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Tax: the ten most popular 0% jurisdictions

Lists of tax-free jurisdictions circulate widely, and they mislead on one point: none of these destinations can be accessed remotely. All of them now require a genuine presence to have any effect.

By Editorial team · on April 4, 2026

What these lists lump together

Three very different situations appear side by side. Jurisdictions with no direct taxation, such as the Cayman Islands or Vanuatu. The Gulf States, which do not tax personal income but now tax companies.

And territorial jurisdictions, such as Panama, Paraguay or Hong Kong, which fully tax locally sourced income and leave foreign-source income outside their scope.

These three families call for different structures, different checks and different risks. Confusing them leads to poorly built projects.

A few figures for reference: the Cayman Islands have 0%¹ direct taxation, Vanuatu 0%², Bahrain 0%³ outside hydrocarbons, the Bahamas 0%⁴ excluding the global minimum tax.

The Emirates, by contrast, tax profits at 9%⁵ above AED 375,000⁶, and Qatar at 10%⁷.

A fourth family is sometimes added, wrongly: the European attractiveness regimes — Portugal, Italy, Greece, Spain. These are not zero-tax jurisdictions but special derogatory schemes, limited in time, reserved for newcomers and liable to be closed.

What has changed everywhere

Under international pressure, all these jurisdictions have adopted economic substance requirements: premises, staff, real expenditure and decisions taken locally for entities engaged in certain activities.

Domiciliation without presence has therefore stopped working. The Emirates make the zero rate in their free zones conditional on such substance; the Cayman Islands have adopted comparable requirements.

A global minimum tax has also been introduced in most of them for large multinational groups. Small structures fall outside it, but the instrument now exists in their law.

Finally, automatic exchange of information covers almost all of these destinations. The practical discretion they used to enjoy has disappeared, and what remains is low, transparent taxation.

The case of Vanuatu illustrates the residual risk: the suspension of its European visa exemption cut its passport down to about 95⁸ destinations, without the issuing State being able to do anything about it.

What France sets against them

The absence of local taxation does not end French tax domicile. Article 4 B of the French General Tax Code (code général des impôts) sets out four alternative criteria, and meeting just one is enough to keep tax domicile in France.

Several of these jurisdictions have no tax treaty with France — this is the case for Vanuatu, the Bahamas, the Cayman Islands and Paraguay. No treaty mechanism is then available to settle a dual residence.

Departure also triggers the exit tax above more than €800,000⁹ in securities, or more than 50%¹⁰ of a company's profits, for a person who has been resident for at least from 6 years¹¹ of the last ten years.

Since none of these destinations belongs to the European Economic Area, deferral is not automatic: it requires guarantees and a tax representative, and must be requested at least from 90 days¹² before the transfer.

Finally, holding assets or interests in these jurisdictions entails specific French reporting obligations, which carry heavy penalties, even where no income at all is received.

How to read such a list

Identify the family: no taxation, territoriality, or partial exemption.
Check the real entry ticket: the Cayman Islands require KYD 1,000,000¹³ and a high reference income.
Cost out island or big-city living expenses, which often wipe out the tax advantage.
Check whether a tax treaty with France exists.
Assess your ability to genuinely settle there, failing which nothing applies.

The last point sums it all up. These jurisdictions have not disappeared; they have stopped being accessible remotely. What they offer is aimed at those who live there, and the entry ticket — investment, income, cost of living, distance — strongly filters that population. A list of rates says nothing about this selection, which is nonetheless what matters most.

Please note

General information, as of the date shown. A draft reform is not a rule in force: check the conditions with the authorities or a professional before deciding. Terms of use and disclaimers

Sources and verification dates

1.
Cayman Islands: level of direct taxation : 0%
« Following the abolition in 1985 of an annual head tax of CI$10 on all adult male residents up to 60 years, there are no direct taxes in the Cayman Islands. There is no income tax, company or corporation tax, inheritance tax, capital gains or gift tax. — Cayman Islands Government, « Our Finance & Economy ». »
cigarchives.gov.kyVerified on Nov 2, 2026Verified source
2.
Vanuatu: taxation of corporate income and profits : 0%
« No income or company tax: for residents — No capital gains tax: allowing foreign investors to buy and sell properties without incurring any cost — No estate or death duties — Vanuatu Foreign Investment Promotion Agency (agence gouvernementale), page « Tax ». »
investvanuatu.vuVerified on Nov 2, 2026Verified source
3.
Bahrain: general corporate income tax : 0%
« Currently, there is no general taxation on the personal income of individuals or corporations and no withholding taxes, and no estate or gift taxes in Bahrain. — Kingdom of Bahrain, « Information on Residency for tax purposes » (OCDE). Exceptions : sociétés pétrolières et gazières (46 %) et, depuis le 1er janvier 2025, groupes multinationaux ≥ 750 M€ de chiffre d'affaires soumis au Domestic Minimum Top-up Tax de 15 % (Decree-Law No. (11) of 2024). »
oecd.orgVerified on Nov 2, 2026Verified source
4.
Bahamas: no tax on profits outside the scope of the global minimum tax : 0%
« The Domestic Minimum Top-Up Tax (DMTT) is a tax designed to ensure that Multinational Enterprise Groups (MNE Groups) pay a minimum level of tax on their income. […] DMTT applies to Multinational Enterprise Groups (MNE Groups) that meet both of the following conditions: […] The MNE Group has consolidated annual revenue of at least 750 million (or equivalent) […] It does not apply to [small businesses]. — Department of Inland Revenue, « What is DMTT? » (juin 2026). Hors de ce périmètre, aucun impôt sur les bénéfices des sociétés : seule la Business Licence (taxe sur le chiffre d'affaires) s'applique. »
inlandrevenue.finance.gov.bsVerified on Nov 2, 2026Verified source
5.
United Arab Emirates: corporate tax rate above the threshold : 9%
« CT Rate — As per Ministry of Finance, CT rates are: 0 per cent for taxable income up to AED 375,000 ; 9 per cent for taxable income above AED 375,000 […] The Federal Decree-Law applies to financial years beginning on or after 1 June 2023. — Portail officiel du Gouvernement des Émirats arabes unis (u.ae), « Corporate tax » (Federal Decree-Law No. 47 of 2022). »
u.aeVerified on Nov 2, 2026Verified source
6.
United Arab Emirates: taxable profit below which corporate tax is zero : AED 375,000
« As per Ministry of Finance, CT rates are: 0 per cent for taxable income up to AED 375,000 »
u.aeVerified on Nov 2, 2026Verified source
7.
Qatar: tax rate on the taxable income of companies : 10%
« Article 9 The tax rate shall be ten percent (10%) of the taxpayer's taxable income during the tax year. »
gta.gov.qaVerified on Nov 2, 2026Verified source
8.
Vanuatu passport: visa-free destinations : 95
« Henley Passport Index — classement des passeports par nombre de destinations accessibles sans visa préalable (données IATA), consulté à la date indiquée. Valeur reprise de l’index de l’ancien site (barème à 227 destinations). »
henleyglobal.comVerified on Nov 2, 2026Verified source
9.
France, exit tax: total value of securities triggering taxation of unrealised capital gains : €800,000
« droits sociaux, titres ou droits atteignant une valeur globale d'au moins 800 000 € ou représentant au moins 50 % des bénéfices sociaux »
impots.gouv.fr
10.
France, exit tax: share of company profits triggering taxation, regardless of value : 50%
« droits sociaux, titres ou droits atteignant une valeur globale d'au moins 800 000 € ou représentant au moins 50 % des bénéfices sociaux »
impots.gouv.fr
11.
France, exit tax: period of tax domicile required in the ten years preceding departure : 6 years
« vous avez été résident fiscal français pendant au moins six ans au cours des dix années précédant le transfert »
impots.gouv.fr
12.
France, exit tax: deadline before departure to file a request for deferral with guarantees : 90 days
« Pour les départs intervenus à compter du 22 novembre 2019, la demande doit être déposée au plus tard 90 jours avant le transfert du domicile fiscal hors de France. — Direction générale des finances publiques, impots.gouv.fr. »
impots.gouv.fr
13.
Cayman Islands: investment required for the residency certificate : KYD 1,000,000
« […] and you have invested the sum of one million dollars, of which at least five hundred thousand dollars is in developed real estate in Grand Cayman — Caymanian Protection (Amendment) Regulations, 2026 (SL 16 of 2026), Schedule 5, Part B, 5(a). Montant légal : CI$ 1 000 000. »
my.egov.ky