Half of the top 10 most affordable countries for expats in terms of tax exemption are located in the Gulf region. Even with an average salary, it is possible in some countries to have residual income after covering rent, living expenses and bills.
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Tax-free countries are often described as “paradises”, offering life without income taxes. But how much do expats actually have to pay to settle in these destinations? Is it really worth moving there?
William Russell’s report on tax-free relocation reveals the most beneficial tax-free countries for expats considering relocating there. Taking into account factors such as monthly living expenses, average salaries, rents and the cost of utilities, the report assigns each country a “relocation score” out of 10. Based on these scores, the report establishes a ranking of the world’s most affordable tax-free destinations to settle in 2024 or the following year.
Euronews Business goes further by calculating the remaining income after deducting rent, monthly expenses, and utility bills from the average take-home pay. This calculation is not part of the report or ranking, it is just there to give you a better idea of what you can expect.
What makes Oman the best choice?
Oman is the most affordable country to settle in in 2024, with a score of 7.92. Why is Oman the most popular choice on the list? BecauseOman 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.
Furthermore, it is in Oman that monthly living expenses are lowest. For a single person, the cost of living is 699 euros, with an additional 96 euros for utility bills.
With the average monthly net salary being 2,051 euros in Oman, the total cost of rent, living expenses and utility bills comes to 1,234 euros, which leaves you with an income of 817 euros per month.
To get to Oman, a one-way ticket in economy class costs 214 euros from London and 464 euros from New York. We could find the best one-way flight to Oman from Paris for €146.
Kuwait in second place with a net salary above 2,500 euros
According to William Russell’s study, Kuwait ranks second among the most affordable tax-free countries for relocation, with a score of 6.49. It is the second most economical country for cost of living (720 euros) and utility bills (45 euros). The average monthly rent in Kuwait is 721 euros, while the average net salary is 2,552 euros, leaving you with a surplus income of 1,066 euros at the end of the month.
One-way economy flights to Kuwait range from £150 (London) to £623 (New York) or from €116.94 (Paris).
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 cost of 161 euros per square meter. Bahrain also ranks fifth among the most affordable countries for monthly living expenses (€788) and utility bills (€116). With an average rent of 721 euros, it is the fourth cheapest country for housing.
The average monthly salary in Bahrain is just under 2,000 euros, which leaves 302 euros of income after covering rent, monthly fees and utility bills.
What awaits you in the United Arab Emirates?
The United Arab Emirates (UAE) is becoming an increasingly popular destination, with Dubai often attracting attention. Is the United Arab Emirates a good place to settle? The answer is yes. The country ranks as the fourth most affordable tax-exempt destination, with a monthly cost of living of around 893 euros and an average monthly net salary of around 3,232 euros.
The report states that the average rent in the UAE is 945 euros, which leaves expatriates with a residual income of 1,237 euros after covering essential expenses.
The most popular vacation destinations
The Maldives and the Bahamas, popular vacation destinations, are also among the most affordable tax-free countries. The Maldives came in sixth place with a score of 5.32, offering the third lowest rent (689 euros) and lowest monthly living costs (735 euros).
However, with a average salary of just 861 euros – the second lowest on the list – it seems insufficient to cover expenses, which translates into a remaining living amount of minus 701 euros.
ADVERTISEMENTThe Bahamas ranked in eighth place, but, as in the Maldives, average net salary is not enough to cover rent and living expensese. With 1,294 euros per month (fourth place) and an additional 1,044 euros for rent, the average after-tax salary of 1,729 euros is not enough to balance expenses.
Monaco: the only European country on the list
Monaco is the only European country on the list, ranking eighth and offering zero income tax to its residents. It has the highest average net salary of the 12 countries, i.e. 6,718 euros. But it is also the country where the rent (4,623 euros per month) and the cost of living (1,977 euros) are the highest.
With a residual income of -€179, expats need to earn more than the average salary to comfortably cover their expenses.
Vanuatu: the least affordable tax-exempt country
Vanuatu, located in Oceania, ranks as the least affordable tax-free country for expats in 2024, with a relocation score of just 2.08. The monthly cost of living averages €1,035, while utility bills add up to around €185 per month.
ADVERTISEMENTHowever, the average monthly take-home salary in Vanuatu is just €573, making it a difficult option for those looking to settle down affordably.
Gulf countries dominate the list
The first four places are all occupied by Gulf countries. In addition, another Gulf country, Qatar, ranks seventh with a score of 5.01 and a remaining income of 565 euros.
Expats need to consider a lot of factors when moving to another country. Ross Irvine, finance director at William Russell, advised expats to consider taking out international income protection. “This will allow you to preserve your lifestyle in the event of incapacity to work due to accident or illness,” he said.
