Many countries are aware that by imposing excessive taxes, expats are likely to simply take their wealth elsewhere. That is why many countries create tax benefits. In this article we are going to explore the 3 best countries without taxes in Asia
Asia presents many benefits for expats around the world. As they have a low-tax territorial tax system, you can enjoy a more abundant lifestyle for less. You can even continue to generate wealth in your country of residence potentially tax-free with more of your gains and profits landing in your pocket than ever before.
MALAYSIA
Many accountants consider Malaysia, and the city of Kuala Lumpur in particular, as the holy grail as far as taxes are concerned. It’s well-connected in terms of transport, the food is great, the scenery is stunning and it’s really rather easy to get permission to reside there.
The only real requirement to obtain a residence permit (which lasts 10 years as standard) is to have over USD 69,000 in the bank. If you’re over the age of 50, this requirement is halved to just USD 34,500 provided you have an income of over USD 2258 per month.
As an expat with residency in Kuala Lumpur you can expect to enjoy:
Zero capital gains tax
Zero tax on foreign-sourced income
Zero tax on property
Zero withholding tax on dividends
Zero wealth tax
Zero inheritance tax
Zero gift tax
HONG KONG
Hong Kong is one of these “tax-free” countries in Asia and it’s among one of the best countries with a territorial tax system.
Hong Kong also retains English as an official language and has also implemented a territorial tax system that taxes its residents only on income that is derived from Hong Kong. Personal income tax rates range between 2% to a maximum of 17%.
This country does not have any foreign exchange controls in force, and so this means that the Hong Kong dollar is freely convertible into other currencies. Hong Kong does not tax dividends or capital gains.
UAE
If you wanna strike a balance between the creature comforts of home and the exotic intrigue of the Middle East, the UAE is a great choice. English is widely spoken and the country is practically built on foreign influence. It’s also one of the best places to live for expats with a high net worth.
In addition to this, the United Arab Emirates offers an incredibly high standard of living without the need to pay any income tax whatsoever. That’s right, the UAE has an income tax rate of 0%. Dubai is often the choice for the expat looking to settle in the UAE: it’s full of glamor, beautiful beaches and a bustling social scene.
The only drawback of the UAE is that its structure is not particularly designed for solo entrepreneurs. Officials will often become slightly suspicious when solo entrepreneurs attempt to jump through the bureaucratic hoops to make this country their home and you can almost certainly expect to be asked for information on your employer and salary.
So, if you are interested in finding out more about tax benifits and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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