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Cities with territorial tax systems

If you earn from outside the country, remote-work salary, online business, foreign investments, a territorial tax system means that income generally stays outside the destination's tax. Hong Kong, Singapore, Georgia, Panama, Costa Rica, Malaysia, the UAE all fit this pattern with caveats. Still always verify your home-country obligations.

frequently asked

Quick answers.

What does 'territorial' actually mean?
Only income with a local source (a Hong Kong salary from a Hong Kong employer, rent from a Hong Kong property, etc.) is taxed. Foreign-source income, including most remote-work pay from foreign employers, is outside the local tax net.
Does 'territorial' mean tax-free?
No. You may still owe tax in your home country, and many territorial systems have anti-avoidance rules. The Hong Kong-style territorial system is generous; Thailand's 2024 reform tightened the previously-loose 'foreign income remitted next year' loophole.
Why is Malta on this list with 'limited'?
Malta is remittance-based for non-doms, only foreign income remitted into Malta is taxed. We classify it as 'limited' territorial rather than 'fully territorial' to be honest about the carve-out.

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