What are the best countries for digital nomads from a tax perspective?

Tax-friendly bases for nomads

For location-independent earners, two features matter most: the headline personal rate and whether the system is territorial (taxing only local-source income) or worldwide.

• United Arab Emirates — 0% personal income tax; offers a Virtual Working Programme nomad visa.
• Monaco — 0% personal income tax for most residents.
• Singapore — territorial system, 20% top personal rate, 0% capital gains.
• Hong Kong — territorial system, 16% top personal rate, no capital gains tax.
• Portugal — worldwide system with a 48% top rate, but offers a D8 digital nomad visa.

Why the tax system matters

Under a territorial system, income earned abroad is generally outside the tax net — valuable for a nomad billing overseas clients. Singapore and Hong Kong both tax only locally sourced income. No-income-tax jurisdictions like the UAE and Monaco go further, taxing neither local nor foreign income.

Always confirm tax residency thresholds and whether your home country taxes worldwide income (the US does) before relocating.

Data basis: Government tax authority data via taxesmap.app, as of 2026