UAE Ranked Most Tax Friendly Country for Global Citizens

The UAE has been ranked the world’s most tax-favourable jurisdiction for global citizens by Global Citizen Solutions, which assessed 48 jurisdictions across 11 indicators covering tax burden, tax structure and investment migration.

The report placed the UAE first overall, pointing to its zero personal income tax, 5% VAT and absence of a tax on departing residents. Antigua and Barbuda, Paraguay, Hong Kong and the Bahamas completed the top five.

The study also found that low tax rates do not necessarily translate into the strongest overall tax systems. Uruguay, for example, recorded the highest Tax Structure score despite a 36% rate and ranked 12th overall, while Hungary placed 31st despite a 15% rate because residents are taxed on worldwide income with limited relief for new arrivals.

According to the report, stronger-performing systems generally rely either on territorial or remittance-based taxation, or on preferential regimes layered over worldwide taxation. Malta and Cyprus were the only European jurisdictions to reach the top ten, largely through such structures rather than low headline rates.

The study also found that 31 of the 48 jurisdictions reviewed impose no exit tax, while none of the top 13 levy inheritance tax. By contrast, inheritance tax can reach 60% in France, 55% in Japan and 50% in Germany.

Global Citizen Solutions said the most suitable jurisdiction varies by individual profile, with entrepreneurs, retirees and remote professionals facing different priorities around capital gains, succession, consumption taxes and foreign-sourced income.