Half of the 10 most affordable tax-free countries for expats are located in the Gulf region. Even with an average salary, you can still have a leftover income after covering rent, living expenses, and bills in some countries.
Tax-free countries are often depicted as “havens,” offering a life without income tax. But how much do expats actually need to pay to settle in these destinations? Is relocating to them truly worth it?
William Russell’s tax-free relocation report reveals the most budget-friendly tax-free countries for expats to consider relocating to. Taking into account factors such as monthly living expenses, average salaries, 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 upcoming year.
Euronews Business goes a step further by calculating leftover income after deducting rent, monthly expenses, and utility bills from the average net salary. This calculation isn’t part of the report or rankings- it’s just there to give you a better idea of what to expect.
What makes Oman the top choice?
Oman stands out as the most affordable tax-free country to move to in 2024, achieving a relocation score of 7.92. Why is Oman the most popular choice on the list? It’s because Oman offers the lowest costs for purchasing or renting an apartment. Buying an apartment costs €108 per square metre, while the average monthly rent is €439.
Additionally, Oman offers the lowest monthly living expenses. For a single person, living costs amount to €699, with an extra €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 comes to €1,234 – leaving you with €817 in leftover income each month.
To fly to Oman, a one-way economy ticket costs €214 from London or €464 from New York.
Kuwait in second place with a net salary exceeding €2,500
According to William Russell’s research, Kuwait ranks as the second most affordable tax-free country for relocation, achieving a score of 6.49. It is the second most economical for both monthly living costs (€720) and utility bills (€45). The average monthly rent in Kuwait is €721, while the average net salary stands at €2,552 – leaving you with €1,066 in surplus 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, ranking third. It is the second cheapest country to purchase an apartment, with an average cost of €161 per square metre. Bahrain also ranks as the fifth most affordable country for monthly living expenses (€788) and utility bills (€116). With an average rent of €721, it is the fourth cheapest country for housing.
The average monthly salary in Bahrain is just under €2,000, leaving €302 in leftover income after covering rent, monthly costs 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 drawing attention. Is the UAE a good place to relocate? The answer is yes. The country ranks as the fourth most affordable tax-free destination, with monthly living costs of around €893 and an average monthly net salary of approximately €3,232.
The report notes that the average rent in the UAE is €945, leaving expats with €1,237 in leftover income after covering essential expenses.
Desired holiday destinations on the list
Popular holiday destinations, the Maldives and the Bahamas, also feature 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 leftover of minus €701.
The Bahamas ranked in eighth place but, like the Maldives, the average net salary falls short of covering rent and living expenses. With the fourth-highest monthly costs at €1,294 and an additional €1,044 for rent, the average post-tax salary of €1,729 is not enough to balance the 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 for residents. It boasts the highest average net salary among the 12 countries, at €6,718. However, it also has the highest rent (€4,623 per month) and monthly living costs (€1,977).
With a leftover income of -€179, expats would need to earn above the average salary to comfortably cover expenses.
Vanuatu: The least affordable tax-free 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. Monthly living costs average €1,035, while utility bills add approximately €185 per month.
However, the average monthly net salary in Vanuatu is only €573, making it a challenging option for those seeking affordability.
The Gulf countries dominate the list
The top four spots are all occupied by Gulf countries. Additionally, another Gulf nation, Qatar, secured seventh place with a score of 5.01 and a leftover income of €565.
There is a wide range of factors that expats need to consider when relocating to another country. Ross Irvine, Finance Director at William Russell, advised expats to consider purchasing international income protection. “So that you are able to safeguard your lifestyle in the event of incapacity to work due to injury or illness”, he said.
