas, Bahrain, Brunei, Kuwait, Oman, Qatar, Saudi Arabia, the UAE and Vanuatu do not tax a foreigner's salary, dividends, interest or capital gains in 2026. Qatar and Saudi Arabia do tax foreigners who freelance or run a business from there, at 10% and 20% of profit, and Oman will tax residents' income above $109,230 (OMR 42,000) a year at 5% from 1 January 2028.

Will Oman have income tax?

Yes. Royal Decree 56/2025 brings in a personal income tax from 1 January 2028. Anyone who spends more than 183 days in Oman in a calendar year will be resident and will pay 5% on total income above $109,230 (OMR 42,000) a year. A new resident's foreign income is exempt for the first 18 months under the law. In 2026 and 2027, individuals in Oman pay no income tax.

Do I stop paying tax at home if I move to a country with no income tax?

Not automatically. Your home country's own rules decide when you stop being its tax resident, and some keep taxing you for years after you leave or charge an exit tax. US citizens owe US tax on worldwide income wherever they live, though they can exclude up to $132,900 of 2026 foreign earnings if they qualify. Moving to a no-tax country removes local income tax, not your home country's claim.

Sources

Nomad TaxesDigital NomadNo Income TaxGulf StatesTax-Free Countries

About the Author

Ranym Garali

Ranym is the Marketing and Content Lead at Navoy. She's been writing about travel for two years and digs into the data behind each piece, flight prices, visa rules and what people are actually searching for , so the advice holds up in practice.

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