Question 1

Which countries have 0% income tax?

Accepted Answer

The UAE (Dubai, Abu Dhabi), Panama, Georgia (on foreign income), Malaysia (no capital gains tax), New Zealand (no capital gains tax), and Mauritius all offer 0% or near-0% tax on foreign investment income for residents.

Question 2

Can I really pay 0% tax as a FIRE investor?

Accepted Answer

Yes, if your income comes from foreign investments (international index funds) and you reside in a territorial tax country like Panama or UAE, your capital gains, dividends, and interest are generally tax-free.

Question 3

What is a territorial tax system?

Accepted Answer

A territorial tax system only taxes income earned within the country. Foreign-source income (like returns from international stock portfolios) is typically exempt.

Best Cities with No Income Tax for FIRE Investors

0% Tax on Foreign Investment Income

Low Tax (Under 10% capital gains)