Countries with Income Tax of 20% or Less 2026

Jurisdictions that do charge personal income tax, but with a top rate of 20% or lower, sorted from the lowest rate. Zero-tax countries have their own list; these are the low-rate options, many of them with full residence permits and EU or treaty access.

9 countries in this list

Short answer: Tax Atlas tracks 9 of 53 jurisdictions that meet this list's criteria: Paraguay, Bulgaria, Andorra, Hungary, Hong Kong, Jersey, Guernsey, Georgia and 1 more. The key figures for each are in the table below.

How This List Works

This page is generated from the TaxAtlas dataset. Rankings use the personal and business scores plus the underlying tax data (rates, foreign income treatment, and key notes). Always verify details using the sources listed on each country page.

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Key figures at a glance

The figures this list is built on, for every country in it. WHT is the standard withholding tax a company pays on outbound payments to non-residents, before any treaty reduction.

Country	Top income tax	Capital gains	Dividend tax	Foreign income	Residency days
ParaguaySouth America	10%	10%	5%	Territorial	120
BulgariaEurope	10%	10%	5%	Worldwide	183
AndorraEurope	10%	10%	Andorran dividends exempt / foreign 10%	Worldwide	183
HungaryEurope	15%	15%	15%	Worldwide	183
Hong KongAsia	17%	0%	0%	Territorial	180
JerseyEurope	20%	0%	0%	Worldwide	183
GuernseyEurope	20%	0%	0%	Worldwide	183
GeorgiaEurope	20%	0%	5%	Territorial	183
MauritiusAfrica	20%	0%	0%	Worldwide	183

Figures come from each country profile in the Tax Atlas dataset; each country page lists its sources and last-updated date. Rates are headline rates for residents; special regimes, treaty rates and local taxes can change the result. Not tax advice: verify with a qualified adviser.

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FAQ

Which countries have the lowest income tax?

Leaving out the zero-tax jurisdictions, 9 of the 53 jurisdictions Tax Atlas tracks have a top personal income tax rate of 20% or less. The lowest top rate is 10%, in Paraguay, Bulgaria, Andorra. Social security contributions are separate and can add materially to the total.

Which low income tax countries do not tax foreign income?

Paraguay, Hong Kong, Georgia do not tax all foreign income in the normal way (territorial, remittance-based or exempt treatment in the dataset). The rest tax residents on worldwide income at the rates shown. Conditions apply, so check each country page.

Is the low rate a flat tax?

In 6 of the 9 it is: Paraguay, Bulgaria, Hungary, Jersey, Guernsey, Georgia charge one flat rate. The others use brackets that top out at 20% or less. See the flat tax countries list for every single-rate system.

Do any of them also have no capital gains tax?

Hong Kong, Jersey, Guernsey, Georgia, Mauritius charge 0% on personal capital gains in the dataset, although exemptions can depend on holding periods or the type of asset. Verify your own position with a qualified adviser.

How are these lists ranked?

Lists are generated from the country dataset using the criteria described on each country page (rates, foreign income treatment, and practical notes). Always confirm details with official sources.

Are these countries “tax free” for everyone?

Not necessarily. Residency rules, source rules, and special regimes vary by person. Use these lists as a starting point and verify your situation with local professionals.

How often is this updated?

We monitor listed sources periodically and update entries when changes are confirmed. Country pages show their last-updated date and citations.

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How This List Works

Paraguay

Bulgaria

Andorra

Hungary

Hong Kong

Jersey

Guernsey

Georgia

Mauritius