For a standard French tax resident, dividends and securities capital gains are taxed at the 30% PFU flat tax (12.8% income tax plus 17.2% social levies). On a €600,000 portfolio generating 4% per year, that is €7,200 a year captured by tax: six to eight years of Lean FIRE lost across a lifetime. This 2026 ranking covers the 10 published countries (out of 11) that cut this charge to zero or near-zero for a retail investor. Five countries apply a structural exemption (UAE, Cypriot non-dom, Mauritius, Andorra in most cases, Georgia on territorial income). Five activate a time-limited special regime (Portugal IFICI, Italy HNW flat tax, Greece 7% retiree regime, Bulgaria 10% with EU-listed exemption, Thailand SET). Spain is excluded: the Beckham regime covers salaries but not capital gains, which are taxed at 19-30%. Sources: OECD Tax Database 2025, IMF Tax Policy Country Notes 2024-2025, official tax statutes per jurisdiction.
The podium
United Arab Emirates
- The only published country combining 0% capital gains, 0% dividends and 0% personal income tax, with no time limit, no cap and no special regime to opt into
- The Federal Tax Authority confirmed in 2023 that the 9% corporate tax introduced that year does not apply to distributions received by resident individuals
- Golden Visa (10 years, renewable) or Investor Visa accessible from AED 2,000,000 (about USD 545,000) in invested assets
- Trade-off: cost of living 30 to 40% above Lisbon for an equivalent lifestyle, and tax residency conditioned on at least 183 days on the ground to trigger the France-UAE treaty
Cyprus
- Structural exemption from capital gains tax on financial securities (shares, bonds, UCITS, company stakes): only real estate and shares in companies majority-holding Cypriot real estate are taxed at 20%
- Combined with the 60-day non-dom regime, foreign-source dividends and interest are fully exempt from the Special Defence Contribution for 17 years (minimum presence 60 days if no other EU tax residence applies)
- English is widely spoken around Limassol, the financial law follows the UK model and UCITS ETFs are accessible through European brokers
- Caveat: non-dom status holds only if you have not been a Cypriot tax resident for more than 17 of the last 20 years
Mauritius
- No capital gains tax on financial securities or real estate: the exemption is structural, written into the Income Tax Act
- Dividends paid by resident companies are exempt at the individual recipient level. Foreign dividends are exempt under equivalent foreign taxation, or covered by the foreign tax credit
- Personal income tax is now a 0% / 10% / 20% bracket system (top marginal rate 20% on income above MUR 1 million, effective 1 July 2025); the former 16% solidarity levy was abolished. A separate Fair Share Contribution (15% then 20%) applies only above MUR 12 million and MUR 24 million
- Resident Permit for retirees (USD 2,000/month pension, i.e. USD 24,000/year) or founders (USD 50,000 capital). Island that is both English- and French-speaking, with a convenient time zone for Europe (GMT+4)
- Caveat: 8 to 12 hours by plane from Europe, cyclone season from January to March, specialised healthcare via Réunion or private Mauritian hospitals
The rest of the ranking
- #4
Andorra
High safety- Securities capital gains are exempt if the taxpayer holds less than 25% of the company whose shares are sold (article 5 of law 5/2014 on personal income tax). In practice, every ETF portfolio, fund or retail position falls within this exemption
- Andorran-source dividends are exempt at the individual recipient level. Foreign dividends are taxed under IRPF (10% maximum above €40,000, 0% below €24,000), with a foreign tax credit
- No wealth tax and no inheritance tax in direct line
- Active residency (business creation, €50,000 deposit) or passive residency requiring €1,000,000 in qualifying Andorran assets (raised from €600,000 by the bill approved 22 January 2026), or €400,000 into the Housing Fund as an alternative; real estate counts as one component of the €1,000,000, not an additional amount
- Caveat: Andorra is not in Schengen, tourist access is unrestricted but no direct residency route exists for non-EU citizens
- #5
Georgia
0% dividendsLow cost1600 €/moHigh safetyNo wealth tax- Territorial taxation: all foreign-source income (dividends, capital gains, interest, rents) is exempt from Georgian tax as long as it is not remitted
- For a Georgian tax resident holding ETFs at a European broker without bringing in the flows, the burden is 0%
- Georgian capital gains on financial instruments are taxed at a standard 5%, but exempt when held for more than two years or when issued by public entities
- Individual Entrepreneur regime at 1% of turnover below GEL 500,000 (around €170,000) for the self-employed. Visa-free one-year stay for 95 nationalities, including France
- Geopolitical caveat: proximity to regional conflict to be weighed into any long-term decision
- #6
Portugal
High safety- The IFICI 2024 regime (Incentive to Scientific Research and Innovation), successor to the NHR closed at the end of 2023, exempts foreign-source income (dividends, capital gains, interest) for 10 years for qualifying profiles (researchers, eligible tech founders, professions listed by decree)
- For profiles outside IFICI, standard Portuguese taxation applies: 28% flat tax on capital gains and dividends
- Combined with a cost of living 35% below Paris and EU/Schengen membership, Portugal remains the best Eurozone arbitrage for eligible profiles
- Major caveat: do not confuse IFICI with the former NHR. The eligibility lists differ and admission is now subject to prior approval by the FCT (Fundação para a Ciência e a Tecnologia)
- #7
Italy
High safety- The Article 24-bis TUIR flat regime offers newly resident high-net-worth individuals a lump-sum tax of €100,000 per year (raised to €200,000 from 10 August 2024 for new entrants by decree-law 113/2024) covering all foreign-source income, including dividends and capital gains, for 15 years
- Above €500,000 of annual foreign dividends, break-even is reached versus the standard French PFU. Family members at an additional €25,000 per year each
- For profiles outside the HNW flat tax, standard IRPEF on dividends and capital gains stands at 26%, which is hardly competitive without the special regime
- Solid tax treaties with France
- Caveat: admission is voluntary and named, and must be requested before relocation through an interpello with the Agenzia delle Entrate
- #8
Greece
High safetyNo wealth tax- 7% flat-tax regime for foreign retirees for 15 years (law 4714/2020, article 5B): all foreign-source income, including dividends and capital gains, is taxed at the single 7% rate
- NDR investor regime (law 4646/2019, article 5A): €100,000/year lump-sum covering foreign-source income for mobile high-net-worth individuals (Greek-source income remains taxed normally), reserved for taxpayers who have not been Greek tax residents in 7 of the last 8 years
- Cost of living 40% below Paris in coastal areas off-season
- Caveat: outside the special regime, dividends and capital gains are taxed at 15% (dividends 5%, capital gains 15%), lower than France but not zero
- #9
Bulgaria
Low cost1650 €/moHigh safety- Universal 10% flat tax on all capital income (dividends, capital gains, interest) under the ZDDFL, the Personal Income Tax Act
- Key exception: capital gains on financial instruments admitted to trading on EU/EEA regulated markets are exempt (article 13(1)(3) ZDDFL)
- For a retail investor holding UCITS ETFs on Euronext, Xetra or Borsa Italiana, the effective capital gains charge drops to 0%, and dividends remain at 5% withholding
- EU member since 2007, Schengen since 2024, Eurozone since 1 January 2026: no FX risk for a euro-denominated portfolio
- Caveat: administrative quality and public infrastructure below the EU average, with English mainly spoken in urban centres
- #10
Thailand
0% dividendsLow cost1400 €/moHigh safety- Capital gains on shares listed on the Stock Exchange of Thailand (SET) are exempt from personal income tax (Revenue Code, section 42(17))
- Historical territorial taxation: foreign-source income used to be exempt when not remitted in the same year
- The 2024 reform (Departmental Order Por. 161/2566) removes that deferral window: remitted foreign income is now taxable, although the taxpayer retains the option to build a non-remitted offshore reserve
- LTR Wealthy Pensioner Visa (USD 80,000 in passive income) or DTV (Digital Nomad Visa, 5 years, available since 2024). Cost of living 50 to 60% below Paris outside tourist zones
- Major caveat: tax planning must anticipate the 2024 reform, and a local tax advisor is essential to structure remittances
Frequently asked questions about this ranking
Which published countries truly exempt securities capital gains at 0%?
Five countries apply a structural exemption with no time limit and no special regime to opt into: the United Arab Emirates (0% on dividends, capital gains and earned income), Cyprus (0% on securities capital gains, excluding real estate), Mauritius (0% on capital gains and domestic dividends), Andorra (0% on securities capital gains as long as the holding stays under 25% of share capital, which covers virtually every retail portfolio) and Georgia (0% on non-remitted foreign capital gains via territorial taxation). Five additional countries activate a time-limited special regime: Portugal IFICI 2024, Italy Article 24-bis TUIR, Greece 7% retiree regime, Bulgaria on EU-listed ETFs, Thailand on SET securities and non-remitted flows. Country-by-country detail in the ranking commentary.
What's the difference between a structural exemption and a time-limited special regime?
Structural exemption (UAE, Cyprus, Mauritius, Andorra, Georgia): the country's tax code simply does not tax securities capital gains. That is the general rule, applicable to any tax resident with no time condition. The taxpayer's only risk is political (future law change). Time-limited special regime (Portugal IFICI, Italy HNW, Greece 7% retiree, Bulgaria EU-listed, Thailand SET): the tax code in principle taxes capital gains, but a special law, usually designed to attract wealthy or qualified residents, exempts them for 5, 10 or 15 years. The risk is twofold. First, the duration runs out and the exit must be planned. Second, eligibility can be revoked if conditions change. Long-term planning therefore favours structural exemptions.
Why isn't Spain in this ranking when it has the Beckham regime?
The Beckham regime (law 35/2006, reformed in 2023) only covers earned income for incoming employees (24% flat tax up to €600,000, 47% above) for 6 years. Capital income (dividends, capital gains, interest) remains subject to standard Spanish taxation: 19% up to €6,000, 21% between €6,000 and €50,000, 23% between €50,000 and €200,000, 27% between €200,000 and €300,000, 30% above (2025 schedule). On top of that, the regional wealth tax (Impuesto sobre el Patrimonio) has been reinstated in Catalonia, the Balearics and Valencia. Spain therefore does not meet the 'capital exemption' filter of this ranking, despite its appeal on other axes (climate, international schools).
Does the French exit tax apply if I move to one of these countries?
Yes, for any individual who has been a French tax resident for 6 of the last 10 years and holds securities worth over €800,000 or representing at least 50% of a company (CGI article 167 bis). Departure triggers exit tax on unrealised capital gains at the 30% PFU rate. Automatic deferral without guarantee for EU/EEA departures (Portugal, Italy, Greece, Bulgaria, Cyprus, Andorra under treaty framework). Deferral subject to guarantee for departures to states with administrative assistance treaties (UAE, Mauritius, Georgia, Thailand). The deferral becomes final (write-off) after 2 years if the total value of the securities subject to exit tax is below €2,570,000 at the transfer date, or after 5 years if that value reaches €2,570,000, provided the securities are not sold (the 50% threshold is an entry trigger for the exit tax, not the determinant of the deferral period). A consultation with a tax advisor before departure is essential to optimise timing and documentation.
How does Cyprus exempt dividends and capital gains for 17 years?
Cyprus combines two mechanisms. (1) The Capital Gains Tax Law has never taxed gains on financial securities: only Cypriot real estate and shares in companies majority-holding Cypriot real estate are taxed at 20%. This is a structural exemption with no time limit. (2) The 'non-dom' status (Special Contribution for Defence Law amended in 2015) exempts non-dom tax residents from the Special Defence Contribution on dividends (17%) and interest (30%) for 17 years from the date of establishing Cypriot tax residence. Tax residence is obtained through 60 days of annual physical presence, subject to three cumulative conditions: no other EU tax residence exceeding 183 days, an economic link to Cyprus (business, employment, company directorship), and ownership of stable housing.
How often is this capital gains ranking updated?
Quarterly, or immediately after a major tax shift in one of the 10 countries (Italian decree 113/2024 raising the HNW flat tax to €200,000, Thai reform Por. 161/2566, Portuguese IFICI 2024, possible extension of the Spanish IFI to new autonomous communities). The dateModified date appears in the footer and in the ItemList JSON-LD as a freshness signal for Google and LLMs. The live version is always the most recent, and no public archive of past editions is kept.
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