Half of the 10 most affordable tax-free countries for expats are located in the Gulf region. Even with an average salary, you may still have residual income after covering rent, living expenses and bills in some countries.
ADVERTISEMENTTax-free countries are often portrayed as “havens”, offering a life without income tax. But how much do expats actually have to pay to settle in these destinations? Is moving to them really worth it?
William Russell’s Tax Free Relocation Report reveals the best tax free countries expats should consider moving to. Taking into account factors such as monthly cost of living, average wages, rent and utility costs, the report assigns each country a “relocation score” out of 10. Based on these scores, the report ranks the world’s most affordable tax-free destinations to move to in 2024 or the following year .
Euronews Business goes a step further by deducting from the average net salary the residual income after rent, monthly expenses and utility bills have been deducted from the average net salary. This calculation is not part of a report or ranking – it’s just there to give you a better idea of ​​what to expect.
What makes Oman the best choice?
Oman stands out as the most affordable tax-free country to relocate to in 2024, achieving a relocation score of 7.92. Why is Oman the most popular choice on the list? This is because Oman offers the lowest costs for buying or renting an apartment. Buying an apartment costs 108 euros per square meter, while the average monthly rent is 439 euros.
In addition, Oman offers the lowest monthly cost of living. For a single person, living expenses amount to €699, with an additional €96 for utility bills.
With an average monthly net salary of €2,051 in Oman, the total cost of rent, living expenses and utility bills is €1,234 – leaving you with €817 of residual income each month.
For a flight to Oman, a one-way economy ticket costs €214 from London or €464 from New York.
Kuwait is in second place with a net salary of more than 2,500 euros
According to research by William Russell, Kuwait ranks as the second most affordable tax-free country to move to, with a score of 6.49. The second is the most economical for both monthly living expenses (720 euros) and utility bills (45 euros). The average monthly rent in Kuwait is €721, while the average net salary is €2,552 – leaving you with €1,066 of extra income at the end of the month.
One-way economy flights to Kuwait range from £150 (London) to £623 (New York).
Bahrain: The second cheapest country to buy an apartment
With a score of 6.36, Bahrain closely follows Kuwait in third place. It is the second cheapest country to buy an apartment, with an average price of €161 per square meter. Bahrain also ranks fifth among the most affordable countries for monthly living costs (€788) and utility bills (€116). With an average rent of €721, it is the fourth cheapest country to live in.
The average monthly salary in Bahrain is just under €2,000, which leaves €302 of residual income after covering rent, monthly expenses and utility bills.
What awaits you in the United Arab Emirates?
The United Arab Emirates (UAE) is becoming an increasingly popular destination, and Dubai often attracts attention. Is the UAE a good place to move to? The answer is yes. The country is the fourth most affordable tax-free destination, with a monthly cost of living of around €893 and an average monthly net salary of around €3,232.
The report states that the average rent in the UAE is 945 euros, leaving foreigners with 1,237 euros of residual income after covering basic expenses.
Desired holiday destinations on the list
Popular holiday destinations, the Maldives and the Bahamas, are also among the most affordable tax-free countries. The Maldives secured sixth place with a score of 5.32, offering the third lowest rent (€689) and monthly living costs (€735).
However, with an average salary of just €861, the second lowest on the list, it seems insufficient to cover expenses, resulting in a balance of minus €701.
ADVERTISEMENTThe Bahamas is ranked eighth, but, like the Maldives, the average net salary does not cover rent and living costs. With the fourth highest monthly expenses of €1,294 and an additional €1,044 for rent, the average after-tax salary of €1,729 is not enough to balance the costs.
Monaco: The only European country on the list
Monaco is the only European country on the list, ranked eighth, that offers zero income tax for residents. It has the highest average net salary among the 12 countries, 6,718 euros. However, it also has the highest rent (4,623 euros per month) and monthly living expenses (1,977 euros).
With a residual income of -179 euros, expats would have to earn above the average salary to comfortably cover expenses.
Vanuatu: The least favorable country without taxes
Vanuatu, located in Oceania, was ranked as the least affordable tax-free country for expats in 2024, with a relocation score of just 2.08. The average monthly living expenses amount to 1,035 euros, while utility bills amount to around 185 euros per month.
ADVERTISEMENTHowever, the average monthly net salary in Vanuatu is only €573, making it a challenging option for those looking for affordability.
Gulf countries dominate the list
The first four places are all occupied by Gulf countries. In addition, another Gulf state, Qatar, secured seventh place with a score of 5.01 and a residual income of 565 euros.
There are a wide range of factors that expats must consider when moving to another country. Ross Irvine, CFO of William Russell, advised expats to consider buying international income protection. “So you are able to preserve your lifestyle in the event of incapacity for work due to injury or illness,” he said.
