Tax guide

Territorial tax countries

Territorial systems generally tax local-source income and leave many foreign-source items outside the local net. These are the countries in this site flagged as territorial or strongly source-based in our comparison data.

DefinitionTerritorial taxation taxes income sourced inside the country rather than worldwide income. The exact foreign-income carve-outs, remittance rules, and anti-avoidance overlays still differ by jurisdiction โ€” always read the country page.
Foreign-source rules varyRemittance timing can still matterCFC and PE rules can override

21 territorial tax countries

Bahamas
Yes territorial

Bahrain
Yes territorial

No personal income tax on salary or freelance income, but payroll social insurance and VAT still exist.

Bermuda
Yes territorial

British Virgin Islands
Yes territorial

Cayman Islands
Yes territorial

Costa Rica
Yes territorial

El Salvador
Yes territorial

Gibraltar
Yes territorial

Hong Kong
Yes territorial

Jordan
Yes territorial

Kuwait
Yes territorial

No personal income tax for individuals, though residency status and payroll-side obligations still need checking.

Lebanon
Yes territorial

Malaysia
Yes territorial

Marshall Islands
Yes territorial

Mauritius
Yes territorial

Panama
Yes territorial

Paraguay
Yes territorial

Qatar
Yes territorial

Salary is generally untaxed for individuals, but Qatar-source business income can still fall into tax scope.

Saudi Arabia
Yes territorial

Singapore
Yes territorial

United Arab Emirates
Yes territorial

No personal income tax on salary or freelance income, but social security and unemployment insurance can still apply.