The UAE has ranked first in a new global tax optimisation index for internationally mobile individuals, helped by the absence of personal income, wealth and inheritance taxes and a relatively low consumption tax, according to research published by Global Citizen Solutions.
The UAE scored 82.7 out of 100 in the 48-jurisdiction index, ahead of Antigua and Barbuda at 82.2, Paraguay at 77.2, Hong Kong at 76.9 and the Bahamas at 76.2, according to the policy briefing published by the advisory firm’s Global Intelligence Unit.
The study, Tax Optimization for Global Citizens: Comparing 48 Jurisdictions for Internationally Mobile Individuals, assessed countries and territories across 11 indicators grouped into three categories: tax burden, tax structure and investment migration.
Tax Burden and Tax Structure each account for 42.5 per cent of the overall score, while Investment Migration carries a 15 per cent weighting. The researchers said the methodology was designed to capture not only headline tax rates but also how foreign income, capital gains, wealth, inheritance and departure from a jurisdiction are treated.
The full methodology and 48-jurisdiction ranking are available in the Global Citizen Solutions study.
Where UAE tops scores
The UAE recorded a perfect score of 100 for Tax Burden, 64 for Tax Structure and 86 for Investment Migration.
Global Citizen Solutions said the UAE led the overall index because it combined no personal income tax with no net wealth or inheritance tax, a 5 per cent consumption tax and no exit charge.
Antigua and Barbuda and the Bahamas also received perfect Tax Burden scores.
Structure matters as much as tax rates
The report’s broader finding was that low headline tax rates alone did not determine where jurisdictions placed. Uruguay, for example, has a personal income tax rate of as much as 36 per cent but ranked 12th overall and recorded the strongest Tax Structure score in the sample, at 88.
Its strength in the index came from its predominantly territorial approach to taxation and provisions available to new residents, although certain foreign-source capital income can be taxable under rules introduced in 2026.
Hungary provided the opposite case. Despite a headline rate of 15 per cent, it ranked 31st because residents are generally taxed on worldwide income and the country offers fewer substantial tax benefits to new arrivals, the report said.
The study identified two principal routes to a favourable tax structure score.
The first involves territorial or remittance-based taxation, where foreign income is either outside the tax net entirely or taxed only when brought into the country. Uruguay, Panama, Paraguay, Malaysia and Hong Kong were among jurisdictions using territorial systems, while Malta and Mauritius use forms of remittance taxation.
The second involves preferential regimes layered over systems that would otherwise tax worldwide income. Cyprus, Portugal, Italy, Ireland and Greece were among jurisdictions using such structures.
Malta ranked sixth overall despite a headline personal income tax rate of 35 per cent, while Cyprus placed 10th and Portugal 23rd.
The report cautioned that preferential schemes can be less durable than territorial tax systems because they may be time-limited, subject to eligibility requirements or changed by governments.
Tax advantages versus quality of life
The study also examined the relationship between tax advantages and living conditions, comparing its tax ranking with the ‘Quality of Life’ pillar of Global Citizen Solutions’ Global Passport Index 2026.
It found a broad trade-off, with jurisdictions offering the strongest tax positions often ranking lower on quality-of-life measures.
Seven jurisdictions bucked that pattern, placing in the upper half of the tax index while also ranking among the world’s top 50 for quality of life: Malta, Cyprus, Uruguay, Costa Rica, Mauritius, Switzerland and Portugal.
None achieved that position through a zero-income-tax model. Instead, they used territorial, remittance-based or preferential tax structures that reduced the tax burden on internationally mobile residents while maintaining broader tax revenues.
Exit and inheritance taxes widen the gap
Departure taxation was another major differentiator. Of the 48 jurisdictions assessed, 31 impose no exit tax, while 17 apply some form of charge when tax residence ends.
Eleven, including Australia, Canada, Denmark, Germany, Norway, Spain, France and Switzerland, apply broader exit-tax arrangements with deferral mechanisms, while Portugal, the UK, the Netherlands, Japan and Sweden use narrower forms.
Inheritance tax produced an even sharper divide.
None of the top 13 jurisdictions in the overall index levies inheritance tax, according to the study, while several lower-ranked jurisdictions impose maximum rates above 40 per cent.
Germany finished last in the overall ranking with a score of 28.7, behind Denmark at 30.4 and the United States at 33.5.
The report said jurisdictions at the lower end of the ranking tended to combine worldwide taxation with capital gains, inheritance and departure taxes.
Global Citizen Solutions stressed that the ranking was intended as a comparison tool rather than a guide to a single destination suitable for every internationally mobile individual. Entrepreneurs approaching a company sale or other liquidity event may place greater weight on capital gains and exit taxes, while retirees may focus more heavily on inheritance rules, healthcare and consumption taxes. Remote professionals, meanwhile, can be particularly affected by how a jurisdiction treats foreign-sourced income.
The briefing also noted limitations in its methodology, including the exclusion of social security contributions, tax treaty coverage and the long-term stability of individual tax regimes.
