Tax and climate · updated October 2026
Warm low-tax countries
24 jurisdictions pass both tests: a top income tax rate of 25% or less (or no tax on foreign income) and a year-round average of 20°C or more in the main expat city. 15 of them charge no income tax at all. They are ordered by tax, then by warmth.
The table
Low-tax countries that are warm all year
| Country | Top income tax | Foreign income | Climate | Avg temp | Healthcare /100 | Budget / month | Overall rank |
|---|---|---|---|---|---|---|---|
| QatarDoha | 0% | Exempt | Arid | 28°C | 82 | $4,000 | #5 |
| United Arab EmiratesDubai | 0% | Exempt | Arid | 28°C | 85 | $4,500 | #1 |
| AnguillaThe Valley | 0% | Exempt | Tropical | 27°C | 48 | $5,000 | #33 |
| Antigua & BarbudaSt John's | 0% | Exempt | Tropical | 27°C | 55 | $3,500 | #14 |
| BahrainManama | 0% | Exempt | Arid | 27°C | 75 | $3,000 | #6 |
| British Virgin IslandsRoad Town | 0% | Exempt | Tropical | 27°C | 55 | $5,000 | #38 |
| BruneiBandar Seri Begawan | 0% | Exempt | Tropical | 27°C | 72 | $2,200 | #12 |
| Cayman IslandsGeorge Town | 0% | Exempt | Tropical | 27°C | 72 | $6,500 | #23 |
| Saint Kitts & NevisBasseterre | 0% | Exempt | Tropical | 27°C | 50 | $3,200 | #22 |
| Turks and CaicosProvidenciales | 0% | Exempt | Tropical | 27°C | 58 | $5,500 | #41 |
| KuwaitKuwait City | 0% | Exempt | Arid | 26°C | 76 | $3,000 | #10 |
| BahamasNassau | 0% | Exempt | Tropical | 25°C | 65 | $4,500 | #28 |
| VanuatuPort Vila | 0% | Exempt | Tropical | 24°C | 35 | $2,800 | #39 |
| BermudaHamilton | 0% | Exempt | Subtropical | 22°C | 75 | $8,000 | #24 |
| OmanMuscat | 0 (5% from 2028) | Exempt | Arid | 28°C | 72 | $2,800 | #9 |
| Hong KongHong Kong | 17% | Territorial | Subtropical | 23°C | 88 | $5,500 | #7 |
| PanamaPanama City | 25% | Territorial | Tropical | 27°C | 72 | $2,600 | #15 |
| SingaporeSingapore | 24% | Territorial | Tropical | 28°C | 93 | $5,500 | #4 |
| ParaguayAsunción | 10% | Territorial | Subtropical | 23°C | 58 | $1,300 | #19 |
| MauritiusGrand Baie | 20% | Worldwide | Tropical | 25°C | 65 | $2,000 | #20 |
| MalaysiaKuala Lumpur | 30% | Territorial | Tropical | 28°C | 80 | $1,800 | #11 |
| Costa RicaSan José (Central Valley) | 25% | Territorial | Tropical | 21°C | 75 | $2,300 | #34 |
| Dominican RepublicSanto Domingo | 25% | Territorial | Tropical | 26°C | 60 | $1,900 | #29 |
| PhilippinesManila (Makati / BGC) | 35% | Territorial | Tropical | 28°C | 60 | $1,700 | #37 |
Tax figures come from each country profile in the Tax Atlas dataset. Average temperature is the approximate annual mean for the main expat city, and healthcare is an editorial composite rating for comparison, not an official index value. Budgets are for one person in the main expat city, in US dollars. 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
- An annual average hides the seasons. Gulf cities average in the high 20s but summers run far hotter, while tropical islands stay close to their average all year and carry hurricane or cyclone seasons.
- Territorial is not tax-free. Local income is still taxed, and some territorial countries tax foreign income once it is brought in. See the territorial tax countries list.
- Residency is the hard part. Residence routes and their investment or income requirements differ widely between these places. Compare routes on the easiest tax residency list.
- Retiring somewhere warm? See the tax-free retirement countries, plus the low-tax countries with good healthcare ranking.
Questions
Frequently asked
Which warm countries have low taxes?+
Tax Atlas tracks 24 jurisdictions with a top income tax rate of 25% or less (or no tax on foreign income) and a year-round average of 20°C or more in the main expat city: Qatar, United Arab Emirates, Anguilla, Antigua & Barbuda, Bahrain, British Virgin Islands, Brunei, Cayman Islands, Saint Kitts & Nevis, Turks and Caicos, Kuwait, Bahamas, Vanuatu, Bermuda, Oman, Hong Kong, Panama, Singapore, Paraguay, Mauritius, Malaysia, Costa Rica, Dominican Republic, Philippines. The table on this page shows each one's tax rates, foreign income treatment, climate, healthcare and monthly budget.
Which warm countries have no income tax?+
Qatar, United Arab Emirates, Anguilla, Antigua & Barbuda, Bahrain, British Virgin Islands, Brunei, Cayman Islands, Saint Kitts & Nevis, Turks and Caicos, Kuwait, Bahamas, Vanuatu, Bermuda, Oman charge no personal income tax and average 20°C or more. Most raise revenue through import duties, VAT, property or payroll levies instead, so the total cost of living can still be high.
Which warm countries do not tax foreign income?+
Hong Kong, Panama, Singapore, Paraguay, Malaysia, Costa Rica, Dominican Republic, Philippines tax local income but leave most foreign-source income alone (territorial or exempt systems). Rules on remittances and on what counts as foreign income differ, so verify with a qualified adviser before relying on it.
What is the cheapest warm, low-tax country to live in?+
By the Tax Atlas monthly budget for one person in the main expat city, the cheapest are Paraguay (about $1,300), Philippines (about $1,700), Malaysia (about $1,800). Budgets are editorial estimates in US dollars, not official figures.
Which warm, low-tax countries have the best healthcare?+
On the Tax Atlas healthcare rating, the highest here are Singapore (93/100), Hong Kong (88/100), United Arab Emirates (85/100). The rating is an editorial composite for comparison, not an official index value.
Which of these are warm but not hot?+
Vanuatu (24°C), Bermuda (22°C), Hong Kong (23°C), Paraguay (23°C), Costa Rica (21°C) average 24°C or less across the year in the main expat city. The Gulf states average more but have very hot summers.
More rankings
Best places to live for…
- Overall
- Remote workers
- Retirees
- Families
- Founders
- Investors
- On a budget
- High tax, with breaks
- Safest, low tax
- English-speaking, low tax
- Cheap, low tax
- Europe
- Asia-Pacific
- The Americas
- Middle East & Africa
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