As the new tax year rolls in, many Brits might be assessing their finances for the next 12 months and thinking of ways to get more out of their money.
With high rental costs in the UK as well as taxes and other expenses, moving abroad to somewhere less pricey might seem tempting.
New research has revealed the best countries to relocate to in 2026 for low or no tax.
International health insurance specialists at William Russell looked into several factors including net salary levels, property purchase prices, rental costs for expats, and utility bills, giving each country an overall score out of 10.
1. Panama
Panama ranked as the best destination to relocate to for better tax rates
Located in Central America, Panama ranked first in the study and scored seven out of 10 overall.
The country has a territorial tax system, where foreign-sourced income is not taxed locally.
It’s the perfect spot for those prioritising financial efficiency, cost of living and taxation – with property averaging at £1,753 per square metre and a one-bedroom apartment costs around £652 a month.
Paired with relatively low day-to-day expenses – around £580 is spent per person in living costs a month – it has strong factors to create financial stability. Although, the average monthly salary is £613.
The country’s ‘Pensionado’ programme also provides a range of discounts that support overall affordability.
2. Bahrain
Bahrain, located in the Middle East, came second due to residents not paying personal income tax but still having strong earning potential
A small island tucked away in the Middle East, Bahrain placed second due to residents not paying personal income tax but still having strong earning potential.
Property prices average at £1,622 per square metre, or renting a one-bedroom apartment comes to just £552 a month.
Meanwhile, living expenses aren’t too high either, at £609 per person – only a fraction of the average monthly salary of £1,674.
Bahrain scores 6.93 out of 10 overall.
3. Andorra
Although Andorra isn’t completely tax free, the country still offers a good deal for residents
Although Andorra isn’t completely tax free, the country still offers a good deal for residents.
Located in the Pyrenees mountains, the low-tax jurisdiction charges from zero to 10 per cent income tax, depending on how much you earn.
It also applies a value-added tax to goods and services sold in the country, instead of a sales tax, and this works out the be the lowest VAT in Europe, according to Andorra Guides.
Low tax rates paired with high income levels of £2,239 per month on average, Andorra is a great place for offering a strong chance of financial stability.
Monthly costs work out to be around £662 per person and rent is £858. Property price was one of the highest in the ranking however, at £4,001 per square metre.
4. Mauritius
A dreamy island country located in the Indian Ocean, Mauritius ranked fourth overall
A dreamy island country located in the Indian Ocean, Mauritius ranked fourth overall.
It has a 15 per cent flat tax and moderate island living costs – averaging at £439 a month, per person.
The monthly net salary works out to be around £537, meanwhile a one-bedroom apartment can cost £293.
Property prices are £2,285 per square metre on average.
5. Qatar
Qatar does not charge tax on personal income, capital gains or inheritance
Another Middle Eastern location, Qatar does not charge tax on personal income, capital gains or inheritance.
Monthly salaries are high at around £2,828 and expenses low at £678 a month.
The country ranked fifth overall and scored 6.4.
It does have one of the more costly average property prices however, at £2,907 per square metre.
Rent is also around £1,041 on average for a one-bed.
6. Malta
Elsewhere, Malta boasts a remittance tax system available to UK residents
Malta has English as an official language and a remittance tax system available to UK residents.
The country’s tax residency scheme offers a flat 15 per cent tax rate on foreign income remitted to Malta, with no local tax on overseas income kept outside of Malta, according to Tax Advisory Partnership.
Capital gains made outside of Malta are exempt from tax, even if the proceeds are remitted to Malta.
With an average monthly net salary of £1,383 and low costs – around £670 a month – Malta is a good location for saving money.
7. Cyprus
From this year, Cyprus offers a €22,000 (£19,061) annual tax-free income threshold for individuals – making it highly appealing to British expats
From this year, Cyprus offers a €22,000 (£19,061) annual tax-free income threshold for individuals – making it highly appealing to British expats.
It comes out strong in the research, ranking seventh, and scores 5.99 out of 10.
The average monthly salary works out at £1,480 and expenditure is £750. Rent for a one-bed apartment averages at £679 and the average property price per square metre is £2,417.
8. Seychelles
Located in the western Indian Ocean, the Seychelles is not completely tax free but does offer a good deal
Located in the western Indian Ocean, the Seychelles is not completely tax free but does offer a good deal.
Made up of an archipelago of 115 islands, the country follows a residence taxation model.
Residents pay tax on worldwide incomes and non-residents are charged on local incomes.
Property is only £611 per square metre and the average one-bed rent is £670 per month.
Income works out at £608 a month on average, but expenses are around £775.
9. United Arab Emirates
Skyscrapers, luxurious shopping malls and year-round sun often draws people to the United Arab Emirates
Skyscrapers, luxurious shopping malls and year-round sun often draws people to the United Arab Emirates.
The UAE doesn’t tax individuals on their person income, but does charge a five per cent value added tax on goods and services.
Average monthly salary is high comparatively, at £2,368, and expenses work out at around £713.
Property prices are £3,353 per square metre or £934 a month to rent.
10. Ireland
Ireland finishes off the top 10 with its 12.5 per cent charge for trading income
Under the Common Travel Area (CTA), UK citizens have the right to live, work, and retire in Ireland without requiring a visa.
The country has personal income tax of up to 40 per cent – but charges two rates of corporation tax.
There is a 12.5 per cent charge for trading income, and 25 per cent for non-trading income, such as renting for example, or income from an excepted trade.
Paired with a average monthly salary of £2,661 and estimated monthly costs per person at £868, Ireland rounds off the top 10.
