Best Countries to Legally Pay Zero (or Very Low) Taxes in 2025

If you run an online business, trade crypto, or live and work across borders, choosing the right tax residency can save you a significant amount of money — legally. In 2025, an increasing number of countries have positioned themselves as favorable hubs for digital nomads, remote entrepreneurs, and global investors. From income-free nations like the UAE and Monaco to low-tax options across Europe and Asia, here’s an authoritative guide to the best places where you can reduce or eliminate personal tax burdens in a compliant way.

🇦🇪 United Arab Emirates (UAE): Zero Tax in a Global Business Hub

• Personal Income Tax: 0% (no taxes on salaries, investments, capital gains, or inheritance)
• Residency: 183 days or 90 days with a visa + permanent home/job.‍
• Ideal For: High-earning entrepreneurs, crypto traders, families seeking long-term residency.‍
•     Highlights:
  
  • New 9% federal corporate tax applies only to certain business profits (personal income remains fully     tax-free).
  •     Variety of residency options:
    
    • 10‑year Golden Visa for investors and talent.
    • 5‑year Green Visa for freelancers.
    • 1‑year Remote Working Visa (requires proof of $5,000/month income).
  • No wealth or inheritance taxes.

•     Watchouts:
  • Must genuinely reside and maintain UAE residency.
  • New CRS and economic substance rules apply.
• Why It’s Attractive: Zero personal tax, no capital gains or crypto taxes, first‑class infrastructure, and a strong     global reputation.

🇲🇨 Monaco: Pure Zero‑Tax Luxury

• Personal Income Tax: 0% (no taxes on salaries, investments, or capital gains).
• Residency: Must prove accommodation, bank deposit (~€1M), and spend roughly 3 months per year in the     Principality.
• Ideal For: High‑net‑worth individuals, sports stars, entrepreneurs.
•     Highlights:
  • No income or capital gains tax.
  • No wealth taxes.
  • Safe and highly prestigious location.
•     Watchouts:
  • Very high cost of living (rentals €4k–€5k per month).
  • Strict residency screening.
• Why It’s Attractive: Absolute tax freedom combined with a safe, upscale lifestyle.

🇧🇸 The Bahamas: Tax‑Free Paradise

• Personal Tax: Zero income, capital gains, and inheritance taxes.
•     Residency Options:
  • Permanent residency via $1M investment in real estate or bonds.
  • Annual residency for digital nomads and financially independent individuals.
• Ideal For: Investors and digital entrepreneurs.
•     Highlights:
  • Zero taxes across the board.
  • Growing crypto hub (home of FTX).
•     Watchouts:
  • Must break tax residency elsewhere.
  • The Bahamas is off EU blacklists as of 2024.
• Why It’s Attractive: True tax‑free living combined with Caribbean charm and political stability.

🇵🇦 Panama: Zero Tax on Foreign Income

• Personal Tax: 0% on income earned outside Panama (territorial regime).
•     Residency:
  • Friendly Nations Visa available.
  • Digital Nomad Visa (18 months).
• Ideal For: Consultants, entrepreneurs, crypto holders with global income.
•     Highlights:
  • Zero tax on foreign income, investments, and crypto gains.
  • Simple residency process.
•     Watchouts:
  • Must spend ~183 days in Panama for formal tax residency.
  • Must break tax residency in your home country.
• Why It’s Attractive: Simple residency, low cost of living, strong expat community.

🇵🇾 Paraguay: Zero Tax on Foreign Income

• Personal Tax: 0% on income earned outside Paraguay.
•     Residency:
  • Simple PR process.
  • No strict “183‑day” requirement.
• Ideal For: Digital entrepreneurs, crypto investors, and families seeking a low‑cost base.
•     Highlights:
  • Zero tax on global income.
  • Straightforward residency and low cost of living.
•     Watchouts:
  • Must break residency elsewhere.
  • New CRS commitments starting in 2025.
• Why It’s Attractive: Simplicity and accessibility for those with global income.

🇬🇪 Georgia: True Territorial Tax System

• Personal Tax: 0% tax on income sourced outside Georgia.‍
• Ideal For: Location‑independent entrepreneurs and crypto traders.‍
•     Highlights:
  
  • No taxes on offshore income.
  • Simple residency and favorable bank access.‍
•     Watchouts:
  
  • Must reside 183+ days.
  • New CRS enforcement from 2023–24.

• Why It’s Attractive: Straightforward residency, low cost, and genuine zero‑tax status for offshore income.

Andorra & Bulgaria — Two Low Flat‑Tax Options Worth Considering

🇦🇩 Andorra

• Personal Income Tax: Progressive up to 10%—earn up to €24k at 0%, €24k–40k at 5%, and 10% above    €40k.
• Capital Gains: Regarded as regular income (up to 10%), with the first €3k of crypto gains tax-exempt.
• Other Taxes: No wealth, inheritance, or gift taxes; VAT (IGI) is only 4.5%.
• Residency: “Passive” permit requires ~€400k investment and 90+ days/year in-country; full tax residency     typically requires 183+ days or clear ties.
• Ideal For: Entrepreneurs and high-income individuals wanting near-zero tax, privacy, and a European     mountain lifestyle.
• Watchouts: High financial/investment threshold and thorough banking due diligence due to CRS.

🇧🇬 Bulgaria

• Personal Income Tax: Flat 10% on all income—local and global.
• Capital Gains: Taxed at 10%, though gains on EU/EEA-listed shares may be tax-exempt.
• Other Taxes: Social security is low; no wealth tax.
• Residency: EU citizens free to relocate; others can qualify via employment or investment. Tax residency by     183+ days or center of vital interests.
• Ideal For: Digital entrepreneurs seeking ultra-low tax in an EU environment with easy business incorporation.
• Watchouts: Must genuinely relocate to avoid home-country challenges; CRS compliance means full transparency for foreign assets.

Italy & Greece — Flat‑Fee Regimes for HNW Expats and Retirees

🇮🇹 Italy

• Tax Regime: Choose a €100k (existing applicants) or €200k (new from 2025) flat tax per year for 15 years,     covering all foreign-source income.
• Foreign Income Covers: Capital gains, dividends, business profits, and crypto income fall under the flat tax.
• Residency & Eligibility: Not an Italian tax resident for 9 of last 10 years; apply early via advance tax ruling;     family members incur €25k additional per dependent.
• Ideal For: Ultra-high-net-worth individuals with large foreign income streams who value EU residency and     ease of planning.
• Watchouts: High upfront cost; must meet strict non-residency history; excludes users from other expat tax breaks; requires expert compliance handling.

🇬🇷 Greece

• Two Regimes:
  1. HNW Flat Regime: €100k/year for up to 15 years, covering all foreign income (plus €20k per     additional family). Requires €500k investment in Greek assets.
  2. Retiree Regime: Flat 7% tax annually on all foreign income for 15 years, available to foreign     pensioners relocating to Greece.
• Residency: Must officially transfer tax residence (no 183-day requirement for the HNW regime, but advised).
• Ideal For: Wealthy entrepreneurs (HNW scheme) and retirees/pensioners (7% scheme) looking for     Mediterranean living and tax security.
• Watchouts: Investment requirement for HNW; bureaucracy-heavy applications; must maintain tax residency     and navigate potential CFC rules.

🇲🇾 Malaysia: Tax‑Free Foreign Income (Until 2025)

• Personal Tax: 0% on income earned outside Malaysia until December 2026.
•     Residency:
  • 10‑year Malaysia My Second Home (MM2H) Visa.
  • DE Rantau (Digital Nomad) Pass.
• Ideal For: Expats with global income or crypto investments.
•     Highlights:
  • Zero tax on foreign income for residents (2022–2025).
  • No capital gains tax (except Malaysia real estate).
•     Watchouts:
  • New regime from 2027 may end this benefit.
  • Requires formal residency and some local ties.
• Why It’s Attractive: Low cost of living and a favorable regime for expats until at least 2025.

🇪🇸 Spain: The “Beckham Law” Flat‑Tax Regime

• Personal Tax: Flat 24% on Spanish‑source income (instead of the top rate of ~47%), and no tax on     foreign‑source income (dividends, capital gains, crypto, interest) for the first 6 years of residency.
• Ideal For: High‑earning entrepreneurs, athletes, digital nomads, and expats working in Spain or for Spanish     companies.
•     Highlights:
  • Flat 24% rate applies to income earned in Spain (instead of progressive rates).
  • All foreign income and investments remain exempt from Spanish tax.
  • No wealth tax applies for assets outside Spain.
•     Watchouts:
  • Must not have been a tax resident in Spain for the prior 5 years.
  • Must move to Spain for eligible work (employee or qualified activity).
  • Flat regime applies for six years only. After that, you move to the standard (and higher) tax regime.
• Why It’s Attractive: Enables highly mobile entrepreneurs and expats to live in Spain, benefit from its quality of     life, and still protect their global income for up to 6 years.

🇸🇬 Singapore: Zero Tax on Foreign Income

•     Personal Tax:
  • 0% on foreign income if kept offshore.
  • No capital gains tax.
• Ideal For: Expats and entrepreneurs with global revenues.
•     Highlights:
  • Competitive tax rates (top rate 24%).
  • Strong legal and banking infrastructure.
•     Watchouts:
  • High cost of living.
  • Must adhere to residency rules.
• Why It’s Attractive: Zero tax for offshore income and long‑term stability.

Final Thoughts: Choosing the Right Zero‑ or Low‑Tax Destination for 2025

In 2025, legally minimizing your tax burden is no longer about obscure offshore tricks — it’s about making strategic residency choices that fit your income structure, lifestyle priorities, and long‑term goals.

Whether you’re a digital nomad chasing a zero‑tax regime like the UAE or The Bahamas, an online entrepreneur opting for the territorial benefits of Panama or Georgia, or a wealthy expat seeking a flat‑tax regime in Italy or Greece, the key is aligning your tax residency with your unique circumstances.

Remember:

✅ The right choice can save you tens (or hundreds) of thousands each year.

✅ The wrong one can entangle you in complex compliance and unexpected liabilities.

✅ All of these options require a genuine shift in residency — making compliance, timing, and planning critical.

👉 Get Personalized Advice — Stay Compliant, Minimize Tax, and Build Global Freedom

At EntitySmart, we help entrepreneurs, digital nomads, and investors design tax‑optimized residency and corporate structures that work in practice — making sure you stay compliant, protect your assets, and save more of what you earn.

👉 Book a Free Discovery Call with our expert team.