Oman Leads the Most Affordable Tax-Free Destinations for Expats in 2024

Oman tops a ranking dominated by Gulf countries

Oman ranked first among the most affordable tax-free destinations for expatriates in 2024, earning a relocation score of 7.92 out of 10 in research by international insurance firm William Russell. Kuwait, Bahrain and the United Arab Emirates took the next three places, followed by Brunei in Southeast Asia.

The ranking brings together the costs of moving, housing and everyday life with average take home salaries. Its central finding is that a country with no personal income tax can also offer relatively manageable living expenses, particularly in the Gulf. For someone considering a move, the practical question is how much money remains after paying for a home, utilities and other necessities.

Oman's figures show why it led the table. Average monthly rent was about €439, monthly living expenses for one person were approximately €699, and utilities added €96. Against an average monthly net salary of €2,051, those three expense categories totalled €1,234, leaving €817. That calculation offers a simple way to understand the relationship between the study's costs and earnings.

The findings sit within a wider interest in moving abroad to retain more income, reduce household spending or pursue a different lifestyle. Rising global mobility and changing tax policies have encouraged expatriates to look beyond traditional Western destinations. The ranking provides a financial starting point, while the wider decision also involves healthcare, residency rules, employment and the kind of daily life a person wants.

What the relocation score measures

William Russell's research assessed several expenses that affect both the initial move and the monthly budget. The methodology, discussed in coverage of affordable tax-free destinations and the affordability ranking, drew on Google Flights, Numbeo and Trading Economics.

Each destination received a relocation score out of 10, reflecting its affordability across the measures used. The research considered:

• The price of a one way economy flight from London and New York.
• The cost per square metre of buying an apartment.
• Monthly apartment rent.
• Monthly utility bills.
• Average monthly living costs for one person.
• Average monthly net salary.

Net salary means the amount a worker takes home after deductions. Comparing it with recurring expenses helps explain why the cheapest rent alone does not decide the ranking: a destination with higher housing costs may still leave a worker with more money if average earnings are higher.

Oman combines inexpensive housing with affordable flights

Oman's first place score of 7.92 reflected the lowest apartment purchase and rental costs in the ranking. The listed purchase price was €108 per square metre, while monthly rent averaged about €439. Housing therefore played a large part in its position at the top.

A single person's monthly living expenses were approximately €699, with utility bills of €96. The average net salary of €2,051 left a substantial amount after those essential expenses. For expatriates seeking both a personal income tax advantage and a manageable household budget, that combination was the country's main attraction in the research.

Flights to Muscat, Oman's capital, were also relatively affordable. A one way economy ticket cost about €214 from London and €464 from New York. These figures matter at the relocation stage, when transport costs arrive alongside the expense of finding and setting up a home.

Kuwait offers a large monthly surplus

Kuwait placed second with a relocation score of 6.49. Its monthly living costs were €720, utilities averaged €45, and rent was approximately €721. An average monthly net salary of €2,552 left more than €1,000 after those basic expenses.

Using the listed figures, rent, utilities and living costs totalled €1,486, leaving €1,066. Kuwait's appeal therefore rested on the balance between relatively low recurring costs and comparatively high earnings, rather than housing costs alone.

One way flights to Kuwait started at £150 from London and £623 from New York. The combination of accessible flights, modest utility bills and money remaining after essentials made Kuwait a strong option for people looking for a lifestyle without personal income tax.

Bahrain and the UAE show two different budget choices

Bahrain ranked third with a score of 6.36. It was the second cheapest destination for apartment purchases, at €161 per square metre. Monthly living costs were €788, utilities were €116, and average rent was €721.

Bahrain's average monthly net salary was just under €2,000, leaving a reported surplus of €302 after essential expenses. Its appeal also included a vibrant expatriate community and a strategic location in the Gulf. For prospective residents, those features sat alongside a smaller financial cushion than the figures listed for Kuwait.

The United Arab Emirates ranked fourth with a relocation score of 5.84. Dubai and Abu Dhabi were prominent attractions because of zero personal income tax, modern infrastructure and a cosmopolitan lifestyle. Average monthly living costs were €893, while rent was around €945.

The UAE's average monthly net salary was approximately €3,232. The reported surplus after rent, utilities and living expenses was €1,237. Its higher earnings helped offset living and housing expenses that were above those listed for Oman, Kuwait and Bahrain.

Dubai also attracted property investors through high rental yields and a range of property options. Rental yield describes the rental income a property produces compared with its purchase price. The UAE's golden visa program offered another attraction, making it easier for investors and skilled professionals to obtain residency for an extended period.

Brunei brings Southeast Asia into the top five

Brunei placed fifth with a relocation score of 5.58. The small, wealthy Southeast Asian country was the second cheapest destination for apartment rentals, with an average monthly cost of €396.

Brunei tied with Kuwait for the second most affordable monthly living costs and utility bills. Its average monthly net salary was €1,381, lower than the average earnings listed for the four Gulf destinations ahead of it.

Flights to Bandar Seri Begawan, Brunei's capital, cost €776 from London and €1,018 from New York. Those travel costs were higher than the flights listed for Oman, adding to the initial expense of relocation even though Brunei's rent was lower. Its low population and stable economy also made it a peaceful, affordable option for expatriates seeking life in Asia without personal income tax.

Other destinations bring different financial tradeoffs

The Maldives ranked sixth. Although rent and living costs were relatively low, its average salary was also modest. That made it less attractive for people whose main goal was to retain a large amount of income after paying regular expenses.

Qatar offered high salaries and modern amenities, but real estate costs were higher than those in neighbouring Gulf countries. Its place among the other options underlined the importance of comparing housing prices with earnings rather than looking at either figure on its own.

The Bahamas, Monaco, the Cayman Islands, Bermuda and Vanuatu were also identified as destinations offering zero income tax. They were often associated with luxury and exclusivity, and their living expenses and property costs could be prohibitively high for many expatriates.

The choices therefore ranged from relatively inexpensive destinations to places where the tax advantage came with substantial household costs. A worker seeking savings, a retiree living on a fixed income and a property investor could reach different decisions from the same list because their income and spending needs differ.

Changing taxes and residency programs encourage moves

Changes in traditional expatriate hubs were another reason people were considering alternatives. The UK had recently increased taxes on high earners and abolished favourable arrangements for non-domiciled residents. Those arrangements concerned residents whose permanent home, for tax purposes, was considered to be elsewhere.

Coverage of wealthy residents relocating described a record outflow of wealthy individuals seeking more favourable tax environments. For those considering a move, the attraction extended beyond a lower tax bill to the amount of income available for spending, saving or investing.

Residency and citizenship programs also played a role. Many destinations in the Gulf and Caribbean offered residency or citizenship in exchange for investment in property or local businesses. The UAE's golden visa program had attracted thousands of millionaires in recent years.

Warm climates, modern amenities and active expatriate communities added to the appeal for retirees, digital nomads and families. Digital nomads are people who work remotely while living away from a fixed workplace. For all of these groups, a move could combine financial aims with a preference for a different climate or community.

Belize offers a tax-friendly alternative for retirees

Belize was outside the top 10 in William Russell's ranking, but it was presented as another option for expatriates, particularly retirees. Its appeal was described in a Belize living guide, which outlined tax, language, budget and residency advantages.

English is the country's official language, making everyday communication and settling in easier for many expatriates. Belize also offered low or zero taxes on foreign income, capital gains and corporate profits. Foreign income is money earned from outside the country, while a capital gain is a profit made when an asset is sold for more than its purchase price.

Monthly living expenses for a couple ranged from $1,500 to $2,000. Residency options included investment and the Qualified Retired Persons Incentive Program, known as QRP. These features made Belize relevant to people considering retirement abroad, even though it was outside the leading destinations in the affordability ranking.

Belize also presented practical challenges. Healthcare infrastructure was limited, and caution was needed regarding safety in certain areas. Prospective residents were advised to research carefully and consider their own needs before choosing it as a home.

Healthcare and the ability to keep earning matter

Healthcare and financial protection were important parts of the relocation decision. Some destinations without personal income tax offered less extensive medical care, leaving expatriates to consider international health insurance or travel to nearby countries for treatment.

Ross Irvine, finance director at William Russell, recommended international income protection to help preserve a person's lifestyle if illness or injury prevented them from working:

So that you are able to safeguard your lifestyle in the event of incapacity to work due to injury or illness, it is recommended that you purchase international income protection.

Income protection is designed to help replace earnings when a person cannot work. Irvine's advice placed the ability to keep paying regular expenses alongside the more immediate attractions of lower taxes and affordable housing.

Visa and residency requirements also needed attention. Some countries required substantial investment or imposed strict residency rules, making legal eligibility and obligations over the longer term part of the budget decision. Average salaries were another consideration: destinations with low living costs could also have lower earnings, affecting the amount left after essentials.

Climate, safety, infrastructure and community completed the practical picture. These factors affect everyday life directly, from access to treatment and transport to whether a person feels comfortable settling with a family or living through retirement.

Property can serve as both a home and an investment

Buying property abroad was another driver of expatriate interest. Coverage of international property markets described how an overseas home could also generate rental income, particularly in emerging markets with growing tourism sectors.

The UAE, Portugal and Spain were identified as countries offering golden visa programs that granted residency to foreign property buyers. In the Gulf, Dubai and Abu Dhabi attracted investors through high rental yields and continuing infrastructure development. The appeal combined having somewhere to live with the possibility of income from renting out a property.

Belize, Costa Rica and Colombia offered another type of opportunity. Property prices in these emerging markets remained relatively low, and foreign ownership was often encouraged. Retirees and digital nomads were drawn to affordable homes in scenic locations, while investors sought rental income and an increase in property value over time.

The affordability ranking and these property considerations addressed different parts of the same relocation choice. Monthly rent and average earnings helped describe a working household's budget; purchase prices, rental income and residency programs mattered more to someone planning to buy. Healthcare, safety and legal requirements remained part of either decision.

Key Points

• Oman led William Russell's 2024 affordability ranking with a score of 7.92 out of 10, followed by Kuwait, Bahrain, the UAE and Brunei.
• The ranking compared flights, apartment purchase prices, rent, utilities, monthly living costs and average net salaries.
• Gulf countries took the first four places through a combination of zero personal income tax, comparatively high salaries and relatively low living costs.
• The Maldives and Qatar offered other options, while the Bahamas, Monaco, the Cayman Islands, Bermuda and Vanuatu could bring much higher living or property costs.
• Changing taxes, investment residency programs, lifestyle preferences and property opportunities encouraged interest in moving abroad.
• Belize offered a tax-friendly alternative, especially for retirees, with monthly expenses of $1,500 to $2,000 for a couple and practical concerns about healthcare and safety.
• A relocation decision also required attention to insurance, visa eligibility, legal obligations, employment income and quality of life.
• Property purchases could provide a home, rental income and potential growth in value, alongside the financial and residency considerations involved in moving.