GCC countries that provide residency with the absence of income tax
The absence of income tax and tax filing are some of the most celebrated facts of living an expat life in the UAE. Other benefits include a cosmopolitan city, good living conditions, great facilities, exceptional weather, good healthcare system and accessibility.
Some of the other countries that expats can live tax-free are the Bahamas and Monaco.
The Bahamas offers people the opportunity to attain permanent residency with or without the right to work by running an investment programme. The least amount of investment required is $500,000 (Dh1.8 million) which will allow you to live and work on the island, whereas an investment of $250,000 (Dh900,000) will give permanent residency to those that don’t have the right to work.
As long as the investor lives in the country, they have the ability to invest in a property or in local business. Despite its extensive period of attaining residency which can take up to 6-12 months, once the application is granted, it does not need to be renewed again in the future.
The investor will be able to take advantage of all the benefits that the Bahamas has to offer and will be given the same rights as any other citizen who is also an expat is given, excluding the right to vote. The benefits include no income tax, no capital gains tax, no wealth/net worth tax and no gift/inheritance tax.
Monaco eventually grants investors with residency and citizenship like the Bahamas, however investing in Monaco is more expensive compared to the Bahamas. Through the countries investment programme, more affluent individuals need to invest a minimum of €1 million (Dh4 million) in the local economy in order to obtain residency. Unlike the Bahamas, half of the money invested must be invested in property and the other half should be deposited in a local bank account.
Despite the countries investment being comparatively higher than that of the Bahamas, The benefits that Monaco offers may be more interesting for individuals as there is visa-free travel for the Schengen zone which won’t require you to arrange and get another visa.
Citizenship can only be obtained after 10 years of long-term residency and will require the investors to reside in the country for at least 3 months in a year.
Gift/inheritance tax may be applicable if the assets are Monaco assets, which means that Monaco is not completely exempt from taxation, but other than gift/inheritance tax there are no other forms of taxation.