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Territorial Tax Countries 2026

Countries that only tax locally-sourced income. Foreign income remains tax-free, making these ideal for remote workers and international entrepreneurs.

26 countries in this list

Short answer: Tax Atlas tracks 26 of 53 jurisdictions that meet this list's criteria: United Arab Emirates, Monaco, Cayman Islands, Bahamas, Bermuda, British Virgin Islands, Qatar, Bahrain and 18 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.

1
🇦🇪

United Arab Emirates

Middle East
Zero TaxLow Rate
2
🇲🇨

Monaco

Europe
Zero Tax
3
🇰🇾

Cayman Islands

Caribbean
Zero Tax
4
🇧🇸

Bahamas

Caribbean
Zero Tax
5
🇧🇲

Bermuda

Caribbean
Zero Tax
6
🇻🇬

British Virgin Islands

Caribbean
Zero Tax
7
🇶🇦

Qatar

Middle East
Zero TaxLow Rate
8
🇧🇭

Bahrain

Middle East
Zero Tax
9
🇰🇼

Kuwait

Middle East
Zero Tax
10
🇻🇺

Vanuatu

Oceania
Zero Tax
11
🇦🇮

Anguilla

Caribbean
Zero Tax
12
🇹🇨

Turks and Caicos

Caribbean
Zero Tax
13
🇵🇦

Panama

South America
Territorial
14
🇭🇰

Hong Kong

Asia
TerritorialLow Rate
15
🇸🇬

Singapore

Asia
TerritorialLow Rate
16
🇲🇾

Malaysia

Asia
Territorial
17
🇨🇷

Costa Rica

North America
Territorial
18
🇬🇪

Georgia

Europe
TerritorialLow Rate
19
🇵🇾

Paraguay

South America
Territorial
20
🇺🇾

Uruguay

South America
TerritorialSpecial Regime
21
🇵🇭

Philippines

Asia
Territorial
22
🇩🇴

Dominican Republic

Caribbean
Territorial
23
🇧🇳

Brunei

Asia
Zero Tax
24
🇴🇲

Oman

Middle East
Zero TaxLow Rate
25
🇰🇳

Saint Kitts & Nevis

Caribbean
Zero Tax
26
🇦🇬

Antigua & Barbuda

Caribbean
Zero Tax

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.

CountryForeign incomeTop income taxCapital gainsResidency days
United Arab EmiratesMiddle EastExempt0%0%183
MonacoEuropeExempt0%0%183
Cayman IslandsCaribbeanExempt0%0%183
BahamasCaribbeanExempt0%0%183
BermudaCaribbeanExempt0%0%183
British Virgin IslandsCaribbeanExempt0%0%183
QatarMiddle EastExempt0%0%183
BahrainMiddle EastExempt0%0%183
KuwaitMiddle EastExempt0%0%183
VanuatuOceaniaExempt0%0%183
AnguillaCaribbeanExempt0%0%183
Turks and CaicosCaribbeanExempt0%0%183
PanamaSouth AmericaTerritorial25%10%183
Hong KongAsiaTerritorial17%0%180
SingaporeAsiaTerritorial24%0%183
MalaysiaAsiaTerritorial30%0%182
Costa RicaNorth AmericaTerritorial25%0-15%183
GeorgiaEuropeTerritorial20%0%183
ParaguaySouth AmericaTerritorial10%10%120
UruguaySouth AmericaTerritorial36%0-12%183
PhilippinesAsiaTerritorial35%0-15%180
Dominican RepublicCaribbeanTerritorial25%27%182
BruneiAsiaExempt0%0%183
OmanMiddle EastExempt0 (5% from 2028)0%183
Saint Kitts & NevisCaribbeanExempt0%0%183
Antigua & BarbudaCaribbeanExempt0%0%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

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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