For entrepreneurs and investors in the GCC, taxation is a key factor when deciding where to expand or relocate. The Gulf region already offers attractive zero-income-tax environments, yet many business owners seek to diversify abroad for global market access, residency advantages, or asset protection.
This guide by XPRO DXB, a Dubai-based consultancy specializing in international business setup and relocation, highlights the top 10 countries with zero or lowest personal and corporate taxes in 2025.
Each country profile includes:
- Personal & corporate tax overview
- Average living costs (USD & AED)
- Business setup cost range
- Residency or visa options
- Pros & Cons.
1. United Arab Emirates (UAE)
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 9% on profits above AED 375,000 (USD 102,000); 0% for qualifying free zone entities
- VAT: 5%
Business Setup Cost
Setting up a business in a free zone can cost between AED 15,000 – AED 30,000 (USD 4,000 – 8,000) depending on the license type and office package.
Living Cost
- Individual monthly expenses in Dubai: AED 7,000 – 10,000 (USD 1,900 – 2,700)
- Family of four: AED 15,000 – 22,000 (USD 4,000 – 6,000)
Why It Stands Out
The UAE offers world-class infrastructure, zero personal taxes, and various residence visa options through company formation, investment, or remote work permits.
Pros
- Global connectivity and stability
- 100% foreign ownership in free zones
- Advanced banking and legal framework
Cons
- High rent and living costs in major cities
2. Bahrain
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 0% for most businesses; exceptions for oil and gas sector
- VAT: 10%
Business Setup Cost
Starting a company costs around BHD 1,200 – 1,800 (AED 12,000 – 18,000 / USD 3,300 – 5,000) including licenses and registration fees.
Living Cost
- Individual: BHD 600 – 800 (AED 6,000 – 8,000 / USD 1,600 – 2,100)
- Family of four: BHD 1,200 – 1,800 (AED 12,000 – 18,000 / USD 3,300 – 5,000)
Advantages
- Business-friendly laws for foreign owners
- Low operational costs
- Easy access to Saudi market via King Fahd Causeway
Challenges
- Smaller market than UAE or Saudi Arabia
3. Qatar
Tax Structure
- Personal Income Tax: 0% for individuals
- Corporate Tax: 10% flat rate on non-Qatari business income
- VAT: Expected introduction at 5%
Business Setup Cost
Average cost: QAR 25,000 – 40,000 (AED 25,000 – 40,000 / USD 6,800 – 10,900).
Living Cost
- Individual: QAR 8,000 – 12,000 (AED 8,000 – 12,000 / USD 2,200 – 3,300)
- Family of four: QAR 15,000 – 22,000 (AED 15,000 – 22,000 / USD 4,100 – 6,000)
Benefits
- High quality of life and excellent infrastructure
- Residency through employment or investment
Limitations
- Local partnership rules outside free zones
4. Saudi Arabia
Tax Structure
- Personal Income Tax: 0% for individuals
- Corporate Tax: 20% on foreign entities; Zakat for Saudi/GCC owners at 2.5%
- VAT: 15%
Business Setup Cost
Registering a foreign-owned LLC typically costs SAR 20,000 – 40,000 (AED 19,500 – 39,000 / USD 5,300 – 10,600) depending on sector.
Living Cost
- Individual: SAR 7,000 – 10,000 (AED 6,800 – 9,700 / USD 1,900 – 2,700)
- Family of four: SAR 12,000 – 18,000 (AED 11,600 – 17,400 / USD 3,200 – 4,800)
Advantages
- Largest GCC economy
- Expanding business reforms under Vision 2030
- Growing start-up ecosystem
Drawbacks
- Bureaucratic procedures can be complex
- Saudization quotas apply to employment
5. Kuwait
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 15% on foreign companies
- VAT: Planned, not yet implemented
Business Setup Cost
Approximately KWD 2,500 – 4,000 (AED 30,000 – 48,000 / USD 8,200 – 13,000) depending on capital and license type.
Living Cost
- Individual: KWD 600 – 900 (AED 7,000 – 10,500 / USD 1,950 – 2,900)
- Family of four: KWD 1,200 – 1,800 (AED 14,000 – 21,000 / USD 3,900 – 5,800)
Pros
- High per capita income
- Tax-free salaries
- Strong job market for expats
Cons
- Limited diversification beyond oil sector
- Challenging residency rules for foreign entrepreneurs
6. Monaco
Tax Structure
- Personal Income Tax: 0% (except French citizens)
- Corporate Tax: 33% for companies earning >25% of income outside Monaco
- VAT: 20%
Business Setup Cost
Business registration fees and office rental bring total setup cost to around EUR 20,000 – 35,000 (AED 80,000 – 130,000 / USD 22,000 – 38,000).
Living Cost
- Individual: USD 8,000 – 12,000 (AED 29,000 – 44,000) per month
- Family of four: USD 15,000 – 25,000 (AED 55,000 – 92,000)
Highlights
- Luxury lifestyle and political stability
- Safe and prestigious residency
Challenges
- One of the most expensive real estate markets in the world
7. The Bahamas
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 0%
- VAT: 12%
Business Setup Cost
A standard International Business Company (IBC) costs around USD 4,000 – 6,000 (AED 14,500 – 22,000).
Living Cost
- Individual: USD 2,500 – 4,000 (AED 9,000 – 14,500)
- Family of four: USD 5,000 – 8,000 (AED 18,000 – 29,000)
Why Choose Bahamas
- Zero income, capital gains, and wealth tax
- Easy residency via real estate investment
- English-speaking environment
Cons
- Limited business diversification outside finance and tourism
8. Cayman Islands
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 0%
- VAT: None
Business Setup Cost
Incorporation fee and licensing total USD 5,000 – 7,000 (AED 18,000 – 25,000) for a standard company.
Living Cost
- Individual: USD 3,500 – 5,000 (AED 13,000 – 18,000)
- Family of four: USD 7,000 – 10,000 (AED 26,000 – 37,000)
Advantages
- Stable British territory
- World-leading financial sector
Challenges
- High import costs and expensive housing
9. Bermuda
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: New 15% minimum for large multinationals (2025 Pillar Two rules)
- Payroll Tax: 4–10%
Business Setup Cost
Average incorporation cost USD 6,000 – 10,000 (AED 22,000 – 37,000).
Living Cost
- Individual: USD 4,000 – 6,000 (AED 15,000 – 22,000)
- Family of four: USD 8,000 – 12,000 (AED 29,000 – 44,000)
Strengths
- Premium insurance and reinsurance hub
- Transparent financial regulations
Limitations
- High cost of living and imported goods
10. British Virgin Islands (BVI)
Tax Structure
- Personal Income Tax: 0%
- Corporate Tax: 0%
- VAT: No general sales tax
Business Setup Cost
Company formation fee ranges from USD 2,000 – 3,000 (AED 7,500 – 11,000) plus annual renewal costs.
Living Cost
- Individual: USD 2,000 – 3,000 (AED 7,500 – 11,000)
- Family of four: USD 4,500 – 6,000 (AED 16,000 – 22,000)
Why It Appeals
- Straightforward offshore business registration
- Strong privacy laws
Downsides
- Limited local infrastructure for large-scale operations
Bonus Mention: Oman (Transitioning to Low-Tax Model)
Oman currently has no personal income tax, though a progressive tax on high-income earners is planned by 2028. Corporate tax is 15%.
Business setup costs are approximately OMR 3,000 – 5,000 (AED 28,000 – 46,000 / USD 7,800 – 13,000).
Oman offers a quiet lifestyle, lower rent, and growing industrial zones — an emerging option for entrepreneurs in the GCC looking for affordable expansion.
Conclusion
In 2025, the global competition for talent and investment continues to favor jurisdictions with minimal tax burdens.
For GCC entrepreneurs, remote workers, and investors, these tax-free countries offer financial freedom, business ease, and residency opportunities.
However, the best choice depends on your goals:
- UAE, Bahrain, and Qatar — best for GCC-based business expansion
- Monaco and Bahamas — ideal for wealth preservation and luxury living
- Cayman Islands and BVI — for asset management and offshore entities
Always consult with a qualified advisor before making relocation or incorporation decisions to ensure compliance with international regulations.
Author Bio
Written by XPRO DXB, a Dubai-based consultancy helping entrepreneurs, investors, and remote professionals establish and grow businesses across the GCC and other tax-friendly jurisdictions. For personalized guidance or business setup consultation, get in touch via Contact page