This article was updated on January 7, 2023.
In this article, we have listed 16 countries with no property tax. This list may change in the future, but details are current as of Jan. 9, 2023.
We will keep updating this page.
If you want to invest in expat friendly real estate and financial investments, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
Table of Contents
What is property tax?
A property tax is an annual tax levied by authorities depending on the valuation of the property. A property tax is the same as real estate or house tax.
This does not just apply to the properties that are deriving income but also on individuals, as long as they own a particular property.
As said before, the tax rate is solely dependent on the total value of the house/property and is not impacted based on other income or assets owned by the individual.
You might already know the property tax rate varies between countries, cities, states, and municipalities, and is usually collected annually or semi-annually.
Just like any other tax, the income derived from property taxes is used by the government to keep its activities functional, such as paying government officials, upkeeping local facilities, developing new projects, investing in beneficial infrastructure, and so on.
People who fail to pay property tax have to face consequences which are the same as those for the people who evade taxes in general.
In some countries, people can apply for a tax abatement or tax holiday when they are not able to afford property tax due to circumstances such as having a low income or facing financial difficulties.
As for the process of assessment of property tax, municipalities often hire a tax assessor or an official for determining the current market value of the property.
The assessment is done on the basis of various factors, such as the area of the property, construction, and size of the property. In some other cases, the value is assessed based on similar homes located in the area are the previously assessed value of the particular property.
Nevertheless, property taxes are considered to be complex and usually differ between countries, states, and municipalities as said earlier.
How do governments impose taxes on properties?
In most cases, municipalities will either employ a tax assessor or delegate this responsibility to an elected official in order to ascertain the current market price of a piece of property.
The location, type of construction, and size of a property are normally the most significant factors that determine the property’s worth. In some cases, it also depends on how much similar homes are in the neighborhood and how much was the most recent or previous assessment of the property.
Property taxes can be difficult to understand because the amount owed differs from state to state, and each jurisdiction have its own unique method for calculating property taxes.
What about stamp taxes?
Before you purchase a home in one of the countries with no property tax, you should first take into consideration the stamp tax, which is another type of tax that governments commonly impose on the purchase of property.
The purchase of any piece of real estate may be subject to a stamp tax, which is also referred to as a real estate transfer tax, depending on the policies of certain governments. In essence, when you acquire the property, you are required to make a payment to the government equal to a certain portion of the acquisition value in order to satisfy the stamp duty that is imposed on the ownership transfer.
Some of these stamp taxes are relatively minor, while others can be significant; therefore, you will need to take this into consideration when you opt to purchase real estate in any of the countries with no property tax.
The good news is, given that the payment for the stamp duty is a one-time thing, it might work out to be a better bargain than having to pay a tax on your property each year.
Having discussed the general details regarding property taxes, we will now focus on the countries which do not impose a property tax on residents and non-residents.
In order to let you have a more detailed idea of the taxation in those countries, we will also discuss some other important taxes imposed on individuals and corporations in those countries (along with some useful links).
Please note:
N/A – Not Applicable
Almost all the links given in the article will take you to the tax overview page of that specific country, according to PricewaterhouseCoopers (PwC). You can navigate to your desired section from there onward.
Let us begin.
Countries With No Property Tax (North America): Cayman Islands
Property tax – N/A
One of the places in the world that’s considered to be a tax haven is the Cayman Islands. This group of islands is a favorite destination for scuba divers thanks to the breathtaking coral reefs and exceptionally clear waters that can be found there.
The Cayman Islands is also home to a thriving art community as well as architecture that retains a traditional look and feel.
Taxes for residents and non-residents
There is no individual income tax, corporate income tax, property tax, capital gains tax, VAT, and payroll tax. Additionally, there’s no withholding tax on dividends, interest, royalties, or fees charged for technical services.
Duty taxes are levied at the rate of 22% to 27% while having an exemption for goods such as baby products. In some cases, the duty tax can be as high as 42% (for example, expensive cars).
Additionally, taxes such as gift tax, and net worth tax are also absent in the Cayman Islands.
To get more details on the individual and corporate taxation in the Cayman Islands, click on the link provided below.
Countries With No Property Tax: Dominica
Property tax – N/A
Dominica is referred to as The Nature Island more commonly, but its official name is the Commonwealth of Dominica. The island nation is a popular location for outdoor activities such as hiking, scuba diving, and whale watching due to its abundant and diverse plants and animals.
In spite of the fact that Dominica is most famous for its mountains, rainforest, and waterfalls, the island is also home to a number of beautiful beaches and scenic coastal structures, the majority of which are located in the northern part of the island.
Property tax for residents and non-residents
In Dominica, there is no such thing as a real estate tax. On the other hand, residents of Canefield and Roseau are subject to a municipal tax on their respective properties. The tax rate applies at a rate that is, on average, 1.27% of the real estate property’s current market value.
In the event that owners of real estate opt to rent out their properties, they will be required to pay a minimum state tax of 1%.
In certain circumstances, the tax on the transfer of property applies to gifts. It is often necessary to pay 1% of the cost of the transferred property to the financial guarantee fund, on which a value-added tax payment of 15% is due.
Taxation of residents at the individual and corporate level
Taxes should be levied on resident individuals and corporations of Dominica based on their worldwide income.
In Dominica, the individual income tax can be at a 15% rate, 25% or 35%, based on the income group. Meanwhile, the corporate income tax rate and the branch tax rate are both set at 25%.
Taxation of non-resident individuals and legal entities in Dominica
The Inland Revenue Division collects a personal income tax from individuals who are not considered residents in the country. In most cases, it is determined by their royalties, interests, bonuses, and other forms of compensation.
Note that only non-residents with incomes of more than $30,000 East Caribbean dollars are required to file tax returns in this country.
Only profits earned within the geographical boundaries of the state are subject to taxation for non-residents. The rate of taxation is 15%. Capital gains and dividends are not subject to taxation in Dominica under any circumstances.
Companies that are based offshore but are registered in the state are exempt from paying taxes on their income, profits, inheritance, or wealth for a period of 20 years. Rather, businesses in this category are required to pay an annual registration fee in addition to a government levy.
Non-resident companies are exempt from paying taxes on any income that originates from outside the country. Even so, they will be required to pay taxes on income that is generated within the country.
A 15% withholding tax is imposed on dividends, interest, and royalties that are paid to non-resident individuals and businesses. The amount of tax that is withheld from payments for technical services remains constant at the same percentage.
There is a standard VAT rate that applies, which is 15%, but there are reduced rates that apply, which are 10% for hotels and restaurants and 0% for certain goods and services like education, healthcare, and food products.
Net worth tax, inheritance tax, payroll tax, and capital duty are absent in Dominica for both non-residents and residents.
Are there tax deductions in Dominica?
Tax residents are eligible for a standard deduction from their taxes in the amount of EC$30,000. There are no additional requirements that must be met in order to qualify for the deduction. Because residents are eligible for the tax savings, their tax liability is reduced by $3,900 when compared to that of non-residents with the same income of $50,000.
Countries With No Property Tax: Turks and Caicos Islands
Property tax – N/A
A small nation consisting of a tropical archipelago, the Turks and Caicos Islands can be located to the south of the Bahamas. It hosts some of the world’s most beautiful beaches, an idyllic marine environment, five-star resorts, and welcoming locals.
There are no taxes not only on property, but also on individual and corporate income, capital gains, and inheritance.
The only form of taxation imposed on the individuals are the contributions required for National Insurance (NI) as well as the National Health Insurance Plan (NHIP). There is also an indirect levy of 37.5% on majority of imported goods.
Countries With No Property Tax (Oceania): Cook Islands
Property tax – N/A
THE Cook Islands, found in the South Pacific, is a small country with 15 small islands. Most of its people reside on one of its islands called Rarotonga. Numerous individuals consider this nation to be nothing short of a paradise.
Individual income tax for non-residents
Only the portion of a non-resident’s income that comes from sources within the Cook Islands is subject to taxation.
The following types of income are subject to the tax: earnings or gains derived from the operation of a business; salaries, wages, or allowances; rents, fines, premiums, or other revenues; royalties or similar payments; interests; dividends and annuities; earnings from the use of any land; as well as income from other sources.
Gains on investments and income earned by non-residents are subject to a progressive tax rate structure ranging from 20% to 30%.
When it comes to mining operations, any dividends, interests, royalties, or relevant service fees that are paid to a non-resident individual or firm of the Cook Islands are subject to a withholding tax. A 15% withholding tax is also levied.
Individual income tax for residents
Residents are required to pay taxes on the individual income derived from local sources as well as sources from abroad, and the tax rate can be 17% or 27% or 30% depending on the income bracket.
For more details on individual income tax in the Cook Islands, click on the link read below.
Individual Income Tax – Cook Islands
Tax for non-resident companies
The Cook Islands in September 2021 lifted certain immunities that were previously enjoyed by foreign firms. Under the change, the profits made by non-resident companies are subject to taxation at a rate of 28%. In addition, beginning January 1, 2023, non-resident businesses will only be subject to taxation on income derived from sources within the Cook Islands.
Tax for resident companies
Meanwhile, a company tax is imposed at a flat rate of 20% for resident companies. To be considered a resident or non-resident company is subject to certain criteria.
For more details on company tax in the Cook Islands, click on the link given below.
Company Tax – Cook Islands
Other Taxes
The trust income tax rate is 30% and is in effect since the 2014 tax year. VAT is charged at a rate of 15%, and is charged by individuals and organizations that are registered with the Revenue Management (to their customers of course).
Countries With No Property Tax: Fiji
Property tax – N/A
The island nation of Fiji was formed by the interaction of volcanoes and warm tropical waters. Today, visitors from all over the world are drawn to the spectacular and diverse coral reefs that can be found there. There are lush rain forests, coconut farmlands, gorgeous beaches, and hills that have been bared by fire in Fiji.
The indigenous culture and tradition of Fiji is quite lively, but the country as a whole has gathered to form a national identity that is distinct in its multiculturalism.
There are no property taxes at the national level. However, the municipalities may charge property rates in their respective areas.
Taxes for residents
Taxes must be paid by individuals who are residents of Fiji on any taxable income, regardless of whether it was earned in Fiji or somewhere else.
Individual income is taxed at a rate of 44% (comprising of 20% PAYE tax and 24% social responsibility tax).
There is no withholding tax on dividends, but the withholding tax is applicable on interest at a rate of 10% and royalties at a rate of 5% for residents.
Taxes for non-residents
Only the portion of taxable income that is earned in Fiji is subject to taxation for non-residents. Income tax is 20% of the taxable income.
For non-residents, the rate of withholding tax that applies to interest is 10%, and the rate that applies to royalties is 15%. However, dividends are exempt from the withholding tax.
Pension payments coming from a source in Fiji that are garnered by non-resident pensioners are exempt from taxation.
Income from interest, dividends, or royalties is not levied in Fiji if it does not come from or does not accumulate in Fiji when a non-citizen is in the country primarily for employment. The duration of the employment contract may not be longer than three years.
However, taxation of salaries earned in Fiji through employment is required regardless of the country in which payments are received. Specifically, this refers to all forms of monetary compensation, including but not limited to wages, living and housing entitlements, tax reimbursements, and any additional benefits obtained from an office or job.
Other Taxes
The corporate income tax in Fiji is imposed at a tax rate of 20%.
The standard VAT rate is 9% or 15% based on the goods and services, while a 0% rate is available for some exempted goods and services.
The capital gains tax is 10%, and it is the same for companies and individuals. There is no net worth tax, inheritance tax, or gift tax.
Are there tax deductions available for non-residents?
There is the potential for a tax break or a reduced tax rate to be applied to the income of non-resident employees working for an approved non-resident firm that is involved or intends to be involved in a film production in Fiji.
There are other tax incentives in Fiji, especially for residents, subject to certain criteria.
For further details regarding the taxation in Fiji, please click on the link provided below.
Countries With No Property Tax (Europe): Faroe Islands
Property tax – N/A
The Faroe Islands is made up of a group of 18 smaller islands, each of which is distinguished by its dramatic topography, including high mountains, tightly defined fjords, and sharp cliffs. The inhabitants of the Faroe Islands have defied the harshness of both their natural environment and their living conditions throughout the centuries.
A nation that has been around for a long time and whose current standard of living is consistently ranked among the highest in the world is still around today. An economy that is heavily industrialized and primarily based on fisheries and aquaculture is doing well. The maritime prowess of the Faroe Islands is well-known and respected all over the world, and the islands’ seafood products are shipped to all continents.
The tax system in the Faroe Islands is regarded as one of a kind, even among the countries that are geographically close to them in the Nordic region, and it is most likely the best of its kind anywhere in the world. Centralization, reliability, and consistence are the guiding principles behind its daily operations.
Let’s get into the details.
For non-residents
Even though property taxes are not applicable, individuals are required to pay tax when they are obtaining rental income on their properties.
Even when the rental income from real estate properties abroad is not taxable, people are required to declare those details in their tax returns to obtain a tax deduction.
If you are employed in the Faroe Islands but keep your registered residence outside of the country, your tax liability will be considered limited. In this particular scenario, the total number of days you spend in the country cannot be more than 180 in any given year. If you remain in the Faroe Islands for over 180 days in a period of one year, you are considered a resident and are subject to full taxation.
If you have limited tax liability, it indicates that the tax rate you pay is a flat rate and is not determined by your income or the municipality in which you live. The standard tax for wage earners is a 42% rate, but such rate drops to 35% if you are working on a ship that is either FAS (Free Alongside Ship) or bareboat.
Because you have a low tax liability, the Faroe Islands will not provide you with a child tax credit or an interest subsidy. This is because you do not meet the requirements to receive either of these benefits.
Income earned through full time work in the Faroe Islands is subject to taxation in the country.
When you get paid, a number of extra payments and contributions will be deducted from your paycheck if you have an A-income. These payments and contributions will be deducted automatically.
A-income refers to monetary compensation that an employee receives from their employer in exchange for their time spent working. Such income can also refer to things like unemployment and daily benefits, government aid for sick children, and similar programs.
This income is also taxed at source, which indicates that the money will be subjected to the automatic tax withholding system, according to TAKS (the Faroe Islands’ tax department). This system will deduct any applicable taxes and fees from the money before it is deposited into your account.
For residents
If you earn over 30,000 Danish Krone in a year in the Faroe Islands, you will be required to begin paying taxes on your income. This is applicable if you have full tax liability In the country.
If you have full tax liability in the Faroe Islands, then the government has the right to tax any rental income you receive from real property located outside of the country.
Persons who are considered residents of the Faroe Islands or who remain in the country for a total of at least 180 days within any period of one year are subject to the full tax liability in the Faroe Islands. Individuals who have a full tax liability are required to declare all of their income on their tax return, whether the income came from within the Faroe Islands or from outside of the country.
Once your annual income exceeds 65,000 kroner, you will be required to begin paying national tax, which is progressive. Meaning, the amount of tax that you are required to pay increases proportionately with the amount of your income that is subject to taxation.
Your municipality receives the money from the tax that is collected locally. The local tax rate, in contrast to the national tax rate, is a flat rate. This indicates that everyone pays the same tax percentage, regardless of the amount of money they make. Tax rates can range anywhere from 16% to 23% depending on the municipality.
If you are subject to full taxation in the Faroe Islands and also have an income or other wealth generation in another Nordic country, your taxes will be settled according to the terms of double tax treaties.
In the Faroe Islands, individuals who receive pensions from the Faroe Islands are subject to income tax on those pensions.
The country that provides the pension is the one that is responsible for paying taxes on the pension received from another Nordic country.
There is a unique arrangement in place between the Faroe Islands and Denmark that stipulates pensions will be subject to taxation in the individual’s country of residence. Meanwhile, pensions sourced from Norway that are not levied in Norway are subject to taxation in the Faroe Islands.
Do residents and non-residents get tax deductions or refunds?
If you have a full tax obligation in the Faroe Islands, you are eligible to claim certain tax breaks, including the child tax credit and those related to sports, marriage, pensions, retirement, and being an apprentice. If you do not have a full tax liability in the Faroe Islands, you are not eligible to claim any tax deductions.
In the meantime, individuals and businesses that are based in other countries and pay taxes on dividends from Faroese companies in both the Faroe Islands and their home country are able to file for a dividend tax refund, so long as there is a legitimate double-taxation treaty in place with that nation.
Contact the Faroese tax authority TAKS if you are interested in learning more about the tax system that is used in the Faroe Islands.
Countries With No Property Tax: Liechtenstein
Property tax – N/A
Liechtenstein, also known as the Principality of Liechtenstein, is a very small country that is located in the Alps and speaks German. The European country has an exceptionally high standard of living and is surrounded by some of the most breathtaking mountain views in the world. The city of Vaduz, which serves as the nation’s capital, is an important commercial and global financial hub.
There are no property taxes in Liechtenstein, but a capital gains tax of up to 24% can be imposed on the sale of real estate properties for both individuals as well as companies. Capital gains that are derived from the sale of majority shares in a real estate firm could also be subject to tax.
The corporate income tax rate in Liechtenstein is 12.5% whereas the individual income tax rate is 22.4%. The standard VAT rate is 7.7%.
The resident taxpayer is subject to taxation on their worldwide-earned income as well as their total wealth. On the other hand, only income from specific sources located within Liechtenstein are levied for individuals who do not have a permanent or constant residence in the country.
There is no inheritance tax, gift tax, or withholding tax, but a wealth tax is imposed in Liechtenstein that is included within the income tax.
Are there tax deductions in Liechtenstein?
Individuals with income from work are entitled to a deduction, generally 1,500 Swiss francs, plus certain additional personal deductions (if applicable).
To get more information about taxation in Liechtenstein, please click on the link provided below.
Countries With No Property Tax: Malta
Property tax – N/A
The island nation of Malta, which is found in the middle of the Mediterranean Sea, is home to some of the world’s oldest infrastructure. It attracts a lot of tourists due to the pleasant weather as well as the panoramic views that can be found there.
Even though Malta doesn’t impose property taxes, a final withholding tax is imposed on immovable property transfers at a minimum rate of 5% up to 12%. The rates differ depending on certain factors.
Transfers of immovable property are subject to stamp duty in Malta at a rate of 5% for residents and non-residents alike, with a discounted rate of 2% applicable to transfers of immovable property located on Gozo island.
The individual income tax rate in Malta can range anywhere from 0% to 35%, depending on the income tax bracket that an individual is placed in. In contrast, the corporate income tax rate in the country is a flat rate of 35%.
The taxable income and gains for a person who is “ordinarily resident” in Malta but not domiciled in Malta are those that arise or received in Malta.
On the other hand, individuals who are subject to taxation on a global basis are those who are domiciled in Malta as well as those who are married to an individual who is ordinarily resident and domiciled in Malta.
Only income and gains that are deemed to have been earned in Malta are subject to taxation for a person who does not permanently reside in Malta.
Both the worker and the employer are responsible for making social security contributions equal to 10 percent of the salary of the worker. Contribution to social security is equal to 15 percent of an individual’s yearly net income garnered during the preceding year if that individual is self-employed.
A standard rate of 18% is imposed as VAT. A 15% tax on royalties received may be imposed, subject to certain conditions.
There are no taxes on net wealth/worth, inheritance, estate, or gifts in Malta. The country also does not bestow personal allowances.
For more information on taxation in Malta, please click on the link given below.
Countries With No Property Tax: Monaco
Property tax – N/A
Monaco is a small European country that is formally known as the Principality of Monaco.
It is a free and sovereign nation with its own government, and it is situated on the top of the Mediterranean Sea’s northern coast. Monaco is an affluent state amid being the second-smallest country in the world (according to rankings by demographic and geodetic data provider WorldData).
Monaco is yet another tax haven based on its tax policies, and it does not levy taxes on individual income, capital gains, as well as net wealth.
While no corporate income tax is imposed in general, certain (French) firms are subject to a levy of 33.33% if over 25% of earnings come from sources outside of Monaco’s territory.
Even though there are no property taxes in Monaco, rental properties are taxed at a rate of 1% of the total annual rent along with some other applicable charges. If you dispose of your property, you will also be responsible for paying taxes on the profit. Any profits made from the disposition of real estate property are subject to this tax in the amount of 33.3% of those profits.
People who can provide proof of accommodation for at least a year and have the ability to show their self-sustenance are deemed as a resident of Monaco.
Financial education website Investopedia discussed more on the topic: “Why is Monaco considered a tax haven?”
Countries With No Property Tax (Asia): Bahrain
Property tax – N/A
The island nation of Bahrain, also known as the Kingdom of Bahrain, is famous for its subtropical climate, large amounts of sand, palms, and camels.
In comparison to its neighboring nations, which are generally more conservative and practice Islamic law in a more stringent fashion, this nation has a populace that is comprised of people from a wide variety of ethnic backgrounds and a relatively liberal attitude toward social matters.
Tax for residents and non-residents
There is no property tax applied on the disposition or lease of bare land and buildings, and this applies to both residential and commercial transactions. Additionally, there is no tax imposed on newly constructed buildings anywhere in the nation.
Nevertheless, when real estate is registered or transferred in Bahrain (stamp duty), a levy equal to 2% of the property’s worth is applied as part of the process. The levy will be trimmed to 1.7% if it is settled within 60 days of the date the deal was completed, according to accounting services provider KPMG.
There is no income tax in Bahrain, but the individuals are required to make Social Security contributions of around 19% for local employees (12% by the employer and 7% by the employee) and 4% for expatriates (3% by the employer and 1% by the employee), and this is mandatory.
Capital gains tax, net worth tax, inheritance tax, gift tax, and payroll tax are also absent in Bahrain. A tax rate of 10% is levied upon the rental of commercial properties and residential properties when they are rented by expats.
To get more details on individual and corporate taxation in Bahrain, click on the link provided below.
Countries With No Property Tax: Kuwait
Property tax – N/A
The Arabian nation of Kuwait can be found right on the coast of the Persian Gulf. This Arabian jewel is a synthesis of the liberal values of the West with the conservative values of Islamic culture.
Taxes on property are absent in Kuwait. There is no individual income tax either, but the corporate income is taxed at a flat rate of 15%. This particular tax on corporate income is only levied on the earnings and capital gains of international corporate entities that directly or indirectly (via an agent) conduct trade or business in the country.
Companies that are fully owned by citizens of Kuwait are exempt from paying the corporate income tax in the state of Kuwait. This is also true for firms owned by nationals of other member countries of the Gulf Cooperation Council (GCC), such as Bahrain, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Workers in Kuwait are required to make contributions to the country’s social security system. The employee’s share is 8% of his or her salary for every month, while the employer’s contribution is set at 11.5%. Such contributions have a limit of 2,750 Kuwaiti dinars each month.
Apart from that, Kuwait is considered a true tax haven because it has no withholding tax, capital gains tax, net worth tax, inheritance tax, or gift tax.
To get more details about taxation in Kuwait, please click on the link given below.
Countries With No Property Tax: Oman
Property tax – N/A
This landlocked nation in the Middle East is home to a diverse collection of dazzling terrain. Oman is well-known for many things, including its centuries-old irrigation system, its gently sloping orchards, its forts, mosques, stream valleys, as well as its classic Arabian sail boats.
In Oman, neither real estate taxes nor stamp duties are levied on residents or businesses. However, a property transfer fee equal to 3% percent of the value of the land or property being transferred must be paid to the Housing Ministry. In addition to this, a municipal tax equal to 3% percent is applied to rental of property.
There is no individual income tax in Oman, but the corporate income is taxed at a rate of 15%.
Only workers who are nationals of Oman are required to make a contribution to the social security system at the rate of 20.5%; this does not apply to expat workers. The Omani employees are responsible for making a contribution equal to 8% of their salary, while the employer settles the remaining 12.5%.
A standard VAT rate of 5% is applicable, while having certain exemptions.
There is no net worth tax, inheritance tax, or gift tax.
For further reading on taxation in Oman, click on the link given below.
Countries With No Property Tax: Qatar
Property tax – N/A
Qatar is a wealthy Middle Eastern nation that is home to one of the world’s largest petroleum and natural gas resources. In order to maintain its high production levels, Qatar relies heavily on the labor of a large number of people from other countries. The country’s residents have access to a high standard of living as well as a well-developed network of social services, thanks to the riches the country derives from its oil industry.
In Qatar, there is no provision for the collection of any property taxes. Even so, upon the property’s registration, certain charges may be required to be paid to the government by the owner. Furthermore, fees may be required to be settled by the landlord when the lease is registered.
Regardless of where a person actually qualifies as a resident for tax purposes, if they have earned income from sources within Qatar that meets certain requirements, they will be subject to taxation in Qatar. Income tax on salaries, wages, or allowances of individuals who are gainfully employed are not levied.
If an entity is entirely or partly owned by a foreign party and receives income from sources located in Qatar, then it is subject to taxation in Qatar. At the moment, a corporate body that is fully owned by citizens in Qatar or of other GCC member countries who are residents in Qatar is exempt from paying the corporate income tax, also known as the CIT.
Unless the enterprise is expressly excluded from taxation, it will be subject to taxation in Qatar so long as it has obtained income from Qatar. This is true regardless of the country in which the entity was initially established.
There are a few exceptions to this rule, but in general, taxable income is subject to a rate that is fixed at 10% (for oil operations, this rate can go as high as 35%).
There is no VAT, net worth tax, inheritance tax, or gift tax. However, a 5% VAT is expected to be introduced in the future.
Currently, an excise tax on certain goods like tobacco is being implemented.
Non-residents are subject to a withholding tax rate of 5% on brokerage fees, commissions, interest, royalties, technical fees, plus other charges for services. Residents are exempt from withholding taxes.
To know more details regarding taxation in Qatar, please click on the link given below.
Countries With No Property Tax: Saudi Arabia
Property tax – N/A
Saudi Arabia is a country located in the Middle East that is well-known for a number of things, including oil reserves, sand desert and oasis, and being the birthplace of Islam.
In Saudi Arabia, there is no provision for the collection of any property taxes. On the other hand, there is a so-called white land tax.
In accordance with the white land tax law, landowners who have vacant land, unexploited land, or undeveloped land in an urban location that has been zoned for residential or commercial use will be required to pay a tax equal to 2.5% of the land’s market valuation per year.
There is also a real estate transaction tax that is imposed at the rate of 5% of the total value of the real estate that is being disposed of, and this tax applies to the real estate irrespective of its condition or use at the time of the sale.
Individual income is not taxed in Saudi Arabia, but corporate income is taxed at a rate of 20% for both resident and non-resident companies.
The relevant VAT rate is 15%, which is the standard rate. In addition, an excise tax of 50% is placed on soft drinks, while an excise tax of 100% is placed on both tobacco products and energy drinks.
There are no taxes on estate, net worth, inheritance, gifts, and consumption in Saudi Arabia.
To know more details regarding taxation in Saudi Arabia, please click on the link given below.
Countries With No Property Tax: United Arab Emirates
The United Arab Emirates (UAE), which is a collective of seven emirates, is a well-known tourist spot. The country is also renowned for its modern infrastructure, such as the Burj Khalifa which is dubbed the tallest building in the world. It is also one of the most affluent countries in the Middle East.
Tax on Property
Properties in the UAE are not subject to taxes on a national level. Nevertheless, a municipality tax is levied on properties in the majority of Emirates, and it is calculated using the property’s rental valuation per annum. In most cases, the renters are the ones responsible for making the required tax payment.
There are some situations in which tenants and property owners are each responsible for the payment of their own individual fees. For instance, the property tax in Dubai on a municipal level is presently applied at a rate of 2.5% of the commercial property’s rental valuation per year and at a rate of 5% for residential properties.
The municipality tax of commercial properties is usually shouldered by the owner, while that of residential properties is settled by tenants.
Each Emirate has its own system for imposing and administering these taxes, which can be quite different from one another.
Tax on Corporate Income
The corporate income tax is taxed at a rate of up to 55% for upstream oil and gas activities and 20% for branches of foreign banks. There is no tax for most other companies and branches currently, but a previous CNBC report said federal corporate tax on adjusted accounting net profit is expected to be implemented from June 1, 2023.
The said corporate income tax will be 9% for taxable income that goes over 375,000 dirhams. Anything less than that amount will not be levied.
Tax on Individual Income
Individual income is not taxed in the UAE, and there are no withholding taxes as well.
On an individual basis, there is only a social security regime in the UAE that applies to qualifying UAE and other Gulf Cooperation Council (GCC) national employees. Non-GCC nationals are not subject to social security in the UAE.
There are no taxes on estate, capital gains, net worth, luxury, inheritance, or gifts in the UAE.
A standard VAT rate of 5% is applicable, while an excise tax of either 50% or 100% is imposed on certain goods.
To get more details regarding taxation in the United Arab Emirates, click on the link given below.
United Arab Emirates – Taxation
Countries With No Property Tax (Africa): Seychelles
The island nation of Seychelles is known for its rich tropical foliage, gorgeous beaches, and a broad range of aquatic life.
Taxes for Residents
There is no property tax in Seychelles for residents, but the individual income is taxed at rates of 0%, 15%, 20%, and 30% for citizens depending on their income bracket.
Taxes for Non-Residents
Property tax is levied at a rate of 0.25% of the market value of residential apartments, condominiums and villas owned by non-residents. Meanwhile, the individual income is taxed at the rates of 15%, 20%, and 30% for non-citizens.
For Corporate Bodies
Non-monetary benefits to employees are taxed at a rate of 20% and are payable by the employer.
Corporate entities are taxed at rates of 25% and 33%, depending on the income brackets and the type of industry. They also pay a corporate social responsibility tax of 0.5% of the revenues per month, if aggregate turnover hits 1 million Seychelles rupees.
Goods and services that are consumed within the borders of Seychelles are exempt from tax, while a rate of 15% is levied on goods and services that are not consumed within the country.
Withholding tax is imposed at a rate of 15% on dividends, royalties, and interests paid on loans by firms. The withholding tax on interest differs for deposits and bonds, and is taxed according to those rates.
For further reading on taxation in Seychelles, please click on the link provided below.
Disclaimer
Taxes are usually updated every year (or whenever the government wants to alter them) and the above-mentioned data may have changed by the time you read this. Again, all details in this article are current as of Jan. 9, 2023.
Keeping that in mind, it is wise to conduct your research before determining the actual status of property tax or tax rates for other types of taxes.
Investment/Financial Services
We offer top-notch investment services as well as financial advisory services that are specialized for expats, high net-worth individuals, and common people. To acquire the best-in-class investment services offered by us, you can click on the link given below.
You can get access to our services using your android smartphone by clicking on the link below.
Mobile Application
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
