A number of countries have implemented tax-free systems, which only make life comfortable for foreigners.
It’s interesting to note that the Gulf region contains half of the ten most reasonably priced tax-free nations for foreigners. In certain countries, you can still have money left over after paying your bills, rent, and living expenses, even if you have an average salary.
Tax-free nations frequently provide a life free from income taxes. But is moving to these countries really worth it, and how much does it cost for expats to settle there?
The most affordable tax-free nations for foreigners to think about moving to are listed in William Russell’s tax-free relocation report.
The report gives each nation a “relocation score” out of 10 based on variables like average salaries, rent, monthly living expenses, and utility costs. The report ranks the most cost-effective tax-free places to relocate in 2024 or the following year based on these scores.
With a relocation score of 7.92, Oman is clearly the most cost-effective tax-free nation to relocate to in 2024. When it comes to buying or renting an apartment, the nation has the lowest prices. The average monthly rent is €439, and the cost of purchasing an apartment is €108 per square meter.
Oman also has the cheapest monthly cost of living. Living expenses for a single person come to €699, plus an additional €96 for utilities.
Rent, living expenses, and utility bills add up to €1,234 for an average monthly net salary of €2,051 in Oman, leaving you with €817 in monthly income left over.
A one-way economy ticket from London or New York to Oman costs €214 and €464, respectively.
With a net salary of more than €2,500, Kuwait comes in second. With a score of 6.49, Kuwait is the second-cheapest tax-free country in the world to relocate to, according to William Russell’s research.
In terms of monthly living expenses (€720) and utility bills (€45), it is the second most cost-effective. In Kuwait, the average monthly rent is €721, and the average net salary is €2,552. At the end of the month, you will have €1,066 left over.
Economy one-way tickets to Kuwait cost between £150 in London and £623 in New York.
The second-cheapest place to purchase an apartment is Bahrain. This country ranks third with a score of 6.36, just behind Kuwait. With an average price of €161 per square meter, it is the second-cheapest country in which to buy an apartment. Bahrain is also the fifth most economical country in terms of monthly utility bills (€116) and living expenses (€788). Renting €721 on average, it is the fourth.
In Bahrain, the average monthly salary is slightly less than €2,000, with €302 left over after paying for utilities, rent, and other monthly expenses.
The United Arab Emirates (UAE), where Dubai frequently attracts attention, is a desirable location for relocation and is growing in popularity. With average monthly net salaries of about €3,232 and monthly living expenses of about €893, the nation is the fourth most affordable tax-free destination.
According to the report, after paying for necessities, expats have €1,237 left over after paying the average rent of €945 in the United Arab Emirates.
The Bahamas and the Maldives are two of the most reasonably priced tax-free nations. With a score of 5.32, the Maldives came in sixth place, providing the third-cheapest monthly rental price (€689) and monthly living costs (€735).
But with an average salary of only €861 (the second lowest on the list), it doesn’t seem like enough to cover expenses, leaving €701 left over.
Similar to the Maldives, the Bahamas’ average net salary is insufficient to pay for living expenses and rent, despite their eighth-place ranking. The average post-tax salary of €1,729 is insufficient to cover the costs, which include the fourth-highest monthly expenses of €1,294 and an extra €1,044 for rent.
With a ranking of eighth and no income tax for citizens, Monaco is the only European nation on the list. With an average net salary of €6,718 per year, it has the highest of the 12 countries. But it also has the highest monthly living expenses (€1,977) and rent (€4,623).
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To comfortably cover expenses with a leftover income of -€179, expats would need to earn more than the average salary.
With a relocation score of just 2.08, Oceania’s Vanuatu is the least expensive tax-free country for foreigners in 2024. The average monthly cost of living is €1,035, plus an additional €185 for utilities.
However, Vanuatu is a difficult choice for those looking for affordability because the average monthly net salary there is only €573.
Gulf nations occupy all four of the top spots. Qatar, another Gulf country, came in seventh with a score of 5.01 and €565 in leftover revenue.
When moving to another country, expats must take into account a lot of different factors.
