Six Tax-Friendly Countries to Consider for Australian Taxpayers Moving Abroad

Escape the ATO The Top SIX Tax-Friendly Countries for Aussies

If you are an Australian taxpayer looking to reduce your global tax burden, this blog post is for you. There are numerous destinations around the world that offer favourable tax systems, allowing individuals to minimise their tax liabilities while protecting their assets. In this blog post, based on our video, we will explore six tax-friendly countries that you should consider if you are planning to leave Australia. These countries provide attractive tax benefits, including territorial tax systems, low tax rates, and various residency programs. Let us dive in! 

  1. Thailand: Thailand is a popular choice due to its beautiful landscapes, rich culture, and delicious cuisine. Thailand has a remittance-based tax system, allowing you to keep profits earned outside of Thailand tax-free. By obtaining an elite visa, which typically lasts between five to ten years, and making an investment of approximately $25k to $50k Australian dollars, you can live in Thailand and potentially pay no tax globally. 
  2. Georgia: Georgia is an underrated country that has been gaining popularity among expats seeking favourable tax environments. It offers a unique tax system, allowing certain entrepreneurs to pay as little as 1% tax. Acquiring residency in Georgia is straightforward, without much bureaucracy involved. By structuring your affairs appropriately, you may be able to minimise your global tax liability while safeguarding your assets. 
  3. Malaysia: Malaysia has long been favoured by expatriates due to its property ownership opportunities and connectivity to the world, including direct flights to Australia. Malaysia operates a territorial tax system (for now – changes are imminent), taxing only income earned within the country. By structuring your business under the Labuan rules, you may pay tax as low as 3%, which is significantly below the rates in Australia. Malaysia also has a double tax treaty, providing relief when necessary. 
  4. Portugal: Portugal remains a popular choice for those seeking to live in Europe. While taxes in Portugal are not particularly low, participating in the Non-Habitual Residency (NHR) program can offer significant tax benefits. Under the NHR program, you may be eligible to pay as little as 20 percent tax on your foreign sourced income. 
  5. Singapore: Singapore has always been a favoured destination for Australian expats due to its favourable tax environment and strategic location. With a maximum tax rate of 22% (for now – changes are imminent), compared to 47% in Australia, Singapore offers substantial tax savings. Moreover, Singapore imposes no capital gains tax, inheritance tax, or tax on dividends. By strategically structuring your business operations, you can achieve a zero or very low global tax rate. 
  6. United Arab Emirates (UAE) / Dubai: Dubai, situated within the UAE, is renowned as a top destination for tax optimisation. The UAE offers significant tax benefits, including no personal tax and no tax on income earned outside the country. Dubai serves as a global business hub, providing abundant opportunities for networking and business growth. Additionally, the city boasts a high standard of living comparable to Australia. 

For Australian taxpayers looking to reduce their global tax obligations, these six tax-friendly countries offer attractive opportunities. From Thailand’s remittance based tax system to Georgia’s entrepreneur-friendly tax rates, Malaysia’s property ownership options to Portugal’s NHR program, Singapore’s overall tax-favourable environment to Dubai’s tax benefits and thriving business opportunities – each country has its unique advantages. Before making any decisions, it is essential to consult with tax professionals and consider your specific circumstances. By exploring these tax-friendly destinations, you can take steps towards minimising your tax burden and achieving financial freedom. 

Please watch our video on this topic to gain a better insight into this. Please contact us or book an appointment to chat further on this. 

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