12 Countries With No Capital Gains Tax: The Ultimate Guide

For international investors, entrepreneurs, and expats, capital gains tax can erode the returns on long-term investments. Whether you’re trading stocks, selling property, or getting profits from cryptocurrency assets, the right tax-friendly country can make a world of difference.

In this guide, we reveal the 12 countries that legally impose no capital gains tax, offering individuals the chance to grow and protect their wealth without the heavy hand of government levies.

From tropical offshore havens to innovation hubs like Singapore and Switzerland, these destinations cater to high-net-worth individuals, digital nomads, and relocation-minded expats seeking financial efficiency and lifestyle upside.

• What is capital gains tax?
• Complete List of Countries With No Capital Gains Tax
• Frequently Asked Questions

What is capital gains tax?

Government can choose to impose capital gains tax on the profit made from the sale of a fixed asset. These assets can include real estate, stocks, bonds, businesses, precious metals, or even cryptocurrency. The gain or profit refers to the difference between what you originally paid for the asset (its purchase price or cost basis) and what you sell it for. If that amount is positive, the difference may be subject to taxation under your country of residence’s capital gains tax rules.

For example, if you bought property for $200,000 and sold it later for $300,000, the $100,000 profit may be taxable, depending on your country of residence and the nature of the asset.

Types of capital gains

Capital gains are typically categorized as either short-term or long-term, based on how long you’ve held the asset before selling it. In many tax systems, short-term gains (usually from assets held less than a year) are taxed at higher rates than long-term gains, which are incentivized with lower tax rates to encourage longer-term investment.

Some countries also apply different tax treatments depending on the type of asset. For example, if you have to pay capital gains tax on real estate, it differs from when you have to for investment in stocks or digital assets.

Why capital gains tax matters for investors and expats

When you have to pay capital gains tax, it can significantly impact your overall wealth accumulation and investment strategy. That’s why many high-net-worth individuals, entrepreneurs, and digital nomads look to establish their country of tax residence in nations that do not impose capital gains tax, allowing them to retain more of their earnings and reinvest without punitive tax consequences.

Complete List of 12 Countries With No Capital Gains Tax

1. Bahrain

Bahrain stands out in the Gulf region as a zero capital gains tax system with a pro-business environment and open economy. The absence of both income and capital gains tax has made it a favored destination for investors, financial institutions, and entrepreneurs looking to establish a Middle Eastern base.

Its diversified economy includes banking, fintech, logistics, and manufacturing, supported by a modern regulatory framework and liberal market policies. The government generates revenue mainly through VAT, customs duties, and business fees rather than taxing personal wealth or investment returns.

Although the cost of living is more moderate than in neighboring UAE or Qatar, expats are expected to navigate local sponsorship systems and rising residency-related costs. Still, Bahrain’s tax structure and ease of doing business make it highly attractive for capital-efficient global investors.

2. The Bahamas

The Bahamas is a country that doesn’t impose capital gains tax, which makes it an attractive destination for investors and financial services. Its tax system is designed to encourage foreign investment and boost economic activity without imposing direct taxation on income, inheritance, or capital gains.

Instead, the government relies on indirect taxes like value-added tax (VAT), import duties, and property taxes to generate revenue. This approach has made The Bahamas a popular choice for real estate investors, as property value appreciation is not subjected to capital gains tax.

Moreover, The Bahamas is known as a tax haven because of its regulatory framework, which supports privacy and asset protection. The country has a well-established banking and financial services sector that caters to international businesses and high-net-worth individuals seeking favorable tax conditions.

Despite criticisms of being a tax haven, The Bahamas maintains that its tax policies are intended to promote economic growth and job creation and maintain its competitive edge as a global financial center.

3. The United Arab Emirates (UAE)

The taxes in UAE are highly favorable for businesses and investors, as it does not impose capital gains tax on most investments. This tax policy is part of the UAE’s strategy to diversify its economy beyond oil and establish itself as a leading global business hub.

The lack of capital gains tax applies to both residents and non-residents, making the UAE an attractive destination for international investors, especially when paired with the opportunity provided by the UAE Golden Visa.

Furthermore, the country’s free zones offer additional tax incentives, such as 100% foreign ownership, full repatriation of profits, and exemption from import and export taxes.

These benefits are designed to attract foreign direct investment in key sectors like technology, finance, and renewable energy. The UAE’s approach to taxation, including the absence of capital gains tax, has contributed to its rapid economic growth and the development of world-class infrastructure.

However, the UAE has also implemented VAT and excise taxes to diversify government revenue sources and ensure sustainable development. This balanced approach maintains the UAE’s tax-competitive environment while addressing the need for public services and infrastructure.

4. Cayman Islands

The Cayman Islands are known for not having direct taxes, including no capital gains tax. This makes them attractive to international investors and financial service providers. This tax policy is an essential part of the economic model of the Cayman Islands, which aims to attract hedge funds, private equity funds, and multinational corporations seeking tax-efficient operations and investments.

The lack of a capital gains tax is complemented by no direct taxes on corporate earnings, income, or wealth, providing a simple and beneficial tax environment for both individuals and businesses.

The government derives its revenue from indirect sources, such as fees for company registration, work permits, and import duties.

This tax structure supports the Cayman Islands’ position as a leading offshore financial center, hosting a significant percentage of the world’s investment funds. The regulatory framework of the islands is tailored to meet international standards of transparency and cooperation in tax matters, aiming to balance tax benefits with responsible participation in the global financial system.

5. Monaco

Monaco is a well-known location for its tax-friendly environment. The principality exempts residents from personal income tax, inheritance tax, and capital gains tax.

This policy has made Monaco an attractive destination for wealthy individuals who wish to preserve their wealth. The principality’s tax regime is part of a broader strategy to maintain its status as a luxurious and prestigious place to live and conduct business.

Monaco’s economy benefits from high-end tourism, real estate, finance, and yachting. The absence of capital gains tax makes it more appealing for real estate investment, with property values among the highest in the world. Monaco earns revenue through VAT, corporate taxes on companies earning revenue from outside Monaco, and various fees and duties.

The principality has established strict residency requirements and invests in public services and infrastructure to ensure that its tax policies support the well-being of its residents and the economic stability of the country.

6. Barbados

Barbados has created a favorable tax environment to encourage foreign investment and boost its economy. The country has developed a diverse economy, with its key sectors being tourism, international business, and financial services.

To attract more businesses, Barbados offers various tax incentives, including special regimes for international companies that provide exemptions from certain taxes and duties.

One notable feature of Barbados’ tax system is the absence of capital gains tax, which makes it an attractive location for investment, especially in real estate and financial assets.

While maintaining a competitive tax system, the government ensures compliance with international tax transparency standards. Barbados’ taxation approach supports its development goals, attracts international business, and ensures sustainable economic growth.

7. Belize

Belize offers a business-friendly environment to attract foreign investors and retirees. Its tax system is structured to promote investment and economic development, with various incentives, such as the Qualified Retired Persons (QRP) program, which provides tax exemptions.

The country’s economy is based on tourism, agriculture, and offshore financial services, which are sectors that the government encourages to grow. Belize does not have a capital gains tax, which is part of its broader strategy to create an advantageous tax regime.

Additionally, Belize has taken steps to improve its regulatory framework for financial services to address concerns about transparency and financial integrity. Its natural beauty, along with its tax policies, makes Belize an attractive destination for investors interested in emerging markets.

8. Isle of Man

The Isle of Man is a self-governing British Crown Dependency known for its political stability, investor-friendly policies, and favorable tax regime. Crucially, the island imposes no capital gains tax, making it an attractive jurisdiction for wealth preservation and long-term asset growth.

Its economy is diversified across finance, insurance, tech, and aerospace, supported by a modern legal system and robust infrastructure. The government relies on indirect taxation, such as VAT and a capped personal income tax rate, rather than taxing investment gains.

This simplified, low-tax environment appeals to high-net-worth individuals and fund managers alike, and it’s an opportunity to attract foreign capital. However, the Isle of Man does enforce economic substance requirements for certain entities, ensuring real business activity supports its tax model.

9. New Zealand

New Zealand is one of the few developed countries that does not have a comprehensive capital gains tax, offering a unique tax advantage in an otherwise highly regulated economy. While some property sales may be taxed under specific conditions, most personal investments, including shares and business interests, are exempt.

This tax simplicity, paired with New Zealand’s high quality of life, transparent legal system, and strong property rights, has made it a magnet for entrepreneurs, digital nomads, and expats seeking financial clarity.

The government primarily raises revenue through income tax and consumption-based taxes like GST. Though real estate investors must navigate special rules, the broader tax environment remains favorable for long-term investors with non-speculative goals.

10. Jersey

Jersey, the largest of the Channel Islands located between France and Germany, is renowned for its favorable tax environment. Notably, capital gains are not subject to tax in Jersey, making it an attractive destination for investors seeking tax efficiency.

The island’s tax system is characterized by its simplicity and stability. Personal income is taxed at a flat rate of 20%, with exemption thresholds and marginal rates designed to protect lower-income individuals. Additionally, Jersey does not levy inheritance or wealth taxes.

For corporations, the standard income tax rate is 0%, with exceptions for specific sectors such as financial services, utility companies, and large corporate retailers, which are taxed at higher rates.

Jersey’s robust legal framework, political stability, and strategic location between the UK and France further enhance its appeal to high-net-worth individuals and businesses.

However, it’s important to note that while the tax regime is advantageous, Jersey has implemented stringent regulatory measures to ensure compliance and maintain its reputation as a well-regulated international finance center.

11. Switzerland

Switzerland offers a well-balanced tax system that is particularly favorable for private investors. Capital gains on private securities are generally exempt from taxation, unless the seller is deemed a professional trader — a classification based on criteria such as turnover and holding periods.

The country’s cantonal structure means tax treatment can vary regionally, but the overall approach is supportive of long-term wealth accumulation. Switzerland’s robust banking system, strong privacy laws, and investment infrastructure add to its appeal.

While living costs are high and compliance rules strict, Switzerland remains a premier destination for wealth preservation, especially for individuals with diversified investment portfolios and a preference for political and economic stability.

12. Singapore

Singapore is a global financial powerhouse renowned for its zero capital gains tax policy. Profits from the sale of shares, property, and other investments are typically tax-free, provided they are not classified as income from a trading business.

This tax neutrality, combined with a strong rule of law, world-class infrastructure, and an extensive network of double taxation treaties, makes Singapore a top destination for wealth management, corporate expansion, and family offices.

The government funds public services primarily through consumption taxes (GST), corporate tax, and income tax, but leaves long-term capital appreciation untouched. While the cost of living is high, investors benefit from stability, predictability, and regulatory efficiency.

Frequently Asked Questions About Countries That Have No Capital Gains Taxes

What are the benefits of investing in a country with no capital gains tax?

Investing in countries without capital gains tax can boost net returns on investments, simplify tax planning, and attract international investors, creating a vibrant investment community.

Are there any drawbacks to investing in a country with no capital gains tax?

Countries without capital gains tax may impose higher taxes in other areas, such as property or consumption taxes. There may also be regulatory challenges, higher living costs, or less political stability in these countries. Moreover, they may offer fewer government-funded public services and infrastructure.

Which countries do not impose capital gains tax?

Countries that do not impose capital gains tax include Bahrain, Bermuda, Cayman Islands, Isle of Man, Monaco, New Zealand, Switzerland (on private property), and the UAE.

Which countries exempt capital gains tax on stock investments?

Some countries exempt capital gains on stocks entirely or under specific conditions. For example, Singapore and Hong Kong typically do not tax capital gains on stocks, while Belgium exempts gains for individual, non-professional investors.

Which countries do not tax capital gains on cryptocurrency transactions?

Countries with no capital gains tax on cryptocurrency include Germany (if held for over a year), Portugal (for individuals), Singapore, and El Salvador. These jurisdictions are popular among crypto investors for their tax-friendly policies.

Are there countries that do not impose capital gains tax on property sales?

Yes. In New Zealand, there’s generally no capital gains tax on property, unless the property was purchased with the intent to sell. Monaco and the Cayman Islands also do not tax property sales. Some countries offer exemptions for primary residences.

Are there any European countries that do not levy capital gains tax?

Yes. Notable European countries with no or minimal capital gains tax include Monaco (no CGT), Belgium (exemptions for individuals), and Switzerland (varies by canton and asset type). Tax treatment often depends on your residency and the asset sold.

In which countries are capital gains from shares not taxed?

Countries such as Singapore, New Zealand, and Hong Kong do not tax capital gains from shares. In Belgium, capital gains on shares are also tax-exempt for private investors unless classified as professional or speculative income.