More affordable tax-free 'havens': Best choices for expats in 2025?
Tax-free countries are often described as "paradise", offering a life without income tax. But how much do expats really have to pay to settle in these destinations? Is it really worth moving to them?
William Russell's Tax-Free Relocation Report reveals the most budget-friendly tax-free countries for expats considering relocation. Taking into account factors such as monthly living expenses, average wages, rent and utility costs, the report assigns each country a "relocation score" out of 10. Based on these scores, the report ranks the world's most affordable tax-free destinations in is moved to 2024 or the following year.
Oman stands out as the most affordable tax-free country to move to in 2024, achieving a displacement score of 7.92. Why is Oman the most popular choice on the list? This is because Oman offers the lowest costs for buying or renting an apartment. Buying an apartment costs 108 euros per square meter, while the average monthly rent is 439 euros.
Additionally, Oman offers the lowest monthly living expenses. For a single person, living expenses amount to €699, with an additional €96 for utility bills. With an average net monthly salary of €2,051 in Oman, the total cost of rent, living expenses and utility bills comes to €1,234 leaving you with €817 of residual income each month. To fly to Oman, a one-way economy ticket costs €214 from London or €464 from New York.
According to research by William Russell, Kuwait ranks as the second most affordable tax-free country for relocation, achieving a score of 6.49. It is the second most economical for both monthly living costs (€720) and utility bills (€45). The average monthly rent in Kuwait is €721, while the average net salary is €2,552, leaving you with €1,066 of excess income at the end of the month. One-way economy flights to Kuwait range from £150 (London) to £623 (New York).
With a score of 6.36, Bahrain closely follows Kuwait, ranking third. It is the second cheapest place to buy an apartment, with an average cost of €161 per square meter. Bahrain also ranks as the fifth most affordable country for monthly living expenses (€788) and utility bills (€116). With an average rent of €721, it is the fourth cheapest place to live. The average monthly salary in Bahrain is just under €2,000, leaving €302 of residual income after covering rent, monthly costs and utility bills.
What awaits you in the United Arab Emirates?
The United Arab Emirates (UAE) is becoming an increasingly popular destination, with Dubai often drawing attention. Is the United Arab Emirates a good place to relocate? The answer is yes. The country ranks as the fourth most affordable tax-free destination, with a monthly cost of living of around €893 and an average net monthly salary of around €3,232.
The report states that the average rent in the UAE is €945, leaving expats with €1,237 in residual income after covering essential expenses. Popular holiday destinations, the Maldives and the Bahamas, are also among the most affordable duty-free destinations. The Maldives secured sixth place with a score of 5.32, offering the third lowest rent (€689) and monthly living costs (€735).
However, with an average salary of just €861, the second lowest on the list seems insufficient to cover expenses, resulting in a balance of minus €701. The Bahamas ranks eighth, but, like the Maldives, the average net salary does not cover rent and living expenses. With the fourth highest monthly cost of €1,294 and an additional €1,044 for rent, the average after-tax salary of €1,729 is not enough to balance expenses.
Monaco is the only European country on the list, ranking eighth and offering zero income tax to residents. It boasts the highest average net salary among the 12 countries, at €6,718. However, it also has the highest rent (€4,623 per month) and monthly living costs (€1,977). With a residual income of -€179, expats would need to earn above the average wage to easily cover expenses.
Vanuatu, located in Oceania, ranks as the least affordable tax-free country for expats in 2024, with a displacement score of just 2.08. On average, monthly living costs are €1,035, while utility bills add up to roughly €185 per month. However, the average net monthly salary in Vanuatu is only €573, making it a challenging option for those looking for affordability.
Gulf countries dominate the list
The first four places are all occupied by the Gulf countries. Additionally, another Gulf country, Qatar, secured seventh place with a score of 5.01 and residual income of €565. There is a wide range of factors that expats need to consider when moving to another country. Ross Irvine, Director of Finance at William Russell, advised expats to consider buying international income protection. "So that you are able to maintain your lifestyle in the event of incapacity for work due to injury or illness," he said.
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