In times of economic uncertainty and high tax burdens, tax havens are becoming increasingly interesting for internationally active entrepreneurs, investors and wealthy individuals. They offer low or no taxes on income and capital, often combined with stable banks and a reliable legal framework.
Below you will find the 12 tax havens that matter most for people moving abroad from Germany, Austria and Switzerland, with 2026 tax rates, residency requirements and the points where tax freedom fails in practice. Plus the rules Germany uses to respond to tax havens.
Please note: Using a tax haven is legal if you actually move your residence and declare your income correctly. Nothing about it is anonymous anymore, and not every low-tax country is unproblematic from a German perspective. All information reflects the status of September 2026 and does not replace individual tax advice.
A tax haven is a country or territory that taxes income, profits or wealth not at all or significantly less than the home countries of the people moving there (Gabler Wirtschaftslexikon). In the past, secrecy was the second defining feature. That part has changed fundamentally over the last ten years.
For corporations, the ranking looks different. The Corporate Tax Haven Index of the Tax Justice Network is led by the British Virgin Islands, the Cayman Islands and Bermuda, because that is where large companies shift their profits (Tax Justice Network). For individuals who actually want to relocate, these territories hardly play a role.
Under the OECD Common Reporting Standard, more than 100 countries exchange account data every year. Account balances and investment income are automatically reported to the tax office of your country of residence (OECD). The USA does not take part and relies on its own system, FATCA, instead. Anyone using a tax haven today saves legally through residence and structure, not through a hidden account.
The EU maintains a list of non-cooperative jurisdictions for tax purposes. Since 17 February 2026, it includes American Samoa, Anguilla, Guam, Palau, Panama, Russia, the Turks and Caicos Islands, the US Virgin Islands, Vanuatu and Vietnam. The next review is scheduled for October 2026 (EU-Rat).
Germany implements this list through the Tax Haven Defence Act (Steueroasen-Abwehrgesetz) and its own ordinance, which does not always match the EU list exactly. Listed jurisdictions face tough consequences: business expenses related to them are not deductible, CFC taxation is tightened, additional withholding taxes apply and tax exemptions for dividends and capital gains are withdrawn (BMF).
This table shows the key figures for individuals in all 12 countries. Details, requirements and pitfalls follow in the sections below.
| Country | Income tax | Private investment income | Companies | Model |
|---|---|---|---|---|
| UAE | 0% | 0% | 9% above AED 375,000 | Zero tax |
| Monaco | 0% (except French nationals) | 0% | 25% with foreign revenue | Zero tax |
| Paraguay | 8 to 10% on domestic income | foreign income exempt | 10% | Territorial |
| Panama | 0 to 25% on domestic income | foreign income exempt | 25% on domestic profits | Territorial |
| Georgia | 20%, small businesses 1% of revenue | foreign income exempt | 15% on distribution | Territorial |
| Hong Kong | 2 to 17%, capped at 15 or 16% | dividends and capital gains exempt | 8.25% and 16.5% | Territorial |
| Cyprus | 0 to 35%, tax-free up to €22,000 | exempt as non-dom, crypto 8% | 15% | Non-dom |
| Malta | 0 to 35% | foreign income only when remitted | 35%, effectively 5% | Non-dom |
| Thailand | 0 to 35% | foreign income only when remitted | 20% | Remittance |
| Liechtenstein | up to approx. 22.4% | dividends and capital gains exempt | 12.5% | Low tax |
| Switzerland | depends on the canton, lump-sum taxation possible | private capital gains exempt | depends on the canton | Low tax |
| USA | 0% for non-residents with an LLC without US income | depends on residence | LLC is tax-transparent | Structure |
Real freedom from income tax exists in only a few countries. The two best known differ greatly in cost, lifestyle and barriers to entry.
The UAE, and Dubai in particular, is one of the most popular tax havens in the world. For many years, the Gulf state has attracted entrepreneurs and investors, above all because of strong economic growth, a high level of safety and low taxes. The country is also very expat-friendly and the barrier to entry is low, provided you bring the necessary capital.
More in the guides on taxes in the United Arab Emirates and moving to Dubai.
Monaco has not levied income tax on its residents since 1869, with the exception of French nationals. It is one of the few countries that combines the advantages of a tax haven with a central location in Europe, albeit at a very high price level.
All details are in the guide on Monaco taxes.
These countries essentially only tax income that arises within their borders. If you earn your money abroad, you usually pay nothing there, but you have to end your previous tax liability properly.
Paraguay is the most affordable tax haven on this list and, for many expats with foreign income, the most pragmatic option. Foreign income remains tax-free, income from Paraguay is taxed at 8 to 10%, and corporate profits at 10%. The residence permit is comparatively easy to obtain.
The catch: There is no double taxation agreement with Germany. If you do not end your German tax liability properly, you remain taxable in Germany on your worldwide income, and Paraguay does nothing to change that. All rates, tax residency requirements and German pitfalls are covered in the guide on taxes in Paraguay, and the relocation process in the guide on moving to Paraguay.
Panama uses a territorial tax system: only income earned in Panama is taxable. For individuals, a rate of 0% applies up to USD 11,000, 15% up to USD 50,000 and 25% above that, while companies pay 25% on profits from Panama (Global Citizen Solutions). Residence permits are available, for example, through the Friendly Nations Visa with real estate or a bank deposit from USD 200,000.
More in the guide on moving to Panama and on the page company formation in Panama.
Georgia is not only a country with beautiful nature and great food, but also attractive from a tax perspective. The real advantage lies less in the rates than in the system: Tax-resident individuals pay no tax on income without a Georgian source (PwC).
More in the guides on Georgia taxes and opening a bank account in Georgia.
The former British colony is now part of China and one of the most important financial centres in the world. Hong Kong taxes on a territorial basis and has no VAT, no inheritance tax and no tax on dividends and capital gains for individuals (PwC).
Hong Kong remains interesting for entrepreneurs doing business in Asia, but it no longer works as a mere mailbox address. On top of that comes the political risk from Beijing's growing influence.
These three countries tax their residents normally in principle, but exempt foreign income under certain conditions. If you know the rules, you can legally reach very low taxes. If you do not, you pay up to 35%.
Cyprus is an increasingly popular destination for expats and, above all thanks to the non-dom status, has become a genuine tax haven within the EU.
All rates of the 2026 tax reform, including a tax calculator, are in the guide on Cyprus taxes, and the relocation itself is described in the guide on moving to Cyprus.
Malta is another EU country that can be used as a tax haven when structured correctly. The leverage lies in two rules: the remittance basis for non-doms and the refund system for companies.
All details and a tax calculator are in the guide on Malta taxes.
Thailand combines low living costs with a remittance system that, since 2024, has been considerably stricter than before.
How the rules work in detail and when the announced relief might come is explained in the guide on Thailand taxes.
These three countries are not zero-tax countries. They score with moderate rates, legal certainty and structures such as foundations, lump-sum taxation or the US LLC.
One of the smallest countries in the world has been a stronghold of asset protection for decades. Besides its central location, it stands out for safety, a strong banking environment and the legal framework around the Liechtenstein foundation.
Switzerland is one of the most liveable countries in the world and a legal tax haven for wealthy individuals, though not everywhere. High legal certainty, the federal tax system and a world-renowned banking environment speak for the alpine country.
More in the guides on Switzerland taxes and moving to Switzerland.
Under certain circumstances, the USA is a tax haven for non-Americans. An LLC owned by a foreigner that earns no income from US sources pays no US income tax, because its profits are attributed directly to the owner for tax purposes.
All details on formation, reporting obligations and taxes are in the guide on forming a US LLC.
Moving to a tax haven does not automatically end every tax liability in Germany. These rules decide whether the numbers add up in the end, and they can almost only be planned before you move.
You remain fully taxable in Germany if you keep a home here that you can use at any time, or if you stay here for more than six months a year (Gesetze im Internet). Deregistering at the residents' registration office alone is not enough.
If you hold shares in corporations of at least 1%, you pay tax on the notional capital gain when you move away, as if you had sold the shares. The tax can be paid in seven annual instalments against security. All details are in the guide on exit taxation.
If, as a German national, you were fully taxable in Germany for at least five of the last ten years, move to a low-tax country and keep substantial economic interests in Germany, you remain subject to extended tax liability on your German income for up to ten years after moving (Gesetze im Internet). Almost all countries on this list can fall under this rule.
If you remain resident in Germany and control a foreign company with passive income taxed at less than 15%, the profits are attributed to you under Sections 7 et seq. AStG, as if you had earned them yourself (Gesetze im Internet). For jurisdictions on the German tax haven list, this rule is tightened further (BMF).
German nationals remain fully subject to German inheritance and gift tax for five years after moving away, even if the new country has no inheritance tax (Gesetze im Internet).
There is no single best country. The choice depends on where your income comes from, how much time you want to spend on site and what budget you have.
Ideally, you combine several countries: residence in one, a company in a second and an account in a third. How this fits together is what we clarify in the strategy consultation.
Below are the questions we are asked most often about tax havens and tax-free countries.
A country or territory that taxes income, profits or wealth not at all or significantly less than other countries. For expats, three models matter most: countries without income tax, countries with territorial taxation and countries with non-dom or remittance rules.
Among the common destinations for expats, these are above all the United Arab Emirates and Monaco. French nationals living in Monaco, however, continue to pay income tax to France.
Yes, as long as you actually move your residence, declare your income correctly and observe the German rules such as exit tax and Section 2 AStG. It only becomes illegal with a sham residence or undeclared income.
Since February 2026: American Samoa, Anguilla, Guam, Palau, Panama, Russia, the Turks and Caicos Islands, the US Virgin Islands, Vanuatu and Vietnam. Of these, only Panama is a common destination for expats.
A German law that makes business relationships with non-cooperative jurisdictions unattractive: expenses are not deductible, CFC taxation is tightened, additional withholding taxes apply and tax exemptions for dividends are withdrawn. Which jurisdictions are affected is set out in a separate ordinance.
No. Under the Common Reporting Standard, more than 100 countries exchange account data with the tax office of your country of residence. The USA does not take part, but requires its own reporting. Today you save taxes legally through your residence, not through a hidden account.
For wealthy individuals without a budget limit, Monaco. For entrepreneurs with investment income, Cyprus. For structures and succession, Liechtenstein. Within the EU, Cyprus and Malta are the most pragmatic solutions.
Possibly yes: on German income, through the exit tax on shareholdings of 1% or more, for up to ten years under Section 2 AStG and, as a German national, for another five years on inheritances and gifts.
That depends on the country. In Cyprus, 60 days with a home and an activity are enough, in the UAE 90 days with a residence permit and a home or employment, and in Thailand tax liability starts from 180 days. In addition, it is crucial that you do not keep a home in Germany.
With territorial taxation, foreign income is generally not taxed, for example in Paraguay or Panama. With non-dom status, you are taxable as normal, but certain income is exempt, such as dividends in Cyprus, or only taxed when remitted to the country, as in Malta.
Tax havens are countries that tax income, profits or wealth not at all or at very low rates. For expats, three models matter: genuine zero-tax countries such as the UAE and Monaco, countries with territorial taxation such as Paraguay, Panama, Georgia and Hong Kong, and non-dom and remittance countries such as Cyprus, Malta and Thailand. On top of that come locations with moderate taxes and strong structures such as Liechtenstein, Switzerland and the US LLC.
Anonymity is no longer part of it. Through the exchange of information, your tax office learns about accounts in almost every country, and Germany responds with exit tax, Section 2 AStG, CFC taxation and the Tax Haven Defence Act. There is no single best country. But if you plan your income, your lifestyle and the German rules properly in advance, you will find a legal solution for almost every situation, often as a combination of residence, company and account in different countries. More on countries without tax on capital gains is in the guide on countries without capital gains tax, and on the banking side in the guide on offshore accounts.
Status: September 2026. This information does not replace individual tax advice. The details on Cyprus, Malta, Thailand, Paraguay and the US LLC are backed by their own sources in the linked guides.
For over ten years, Clemens has been advising entrepreneurs, investors and families on international company formation, tax strategy and relocation of residency. His focus: legal, bank-compliant structures that hold up in practice, not just on paper.
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