Moving overseas advice
Countries with highest taxes
Key takeaways
- The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey.
- Other countries with high taxes are Finland (56%), Japan (55%), Austria (55%), Denmark (55%), Sweden (52%), Aruba (52%), Belgium (50%), Israel (50%), and Slovenia (50%).
- Not all countries have taxes, but the majority do use income tax to fund public services like education, healthcare, infrastructure and defence.
What country has the highest taxes?*
The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey, followed by Finland (56%), Japan (55%), Austria (55%), Denmark (55%), Sweden (52%), Aruba (52%), Belgium (50%), Israel (50%), and Slovenia (50%).
Data Panda based its results on each nation's top tax rate for its highest earners. European countries make up 70% of the list's top 20 thanks to a focus on accessible government-funded services, including healthcare and education. Perhaps surprisingly, the United States ranks 43rd, with a top federal income tax rate of 37%. Compared to other developed nations, the low rate stems from a historical emphasis on limited government intervention and fostering economic growth through lower taxation.
If you're wondering where to relocate overseas, below we provide more information about the ten most taxed countries to help you decide.
1. Ivory Coast
Personal income tax: 10% to 60% | Corporate income tax: 25% | Value-added tax: 18%
Ivory Coast has one of the world's highest personal income tax rates, reaching 60% for top earners. Tax revenue helps manage its moderately high government debt and fund education, healthcare, and infrastructure. However, ongoing issues, including corruption and inefficiency, limit effectiveness.
Expats residing in Ivory Coast for more than 183 days in a calendar year are classified as tax residents and must pay tax on all global income. Non-residents only pay tax on income earned within Ivory Coast.
2. Finland
Personal income tax: 12% to 57% | Corporate income tax: 20% | Value-added tax: 25.5%
Finland uses a progressive tax system to pay for social welfare programs and public services, including universal healthcare, free education and social security benefits. The top marginal rate of 56.95% (including municipal and church taxes) supports wealth redistribution and maintains robust public services.
Foreigners who move to Finland are subject to residency-based taxation and only pay taxes on worldwide income once they reside in Finland for over six months. Until then, expats just pay taxes on income earned within the country.
3. Japan
Personal income tax: 5% to 56% | Corporate income tax: 30% | Value-added tax: 10%
Japan's top earners face an income tax rate of 55.97%, which includes national, local, and reconstruction taxes. Tax revenue supports public healthcare, pension schemes, and disaster recovery efforts, including rebuilding projects after the 2011 Great East Japan Earthquake.
Foreign permanent residents in Japan pay taxes on all global income, while non-permanent residents (those living in Japan for fewer than five years) are charged a flat tax rate of 20.42% on Japanese-sourced income.
4. Austria
Personal income tax: 0% to 55% | Corporate income tax: 23% | Value-added tax: 20%
Austria's top marginal tax rate, 55%, is among the highest in Europe. The country's progressive tax system helps finance universal healthcare, free higher education, public transport, and a generous pension system.
Expats who live in Austria for more than six months are taxed on their global income, while non-residents only pay taxes on Austrian earnings. The country has tax treaties with many nations, including Australia, Canada and the US, preventing foreigners from being taxed twice on the same income.
5. Denmark
Personal income tax: 55% | Corporate income tax: 22% | Value-added tax: 25%
Citizens in Denmark pay the most taxes overall, thanks to a top marginal income tax rate of around 55% and an overall tax burden (taxes as a percentage of GDP) of over 45%, one of the highest globally. However, the Nordic nation regularly tops polls as one of the best places to live in the world!
Expats residing in Denmark for more than six consecutive months are considered tax residents and must pay taxes on their global income. However, the Nordic nation's expat tax scheme allows researchers and select professionals to pay a reduced flat tax rate (27%) for up to seven years.
6. Sweden
Personal income tax: 52% | Corporate income tax: 20% | Value-added tax: 25%
Sweden imposes a top income tax rate of 52.3% for high earners, which helps fund public transport and environmental initiatives. It also has a renowned welfare system, including free healthcare, tuition-free university education, and generous parental leave.
Expats who live in Sweden for over six months must pay tax on their worldwide earnings, while non-residents are taxed only on Swedish income. Expertbeskattning is a scheme that enables highly skilled foreign professionals to benefit from a reduced flat tax rate of 25% for up to seven years.
7. Aruba
Personal income tax: 52% | Corporate income tax: 22% | Value-added tax: 0%
Aruba's progressive tax system ranges from 0% on income up to AWG 34,930 (around US$19,378) to 52% for income above AWG 135,527 (around US$75,188). While income tax remains essential for public services, unlike many high-tax countries, Aruba also relies heavily on tourism revenue.
Tax on worldwide income for expats assesses an individual's centre of vital interests based on duration of stay, home-owner status and economic and social ties. Those residing in Aruba for short durations are taxed only on income earned within the country.
8. Belgium
Personal income tax: 25% to 50% | Corporate income tax: 25% | Value-added tax: 21%
Belgium's progressive tax system includes a top rate of 50%, which helps fund a strong social welfare system, universal healthcare, reliable public transport, generous pension schemes, extensive unemployment benefits, and subsidised public services.
Expats in Belgium pay taxes on their worldwide income if they have established a permanent residence or a "seat of wealth". Determining factors include enrollment in the National Register and the location of the taxpayer's family and financial interests.
9. Israel
Personal income tax: 10% to 50% | Corporate income tax: 23% | Value-added tax: 18%
Israel has a top progressive marginal income tax rate of 50%, which includes national insurance contributions. Tax revenue funds public healthcare, education, and infrastructure. Due to Israel's delicate security situation, the government also allocates a significant portion of tax funds to defence.
Expats are subject to local taxation if they become tax residents, defined as spending 183 days in Israel per calendar year or having significant economic ties. New immigrants are exempt from taxation on foreign income (including interest, dividends, and pensions) for ten years.
10. Slovenia
Personal income tax: 16% to 50% | Corporate income tax: 19% | Value-added tax: 22%
Slovenia's top income tax rate of 50% supports free healthcare, public education, infrastructure projects, and social welfare programmes. Additionally, the country has made significant strides in promoting innovation and research, focusing on green industries.
Foreigners who spend more than 183 days per year in Slovenia are taxed on their worldwide income, while non-residents pay tax only on Slovenian-earned income. The Alpine country has double taxation agreements with several nations, including the UK, Georgia, and Israel.
*tax rates accurate as of 2025
...Gulf states like Saudi Arabia, Kuwait, and the UAE heavily depend on oil revenues, while others, like Monaco, attract wealthy residents through low or no personal income tax.
Do all countries have taxes?
Not all countries have taxes, but the majority do. Income tax is how most governments fund public services like education, healthcare, infrastructure and defence. However, some nations generate revenue via alternative methods, such as import duties, customs charges, licensing rights or tourism fees, rather than taxing their citizens directly.
Such countries are often resource-rich, with significant income from natural resources, or rely on a heavy influx of tourism. For example, some Gulf states like Saudi Arabia, Kuwait, and the UAE heavily depend on oil revenues, while others, like Monaco, attract wealthy residents through low or no personal income tax.
Similarly, small island nations, like the Bahamas or the Cayman Islands, attract businesses and wealthy individuals who can benefit from favourable tax policies. In return, the government finances public services through tourism, real estate transactions, licensing fees (for example, broadcast rights to sporting events) and taxes on goods.
The following is a list of 10 countries where individuals are not subject to personal income tax:
- United Arab Emirates (UAE): relies on oil revenues, income from corporate taxes and VAT, and a growing tourism sector.
- Bahrain: primarily funded by oil exports, Bahrain has no income or capital gains tax but does charge business and import taxes.
- Kuwait: benefits from significant oil wealth to fund government services.
- Qatar: generates income mainly through oil and natural gas exports.
- Oman: funds its economy through oil exports.
- Saudi Arabia: the largest oil producer in the Gulf region, Saudi Arabia relies on oil revenues and other taxes, like VAT.
- Monaco: relies on tourism, gambling, banking and other sources of revenue.
- The Bahamas: generates revenue through tourism, banking, and business licences.
- Bermuda: income is derived mainly from tourism, insurance and corporate taxes.
- Cayman Islands: the government collects revenue via customs duties, licence fees and tourism.
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