Best Countries for Americans by Taxes (2026)

Frequently asked questions

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  What does "Taxes" measure in the 2026 Expat Almanac?

  Taxes captures three factors from an American resident's perspective: local-country rate structure, treatment of foreign (US-source) income, and whether a US treaty is in force. It does not evaluate US federal tax; Americans pay US federal tax on worldwide income regardless of where they live. It captures whether a country layers substantial local tax on top of that federal return.

• What are the best low-tax countries for American expats?

  The UAE, Bahamas, Monaco, Vanuatu, and a small number of Caribbean citizenship-by-investment countries offer zero income tax on foreign source. Territorial-tax jurisdictions like Panama, Costa Rica, Uruguay, and Paraguay tax local-source income but exempt foreign-source. Malta's non-dom, Cyprus's non-dom, Portugal's revised NHR, and Italy's flat tax offer favorable special regimes for a limited window.

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  Do Americans still pay US tax if they move to a zero-tax country?

  Yes. The United States taxes its citizens on worldwide income. Moving to the UAE eliminates the local layer of tax but not the US federal return. Americans can offset some of that using the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC), which is where a licensed cross-border tax advisor earns their fee. This is not tax advice.

• What is a territorial-tax country and why does it matter for Americans?

  A territorial-tax country only taxes income sourced inside its borders. Foreign salary, foreign dividends, foreign capital gains, foreign rental income are exempt from local tax. For an American whose income sources sit in the US, that means the local-country tax bill is zero or near-zero. Panama, Costa Rica, Paraguay, Uruguay, Georgia (the country), Malaysia, and Singapore all operate territorial regimes with varying rules.

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  How does Malta's tax regime work for American residents?

  Malta's non-dom regime taxes only Malta-source income and Malta-remitted foreign income for non-domiciled residents. American residents who do not remit foreign income to Malta only pay Malta tax on their Malta-source earnings. Combined with Malta's EU membership and English-language administration, this makes it one of the strongest tax positions in Europe for an American. Structuring it correctly is where a licensed cross-border tax advisor earns their fee.

• Which countries are worst on taxes for Americans?

  Belgium, France, Norway, Denmark, and Finland score lowest on the Taxes column due to high marginal rates, worldwide-income taxation of residents, and limited relief for US-source income. France remains attractive despite this because the US-France tax treaty is one of the most favorable in the world for American retirees. Everything is relative.