You’ve spent decades building a portfolio. Stocks, ETFs, possibly a rental property somewhere.
At some point you start selling — that’s what retirement is. You convert what you built into the life you actually want.
And that’s when where you live makes an enormous difference. If in the US you will lose around 20%. In parts of Europe, it means over 40%. In some cases, as much as 46%.
Almost half on money they never helped you earn. But… there are countries that take nothing. Zero. Not a single cent of your capital gains.
I lived in one of these places. The first time I sold an investment and kept every cent, I had to check the numbers twice.
I paid zero taxes because the government had other sources of revenue. And honestly, most people have no idea how good it feels to keep everything you earned.
Today I will show you the 10 best countries with zero capital gains tax. Some will surprise you. A couple will save you a fortune.
And the top 5 has some names nobody told you about… yet.
The Criteria
I made this ranking with one person in mind: someone over 45, with a source of income that does not rely on work, looking for a comfortable home in a safe, established area, not someone opening a shop.
To rank these countries, I weighted 7 factors. Zero Taxation counts for 30% — not just whether the zero exists, but how accessible and how legally certain it is that the government will NOT tax you.
Property and cost of living, 20%, private healthcare, 15%, residency and bureaucracy, 15%, infrastructure 10%, weather 5%, size of the expat retiree community, 5%.
So time to start.
#10 – The Philippines
For Americans, that is probably the easiest country on our list to move to. People love it for a few reasons.
In the Philippines, the language barrier is small since most people there speak English better than me (which is honestly quite a low bar since my English is quite poor, at least according to some of you).
Foreigners in the Philippines are welcomed. And the Special Resident Retiree’s Visa — the SRRV — is one of the best-known retirement programs in Asia.
There are some good reasons why 300,000 Americans have already moved to the Philippines.
So why just 10th place? Well, a foreigner living there legally is generally taxed on income from Philippine sources, not on worldwide income. Sounds perfect.
But the country doesn’t run every investment sale through one clean capital gains tax. Some gains get special final taxes. Others fall into ordinary taxable income.
And whether a gain counts as foreign depends on sourcing rules, your status, and how the transaction happened.
For a retiree holding foreign shares, ETFs and bonds, with no local business, most likely he will not need to pay taxes in the Philippines, but the exemption is not automatic.
In terms of property, foreigners generally can’t own land. Condos, yes, up to the foreign-ownership ceiling in each project.
Good condos start around $2,500 per square metre in prime Metro Manila, and as low as $1,200 in Davao. A single retiree lives comfortably outside expensive Manila on around $2,000 a month.
Healthcare is uneven. St. Luke’s Medical Center in Manila is very good, but provincial hospitals are a different world.
So thanks to the low language barrier, and the friendly people, the Philippines entered our top 10 of zero-tax countries (for foreigners).
#9 – Malaysia
Malaysia gets the 9th place and has a lifestyle way better than its position suggests. On healthcare, infrastructure and value it competes with countries far more developed.
However, recently things changed for worse, and that is why Malaysia is only 9th. The slogan you’ve heard — “Malaysia has no capital gains tax” — stopped being the whole truth a while ago.
The country taxed only local income and had no general capital gains tax, apart from a tax on selling Malaysian property. Then the rules changed in 2022 and 2024.
Today, foreign gains are still exempt — but that exemption has an expiry date written into the law. It can be extended, changed, or simply allowed to lapse.
To obtain residency also got a bit harder, although it still is among the easiest in Asia. Malaysia My Second Home — MM2H — used to be one of Asia’s most relaxed programs.
It’s now tiered, with fixed-deposit requirements, residence conditions, and you must buy a residential property above a minimum price.
That requirement forces you to buy before you understand a market with oversupply in certain places and disappointing resale.
Now the upside, and it’s a big one: private healthcare scores 9.0. Kuala Lumpur and Subang Jaya have hospitals with international standards, at prices well, well below North America.
Roads, airports, utilities and internet are good, with KL International Airport as a major regional hub.
In Malaysia you can buy a modern apartment with a sea view for less than 1,000,000 Ringgit, so less than US$250,000 — these are prices comparable to Bali.
Malaysia also has a huge expat community, so due to the good private healthcare, infrastructure, and popularity, it takes the 9th place with 7.23 points.
By the way, I am thinking about covering either Malaysia, Indonesia, or Thailand in a future article, so tell me which one you would prefer in the comment section!
From Southeast Asia, we jump to the Caribbean.
#8 – Belize
There, English is the official language. The tax system is territorial. The weather is Caribbean… and tax-free.
Belize is widely described as having no capital gains tax, and for a passive investor that holds up. Selling overseas shares, ETFs, bonds or foreign property normally is free from taxation by the local government.
The exception is if you are doing frequent day trades or buying assets mainly to flip them — that profit can be taxed as business income.
Expat retirees can obtain residency through the QRP (Qualified Retirement Program), available from age 40, which is unusually young. You can obtain it by proving you have stable income from abroad.
Once you enter the QRP, you get multiple-entry residence and tax breaks on importing your household goods.
On the lower side, healthcare in Belize is not very developed. There is offer of routine care in Belize City, but complicated procedures generally mean flying to Mexico, Guatemala or the United States.
Insuring the house is another hidden cost: with hurricane exposure, coverage can be expensive, or simply unavailable for some buildings.
Belize also isn’t uniformly cheap. Property starts around $2,500 per square metre in Ambergris Caye — about $230 per square foot — and as low as $1,000 (US$92 per square foot) inland, in Cayo.
We asked an American in Belize how life is there, and this was her answer:
“It is a beautiful country with lots of fun activities, but the people are the cherry on top. The people tend to be very warm and hospitable. The culture is focused more on ‘we’ rather than ‘me’. The people take care of each other and do it gladly and with a smile. I know they have crime, but I always feel safer when I’m in Belize than I do in the US.”
If you’re healthy and want Caribbean life without Caribbean price tags, Belize works, but there is a trade-off in terms of infrastructure.
The next place is a bit further south, and much more famous among expat retirees.
#7 – Costa Rica
This country has maybe the most established expat retirement scene in Latin America. It gets 9.0 for weather and 9.0 for its expat community — the highest marks on our list in both categories.
So why only seventh? The country got expensive, and the roads never got really better.
Costa Rica only taxes Costa Rican-source income; foreign-source gains are not taxed, and neither is real estate located outside the country.
But just like with Belize, professional trading can be taxed as local activity, so if you stay the whole day in front of a computer trying to buy low and sell high, this might result in a tax bill.
Residency has three doors. Pensionado, based on a lifetime pension of at least the statutory monthly amount.
Rentista, based on guaranteed income or a qualifying deposit — traditionally proof of at least $2,500 a month for two years. And inversionista, based on a set investment in the country.
Processing can be slow, and temporary residents are expected to enrol in the public healthcare system, the Caja, and keep paying in even if you only use private clinics.
Private healthcare in Costa Rica is solid — CIMA Hospital, in the San José area, is the name expats use most. But be aware that rural zones might lack specialist doctors.
In terms of housing costs, prices went up considerably, to the point of making Costa Rica one of the 3 most expensive countries in Latin America.
So forget what the retirement blogs were writing years ago about how cheap Costa Rica is.
The roads are the biggest weakness, scoring 5.5. Short distances on the map become slow mountain drives, and seasonal flooding closes routes.
All considered, Costa Rica has a score of 7.20 points and the 7th place.
And for the next one, we go all the way down to… South America!
#6 – Paraguay
This country scores 9.0 on cost and property — the highest mark on our list in that category.
Paraguay taxes only Paraguayan-source income, so a resident’s gains on foreign shares, ETFs, bonds and overseas property fall outside personal income tax.
One warning: “territorial” gets abused in marketing, because it doesn’t mean every payment arriving from abroad is automatically exempt.
Residency is still among the easiest to obtain in Latin America, but if you are not a Mercosur citizen, it might not be as easy as people think.
Paraguay used to be sold as the place where you got permanent residence fast. That ended with the immigration reform; now you start with temporary residence and upgrade later.
Expect apostilled records, police certificates and a paper-heavy bureaucratic process all in Spanish. On the bright side, Spanish is quite an easy language to learn — even I managed to learn it!
Now the prices. Prime apartments in Asunción start around $1,500 per square metre (less than $140 per square foot), and as low as $900 in Greater Asunción.
A single retiree lives comfortably on about $1,500 a month, the lowest number on our list. Domestic help and local food are cheap; imported goods and flights quietly take some of that back.
Healthcare scores 5.5. Asunción has respectable private hospitals, but outside the capital your options shrink quickly.
Infrastructure also gets 5.5. Paraguay is landlocked, international connections are modest, and many trips home mean connecting through São Paulo or Panama City.
Summers are brutally hot; winters mild with sudden cold snaps.
There are many expats, but mostly Brazilians, so the English-speaking foreign community is in fact small. But if you speak some Spanish, this is a very economic option.
An American living in Paraguay told us this about the country:
“I like it a lot! People are very friendly and the food is great. Low cost of living and feels safe. Still learning Spanish. Don’t expect people to speak English. It’s a charming place.”
#5 – Georgia
Most countries make you commit before you find out whether you like them. Georgia does not ask you for that — it gives you a free trial of one year.
Yes, citizens of many countries can enter Georgia without a visa and stay for up to one full year.
Just don’t confuse it with residency: a visa-free stay is not a residence permit, and that’s where people get comfortable and then get stuck.
Georgia generally taxes residents on Georgian-source income, leaving foreign earnings outside the tax base. A tax resident holding foreign securities and foreign property can often realize gains with no Georgian tax at all.
The relatively low bureaucracy is a strength. Public Service Halls put most administrative tasks under one roof, and property registration is fast.
The property-based residence route requires real estate above a minimum value, and that threshold moves, so check the current law.
Property prices in Tbilisi cost on average $1,800 per sqm — about $165 per square foot — Batumi around $1,200, and secondary cities like Kutaisi as low as $700 per sqm.
A comfortable life for a single person starts from $1,700 a month. Prices in the capital, Tbilisi, rose sharply after 2022, so treat pre-2022 sources with suspicion.
About healthcare, Tbilisi has modern private clinics and competent doctors at affordable prices, but quality varies, and complex cases may mean treatment abroad.
Georgia has four seasons — hot summers, cold winters, and a mild spring and autumn.
Weighted score: 7.63 points — Georgia is built for the independent retiree who wants to try before they buy for a year. Remember also that in Georgia, the geopolitical risk is higher than in most of our list.
The next country is an island on the Mediterranean that is among my favourites for many reasons.
If you are thinking about moving abroad, the hardest question isn’t when to go — it’s where. Our Patreon matching algorithm gives you a personalized report on the best places for your budget, lifestyle, and priorities — for just $5.
#4 – Malta
There the rules get surprisingly in your favour. Most countries with friendly tax treatment punish you for bringing money home. Malta mostly doesn’t.
That characteristic is why Malta outranks places with cheaper property.
Malta has no taxation over remittance of foreign income, for people who are temporary residents or non-domiciled permanent residents.
On top of that, foreign capital gains are not taxable in Malta even when the money lands in your Maltese account. Gains on foreign investments like shares, ETFs, etc. mostly are not taxed at all.
Wait… why “mostly”? Well, gains on foreign bonds can be exempt too — but the interest they pay is foreign income, and potentially taxable when remitted.
Two things can break it. First, the line between gain and income: trade frequently, and use leverage, you look like a dealer — and that can result in taxes.
Second, tracing: keep separate accounts for capital, income and gains.
Another important thing is that some very wealthy residents might face a minimum annual tax when foreign income reaches a certain level.
Malta has 2 main residence programs. One is the Global Residence Programme, which taxes foreign income remitted to Malta at 15%, plus a minimum annual tax, while the Malta Retirement Programme is for pensioners.
The downside is property prices: Sliema and St Julian’s start around $4,000 per square metre — $370 per square foot — and go well past $7,000.
Gozo is much quieter, with prices from $1,800, but then you need a ferry to the main island for the airport and specialist care.
For a single person that stings twice: there’s no partner to split the minimum tax, the lawyer fees and the rent with.
On the plus side: English-speaking doctors are common, and Malta is well connected to the rest of Europe by flights, so this lovely, low-tax archipelago gets a total score of 7.65 points.
Now… our top 3, and the first one is back in Central America.
#3 – Panama
Most people know this country for its worldwide famous Pensionado visa and the generous discounts for retirees. The reason it’s on the podium is the low tax system.
They tax only Panamanian-source income, not worldwide income. In fact, for a long time Panama has had the fame of a place for those looking for a lower (or zero) tax bill, and a reputation compared only to Dubai on this aspect.
And while the UAE made its fortune from oil, Panama can afford to not charge taxes in part because of the Canal revenues.
And this is what matters day to day: moving your foreign income into Panama does not turn it into taxable Panamanian income. No remittance planning, no tracing arguments.
In terms of residency visa, the Panamanian flagship Pensionado programme needs a lifetime pension of at least $1,000 a month.
But notice the word: pension. To qualify for the Pensionado visa you must have a pension. A large brokerage account doesn’t qualify.
If you’re funding retirement by selling assets, you may need a different residence category.
In terms of cost of living, property prices increased in Panama, but still prices are far below American cities like Fort Lauderdale.
Watch the condo fees: high-rises with pools, elevators and security carry monthly charges that might rewrite your budget.
And outside the cities, some cheap land comes with “possessory rights” only, not a registered title.
Healthcare is concentrated in the capital, with Hospital Punta Pacífica as the flagship — some of the best hospitals in Central America are in Panama City.
And Tocumen Panama City International is the strongest air hub in Central America. Outside the capital, the weak spot is infrastructure — roads, drainage, water reliability, emergency access.
If you qualify for the Pensionado Visa, Panama is a really strong option, but if you do not have a pension, immigration will be harder.
#2 – The United Arab Emirates
This is the country we all expect to see in a ranking of low-tax places. The surprise here is that the UAE got only 2nd place, not 1st.
In the UAE, there’s no national personal income tax on ordinary personal investment returns. It is the only country here that gets a perfect 10 for Zero-Tax simplicity.
There is a corporate tax, but for you, a person, there is no income tax, no remittance tax, nothing. You can simply forget the word “tax” there.
That’s about as close to automatic zero taxation as it can get.
Of course you must respect the limit between managing personal wealth and running a business — running a business brings licensing, registration and corporate tax into your life. Your personal exemption doesn’t apply to a company.
There’s also one issue for people between 45 and 54: UAE retirement residence routes generally target people aged 55 and above.
So you’d need a property-investor route instead — the Golden Visa has commonly required AED 2 million of qualifying real estate, about $545,000.
Properties in the best districts of Dubai cost on average around $3,000 per square metre — that’s $280 per square foot, so still half the price of Miami.
And while Dubai is the most famous city in the UAE, there are cities like Sharjah that offer good infrastructure with the same zero taxation for much lower prices.
The expat community is enormous and English is everywhere — you don’t need Arabic to live there since nearly everyone speaks English. In fact, I lived for 3 years in the region without speaking Arabic, just English.
Private healthcare in the UAE is excellent. Dubai and Abu Dhabi have advanced diagnostics and major hospital groups, with Cleveland Clinic Abu Dhabi as the flagship.
Infrastructure also scores a perfect 10: roads, airports, utilities, global flight access. The downside is the weather: in summer, outdoor life becomes uncomfortable for long stretches.
So the UAE gets the 2nd place with 8.28 points. Which leaves one country with an even higher score.
#1 – Cyprus
Our winner takes first place by only 0.03 points. And it wins because it has the fewest trade-offs.
One clarification: this is the Republic of Cyprus, which is the southern part of the island. The north has very different legal and title risks.
Taxation in Cyprus works through two separate rules, and most articles merge them into one.
First: Cyprus capital gains tax basically only covers real estate located in Cyprus, so a gain on property abroad is outside it.
Second: for securities, there’s a separate exemption for profits from selling what the law calls “titles” — and that’s broad: shares, bonds, and fund units. Your foreign shares qualify. Your ETFs qualify. Your bonds qualify.
And what separates Cyprus from the rest is that the exemption isn’t limited to occasional private sales, so trading frequently can be tax exempt too — something that costs people money almost everywhere else.
Tax residence has two routes: the 183-day rule, and a 60-day route with extra conditions.
The 60-day route is not suitable for most retirees — you need a business, or a job in Cyprus to qualify. So for expat retirees, the 183-day route is the good one.
There is also a program of residence via investment, where you buy a property and obtain a residence visa.
In terms of property prices, Paphos has real estate prices around $2,000 per square metre, so it is the cheaper option. But even in the vicinity of more expensive cities like Larnaca, prices can be very attractive.
The expat community in Cyprus is huge and has a very developed calendar of social events — clubs, English-speaking meetings, etc.
Healthcare is also solid. Private hospitals and specialists are concentrated in Nicosia and Limassol, with good coverage in Paphos and Larnaca, and most doctors speak English.
So considering all that, Cyprus got an excellent score: 8.31 points, and the first place in our list.
And if you hold ordinary foreign investments and are willing to live there most of the year, it’s hard to find a better deal.
Now, you know which nations offer zero taxation for expats, but what if I told you… that other countries are giving very exotic and attractive benefits for expats?
That is why we discovered 5 countries that are rolling out the red carpet for retirees!
Join our Patreon for detailed reports on all the countries in this article, plus our algorithm to find the best country and city for you.
Levi Borba is the founder of expatriateconsultancy.com, creator of the YouTube channel The Expat, and a best-selling author. Some of the links in our articles may be affiliated links, meaning the author earns a small commission if you make a purchase.
