Tax-Free Relocation Report | William Russell

Tax-free ‘havens’ are often touted as the dream locations to live in, but what is the real cost of relocating to these countries and is it really worth it? Our tax-free relocation report explores which tax-free countries are the cheapest for expats to move to.

There are an array of things that expats need to think about when relocating to another country. It is recommended that you purchase international income protection so that you are able to safeguard your lifestyle in the event of incapacity to work due to injury or illness.

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Which tax-free countries are the cheapest for expats to move to?

As well as insurance, expats also need to consider various other costs, such as flights, rent and utility bills. Although some countries offer tax-free lifestyles, expats may actually spend more on everyday expenses.

With this in mind, which tax-free countries are the most and least affordable for expats to move to?

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The most affordable tax-free countries for expats

Oman is the most affordable tax-free country for expats

1/ Oman

Relocation score: 7.92/10

The most affordable tax-free country for expats to relocate to is Oman, earning a relocation score of 7.92/10. The country, located in the Middle East, has a population of around 4.6 million people. A one-way economy ticket to the country’s capital city, Muscat, will cost expats around £187 (US$227 or €214) from London and £405 (US$492 or €464) from New York.

On average, Oman is the cheapest country to purchase or rent an apartment in, as well as being the most affordable country in terms of monthly costs (excluding rent). It is also the third cheapest country for monthly utility bills, costing around £83 (US$103 or €96). The average monthly net salary in Oman is around £1,775 (US$2,205 or €2,051).

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2/ Kuwait

Relocation score: 6.49/10

In second place is Kuwait, which received a relocation score of 6.49/10. Just like Oman, Kuwait is also located in the Middle East and has a population of approximately 4.3 million people. Expats can expect to pay around £131 (US$159 or €150) for a one-way economy ticket from London to the country’s capital, Kuwait City. Those flying from New York can expect to pay around £544 (US$660 or €623) for the same ticket.

Kuwait is the fourth cheapest country to rent an apartment in, costing around £624 (US$775 or €721) per month, on average. It is also the second most affordable country for both monthly costs and utility bills, joint with Brunei. The average monthly net salary in Kuwait is around £2,209 (US$2,743 or €2,552).

3/ Bahrain

Relocation score: 6.36/10

Following closely behind and making the third appearance for the Middle East is Bahrain, earning a relocation score of 6.36/10. The country’s population is considerably smaller than those of Oman and Kuwait, standing at around 1.5 million people. A one-way economy ticket to the country’s capital city, Manama, will cost expats approximately £146 (US$177 or €167) from London and £427 (US$518 or €489) from New York.

Bahrain is the second cheapest country to purchase an apartment in, costing around £139 (US$173 or €161) per square metre, on average. It is the fifth most affordable country for both monthly costs and utility bills. The average monthly net salary in Bahrain is £1,668 (US$2,072 or €1,927).

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4/ United Arab Emirates

Relocation score: 5.84/10

Coming in fourth is the United Arab Emirates, which received a relocation score of 5.84/10. The country has a population of approximately 9.5 million people. Expats can expect to pay around £127 (US$154 or €145) for a one-way economy ticket from London to the country’s capital, Abu Dhabi. Those flying from New York can expect to pay around £437 (US$530 or €500) for the same ticket.

It costs around £818 (US$1,016 or €945) per month to rent an apartment in the United Arab Emirates. On average, expats will pay around £136 (US$169 or €157) for utilities per month and have monthly costs of approximately £772 (US$959 or €893) in the country. The average monthly net salary in the United Arab Emirates is around £2,797 (US$3,474 or €3,232).

5/ Brunei

Relocation score: 5.58/10

In fifth place is Brunei, earning a relocation score of 5.58/10. The country is a tiny nation in Asia and has a population of almost 454,000 people. A one-way economy ticket to the country’s capital city, Bandar Seri Begawan, will cost expats around £776 (US$942 or €889) from London and £1,018 (US$1,236 or €1,166) from New York.

Brunei is the second cheapest country to rent an apartment in, costing around £396 (US$492 or €457) per month, on average. It is also the second most affordable country for both monthly costs and utility bills, joint with Kuwait. The average monthly net salary in Brunei is £1,381 (US$1,715 or €1,595).

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6/ Maldives

Relocation score: 5.32/10

The Maldives is the sixth most affordable tax-free country, receiving a relocation score of 5.32/10. The country is located in South Asia and has a population of approximately 518,700 people. Expats can expect to pay around £437 (US$530 or €500) for a one-way economy ticket from London to the country’s capital, MalÃ©. Those flying from New York can expect to pay around £595 (US$722 or €681) for the same ticket.

The Maldives is the third cheapest country to both buy and rent an apartment in, costing around £159 (US$197 or €183) per square metre and £596 (US$740 or €689) per month respectively. It is also the third cheapest tax-free country in terms of monthly costs, with expats having around £636 (US$791 or €735) worth of expenses each month. The average monthly net salary in the Maldives is £745 (US$926 or €861).

7/ Qatar

Relocation score: 5.06/10

Coming in seventh and making yet another appearance for the Middle East is Qatar, earning a relocation score of 5.06/10. The country has a population of approximately 2.7 million people. A one-way economy ticket to the country’s capital, Doha, will cost expats around £293 (US$356 or €335) from London and £454 (US$551 or €520) from New York.

On average, it costs around £324 (US$403 or €375) per square metre to buy an apartment in Qatar. It is the fourth most affordable tax-free country when it comes to monthly utilities, costing approximately £90 (US$112 or €104). The average monthly net salary in Qatar is £3,484 (US$4,327 or €4,025).

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8/ Bahamas

Relocation score: 4.16/10

In eighth place is the Bahamas, which received a relocation score of 4.16/10. The Caribbean country has a population of around 413,600 people. Expats can expect to pay around £794 (US$964 or €909) for a one-way economy ticket from London to the country’s capital, Nassau. Those flying from New York can expect to pay around £108 (US$131 or €124) for the same ticket.

It costs around £904 (US$1,122 or €1,044) per month to rent an apartment in the Bahamas, on average. Expats living in the Bahamas will pay around £229 (US$285 or €265) for utilities per month and have monthly expenses of approximately £1,119 (US$1,391 or €1,294). The average monthly net salary in the country is £1,496 (US$1,858 or €1,729).

8/ Monaco

Relocation score: 4.16/10

Also in eighth place is Monaco, which is located on the French Riviera and has a population of approximately 36,000 people. A one-way economy ticket to Nice (the nearest airport to Monaco) will cost expats around £43 (US$52 or €49) from London and £349 (US$424 or €400) from New York. The journey from Nice to Monaco, which can be completed by car, train or ferry, can take between 20 and 45 minutes, depending on the chosen mode of transport.

Despite the relatively affordable flights, living in Monaco can be expensive. Renting an apartment in the country costs around £4,002 ($4,970 or €4,623) per month on average. Additionally, monthly bills amount to approximately £1,710 (US$2,125 or €1,977) and utilities cost around £257 (US$319 or €297) per month. However, due to the high cost of living, the average monthly net salary in Monaco is £5,814 (US$7,221 or €6,718).

10/ Cayman Islands

Relocation score: 3.77/10

The Cayman Islands are the tenth most affordable tax-free country, earning a relocation score of 3.77/10. The three islands are located in the West Caribbean Sea and have a population of just less than 70,000 people. Expats can expect to pay around £668 (US$811 or €765) for a one-way economy ticket from London to the capital, George Town. Those flying from New York can expect to pay around £238 (US$289 or €272) for the same ticket.

On average, it costs around £913 (US$1,134 or €1,054) per square metre to purchase an apartment in the Cayman Islands. Monthly costs are approximately £1,425 (US$1,770 or €1,647) and the average utility bill is around £329 (US$409 or €381) per month. The average monthly net salary in the Cayman Islands is £3,729 (US$4,631 or €4,308).

11/ Bermuda

Relocation score: 3.25/10

In eleventh place is Bermuda, which received a relocation score of 3.25/10. The island territory is located in the North Atlantic Ocean and has a population of approximately 64,000 people. A one-way economy ticket to the territory’s only airport will cost expats around £1,652 (US$2,005 or €1,892) from London and £403 (US$489 or €461) from New York.

On average, it costs around £2,178 (US$2,705 or €2,517) per month to rent an apartment in Bermuda. Expats can expect to pay approximately £225 (US$280 or €261) per month for their utilities and have monthly costs of around £1,660 (US$2,063 or €1,919). The average monthly net salary in Bermuda is £5,435 (US$6,750 or €6,280).

12/ Vanuatu

Relocation score: 2.08/10

Finally, completing the list is Vanuatu, earning a relocation score of 2.08/10. The country is located in Oceania and has a population of approximately 337,600 people. Expats can expect to pay around £1,164 (US$1,413 or €1,333) for a one-way economy ticket from London to the country’s capital city, Port Vila. Those flying from New York can expect to pay around £1,364 (US$1,656 or €1,562) for the same ticket.

It will cost expats approximately £431 (US$535 or €498) per square metre for an apartment in Vanuatu. Monthly costs are around £896 (US$1,113 or €1,035) and utility bills are approximately £160 (US$198 or €185) per month on average. However, the average monthly net salary in Vanuatu is just £496 (US$616 or €573).

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Wherever you move, go with total peace of mind

At William Russell, we have over 30 years’ experience of helping expatriates find the best places in the world to move abroad and settle into their new lives overseas.

Making the move to another country can be challenging. But no matter where you choose to live and work abroad, you can consider purchasing global income protection. By doing this, you will be provided with a regular monthly income in the case of an injury or illness preventing you from working. This will allow you to financially support yourself and/or your family by paying you a proportion of your lost earnings whilst you focus on your recovery.

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Methodology

We began by using Nomad Capitalist to create a seed list of countries that have a 0% personal income tax rate. Western Sahara was removed due to being a territory rather than a country and Somalia was removed due to the ongoing advisories to not travel to the country. Both Nauru and Saint Kitts & Nevis were removed due to lack of/unreliable data. We used Trading Economics to verify that all 12 remaining countries currently have a 0% personal income tax rate.

Next, we used Google Flights to source the cost of a one-way economy ticket from both London and New York, to each tax-free country. The flight date was set to 1/11/2023 and all currencies were converted on 31/10/2023.

We then used Numbeo to gather the following factors for each tax-free country: the cost to buy an apartment (per square metre), the cost to rent an apartment, the average monthly net salary, the cost of utilities per month and general monthly costs.

To work out the average cost per square metre to buy an apartment, we took the average cost for both in and outside the city centre and divided the total by two. To work out the average cost for rent per month, we took the average cost for a one-bedroom apartment both in and outside the city centre and divided the total by two. For monthly costs, we took the single-person household figure. All data was collected and all currencies (rounded to the nearest US$, £ or €) were converted on 6/11/23.

Finally, each tax-free country was given a normalised score out of 10 for each factor before an average of these scores was taken to form the relocation score.

Tax-Free Relocation Report: Which Tax-Free Countries Are The Cheapest For Expats To Move To?

Which tax-free countries are the cheapest for expats to move to?

As the cost of living goes up, do you dream of living abroad?

Find out the cheapest places to live as an expat

The most affordable tax-free countries for expats