30 June 2025 : In today’s era, where tax rates are soaring in many parts of the world, there are still some countries where citizens do not have to pay any income tax. These tax-free policies make such countries attractive for investors and high-income individuals. Let’s take a look at the list of these countries. Let us tell you that Oman has announced it will impose taxes in the country starting from 2028. Now let’s find out which countries in the world do not collect any income tax from their citizens.
What’s changing in Oman?
Oman was among the few countries where citizens did not have to pay personal income tax. However, now the Omani government is planning to implement income tax. Oman has already introduced 5% VAT and corporate tax on companies. In the near future, it’s possible that income tax may also be levied on citizens working there, especially expatriate workers.
This step is being taken to reduce the country’s reliance on oil and move toward a more sustainable economic model. According to media reports, this tax is likely to be implemented from 2028, under which an income above 42,000 Omani Riyals (around ₹93.5 lakh annually) will be taxed at 5%.
Which countries do not levy income tax?
While citizens in most countries around the world have to pay income tax on their earnings, there are a few nations where no personal income tax is charged. These countries usually generate revenue through other sources like oil, gas, or tourism and thus offer tax relief to their citizens.
The countries where people don’t have to pay income tax include:
- United Arab Emirates (UAE)
- Kuwait
- Qatar
- Saudi Arabia
- Bahrain
- Brunei
- Bahamas
- Monaco
- Cayman Islands
- British Virgin Islands
- Anguilla
- Oman (currently, but planning tax implementation)
These countries are often referred to as “Tax Havens” because the tax system there is either extremely simplified or completely absent. This is why many wealthy individuals, business owners, and expatriates prefer to settle in these countries.
However, some of these countries are now moving toward changing their tax policies. For example, Oman, which was previously tax-free, is expected to introduce income tax soon. The aim is to make the economy less dependent on oil and more stable and diversified. The Omani government believes it is essential to strengthen the tax system to support its economic structure.
Summary:
Nations like UAE, Monaco, Qatar, and Bahamas levy no personal income tax on citizens, though many impose indirect taxes or have high living costs.