Countries With No Capital Gains Tax: The Complete List

If you want to maximize your payout when selling shares, bonds or any other asset, you need to understand capital gains tax. Failing to do so can be a hefty surprise and greatly affect the return on your investment.

If you, like me, are someone who builds wealth by building, buying and selling assets like businesses and equities, you may also be interested in finding ways to reduce or even eliminate your capital gains tax liability.

Fortunately, for expats and online entrepreneurs, you have options. One of these involves low or no capital gains tax countries.

In this article, I’ll walk you through some of the best countries for reducing your capital gains tax liability, along with some of the benefits and considerations of living in each country.

What Is CGT? Why Does It Matter?

Capital gains tax or CGT is a type of income tax that applies to the difference between an asset’s selling price and purchase price.

For example, if you buy a share for $100 and sell it for $150, you have a capital gain of $50, which may be subject to tax depending on:

• the country you reside in,
• the type of asset,
• the holding period, and
• your personal income level.

Capital gains tax matters because it can significantly affect your net return on investment. For instance, if you live in a country that has a high capital gains tax rate, you may end up paying a large portion of your profits to the government.

On the other hand, if you live in a country that has a low or zero capital gains tax rate, you can keep more of your profits and reinvest this to create multiple sources of income.

Which Countries Have No Capital Gains Tax?

Several income tax free countries do not impose capital gains tax on certain types of assets or under certain conditions.

As promised, this is the complete list of countries with no or low capital gains tax:

1. Andorra
2. Bahamas
3. Bahrain
4. Barbados
5. Belgium
6. Belize
7. Bermuda
8. Brunei
9. Cayman Islands
10. Dominica
11. Grenada
12. Hong Kong
13. Kuwait
14. Luxembourg
15. Malaysia
16. Maldives
17. Monaco
18. Netherlands
19. New Zealand
20. Oman
21. Qatar
22. Saint Kitts and Nevis
23. Saint Lucia
24. Saint Vincent and the Grenadines
25. Singapore
26. Switzerland
27. Thailand
28. Turks and Caicos Islands
29. United Arab Emirates

However, understanding which countries have no capital gains tax is only the start of the discussion. In order to benefit from this situation, you’ll need to become a tax resident there.

So with that in mind, it’s also important to understand the ease of qualifying for zero capital gains tax, the cost of living situation, as well as what is required to become a resident in that country in the first place.

Below, I have selected a handful of countries with no capital gains tax that I consider to be some of the best countries for entrepreneurs to live in.

Andorra

• Capital Gains Tax: 0-15%
• Income Tax: 0-10%
• Tax System: Residential
• Cost of Living Score: 4
• Residency Requirement Score: 4

There are many reasons why I love calling Andorra home. When it comes to fiscal topics however, you should know that outside of local real estate investments, Andorra’s tax system has one of the lowest capital gains tax rates in the world.

This tops out at 10% for company shares and 15% for real estate but can be as little as 0%. For shares, there are two exceptions to the rule:

1. If you own less than 25% of a company, you do not have to pay any capital gains tax on your shares. This applies to both Andorran and foreign companies.
2. If you own more than 25% of a company and have held your shares for over 10 years, you do not have to pay any capital gains tax on your shares.

Getting residency in Andorra is straightforward but is becoming more expensive. There are two options:

1. Passive residency: living in Andorra part-time, without working here.
2. Active residency: living and working full-time in the country.

The Bahamas

• Capital Gains Tax: 0%
• Income Tax: 0%
• Tax System: Residential
• Cost of Living Score: 6
• Residency Requirement Score: 4

For investors, the Bahamas offers a number of advantages for people who want to live the good life.

Proximity to the US, its laid-back lifestyle, and the well-established financial services industry is why many investors move their tax residency to the Caribbean country.

In some cases, US citizens may still be subject to capital gains tax by the US government on their worldwide income. However, most often, once you have obtained residency in the Bahamas, you can enjoy zero capital gains tax.

Residency in the Bahamas can be bought via two main paths:

1. by investing at least $750,000 in real estate, or
2. by obtaining an annual or permanent residency permit.

Belgium

• Capital Gains Tax: 0-33%
• Income Tax: 25-30%
• Tax System: Residential
• Cost of Living Score: 5
• Residency Requirement Score: 5

Belgium is of the few EU countries with no capital gains tax on the sale of long-held shares.

This means that if you sell shares (whether Belgian or foreign, listed or unlisted) which you have owned for more than six months, you do not have to pay any tax on your profit.

However, there are some exceptions and caveats to this rule:

1. If you sell shares within six months of buying them, you will have to pay a flat 33% tax on your capital gain unless you can prove that the sale was not speculative.
2. If you sell shares of a Belgian company to a foreign company and you own at least 25% of the company (or a substantial holding), you will have to pay a flat 16.5% tax on any capital gain.
3. If your capital gains are deemed to be outside the normal management of your private wealth, for example, because they are excessive or recurrent, they will be taxed at 33% as miscellaneous income.

Sure, all stock exchange transactions are subject to a flat-rate tax of 0.12% to 1.32%, but this isn’t going to put an enormous dent in your upside like a high CGT rate will.

Other types of assets, such as bonds, equities, and online businesses, are not subject to capital gains tax as long as they are part of your private wealth (as opposed to your professional activity).

Belgium is subject to the same immigration rules as any other EU country. As a result, becoming a resident is more difficult for non-EU nationals.

Hong Kong

• Capital Gains Tax: 0-16.5%
• Income Tax: 2-17%
• Tax System: Territorial
• Cost of Living Score: 6
• Residency Requirement Score: 4

Hong Kong boasts a favourable tax regime, with many entrepreneurs considering it the best country to incorporate an online business. For individuals, it’s possible to pay 0% on capital gains, but there are some caveats.

In some cases, the sale of an asset may be subject to a profit tax. This is an important consideration for traders as net gains deemed speculative may be taxable as the taxpayer’s trading income.

Another case where capital gains taxes apply is when employees receive shares or options as part of their remuneration. These are subject to the city’s flat income tax rate.

Expats who depart before getting all the proceeds from their shares may face the tax man twice due to Hong Kong’s limited dual taxation agreements.

In order to enjoy the tax benefits of Hong Kong, you need to be a resident of Hong Kong for tax purposes.

Getting residency in Hong Kong is not very difficult if you have the cash, and you can apply for a visa under various categories, such as:

1. investment,
2. employment,
3. entrepreneurship, or
4. family reunion.

Luxembourg

Capital Gains Tax: 0% (if held for over 6 months, otherwise up to 50%)
Income Tax: Up to 42%
Tax System: Territorial
Cost of Living Score: 9
Residency Requirement Score: 7

Luxembourg is considered by many to be a tax haven, particularly attractive for individuals with substantial investments. The country offers 0% capital gains tax on assets held for over 6 months, which can be a significant advantage for long-term investors.

For assets sold within 6 months, capital gains can be taxed up to 50%, making the timing of your transactions critical. However, it’s worth noting that long-term gains from substantial shareholdings (over 10% ownership) may be taxed at half the ordinary income tax rate.

In terms of income tax, Luxembourg has a progressive system that tops out at 42%, which is relatively high compared to other no-capital-gain jurisdictions.

Luxembourg’s combination of a robust economy and a favourable tax environment makes it ideal for those involved in finance or international business.

However, the high cost of living and limited housing availability could be a downside for those looking to relocate and spend a substantial portion of their year there.

Malaysia

• Capital Gains Tax: 0%
• Income Tax: 0-30%
• Tax System: Territorial
• Cost of Living Score: 3
• Residency Requirement Score: 4

Malaysia follows a territorial taxation system, meaning that only income derived from sources within Malaysia is subject to local income tax. Income derived from sources outside of the country is generally exempt from Malaysian income tax unless remitted into Malaysia.

The country does not have a separate capital gains tax for individuals. Instead, capital gains are classified as business or non-business income, depending on the nature and frequency of the transactions.

Whether your capital gains are taxable in Malaysia depends on whether your asset trading activities are considered a business.

Even if your capital gains are considered business income and taxable in Malaysia, some types of assets are exempt from capital gains tax, such as:

• shares in Malaysian companies that are listed on the stock exchange,
• shares in foreign companies that are listed on the stock exchange,
• units in Malaysian unit trusts,
• units in foreign unit trusts,
• Malaysian government securities,
• foreign government securities,
• bonds issued by Malaysian companies, and
• bonds issued by foreign companies.

This means that if you buy and sell any of these assets in Malaysia, it’s likely that these capital gains are not subject to tax in the country, regardless of how often or how much you trade.

One way of gaining residency is the MM2H visa, which stands for Malaysia, My Second Home. This is a 5-year family investment visa that, among other things, requires making a fixed deposit of €200,000.

Monaco

• Capital Gains Tax: 0%
• Income Tax: 0%
• Tax System: Territorial
• Cost of Living Score: 9
• Residency Requirement Score: 4

Monaco is one of the few income tax free countries in the world. That also extends to capital gains tax. But while its residents enjoy this regime, not everyone can benefit from it.

To qualify as a tax resident, one must be present in Monaco for at least six months of the year and hold a valid residence permit.

Additionally, one must not be a citizen of France or have a primary source of income from France, as they are subject to French taxation rules.

You have to be a resident to qualify for zero capital gains tax, which can be an expensive and tedious affair:

1. you need to have a place to live in Monaco,
2. you need to prove that you have sufficient funds to support yourself, and
3. you need to apply for a residency card and renew it every year for the first three years, then every three years thereafter.

Netherlands

Capital Gains Tax: 0%
Income Tax: 9.32-49.5%
Tax System: Territorial
Cost of Living Score: 8
Residency Requirement Score: 6

In the Netherlands, CGT doesn’t apply the same way it does in other European countries—returns on savings and investments are still subject to taxation, though not in the conventional way.

Instead of imposing a direct capital gains tax, the Dutch system incorporates these returns into a broader “wealth tax” under what’s known as Box 3 of the tax system. Here’s how it works:

• Box 1: Income from wages, salaries, and home ownership
• Box 2: Income from substantial business interests (for those with more than 5% ownership in a company)
• Box 3: Income from savings and investments (where the “wealth tax” is levied)

This Box 3 tax isn’t a wealth tax on your net worth per se. Rather, it’s a tax on an assumed return on your net assets:

• Savings and cash: 0.36%
• Investments and other property: 6.17%
• Debt: 2.57% (deduction)

Instead of taxing actual capital gains, you’re taxed on these assumed returns annually, whether you sell your assets or make real gains. Your investments could grow by 1% or 20%, but the tax remains the same.

This can benefit investors with high-performing assets or those who use a short-term investment style, but it can be extremely frustrating if your investments underperform.

Box 3 tax is calculated based on the value of your assets on January 1st each year. The first €57,000 of assets (or €114,000 for married couples) is tax free, and you only pay on amounts above this threshold.

With this system, conservative investment strategies that yield below the assumed rates will lead to losses, and even in years of actual financial losses, you are still taxed on the assumed return, making it a frustrating system for very valid reasons—many find it unfair to be taxed on returns they haven’t actually made.

All this is about to change since the law is currently under litigation, with potential reforms in sight. According to the Supreme Court’s new rulings, Box 3 violates the European Convention on Human Rights (ECHR).

Moving forward, the Dutch government will only tax the actual return on your capital if it is less than the assumed return. Post summer 2025, you’ll be able to report your actual return and be taxed accordingly.

It’s also worth noting that the country’s income tax operates on a progressive scale, reaching up to 49.5%, making it among the highest in Europe.

With all that considered, the Netherlands might still be an attractive option for entrepreneurs and high-net-worth individuals, but the high income tax rates and cost of living can offset some of those benefits.

The residency procedures can also be complex, adding an extra layer of consideration for those planning to relocate.

New Zealand

• Capital Gains Tax: 0%
• Income Tax: 10.5-39%
• Tax System: Residential
• Cost of Living Score: 5
• Residency Requirement Score: 3

Most capital gains made by individuals or companies in New Zealand are not taxed in New Zealand unless they are derived from certain specific sources or activities.

For example, New Zealand does not tax capital gains from:

• the sale of a family home or a personal use asset, such as a car or a boat,
• the sale of shares in a New Zealand or Australian listed company,
• the sale of an online business that is not carried on through a permanent establishment in New Zealand, and
• the sale of any other asset that was not acquired for the purpose of resale or with an intention to sell.

There’s a catch here, and it’s down to frequency. If you’re regularly taking profits from trading or the sale of patent rights, this may be deemed as income by the Inland Revenue Department.

Also, moving to New Zealand comes with some challenges and costs. You will have to apply for a visa or residency permit, which may require meeting certain criteria, such as having a job offer, skills, qualifications, or funds.

Switzerland

• Capital Gains Tax: 0%
• Income Tax: 0.77%-45%
• Tax System: Residential
• Cost of Living Score: 8
• Residency Requirement Score: 4

Switzerland is another popular choice for expats seeking to limit taxes on their investments. While it’s known for its investor-friendly policies, the tax system here is rather nuanced, with differences in how income, capital gains, and wealth are taxed at the federal, cantonal, and municipal levels.

The country does not levy capital gains tax on trades of securities like stocks and bonds, but some cantons may impose taxes on certain capital gains. This is the exception rather than the rule, however.

Your trading gains, for instance, will be taxed as ordinary income if you’re classified as a professional securities dealer. While there’s no clear definition or threshold, the tax authorities will look at various factors, such as:

• the frequency and volume of your transactions,
• the use of leverage or borrowed funds,
• the holding period of your assets,
• the degree of risk and diversification,
• the relation between your investment income and your other income, and
• the level of knowledge and expertise.

Special rules may apply to the sale of substantial shareholdings in companies, potentially triggering different tax treatments depending on the size and nature of the holdings.

Profits from the sale of real estate are subject to a separate gains tax at the cantonal level, with different rates and rules depending on where you live in Switzerland.

Some places offer reduced rates for long-term ownership, making it an enticing option for anyone looking to buy property with the intention of relocating here.

Acquiring tax residence in Switzerland depends on where you are from. For non-EU and non-EFTA nationals, the Swiss Residency Program or the Swiss Business Investor Program is an option.

These programs typically require substantial financial commitments but can pave the way for enjoying Switzerland’s favourable tax environment.

While the overall burden varies significantly depending on your canton of residence and specific circumstances, Switzerland remains a top choice for those looking to set themselves up in a favourable fiscal regime.

The tax system here is tailored to attract wealthy individuals, expats, and investors, offering a mix of comparatively low rates of tax on income, tax-free capital gains (for private investors), and a relatively modest wealth tax.

Singapore

• Capital Gains Tax: 0%
• Income Tax: 0-22%
• Tax System: Territorial
• Cost of Living Score: 8
• Residency Requirement Score: 3

Singapore is one of the most popular destinations for expats wanting to access capital or great employment options while limiting their tax liability.

The city-state has completely abolished capital gains taxes on all types of assets, including shares, stocks, bonds, real estate, and the sale of online businesses.

However, obtaining residency in Singapore can be difficult and costly. Singapore has strict immigration policies.

Permanent residency is even more difficult to access, with only a limited number of applicants receiving PR each year.

If you qualify, your typical visa options involve applying for the following:

1. an Employment Pass,
2. EntrePass, or
3. the Global Investor Programme.

Thailand

• Capital Gains Tax: 0%
• Income Tax: 0-35%
• Tax System: Territorial
• Cost of Living Score: 3
• Residency Requirement Score: 5

In Thailand, most types of capital gains are taxable as ordinary income. However, there are two CGT exemptions:

1. The sale of shares in a company listed on the Stock Exchange of Thailand or the sale of investment units in a mutual fund. 
2. Profits from sources outside Thailand, as long as they are not remitted into Thailand within the same calendar year in which it was received.

In other words, if you sell assets outside of Thailand and you are a tax resident in Thailand, any profits are capital gains tax-free if you wait one year before remitting them.

Thailand offers different visas for expats interested in becoming a resident for tax purposes:

• The Elite Visa lasts 5, 10, or 20 years and comes with a range of privileges.
• The Long-Term Resident Visa lasts 10 years and is suitable for families. Among other requirements, you’ll need to invest $500,000 in Thai government bonds, foreign direct investment, or Thai property.
• The SMART Visa is a more economical path which can help if you also want to start a business in Thailand.

United Arab Emirates

• Capital Gains Tax: 0%
• Income Tax: 0%
• Tax System: Residential
• Cost of Living Score: 5
• Residency Requirement Score: 4

United Arab Emirates (UAE) does not levy any capital gains tax on individuals, regardless of their nationality or source of income.

This means that if you become a resident of the UAE, you can enjoy tax-free returns on all your investments, whether they are local or international.

You should be aware, though, that the UAE is an expensive country, so you need to calculate if these tax-free profits offset the local cost of living.

To qualify for zero capital gains tax, you need to qualify for residency in the UAE. This is possible by falling under one of the following categories:

1. working for a company or a government entity in the UAE,
2. studying in a UAE educational institution,
3. being a dependent of a UAE citizen or foreign resident,
4. investing in real estate worth at least 1 million dirhams, or
5. registering a company in the UAE.

Considerations Before Moving to a Country Without Capital Gains Tax

Before you pack your bags and book your flight, there are some key considerations—not all zero-tax countries are created equal, and not all assets are treated the same way.

Consider factors such as the residency requirements, your asset’s physical location, the ownership structure and other taxes you might qualify for upon the sale of your assets.

Moving to a zero-tax country can be a smart way to save on capital gains tax and grow your wealth faster. However, it is not a decision that should be taken lightly or without proper research and planning.

I’d love to hear if you live in or are considering moving to a zero capital gains country. Leave a comment below.