Countries with no capital gains tax
Countries with no capital gains tax: what “0 %” really means and how investors make the right choice
Germany takes 26.375 % of every euro of investment income. The UK takes up to 24 % on gains and 39 % on dividends. The US charges up to 20 % federal — plus state tax. On €200,000 of annual investment income that is €40,000–50,000 a year, withheld automatically. There are countries where that number is zero. But the list is the easy part. This guide explains why “0 % capital gains tax” can mean very different things, what traps investors face on departure, and what the full calculation of taxes, costs and quality of life actually looks like.
Last updated 9 September 2026 · Reading time approx. 11 minutes
What your home country actually taxes on investment income
- Germany: 25 % Abgeltungsteuer + 5.5 % Soli surcharge = 26.375 % flat on dividends, interest and gains; ETF partial exemption reduces the effective rate on equity funds to roughly 18.5 %; €2,000/person annual allowance.
- UK: 18 % (basic rate) or 24 % (higher rate) CGT on securities from April 2024; 8.75 % or 33.75 % on dividends (rates raised in Autumn 2024 Budget).
- US: 0 %, 15 % or 20 % federal CGT based on income; 3.8 % NIIT applies above thresholds; plus state tax (0–13.3 %).
- France: 30 % flat (PFU, Prélèvement Forfaitaire Unique) on capital income, including social contributions; or progressive scale on election.
- Austria: 27.5 % KESt on capital income.
- Switzerland: no CGT on private securities gains; 35 % Verrechnungssteuer on dividends (refundable for residents); wealth tax on assets.
- Canada: 50 % of gains included in taxable income (66.7 % inclusion rate above $250k from 2024); taxed at marginal rate.
- Australia: 50 % CGT discount for assets held over 12 months; taxed at marginal rate.
Why “0 % CGT” doesn’t always mean the same thing
"No capital gains tax" covers four distinct models:
Model 1 — True zero-tax countries: No income tax for individuals at all. UAE, Monaco, Bahamas, Cayman Islands, Bermuda. All investment returns are locally tax-free, provided you are genuinely resident there.
Model 2 — Territorial taxation: Only locally-sourced income is taxed; foreign-source investment income is exempt. Panama, Paraguay, Costa Rica, Hong Kong, Singapore (private gains), Malaysia (with post-2025 restrictions). A foreign brokerage account is locally tax-free. Caveat: your home country may still have a claim — depending on the treaty and your residency status.
Model 3 — Non-dom regimes: The country has a normal CGT, but offers incoming residents a special regime on foreign income. Cyprus (non-dom: 0 % on dividends and interest for 17 years), Malta (remittance basis: foreign gains taxed only when remitted, €5,000 minimum tax), Ireland, UK (old non-dom replaced by 4-year FIG regime from April 2025), Greece (flat-rate scheme). "0 %" here is conditional and time-limited.
Model 4 — No CGT but dividends taxed: Some countries don't tax realised gains but do tax dividend income. Belgium, Switzerland (for non-professional investors), New Zealand, Hong Kong, Singapore (though dividends are also usually exempt there under the one-tier system).
Filter by system in the explorer
Set "Capital gains tax = 0 %" in the explorer to narrow the map. Each city's detail view explains which model applies — so you don't confuse Monaco with Panama.
Countries with no capital gains tax: the full list
All figures for private individuals, September 2026. Professional traders are taxed as income in almost every country.
True zero-tax countries
| Country | Capital gains | Dividends | Cost of living single / mo | Residency route |
|---|---|---|---|---|
| UAE (Dubai, Abu Dhabi) | 0 % | 0 % | ≈ $3,140 | Golden Visa from AED 2m property; free-zone company residency |
| Monaco | 0 % | 0 % | ≈ $7,850 | Proof of residence; apartment rental; long waiting list, very expensive |
| Bahamas | 0 % | 0 % | ≈ $3,050 | Annual Residency $1,000 filing; Permanent from $1m investment |
| Cayman Islands | 0 % | 0 % | ≈ $780* | Residency from CI$1m investment + 120 days/yr |
| Bermuda | 0 % | 0 % | ≈ $9,550 | Economic Investment Residency; very high cost of living |
| Qatar | 0 % | 0 % | ≈ $5,750 | Residency only via employer or investment; limited private routes |
* The stored data point for the Cayman Islands looks implausibly low for one of the world's most expensive financial centres — we're checking the source and will update this figure shortly.
Territorial systems
| Country | Foreign gains | Foreign dividends | Cost of living / mo | Note |
|---|---|---|---|---|
| Panama | 0 % | 0 % | ≈ $2,550 | Territorial; Friendly Nations or Pensionado residency |
| Paraguay | 0 % | 0 % | ≈ $1,900 | Territorial; easy residency; thin infrastructure |
| Costa Rica | 0 % | 0 % | ≈ $3,400 | Territorial; 15 % on local-source dividends |
| Malaysia | 0 % | 0 % (certain foreign dividends taxed from 2025) | ≈ $1,600 | Check 2025 rule changes |
| Singapore | 0 % (private gains) | 0 % (one-tier: tax paid at company level) | ≈ $4,450 | Very high costs; residency via EP/PR, strictly limited |
| Hong Kong | 0 % (private gains) | 0 % | ≈ $2,750 | Political risk |
Non-dom regimes
| Country | Gains | Dividends | Condition | Duration |
|---|---|---|---|---|
| Cyprus (non-dom) | 0 % (exc. Cypriot property) | 0 % | Non-dom status; not raised in Cyprus | 17 years |
| Malta | 0 % if not remitted | 0 % if not remitted | Remittance basis; €5,000 min. tax/yr | Indefinite |
| Ireland | 0 % on unremitted foreign gains | 0 % unremitted | Non-dom status; high costs | — |
| Greece (flat-rate scheme) | 7 % flat | 7 % | Incoming-resident regime | 15 years |
| UK — FIG regime (from 04/2025) | 0 % on foreign gains | 0 % on foreign dividends | 4-year window; first arrival after long absence | 4 years |
No CGT but dividends taxed
| Country | Capital gains | Dividends | Note |
|---|---|---|---|
| Belgium | 0 % (private, non-professional) | 30 % | Favourable for pure capital-appreciation investors |
| Switzerland | 0 % (private) | 35 % withholding (refundable for residents) | Effectively tax-free after refund for residents; high costs |
| New Zealand | 0 % (no general CGT) | 33 % | Bright-line test applies to property |
Simplified overview, as of 09/2026. Cost-of-living figures are indicative for a single-person household; the explorer gives the exact, continuously updated values per city.
The difference between capital gains and dividends
This distinction matters and is frequently blurred:
Capital gains arise when you sell an asset: bought shares at €10,000, sold at €15,000 → gain of €5,000. Many countries don't tax this, or tax it separately.
Dividends are company distributions to shareholders. They arise without selling. Treatment differs sharply: Singapore has no CGT but also no dividend tax at investor level (taxes paid at company level — one-tier system). Belgium has no CGT but 30 % dividend tax. Cyprus (non-dom) has 0 % on both. Dubai has 0 % on both.
For portfolio investors (ETFs, equities, bonds), both categories count. An accumulating ETF defers dividend tax but triggers CGT on sale. A distributing ETF triggers dividend tax on every payment. Germany taxes both at 26.375 %.
For business owners the dividend tax is the bigger number: distributions from a personal company. Here Cyprus and the UAE are the strongest combination (0 % + low corporate tax).
What withholding tax does to the equation
Even in a zero-tax country you pay withholding tax on dividends from the source country of the company. Example: you live in Dubai, hold German shares. The German company withholds 25 % and remits to the German tax authority. Without a tax treaty (the Germany-UAE treaty lapsed in 2022) the full 25 % is retained.
Practical rule: withholding tax cannot be avoided if the source country levies it. Which countries withhold what is shown in each city's "Tax" section in the explorer.
Commonly held positions:
- German shares → 15 % under most treaties (e.g. Cyprus residency), 25 % without a treaty (UAE after 2022 lapse)
- US shares → 15 % under most treaties; 30 % without; W-8BEN form claims treaty reduction
- Swiss shares → 35 % withholding; reduced to 15 % or 0 % under treaty depending on residence
Exit taxes: the cost of leaving for investors
Even without a company, investors may face departure taxes:
Germany (§ 6 AStG): shareholdings of 1 % or more in a corporation — and since 2025 fund holdings above €500,000 or 1 % of a fund — trigger a deemed-sale tax on unrealised gains when you leave. Normal share portfolios below 1 % do not trigger this.
France: exit tax on unrealised gains above €800,000 of qualifying assets on departure.
Netherlands: "conserving assessment" on substantial holdings.
Spain: above €4m of qualifying assets.
Canada: deemed disposition of most assets on departure at fair market value.
US: expatriation tax for long-term residents above $2m net worth or average annual tax above threshold.
No exit tax on standard portfolios: a normal ETF or equity account without corporate shareholdings above 1 % generally escapes exit tax in most countries. You can keep the portfolio after moving — from the date of departure, no further home-country withholding on new returns (except source-country dividend withholding).
How long do you have to be there for 0 % to apply?
This is the question investors most often get wrong. "0 % CGT" only applies if you are tax resident in the destination and your home country has accepted your departure.
Minimum days by country
| Country | Minimum days for tax residency | Note |
|---|---|---|
| UAE | 90 (with home/job) or 183 | Germany: what matters is ending German residency |
| Monaco | No minimum, but residence proof | Apartment, utility bill, bank account |
| Cyprus | 60 days (with conditions) | Not > 183 days elsewhere + CY apartment + economic activity |
| Malta | No fixed minimum | Presence + accommodation + demonstrable intent |
| Panama | 4–6 months demonstrable | Sufficient for Friendly Nations residency |
| Singapore | 183 days or EP/PR | Work pass strictly limited |
The other side: your home country must agree
Germany ends unlimited liability when you give up home and habitual abode. While you keep a German property available — even furnished and empty — the German tax authority treats you as resident and applies 26.375 % to your investment income.
Practical departure checklist: (1) give up the German property (sell or let long-term, minimum 12 months). (2) Obtain residency certificate in the destination. (3) Update broker CRS self-certification. (4) File a final split-year German return.
Worked example: €200k investment income, four locations
Investor, mid-40s, single, €200,000 of investment income per year (50 % dividends, 50 % gains), no employment income. Single-household living costs. Live values from the explorer:
Investor, mid-40s, single, €200,000 of investment income per year (50 % dividends, 50 % gains), no employment income.
| Germany | Dubai | Cyprus (Limassol) | Monaco | Panama City | |
|---|---|---|---|---|---|
| Tax on capital gains | 26.375 € | 0 € | 0 € | 0 € | 0 € |
| Tax on dividends | 26.375 € | 0 € | 0 € | 0 € | 20.000 € |
| Withholding on German equities | included above | ~15 % (no treaty) | ~15 % via treaty | ~25 % (no treaty) | ~15 % via treaty |
| Cost of living / mo | $1,742 | $3,259 | $2,624 | $10,571 | $1,853 |
| Disposable / yr after tax + costs | 126.351 € | 160.894 € | 168.508 € | 73.152 € | 157.763 € |
Cost of living in US dollars (single-person household). The “disposable / yr” row nets euro-denominated income against dollar-denominated living costs at roughly 1:1 for rough orientation only. Automated estimate; consult a tax adviser for the exact treaty treatment of withholding tax.
→ Open and adjust this scenario
What the table shows: Monaco offers 0 % tax but costs over €7,000 a month for a single — the highest of the four. Dubai: around €3,100/month. Limassol: around €4,200/month. Panama City: around €1,700/month. The tax saving is identical; disposable income differs significantly.
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Frequently asked questions
True zero (no income tax at all): UAE, Monaco, Bahamas, Cayman Islands, Bermuda. Territorial (foreign gains exempt): Panama, Paraguay, Singapore, Hong Kong, Costa Rica, Malaysia (restrictions from 2025). Non-dom (time-limited): Cyprus (17 years), Malta, UK (4-year FIG). No CGT for private investors: Belgium, Switzerland, New Zealand, Hong Kong, Singapore.
Yes. From the date you give up residence, new gains and income are not subject to home-country withholding. Notify your broker of the new tax residency; they update the CRS self-certification and stop auto-withholding. Existing positions need not be sold.
Standard ETF holdings without corporate shareholdings above 1 % don't trigger exit tax. Positions stay in your account; gains arising after departure are not home-taxable (except source-country withholding on distributions depending on the ETF domicile).
Someone who has not lived in Cyprus for 17 years before acquiring tax residency there qualifies as non-domiciled. Non-doms pay no special defence contribution (SDC) on dividends and interest for 17 years. Normal income tax applies to employment or business income.
In most zero-tax and territorial countries: yes, private crypto gains are locally exempt. Germany exempts crypto held over 12 months. Portugal and France have changed rules recently; the explorer shows country-specific treatment.