A fundamental practice of wealth management is to avoid double taxation on income earned in your home country and in a foreign country. Fortunately, there are ways wherein you can legally avoid paying income tax on foreign income or legally lower your taxes.
The most beneficial is to move to a country where income taxes are either non-existent or miniscule compared to your total income. There are countries that are tax free where income tax, real estate tax, taxable income and all other taxes are non-existent. However permanent residency is a requirement.
Countries without income tax
St. Kitts and Nevis is another beautiful Caribbean island country that has not tax on individual income, no withholding tax on dividend payments to residents. Citizenship is possible through the Citizenship by Investment Program.
Monaco is considered the playground of high net-worth individuals with gambling as its main industry. While it is one of the most beautiful and desirable places to live in Europe, it is also one of the most expensive places to live. A legal residence permit can be obtained in less than three months but requires a deposit of at least 500,000 euros in a Monaco bank. Monaco has one of the lowest crime rates in the world and has the most extensive and well-developed marinas.
The United Arab Emirates is a country in the Middle East with economy based on oil production. It has a relatively stable government, a thriving economy and a multicultural environment. It has good educational institutions and excellent dining and entertainment venues.
The Bahamas is a Caribbean island country that requires a minimum of 90 days stay in the country to avail of permanent residency. Foreign residents must purchase real estate of at least BSD $750,000 and own the property for a minimum of ten years. Cost of living in the Bahamas is relatively less expensive than other Caribbean countries and has good infrastructure and services.
In Asia, Brunei has the least number of taxes in the region. There is no personal income tax and there are no taxes on export, sale, payroll or manufacturing taxes. Only companies are subject to tax of 22%. Brunei has a high standard of living, ranking the highest in the Islamic World and 3rd in Asia according to the UNDP Index 2009, it is politically stable country whose economy is fueled by a gas and oil industry and has a well-developed infrastructure.