Which are the Best Countries to Move to and Pay Less Tax?

Which are the Best Countries to Move to and Pay Less Tax? - Portugal Business News

Digital Nomad News – Here are the Top 10 Best Countries to move to and pay less tax while having a good quality of life, as well as the profile of the people expected to emigrate or to have a Digital Nomad lifestyle in the future:

Who are the people expected to emigrate or have a Digital Nomad lifestyle in the future?

Nearly half of the people living in France, Germany, Italy and the UK expect to live in a different country in the future, and the trend is showing that people and capital are becoming increasingly mobile. The people expected to emigrate or to have a Digital Nomad lifestyle in the future are seeking destinations with a better quality of life and a lower tax burden.

The emigration trend will rise significantly in the future with Gen Alpha born between 2010 and 2024, that is characterized as the most technologically immersed generation and is expected to have a Digital Nomad lifestyle, spending periods of six months in remote locations to have a good work-life balance.

Here are the Top 10 Best Countries to Move to and Pay Less Tax:

1 – Dubai - United Arab Emirates (UAE)

Dubai in the United Arab Emirates (UAE) ranks No. 1 Best Country to move to and pay less tax as there is no Personal Income Tax to be paid.

2 – Italy

Italy ranks 2^nd Best Country to move to and pay less tax as there is a 15% flat tax regime for qualifying foreign residents, regardless of how much they earn overseas, while offering a good quality of life.

3 – Monaco

Monaco ranks 3rd Best Country to move to and pay less tax less tax as there is no Personal Income Tax to be paid.

4 – Switzerland

Switzerland ranks 4th Best Country to move to and pay less tax as it ranks No. 1 European country with the lowest taxes on wages for residents, including Income Tax & Social Security contributions as a percentage of gross wage earnings.

Switzerland has a total tax wedge of 23% of average wage earnings for residents, that amounts to USD 113,350 for a single person, according to the OECD.

5 – Spain

Spain ranks 5^th Best Country to move to and pay less tax as most foreign-source income is tax exempt for qualifying foreign residents, such as foreign dividends, interest, or capital gains. Spain also has a Wealth Tax Exemption on foreign assets during the first 6 years for foreign residents.

Qualifying foreign residents in Spain are people who relocate due to an employment contract, or who engage in an entrepreneurial or innovative business activity, or who work remotely as a Digital Nomad.

Foreign residents in Spain are taxed with a flat 24% income tax rate under non-resident rules for Spanish employment income of up to 600,000 euros per year.

6 – Austria

Austria ranks 6^th Best Country to move to and pay less tax for Digital Nomads as non-residents without a domicile or habitual residence in Austria are taxed only on income generated within the country if they do not spend more than six months in the country.

Scientists, researchers, and artists who emigrate to Austria for work have a Special Expat Tax Incentive that is a 30% flat-rate deduction on Austrian employment income for up to five years. They are, however, liable on worldwide income.

7 – New Zealand

New Zealand ranks 7th Best Country to move to and pay less tax as its tax regime for qualifying foreign residents has a four-year tax exemption on most foreign-sourced income.

Exempt Foreign Income in New Zealand includes foreign interest and dividends, Foreign Investment Fund (FIF) and Controlled Foreign Company (CFC) income, overseas rental income and offshore business income (excluding personal services), income from foreign trust funds and superannuation withdrawals.

New Zealand has the following Personal Income Tax brackets:

·      $0 to $15,600: 10.5%

·      $15,601 to $53,500: 17.5%

·      $53,501 to $78,100: 30%

·      $78,101 to $180,000: 33%

·      Over $180,000: 39% 

8 – Canada

Canada ranks 8th Best Country to move to and pay less tax for Digital Nomads as people who spend less than six months in Canada are taxed only on income earned inside Canada under the Non-Resident Tax Regime.

Canada has the following Personal Income Tax brackets in 2026:

• 14% on the first $58,523 of taxable income

• 20.5% on income over $58,523 up to $117,045

• 26% on income over $117,045 up to $181,440

• 29% on income over $181,440 up to $258,482

• 33% on income over $258,482

9 – Iceland

Iceland ranks 9th Best Country to move to and pay less tax for Digital Nomads as staying less than 6 months means you only pay tax on Iceland source income.

Iceland also ranks 2nd European country with the lowest taxes on wages for residents, including Income Tax & Social Security contributions as a percentage of gross wage earnings.

Iceland has a total tax wedge of 31.5% of average wage earnings for residents, that amounts to USD 88,869 for a single person, according to the OECD.

10 - Australia

Australia ranks 10th Best Country to move to and pay less tax for Digital Nomads as people on temporary work visas are generally exempt from Australian tax on most foreign passive income. However, foreign employment income earned while working in Australia may still be taxed.

Foreign residents in Australia pay 32.5% tax with no tax-free threshold, while foreign-sourced passive income is not subject to taxation.

Here is the link to the ranking of European countries with the lowest taxes on wages.