Tax and cost of living · updated October 2026
Cheap low-tax countries
13 jurisdictions pass both tests: a top income tax rate of 25% or less (or no tax on foreign income) and a monthly budget of $2,600 or less for one person in the main expat city. 8 of them leave most foreign income untaxed. They are ordered by budget, cheapest first.
The table
Low-tax countries with a low cost of living
| Country | Budget / month | Top income tax | Foreign income | Safety /100 | Healthcare /100 | Overall rank |
|---|---|---|---|---|---|---|
| ParaguayAsunción | $1,300 | 10% | Territorial | 55 | 58 | #19 |
| GeorgiaTbilisi | $1,500 | 20% | Territorial | 72 | 62 | #16 |
| BulgariaSofia | $1,600 | 10% | Worldwide | 72 | 64 | #36 |
| PhilippinesManila (Makati / BGC) | $1,700 | 35% | Territorial | 50 | 60 | #37 |
| MalaysiaKuala Lumpur | $1,800 | 30% | Territorial | 72 | 80 | #11 |
| Dominican RepublicSanto Domingo | $1,900 | 25% | Territorial | 48 | 60 | #29 |
| HungaryBudapest | $2,000 | 15% | Worldwide | 80 | 72 | #21 |
| MauritiusGrand Baie | $2,000 | 20% | Worldwide | 70 | 65 | #20 |
| BruneiBandar Seri Begawan | $2,200 | 0% | Exempt | 85 | 72 | #12 |
| Costa RicaSan José (Central Valley) | $2,300 | 25% | Territorial | 52 | 75 | #34 |
| EstoniaTallinn | $2,300 | 22% | Worldwide | 80 | 75 | #45 |
| UruguayMontevideo | $2,500 | 36% | Territorial | 62 | 74 | #17 |
| PanamaPanama City | $2,600 | 25% | Territorial | 58 | 72 | #15 |
Tax figures come from each country profile in the Tax Atlas dataset. Budgets are editorial estimates for one person in the main expat city, in US dollars, and safety and healthcare are editorial composite ratings for comparison, not official index values. Overall rank is the position on the default best places to live ranking. Not tax or immigration advice: verify with a qualified adviser.
Before you choose
What the table does not show
- Cheap rarely means zero tax. The zero-income-tax jurisdictions are mostly expensive. The cheap ones tend to be territorial systems or low flat taxes. See the territorial tax countries list for how each treats foreign income.
- The visa sets the real price. Some residence routes need a bank deposit, property purchase or proven income that dwarfs a year of living costs. Compare them on the easiest tax residency list.
- Budgets are for one person in the main city. Families, international schools and private health insurance add a lot. The best places on a budget ranking lets you weigh cost against safety and healthcare yourself.
- Retiring on a pension? See the tax-free retirement countries, plus the low-tax picks in Latin America and Asia.
Questions
Frequently asked
Which low-tax countries are cheap to live in?+
Tax Atlas tracks 13 jurisdictions with a top income tax rate of 25% or less (or no tax on foreign income) and a monthly budget of $2,600 or less for one person in the main expat city: Paraguay, Georgia, Bulgaria, Philippines, Malaysia, Dominican Republic, Hungary, Mauritius, Brunei, Costa Rica, Estonia, Uruguay, Panama. The table on this page shows each one's tax rates, foreign income treatment, safety, healthcare and budget.
What is the cheapest low-tax country to live in?+
By the Tax Atlas monthly budget, the cheapest are Paraguay (about $1,300 in Asunción), Georgia (about $1,500 in Tbilisi), Bulgaria (about $1,600 in Sofia). Budgets are editorial estimates in US dollars for one person, not official figures, and rent in the main city drives most of the difference.
Is there a cheap country with no income tax?+
Brunei (about $2,200 a month) charge no personal income tax and fall under the $2,600 budget line. Most zero-tax jurisdictions are expensive islands, city-states or Gulf states; the cheap options mostly tax local income and leave foreign income alone.
Which cheap countries do not tax foreign income?+
Paraguay, Georgia, Philippines, Malaysia, Dominican Republic, Costa Rica, Uruguay, Panama tax local income but leave most foreign-source income alone (territorial or exempt systems). Some tax foreign income once it is brought into the country, so verify the remittance rules with a qualified adviser before relying on it.
What are the cheapest low-tax countries in Europe?+
Georgia (20% top rate, about $1,500 a month), Bulgaria (10% top rate, about $1,600 a month), Hungary (15% top rate, about $2,000 a month), Estonia (22% top rate, about $2,300 a month). Low European rates usually come as a flat tax on worldwide income rather than a territorial system. The full set is on the low-tax countries in Europe page.
Which cheap, low-tax countries are safest and have the best healthcare?+
On the Tax Atlas safety rating, the highest here are Brunei (85/100), Hungary (80/100), Estonia (80/100). On healthcare, the highest are Malaysia (80/100), Costa Rica (75/100), Estonia (75/100). Both ratings are editorial composites for comparison, not official index values.
More rankings
Best places to live for…
- Overall
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- Retirees
- Families
- Founders
- Investors
- On a budget
- High tax, with breaks
- Safest, low tax
- Good healthcare, low tax
- English-speaking, low tax
- Warm, low tax
- Low tax, for families
- Europe
- Asia-Pacific
- The Americas
- Middle East & Africa
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