Discover which countries offer residency with 0% tax on foreign-sourced income in 2026. Comparing territorial tax systems in Europe, the Americas, and Asia. 

Which countries allow you to become a resident without paying personal tax on your foreign-sourced income in 2026? 

While territorial taxation is evaporating for large corporations, it is still a viable and legal path for individuals. In the era of the digital nomad, countries are competing to attract global talent by encouraging them to reside and spend locally. Territorial taxation means that only income generated within the country is taxed, while foreign-sourced income remains tax-free. Today, more than 40 countries allow residents to legally avoid taxes on foreign earnings. Most of these jurisdictions satisfy all international requirements (OECD, US, EU), ensuring their residents remain 100% compliant. 

Europe: Selective Opportunities 

In Europe, few opportunities remain to secure residency and enjoy territorial structures: 

• Portugal: Following recent legislative shifts, it has become extremely challenging to qualify for the original flat-tax benefits.
• Greece: Investor residents can opt for an annual lump-sum tax of €100,000 on all foreign-sourced income.
• Italy: Offers a premium lump-sum solution; the fixed annual tax is now €200,000.
• Monaco: Has secured its traditional status, maintaining zero personal tax on any income.
• Cyprus: The Permanent Residency by Investment program allows for "non-dom" status, granting 0% tax on dividends and interest for 17 years.
• Malta: Remains an advantageous solution. Under its remittance-based system, foreign income that is not brought into the country is considered "non-dom" income and is tax-exempt. 
  
  

The Americas: The Purest Territorial Systems 

• Panama: Operates a classic territorial tax system where all foreign income is tax-exempt.
• Paraguay: Continues to offer full tax exemptions for foreign-sourced income, making it one of the most accessible options in the region.
• Costa Rica: Maintains its territorial tax status, popular with both investors and remote workers. 
  
  

Asia & The Middle East: High-Growth Hubs 

• United Arab Emirates (UAE): Remains the most popular global solution, as there is still no personal income tax for individuals.
• Thailand: The Asian country recently updated its regulations, moving closer toward a worldwide taxation model.
• Malaysia: Continues to offer territorial taxation; under current law, all foreign-sourced income is tax-exempt until the end of 2036. 
  
  

Secure Your "Plan B" 

Do you want to obtain a residency permit in a country with territorial taxation? Our team at Discus Holdings Ltd has more than 30 years of experience supporting investors in creating secure "Plan B" strategies in low-tax jurisdictions. 

Ask for a consultation here, and let’s plan your next step together! 

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