The amount of taxes that each individual taxpayer must pay it varies from country to country. Some nations are definitely more tax friendlywhile in other countries the tax burden can reach 216.15%, making the already high Italian taxation somewhat envious.

Every taxpayer in the world certainly has every reason to complain about the level of taxation in the country where you live. In some cases, of course, complaints can have a valid reason. In other cases a little less. So, let’s try to understand in which countries the lThe tax level is lower than the others. And who actually saves when it comes to taxes?

What are taxes made of?

Before you find out which countries tax the world the least, stop for a moment understand what taxes are made of. When examining the tax systems in different countries, it is not important to understand only and only how taxes are calculated – ie what is commonly referred to as taxes overall tax rate – but also their composition.

Put simply, the amount of taxes paid in each individual country consists of the following taxes:

  • At Pursue;
  • on the Work;
  • At investments;
  • of these indirect, which in other words are about things. An example is value added tax, VAT.

Which countries are tax free?

Taxpayers who should choose to reside in some countries are lucky not to have to pay taxes. To offer this special tax advantage are: bermuda, monkThe Bahamas She United Arab Emirates (UAE). These are countries where there are no income taxes and some of which are also particularly attractive destinations for those who want to live there all year round. But let’s go into a little more detail.

United Arab Emirates

The United Arab Emirates They are considered to be one of the most attractive countries with a relatively stable government and economy. The The country has a thriving economy and a multicultural environment. This results in excellent dining and entertainment options. There are also excellent educational institutions and a strong English-speaking population.


In this case it is possible do not pay income tax due to residency: It is not necessary to acquire citizenship. This peculiarity makes the Bahamas one of the countries where it is easier to live without taxes. To avoid paying income tax, you must have been a permanent resident for at least 90 days. Foreigners must maintain their residency for at least ten years. Those with a minimum income of $750,000 will be granted residency status faster.


Bermuda is a tax-free destination in the Caribbean even more attractive than the Bahamas. However, life in this country is also much more expensive. Due to its relatively isolated location, Bermuda is one of the most expensive places in the western world. Bermuda is much more developed than most Caribbean islands and has excellent roads and public transport. What’s more, from its famous pink-sand beaches to its fine dining, Bermuda is considered one of the most picturesque and delightful countries in the Caribbean. Many US expats living in Bermuda are employed in the country’s well-developed financial sector.


Monaco has long been considered one of the most beautiful and desirable places to live in Europe. Located on the French Riviera, Monaco has extensive and well developed marinas that are normally occupied by a selection of yachts from around the world. A favorite of the wealthy is the Monaco Grand Prix, where many apartments are rented for $10,000 or more a night during the event. Monaco is a city-state that is slightly larger than the Vatican.

The European countries where you pay less taxes

Which countries pay the least taxes? Sometimes you go in search of a country to save on taxes, but at the same time you will not completely change your life. For example, there are some countries that do not collect this Financial Income TaxAmong these we can mention:

  • Belgium;
  • Luxembourg;
  • Slovakia;
  • Czech Republic;
  • Swiss;
  • Türkiye.

However, other countries also apply a tax on income taxbut they have thatlowest rate among the rates provided in theEuropean Union. In these countries it is 15%, while in the others it reaches 19.5%. The list of countries where you can save money includes:

  • Czech Republic;
  • Greece;
  • Hungary.

I’ll see what happens in other European countries, including those personal income taxation is lower, we remember:

  • Austria There is progressive income taxation from a minimum of 25% to a maximum of 55%.
  • Bulgaria a flat rate of 10% is paid;
  • Croatia there are progressive tax rates from 24% to 36%;
  • Cyprus There are progressive tax rates ranging from 20% to 35%.
  • Hungaryin this case the personal income tax is 15%

The case of Italy: what taxes we have to pay

In Italy the tax burden it was just under 43.5%. This is the number for 2022: we are talking about a really impressive percentage considering that in 2019 our country ranked sixth in Europe with a percentage of 42% in the tax burden. To get an idea of ​​what happened before, in 2020 it was 42.7%, while in 2021 it was 43.4%.

As for taxes, Italy is certain It does not hold a good position among OECD countries, with the average tax rate being 34.1%. The gains recorded by our country in recent months are due to the fact that our GDP has grown less than tax amounts in recent months. There are countless taxes that the Italian taxpayer must take into account. Among those we can remember are: the road tax, the rai fee, the imu and the tari el?ires.

VAT and Irpef put a particular strain on the wallets of Italians. In our country, the income tax is divided into several tax rates, which are such a heavy burden on the wallets of Italians. For this reason, many Italians, for example, are looking for countries where they can retire without choking on taxes.

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