Live and Invest Overseas
FREE REPORT: THE BEST PLACES TO RETIRE IN 2025
We Value Your Privacy! We will not share your email address with anyone else, period.
  • Home
  • Countries

    Top Destinations:

    Whether you’re looking for fun and sun, a peaceful retirement, or the chance to earn some extra income, you’ve got a real world of opportunity open to you… In short, we’ve done our best to narrow down your best options, but only you can decide the right country for you.

    • Spain
    • Portugal
    • Panama
    • Belize
    • Colombia
    • Cyprus
    • Mexico
    • France
    • Montenegro
    • Browse All Countries

    Best For:

    • The Best Places To Retire
    • Health Care Abroad
    • Cost Of Living
    • Investing in Real Estate
    • Establishing Residency
    • Gun Laws In The World
    • English-Speaking Countries
    • Safest Places For Retirement
    • Best Places In Latin America
  • Budgets

    How Much Will It Cost You To Live Overseas?

    The only honest answer is, we have no idea. And neither does anyone else. The only one who can answer that question is you. Here’s the most important thing to understand about budgeting your new life overseas…

    Super Cheap

    • Chitré, Panama
    • Santa Marta, Colombia
    • Phuket, Thailand
    • Dumaguete, The Philippines

    Cheap

    • Medellin, Colombia
    • Boquete, Panama
    • Kyrenia, Cyprus
    • Hua Hin, Thailand
    • The Algarve, Portugal

    Affordable

    • Valencia, Spain
    • Cascais, Portugal
    • Las Terrenas, The DR
    • Pisa, Italy
    • La Rochelle, France
    • Mazatlán, Mexico

    Luxury

    • Ambergris Caye, Belize
    • Kotor, Montenegro
    • The Panama City Beaches
    • Paris, France
  • Resources

    Global Living

    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore & Diversification

    Making Money

    • International Real Estate
    • Banking
    • Employment
    • Investing

    Follow Us:

    • Meet Our Experts
  • Real Estate

    Buying Real Estate For Cashflow

    • Discover tips and strategies used by global property investing veterans

    Explore Our Latest Posts

    • Learn how to invest and purchase property abroad…

    Go To The Overseas Property Alert Site

    • How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams
  • Conferences

    Upcoming Events

    • Explore Our Events Site

    Live and Invest In Spain Conference

    Offshore Wealth Summit

    Greece Workshop

    VALENCIA, SPAIN

    Sep. 17-19, 2025

    PANAMA CITY, PANAMA

    Oct. 15-17, 2025

    VIRTUAL

    Nov. 13, 2025

    LEARN MORE
    DISCOUNT
    LEARN MORE
    PRE-REGISTER
    LEARN MORE
    PRE-REGISTER
    • MORE EVENTS

    Contact Our Events Team

    Toll-Free U.S. and Canada:
    1 (888) 627 8834
    From Outside North America:
    1 (443) 599 1221
    Working Hours
    Monday – Friday 08:00 am – 17:00 pm EST.

    Reach us with your questions by email at: events@liveandinvestoverseas.com

  • Store

    Unlock The World

    • Access Your Library

    Overseas Havens Reports

    • Expats' comprehensive destination guides

    Conference Kits

    • Hours of coverage  from our latests conferences

    Lahardan Books

    • Titles on living and investing around the world
    • Explore Our Store
    Your passport to a life well-lived abroad

    Services

    overseas living letter offers affordable retirement guidance
    The Simon Letter Wealth Protection Insights
    Global Property Advisor Global Investment Opportunities

    Our Customer Service team is here to assist with any questions or concerns CustomerService@LiveandInvestOverseas.com

  • My Library
Live and Invest Overseas
  • Home
  • Countries

    Top Destinations:

    Whether you’re looking for fun and sun, a peaceful retirement, or the chance to earn some extra income, you’ve got a real world of opportunity open to you… In short, we’ve done our best to narrow down your best options, but only you can decide the right country for you.

    • Spain
    • Portugal
    • Panama
    • Belize
    • Colombia
    • Cyprus
    • Mexico
    • France
    • Montenegro
    • Browse All Countries

    Best For:

    • The Best Places To Retire
    • Health Care Abroad
    • Cost Of Living
    • Investing in Real Estate
    • Establishing Residency
    • Gun Laws In The World
    • English-Speaking Countries
    • Safest Places For Retirement
    • Best Places In Latin America
  • Budgets

    How Much Will It Cost You To Live Overseas?

    The only honest answer is, we have no idea. And neither does anyone else. The only one who can answer that question is you. Here’s the most important thing to understand about budgeting your new life overseas…

    Super Cheap

    • Chitré, Panama
    • Santa Marta, Colombia
    • Phuket, Thailand
    • Dumaguete, The Philippines

    Cheap

    • Medellin, Colombia
    • Boquete, Panama
    • Kyrenia, Cyprus
    • Hua Hin, Thailand
    • The Algarve, Portugal

    Affordable

    • Valencia, Spain
    • Cascais, Portugal
    • Las Terrenas, The DR
    • Pisa, Italy
    • La Rochelle, France
    • Mazatlán, Mexico

    Luxury

    • Ambergris Caye, Belize
    • Kotor, Montenegro
    • The Panama City Beaches
    • Paris, France
  • Resources

    Global Living

    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore & Diversification

    Making Money

    • International Real Estate
    • Banking
    • Employment
    • Investing

    Follow Us:

    • Meet Our Experts
  • Real Estate

    Buying Real Estate For Cashflow

    • Discover tips and strategies used by global property investing veterans

    Explore Our Latest Posts

    • Learn how to invest and purchase property abroad…

    Go To The Overseas Property Alert Site

    • How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams
  • Conferences

    Upcoming Events

    • Explore Our Events Site

    Live and Invest In Spain Conference

    Offshore Wealth Summit

    Greece Workshop

    VALENCIA, SPAIN

    Sep. 17-19, 2025

    PANAMA CITY, PANAMA

    Oct. 15-17, 2025

    VIRTUAL

    Nov. 13, 2025

    LEARN MORE
    DISCOUNT
    LEARN MORE
    PRE-REGISTER
    LEARN MORE
    PRE-REGISTER
    • MORE EVENTS

    Contact Our Events Team

    Toll-Free U.S. and Canada:
    1 (888) 627 8834
    From Outside North America:
    1 (443) 599 1221
    Working Hours
    Monday – Friday 08:00 am – 17:00 pm EST.

    Reach us with your questions by email at: events@liveandinvestoverseas.com

  • Store

    Unlock The World

    • Access Your Library

    Overseas Havens Reports

    • Expats' comprehensive destination guides

    Conference Kits

    • Hours of coverage  from our latests conferences

    Lahardan Books

    • Titles on living and investing around the world
    • Explore Our Store
    Your passport to a life well-lived abroad

    Services

    overseas living letter offers affordable retirement guidance
    The Simon Letter Wealth Protection Insights
    Global Property Advisor Global Investment Opportunities

    Our Customer Service team is here to assist with any questions or concerns CustomerService@LiveandInvestOverseas.com

  • My Library
Live and Invest Overseas
 Moving Out Of The U.S?

THE 10 BEST PLACES TO RETIRE IN 2025

the 10 best places to retire in 2025

PLUS: A SPECIAL BONUS DESTINATION

Simply sign up to receive the FREE daily e-letter, Overseas Opportunity Letter, and we’ll immediately email you our editors’ latest research report… absolutely FREE

We Value Your Privacy! We will not share your email address with anyone else, period.

Home How to

A Guide To Tax Obligations For U.S. Citizens Living Overseas

7 Top Places To Reduce Your Tax Bill (Maybe Dramatically) Overseas

by Lief Simon
Jun 12, 2020
in How to, Offshore
0 0
blocks spelling tax and coins

Image Source: iStock/amirulsyaidi

The United States and Eritrea, a small African nation, are the only two countries in the world to tax citizens on their worldwide income no matter where they live. Other countries tax their citizens only when they reside or earn money in that country.

The bottom-line practical takeaway from this is that, no matter where you move in the world, you’ll still owe something to Uncle Sam every year, even if it’s just paperwork.

I don’t recommend making life decisions based on taxes alone. That can translate into miserable living. Several U.S. states, including Florida, Texas, and Nevada, impose no personal income tax, but I wouldn’t move to any of those places because, frankly, I don’t find them appealing places to live. No amount of tax savings is going to change that.

The same holds when going offshore. Don’t restructure or reinvent your life just to be able to take advantage of low tax bands… and don’t choose a country to move to based solely on its approach to taxation.

Go offshore for diversification and a better lifestyle. When you do, arrange your affairs to take advantage of every (legal) tax benefit available to you in the place where you’ve decided you want to be.

However, there are plenty of places with good residency visa options that also have potential tax benefits, and if it happens that the place that makes sense for your residency also comes with a favorable tax situation, all the better.

What should you be looking for when you assess this criterion? Countries that tax residents jurisdictionally. This is when a country taxes you on income earned in that country only, even though you’re a resident. It’s this approach to taxation that creates the biggest opportunity.

Residing in a country where taxation is based on the jurisdiction, it’s possible to organize your affairs in a way that can reduce or even eliminate your tax burden. Countries that take this approach to taxation are referred to as tax havens.

Panama is a good example of this approach. As a resident in Panama, you are taxed in Panama only on income earned in Panama. It is easy, therefore, to live in Panama as a retiree and owe no taxes locally. Belize, Malaysia, and the Dominican Republic also tax jurisdictionally (but a foreigner could be subject to tax on certain foreign investment income in the DR).

Another approach a country can take to taxation is referred to as a remittance-based system. This is when a country taxes you only on income you bring into the country. Income earned outside the country and not brought into the country (not remitted) is not taxable.

Thinking more specifically, here’s an overview of the world’s top tax havens…

#1: Panama

Jurisdictional taxation benefits entities set up in Panama that aren’t doing business in Panama, but it also benefits residents of Panama who earn their money outside of the country. You are still likely to be taxed in the country where the income is earned, but you don’t have to worry about reporting non-Panamanian income in Panama for your company or yourself if you’re living there.

Panama also doesn’t tax interest income earned from banks… so your CDs in Panama incur no tax in Panama. For Americans, it’s moot since they’ll still pay taxes in the United States on that interest income, but for non-Americans depending on where they live and their tax situation there, it could mean no taxes at all on their interest income. Specifically, if a non-American is a tax resident in Panama, that would be the case.

Revenue from agriculture is also exempt in Panama up to US$350,000 of gross revenue. Invest in a farm operation in Panama and you can pay no taxes in Panama. However, the same caveats apply for Americans who will have to report the income in the United States and pay taxes to the United States on the income. Non-Americans living in a jurisdictional taxation country whether it’s Panama, Costa Rica, Malaysia, or elsewhere could end up not paying any income tax on their Panamanian farm income.

From a tax standpoint, Panama gets an A+ for non-residents and companies not doing business in the country. For residents, it gets an A, as you’d only be taxed on income earned in the country and the tax rates for that income are low on a global standard.

#2: Belize

Like Panama, Belize does not tax your income earned outside of Belize.

As a QRP resident, you will also enjoy a 50% reduction when paying the departure tax if leaving the country via the airport and not at all when leaving over land.

Other QRP benefits include duty-free importations for your personal vehicle or golf cart not more than five years old, household contents, and noncommercial boat or plane. This can save a significant amount of money, as the customs duty on vehicles is high in Belize. The vehicle can be upgraded every three years duty free, but you must pay duty on the old vehicle at its depreciated value if you keep it or sell it. The duty exemption on household items covers anything you might reasonably expect to find in a home or garage, including all tools, appliances, furniture, mobility equipment, exercise machines, and more.

#3: Malaysia

All income from foreign sources such as pensions, interest and dividend income, and foreign-earned income is exempt from Malaysian taxes. However, income received from employment or business within Malaysia is taxable.

If you sell real estate, you are responsible for paying real property gains taxes (RPGT). The amount varies according to the length of time that you owned the property. Malaysia My Second Home (MM2H) holders qualify for a reduced rate and are exempt from paying the RPGT if the property has been held for at least five years.

#4: Thailand

Thailand taxes income not jurisdictionally but on a remittance basis. Anyone who has lived in Thailand for more than 180 days in one calendar year is considered a tax resident and may have to pay annual income tax based on the money that has been earned in Thailand or brought into the country.

Although Thailand does not levy property taxes on freehold property, any property that has been purchased with a long-term lease is assessed at an annual property tax of 2.5%. Any taxes or duties related to the purchase or sale of real estate are paid at the time of the transaction.

Interest earned while your money is on deposit in a Thai bank is exempt from taxes up to 20,000 baht. If the interest earned exceeds that amount, the excess will be taxed at 15%. The bank withholds this tax, so if interest income is all that you have earned in Thailand, filing Thai taxes won’t be necessary.

#5: Portugal

While Portugal isn’t a traditional tax haven, it does offer a unique opportunity called Non-Habitual Resident (NHR) status that allows you to live in Portugal tax-free for 10 years.

Once you’ve been granted a residency visa, the process of applying for NHR status is relatively simple, you just have to meet two main criteria:

  • You cannot have been resident in Portugal in any of the previous five years.
  • You must be retiring to Portugal or fall into one of the approximately 30 occupations listed by the government, including architects, lawyers, engineers, senior management, health professionals, and individuals who will be fostering inward investment.

#6: Malta

Malta is another country that taxes foreigners on a remittance basis and offers a program to take advantage of an attractive tax deal.

The main way for a non-EU national to live in Malta is via the Global Residence Program. This program offers the applicant a flat rate tax of 15% on income remitted to Malta with a minimum tax liability of 15,000 euros per year. This amount also covers all dependents.

The only requirement for the Global Residence Program is buying or renting a home in Malta. There are different categories for the qualifying real estate. In Central and North Malta, the immovable property’s price must be at least 275,000 euros. In the south of Malta and Gozo, the minimum investment is 220,000 euros.

Uniquely, leasing property at an annual cost of 9,600 euros on Malta and an annual cost of 8,750 euros on Gozo is also a means to qualify. Malta is the only country I know of that grants residency based on a rental contract.

#7: Switzerland

For the very wealthy who want to reduce their total tax burden, Switzerland is still a top option. The Swiss government allows you to negotiate an annual tax with whatever canton you want to reside in. That tax is your only tax, i.e., there is no graduated tax on your income.

For those with multi-million-dollar incomes who live in a high-tax jurisdiction, Switzerland is a good choice for residency to reduce your overall taxes, but it isn’t an option for everyone.

Lief Simon

Share91Tweet52
Lief Simon

Lief Simon

Lief Simon has lived and worked in 7 countries on 5 continents and traveled to more than 75 countries. His real estate investment career began with a $5,000 down payment on a three-flat building in Chicago. Less than three years later, Lief sold the building for a leveraged return of 3,000%—$150,000 in profit after closing costs and commissions.

From there, he turned his attention overseas and has bought property in 24 countries including France, Croatia, Portugal, Ireland, Belize, Spain, Argentina, Cyprus, Romania, and beyond. Thanks to his decades-long career as a global property investor, Lief has built a multi-million-dollar portfolio that includes rental properties, significant land holdings, and 7 personal residences.

Lief has established residency in 3 countries and acquired a second passport from Ireland.

In 2008 Lief and wife Kathleen Peddicord made the most important investment of their lives—a 215-acre oceanside finca, known as Los Islotes. There, on Panama’s largely undiscovered Veraguas coast, they’ve installed underground electricity, water, and internet and built a forever family home that sits at the heart of their ultimate vision: a gold standard private residential community for those in search of a true safe haven escape.

Lief’s latest book, “Cowboy Millionaire—The New American Pioneer,” collects all the wisdom he has learned in three decades of living and investing outside America.

He offers advice on international diversification in his twice-weekly Offshore Living Letter and monthly Simon Letter dispatches. For real estate investment opportunities, check out his monthly Global Property Advisor service.

If you’d like to meet Lief in person, join him for one of our upcoming in-country conferences. You’ll find further details here.

Start Your New Life Overseas Today!
Sign up for our free daily e-letter, Overseas Opportunity Letter, and we'll send you a FREE report on The 10 Best Places To Retire In 2025.

We Value Your Privacy! We will not share your email address with anyone else, period.
Our Expertise Unlocks The World

quick links

  • Best Places To Live
  • Best Places To Retire
  • Finding A Job Overseas
  • Real Estate

LIOS Resources

  • New To LIOS
  • Ask An Expert
  • Media Center
  • Contact Us
  • FAQs
the 10 best places to retire in 2025
Sign up for our free daily e-letter, Overseas Opportunity Letter, and get your FREE REPORT: The 10 Best Places To Retire Overseas In 2025

We Value Your Privacy! We will not share your email address with anyone else, period.

As seen in

US Media Logos

© 2008 – Live and Invest Overseas™ – All Rights Reserved.

About Us / Contact Us / Privacy Policy / Terms / Unsubscribe
Facebook-f X-twitter Youtube Linkedin-in Instagram

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
HOME

Top Countries

  • Spain
  • Portugal
  • Panama
  • Belize
  • Colombia
  • Cyprus
  • Mexico
  • France
  • Montenegro

Best For:

  • Health Care Abroad
  • Retirement Living
  • Cost Of Living
  • Investing in Real Estate
  • Establishing Residency
  • Gun Ownership
  • English Speakers
  • Safety
BROWSE ALL COUNTRIES

Budgets

How Much Will It Cost
To Live Overseas?

Super Cheap

  • Chitré, Panama
  • Santa Marta, Colombia
  • Phuket, Thailand
  • Dumaguete, The Philippines

Cheap

  • Medellin, Colombia
  • Boquete, Panama
  • Kyrenia, Cyprus
  • Hua Hin, Thailand
  • The Algarve, Portugal

Affordable

  • Valencia, Spain
  • Cascais, Portugal
  • Las Terrenas, The DR
  • Pisa, Italy
  • La Rochelle, France
  • Mazatlán, Mexico

Luxury

  • Ambergris Caye, Belize
  • Kotor, Montenegro
  • The Panama City Beaches
  • Paris, France

Resources

Global Living

  • Living & Retiring Overseas
  • Raising A Family Abroad
  • Foreign Residency & Citizenship
  • Offshore & Diversification

Making Money

  • International Real Estate
  • Banking
  • Employment
  • Investing
Meet Our Experts

Real Estate

Overseas Property Alert 

 

How To Become Independently Wealthy And Fund The Lifestyle Of Your Dreams

VISIT SITE

Buying Real Estate For Cashflow

 

Discover tips and strategies used by global property investing veterans

READ MORE

Explore Our Latest Posts

 

Learn how to invest and purchase property abroad…

EXPLORE

Conferences

Live and Invest In Spain Conference

VALENCIA, SPAIN Sep. 17-19, 2025
LEARN MORE
DISCOUNT

Offshore Wealth Summit

PANAMA CITY, PANAMA Oct. 15-17, 2025
LEARN MORE
PRE-REGISTER

GREECE WORKSHOP

VIRTUAL Nov. 13, 2025
LEARN MORE
PRE-REGISTER
MORE EVENTS

Contact Our Events Team:

Toll-Free U.S. and Canada:
1 (888) 627 8834

From Outside North America:
1 (443) 599 1221

Working Hours
Monday – Friday 08:00 am – 17:00 pm EST.

Reach us with your questions by email at: events@liveandinvestoverseas.com

Store

Overseas Havens Reports

  • Expats' comprehensive destination guides

Conference Kits

  • Hours of coverage  from our latests conferences

Lahardan Books

  • Titles on living and investing around the world

Services

  • Overseas Living Letter: Affordable Retirement Guidance
  • The Simon Letter: Wealth Protection Insights
  • Global Property Advisor: Global Investment Opportunitites
VISIT OUR STORE

Free Report

THE 10 BEST PLACES TO RETIRE IN 2025

FREE REPORT: The 10 Best Places To retire in 2025

Sign up to receive the FREE daily e-letter, Overseas Opportunity Letter and we’ll immediately email you our editors’ latest research report…

We Value Your Privacy! We will not share your email address with anyone else, period.

LIBRARY

Follow Us:

© 2008 - Live and Invest Overseas - All Rights Reserved.

RETIRE OVERSEAS AND LIVE LIKE ROYALTY

Sign up for FREE and learn how to live the good life on a modest budget, find bargain property, and more. Plus, check out our free report on the 10 BEST PLACES TO RETIRE.

We Value Your Privacy! We will not share your email address with anyone else, period.

RETIRE OVERSEAS AND LIVE LIKE ROYALTY

Sign up for FREE to learn how. Plus, check out our FREE report on THE 10 BEST PLACES TO RETIRE


We Value Your Privacy! We will not share your email address with anyone else, period.