Best and Worst Countries for the Rich

If you want to live richer, you might be better off if you moved to another country. In the U.S., the individual income tax rate is 37 percent, and the country has a score of 72.95 on the Numbeo cost of living index. However, there are many countries where the cost of living and income tax rate are lower, which means you’ll be able to hold onto more of your wealth. Conversely, in some countries the cost of living is higher, and income tax rates are as high as 57 percent.

To determine the best and worst countries for the rich, GOBankingRates considered each nation’s individual income taxes, education, life expectancy, local purchasing power, cost of living and income per capita. Countries were ranked for each category, and the overall score was used to determine the best and worst.

Click through to see what you can do to boost your retirement savings now — and where you might want to lived based on your financial status.

All of the 20 worst countries for the rich have higher income taxes than the U.S., but many have a higher cost of living as well. Most of the worst countries to live are located in Europe, but countries in Asia and Africa also made the list.

Click through to find out the worst countries for the rich.

• Income tax rate: 45%
• Cost of living index: 63.15
• Local purchasing power: 53.8
• Income per capita: $27,800

Although the cost of living is on the lower side in Greece — it ranks as one of the countries where your Social Security check goes the furthest for this reason — it also has some of the highest income taxes and a low income per capita compared with other Western countries.

• Income tax rate: 40%
• Cost of living index: 131.39
• Local purchasing power: 126.165
• Income per capita: $61,400

Switzerland is one of the countries with the wealthiest people, but it has the highest cost of living of all the countries included in this study — which makes it one of the worst countries for the rich. However, it’s the third-best country in terms of its score on the human development index.

• Income tax rate: 49%
• Cost of living index: 83.86
• Local purchasing power: 101.21
• Income per capita: $43,600

France has one of the highest cost-of-living index scores compared with the other countries included in this study. It has one of the highest income tax rates as well, making it one of the countries that pay more in taxes than Americans.

• Income tax rate: 48%
• Cost of living index: 55.86
• Local purchasing power: 61.97
• Income per capita: $30,300

Although cost of living in Portugal is lower than in the U.S., the country has a higher income tax rate. In fact, it’s among the worst countries for taxes, a separate GOBankingRates study found.

• Income tax rate: 46.6%
• Cost of living index: 113.7
• Local purchasing power: 107.95
• Income per capita: $70,600

Norway has relatively high income taxes. But on the plus side, it’s one of the happiest countries in the world, according to the 2018 World Happiness Report.

• Income tax rate: 36%
• Cost of living index: 66.88
• Local purchasing power: 34.31
• Income per capita: $22,400

Compared with the U.S., Uruguay has a slightly lower income tax rate and cost of living. But the income per capita is also lower, which could make it a bad choice for people who want to stay rich.

• Income tax rate: 50%
• Cost of living index: 83.35
• Local purchasing power: 98.91
• Income per capita: $46,300

With a 50 percent income tax rate, Belgium is tied with Israel and Slovenia for the eighth-highest rate of all the countries included in this study. The European nation also has some of the highest living costs.

• Income tax rate: 50%
• Cost of living index: 86.53
• Local purchasing power: 102.3
• Income per capita: $36,200

Israel has both high taxes and a high cost of living. The Middle Eastern country has the ninth-highest cost of living and the eighth-highest income tax rate compared to the other countries included in this study.

• Income tax rate: 53.75%
• Cost of living index: 81.7
• Local purchasing power: 119.42
• Income per capita: $44,000

Finland has the fifth-highest income tax rate of all the countries included in this study. Although it has a higher cost of living than the U.S., residents are happier in Finland than America.

• Income tax rate: 38%
• Cost of living index: 37.12
• Local purchasing power: 45.07
• Income per capita: $8,600

Morocco’s income tax rate exceeds that of the United States. And while the cost of living is cheap, the local purchasing power is weak and education standards are below-average.

• Income tax rate: 57.34%
• Cost of living index: 83.7
• Local purchasing power: 113.01
• Income per capita: $51,300

Sweden has the highest income taxes of all the countries included in this study. Its cost of living is relatively high, but so is its income per capita, which prevents Sweden from ranking higher on the list.

• Income tax rate: 37.5%
• Cost of living index: 46.49
• Local purchasing power: 101.26
• Income per capita: $4,000

In terms of cost of living and purchasing power, Zambia actually scores solidly. What undermines its rank in the study is low life expectancy, education and income per capita.

• Income tax rate: 55.85%
• Cost of living index: 93.3
• Local purchasing power: 117.53
• Income per capita: $49,600

It’s hard to keep your wealth in Denmark: The country has the third-highest income tax rate compared to the other countries included in this study. On the plus side, it has the second-highest education score.

• Income tax rate: 55%
• Cost of living index: 81.47
• Local purchasing power: 98.69
• Income per capita: $49,200

Austria has the fourth-highest income tax rate of all the countries included in this study. Income taxes are 18 percent higher in Austria than the U.S., and the cost of living is higher as well.

• Income tax rate: 55.95%
• Cost of living index: 86.58
• Local purchasing power: 107.35
• Income per capita: $42,700

With the second-highest income tax rate and the eighth-highest cost of living compared to the other countries included in this study, Japan rounds out the top five worst countries for the rich. On the positive side, although you might not be able to live richly in Japan, you could live longer: It has the highest life expectancy of all the countries in this study.

• Income tax rate: 46.24%
• Cost of living index: 123.96
• Local purchasing power: 87.84
• Income per capita: $52,100

With the second-highest cost of living and a relatively high income tax rate compared to the other countries in this study, Iceland ranks as one of the worst country for the rich.

• Income tax rate: 45%
• Cost of living index: 48.05
• Local purchasing power: 99.83
• Income per capita: $13,400

South Africa’s 45 percent top marginal income tax is loftier than the U.S. And in recent years, taxation on the nation’s wealthy citizens has gotten more severe, with capital gains taxes, dividend withholding and tax brackets at record levels, according to BusinessTech, a South African publication.

• Income tax rate: 40%
• Cost of living index: 32.67
• Local purchasing power: 21.39
• Income per capita: $2,400

Uganda has the third-highest top income tax rate in Africa, behind Zimbabwe and South Africa. Though cost of living is cheap, poor life expectancy and education conditions are not conducive to living a richer life.

• Income tax rate: 35%
• Cost of living index: 47.55
• Local purchasing power: 14.98
• Income per capita: $2,100

Ethiopia has relatively high income taxes, but its worst features are the country’s low education score and per capita income. Local purchasing power is also very low in Ethiopia.

• Income tax rate: 51.5%
• Cost of living index: 49.54
• Local purchasing power: 27.29
• Income per capita: $2,300

A combination of low income per capita and high income taxes makes Zimbabwe the worst country for the rich. Its income per capita is the second lowest of all the countries included in this study, and its income taxes are the seventh highest.

Zimbabwe also has the fourth-lowest life expectancy of all the countries, so you won’t live richly there or for very long.

Not having to pay income tax might seem too good to be true, but it’s the reality in the six best countries for the rich. Most of the best countries are located in the Middle East, and tend to have high purchasing power and income per capita.

Keep reading to see the best countries for the rich.

Want to Stay in the US? Here Are the Best and Worst States for the Middle Class

• Income tax rate: 18%
• Cost of living index: 25.98
• Local purchasing power: 30.24
• Income per capita: $8,700

Compared with  the other countries included in this study, Ukraine has the third-lowest cost of living. It also has the seventh-lowest income tax rate, which is good news for the rich.

• Income tax rate: 0%
• Cost of living index: 100.68
• Local purchasing power: 71.4
• Income per capita: $25,100

Boasting no individual income tax, the Bahamas offers the wealthy beautiful weather, beaches and one of the best tax havens in the world.

• Income tax rate: 20%
• Cost of living index: 57.65
• Local purchasing power: 74.82
• Income per capita: $31,500

Like many Eastern European countries, Estonia’s top marginal income tax rate is fairly low at just 20 percent. Individual incomes are high while cost of living, at 57.65, is a little over 40 percent cheaper than the U.S.

• Income tax rate: 13%
• Cost of living index: 43.89
• Local purchasing power: 51.11
• Income per capita: $27,900

Russia is tied with Belarus for the fifth-lowest income tax rate of all the countries included in this study. It also has a relatively low cost of living.

• Income tax rate: 15%
• Cost of living index: 53.24
• Local purchasing power: 57.29
• Income per capita: $31,900

Lithuania scored well in the education and individual income tax rate categories, helping it rank among the best countries for the wealthy.

• Income tax rate: 15%
• Cost of living index: 48.6
• Local purchasing power: 50.62
• Income per capita: $28,900

The cost of living in Hungary is about half that of the U.S. Combine that with a top marginal income tax rate of only 15 percent, and Hungary comes in as the No. 15 best country for the rich.

• Income tax rate: 13%
• Cost of living index: 34.06
• Local purchasing power: 41.32
• Income per capita: $18,600

Belarus has a low cost of living, as well as the fifth-lowest income tax rate of all the countries included in this study.

• Income tax rate: 10%
• Cost of living index: 34.84
• Local purchasing power: 42.55
• Income per capita: $15,200

Macedonia’s cost of living is among the lowest of all the countries included in this study, and its income tax rate is the fourth lowest.

• Income tax rate: 10%
• Cost of living index: 39.59
• Local purchasing power: 41.81
• Income per capita: $15,200

Serbia is one of six countries in our ranking with a 10 percent income tax rate — the fourth-lowest tax rate of all the countries included in this study.

• Income tax rate: 10%
• Cost of living index: 39.26
• Local purchasing power: 52.4
• Income per capita: $11,400

If you want to hold onto the majority of your income, Bosnia and Herzegovina is a good place to live. The region has the fourth-lowest income tax rate of all the countries included in this study.

• Income tax rate: 10%
• Cost of living index: 34.25
• Local purchasing power: 40.75
• Income per capita: $26,100

Although Kazakhstan has the same low income tax rate as Serbia, a lower cost of living bumps it to a higher spot in our ranking for best countries for the rich.

• Income tax rate: 10%
• Cost of living index: 41.21
• Local purchasing power: 54.44
• Income per capita: $21,600

Bulgaria is tied for the fourth-lowest income tax rate of all the countries included in this study, bringing it to the No. 9 spot.

• Income tax rate: 9%
• Cost of living index: 44.41
• Local purchasing power: 48.68
• Income per capita: $17,400

At 9 percent, Montenegro has the third-lowest income tax rate of all the countries in this study. Its cost of living falls toward the middle of the ranking, which prevents the nation from ranking higher overall.

• Income tax rate: 10%
• Cost of living index: 39.71
• Local purchasing power: 66.2
• Income per capita: $24,000

Low income taxes and a low cost of living make Romania one of the best countries for the rich.

• Income tax rate: 0%
• Cost of living index: 59.63
• Local purchasing power: 72.29
• Income per capita: $51,800

Bahrain is one of seven countries included in this study with zero income taxes — which is great news for people who want to hold onto their wealth. The country also has one of the highest income per capita.

• Income tax rate: 0%
• Cost of living index: 56.9
• Local purchasing power: 100.58
• Income per capita: $69,700

Kuwait has the sixth-highest income per capita of all the countries included in this study — and you don’t have to pay any income tax in the country.

• Income tax rate: 0%
• Cost of living index: 49.31
• Local purchasing power: 99.24
• Income per capita: $45,500

Of the countries with no income taxes, Oman has the second-lowest cost of living, making it one of the best countries for the rich.

• Income tax rate: 0%
• Cost of living index: 67.21
• Local purchasing power: 124.78
• Income per capita: $68,200

The United Arab Emirates has no income taxes and a high income per capita. The nation’s cost of living is also low compared to the U.S.

• Income tax rate: 0%
• Cost of living index: 47.86
• Local purchasing power: 131.46
• Income per capita: $55,300

Saudi Arabia has the lowest cost of living of all the countries with no income taxes. It also has the largest local purchasing power of any country included in this study.

Overall, it’s the second cheapest country to live in, a separate GOBankingRates study found.

• Income tax rate: 0%
• Cost of living index: 65.37
• Local purchasing power: 125.05
• Income per capita: $124,900

Qatar is the best country for the rich. The country has no income taxes and the highest income per capita of all the countries included in this study. Plus, the cost of living is lower than in the U.S.

If you want to move abroad, it’s worth considering how the country’s taxes and cost of living will affect your wealth. With a wide range in both, some countries are better for the rich than others.

The 20 best countries for the rich are:

1. Qatar
2. Saudi Arabia
3. United Arab Emirates
4. Oman
5. Kuwait
6. Bahrain
7. Romania
8. Montenegro
9. Bulgaria
10. Kazakhstan
11. Bosnia and Herzegovina
12. Serbia
13. Macedonia
14. Belarus
15. Hungary
16. Lithuania
17. Russia
18. Estonia
19. Bahamas
20. Ukraine

The 20 worst countries for the rich are:

1. Zimbabwe
2. Ethiopia
3. Uganda
4. South Africa
5. Iceland
6. Japan
7. Austria
8. Denmark
9. Zambia
10. Sweden
11. Morocco
12. Finland
13. Israel
14. Belgium
15. Uruguay
16. Norway
17. Portugal
18. France
19. Switzerland
20. Greece

Click through to read more about the best and worst places to retire rich.

More on Economy:

• This Expert Doesn’t Use the Popular 50/30/20 Budget Rule
• Richest and Poorest Area Codes in the US
• Cities Where You Can Realistically Live on Minimum Wage

Methodology: GOBankingRates determined the best and worst countries for the rich based on the following factors: (1) individual income taxes, using the highest marginal rate, sourced from KPMG; (2) education index, (3) life expectancy index, all sourced from United Nations Development Programme; (4) local purchasing power index, (5) overall cost of living index, sourced from Numbeo on April 20, 2018; (6) income per capita, sourced from the CIA World Factbook.