The UAE and Saudi Arabia, over the last few years, have soared to popularity among British expats seeking a life in the sun – free from the burden of taxes.
While this is nothing new, especially for the uber-wealthy, in recent years more and more people have been lured in by the promise of a better life elsewhere, far from the cold and grey UK.
But as war breaks out across the Middle East and popular cities among expats – such as Dubai, Abu Dhabi and Riyadh – are engulfed in waves of violence, where can Brits turn to?
Some will seek out countries such as Portugal or Malta, which have favourable offers to some groups, while others will consider low-tax jurisdictions further afield such as Barbados.
So, where’s best for expats to live a tax-free life, with all the advantages of places like the UAE – but with a more under-the-radar setting and without ongoing violence?
Here’s our list of some of the best options to choose from…
Bahamas
The Bahamas, long considered an island paradise for the wealthy, offers many advantages when it comes to taxation.
It has no income tax, making it a haven for foreign investors and retirees – and there’s also a lack of capital gains tax, inheritance tax or corporate tax.
You can fly directly from London Heathrow to Nassau with British Airways, making it appealing given the ongoing crisis engulfing air spaces across the Middle East – and alternative flight routes can stop in Canada.
This part of the world offers a real luxurious environment with secluded pink-sand beaches, coral reefs and superb sailing.
Privacy, security and lifestyle make it a favourite destination for many North American billionaires. But start-ups, crypto and fintech investors are also being drawn to its capital, Nassau.
Brits like it too – around 4,100 live there, and many have set up in Nassau, on the island of New Providence, the expat hub with most of the international schools and cultural institutions.
According to cost-of-living site Numbeo, renting a one-bedroom apartment in the city centre will cost you $1,195 (£895) per month – while average bills will set you back $285 (£213) each month.
Downsides include crime from time to time, with the FCDO warning there have been violent crimes and armed robberies, sometimes fatal, in residential and tourist areas of New Providence and Grand Bahama.
Cultural differences and alternative laws, as well as conservative attitudes towards the LGBT+ community, can also cause friction.
Bermuda
If you like the sound of the Caribbean, Bermuda could be the choice for you.
Bermuda is the oldest self-governing British Overseas Territory, and is popular among many Brits.
Its big advantages? Security, safety and a high standard of living – plus the lack of income tax or capital gains tax.
You can visit Bermuda without a visa for up to 180 days in any 12-month period. You must have a ticket for return or onward travel.
To stay longer or work, study, travel for business or other reasons, you must meet the Bermudian government’s entry requirements.
If you want to work in Bermuda, you must get a job offer and work permit before you enter the country. You must not look for work while visiting as a tourist.
But, alas, it doesn’t come without disadvantages.
Bermuda has high customs duties as well as a high cost of living. A three-bed apartment in Paget might cost $10,000 (£7,497) a month to rent – rent is 113.2 per cent higher than in London, according to Numbeo.
Monaco
Billionaire’s paradise Monaco is, naturally, next up on the list.
Adored by the stars of F1, international businessmen and many other celebrities, it’s a haven known for its lavish lifestyle and glamorous hotels.
With high-end shopping and Michelin-starred restaurants, casinos and beach clubs galore, it has more millionaires per square metre than anywhere else.
More than 2,800 British nationals officially reside in Monaco.
The lack of income tax, wealth tax and capital gains tax are big draws – as well as the fact that when passing on assets, spouses and children do not pay inheritance or gift tax.
Downsides include an extremely high cost of living.
Many have reported exorbitant costs in the region, with Monaco ranking among the most overrated destinations that ‘aren’t worth the price’ according to tourists.
Cayman Islands
With direct flights from Heathrow to Bermuda with British Airways, this British Overseas Territory offers a tax-free and beachside lifestyle.
The region boasts a high standard of living coupled with a low crime rate and Caribbean climate.
It’s also known for its fun, vibrant lifestyle, with boat parties galore revolving around Seven-Mile Beach and George Town, the biggest town and business hub of the Cayman Islands.
It also has tax advantages: no corporation, income, capital gains or inheritance taxes.
Downsides include small-island mentality, few employment options and high electricity and home insurance bills.
And while it is low risk, the region does see hurricanes, with the season in the Cayman Islands normally running from June to November.
Earthquakes are also a risk in the Cayman Islands.
And some destinations with low tax rates…
Malta
Recently, a study analysed the world’s most popular and up-and-coming digital nomad hotspots to unveil the top ten nations for Brits looking to relocate this year – and Malta made the top five.
The EU base has English as an official language and a remittance tax system available to UK residents.
Malta’s tax residency scheme offers a flat 15 per cent tax rate on foreign income remitted to Malta, with no local tax on overseas income kept outside of Malta, according to Tax Advisory Partnership.
Capital gains made outside of Malta are exempt from tax, even if the proceeds are remitted to Malta.
Malta’s capital city, Valletta, was also handed the coveted title of best city in the world at the Condé Nast Traveller Readers’ Choice Awards 2025.
The European hotspot is known for its Mediterranean sun, as well as fabulous architecture, great food and impressive prices.
It’s reasonably priced, too, as a beer in the city will only set you back around €2.12 (£1.85), according to Holidays in Malta.
However, overcrowding, intense traffic congestion, high rental costs, and heavy, year-round construction are among some of the bugbears of residents living in the country.
The tiny island – which spans just 316 square kilometers – has limited housing and high rental costs, particularly in the capital, Valletta.
Cyprus
From this year, Cyprus offers a €22,000 (£19,061) annual tax-free income threshold for individuals – making it highly appealing to British expats.
Coming in fifth in the ranking of the top 10 nations for Brits looking to relocate, here expats can enjoy a tax-free foreign income and a laid-back Mediterranean lifestyle – though limited public transport and a healthcare system less developed than the UK’s NHS may not appeal to some.
And there are plenty of success stories of Brits who’ve made the move to the sunny nation.
Last year, a British family who grew so fed up of dreary UK life and moved to Cyprus revealed how much happier they are with their new life.
Sarah, 48, and James Moore, 47, relocated from Middlesbrough with their two children, nine-year-old Bea and Miles, five.
Now, the family of four spend more time together and were ‘instantly happier’ soon after they relocated.
The cost of living in Cyprus has worked out in their favour.
But downsides of Cyprus include slow bureaucracy and extreme heat in the summer – not for everyone.
Georgia
For digital nomads seeking a more affordable lifestyle, Georgia offers visa-free stays for up to one year – and a one per cent tax rate for small businesses.
According to research, Tbilisi outshines 69 other European cities for affordability, in line with combining low costs with an abundance of cultural and historical attractions.
In Tbilisi, a pint of local beer is just £1.64, while a three-course meal for two at a mid-range restaurant costs less than £33.
There’s more to draw in expats outside of cheap prices, though.
With diverse cuisine and cultural highlights, there’s plenty to explore in this up-and-coming destination.
It should be noted that outside of its capital, Tbilisi, language barriers and underdeveloped infrastructure in Georgia may pose some challengers for some.
The FCDO advises against travel to certain parts of Georgia, so you should check if the region you plan to visit is safe.
Costa Rica
Costa Rica only requires a $3,000 (£2,233) monthly income for its Digital Nomad Visa and places tax exemptions on foreign income.
You can fly to San Jose Juan Santamaria Airport via Madrid or Amsterdam, among other destinations.
There are plenty of advantages of life in Costa Rica.
For one, the abundance of beautiful beaches, swimmable waters, excellent hiking and mountains and waterfalls to visit make it an exceptional choice for fans of nature.
Plus, temperatures range between 12-27°C, meaning you’d be avoiding cloudy Britain for sunnier climes.
But the huge numbers of tourists can cause problems, and bad roads can make travelling around an issue.
Also, the GOV.UK website warns: ‘Muggings and theft are significant problems, particularly on the Atlantic coast.
‘You should be aware of who is around you when using ATMs, be vigilant on buses and keep your luggage in view if possible – thieves are likely to try and distract you. Watch wallets and valuables when on the beach.
‘There have been incidents where thieves slash a tyre and then offer to help change it, while an accomplice steals from the car.’
In Costa Rica, you should avoid walking alone in poorly lit or remote areas at night. Plus, if you’re using a hire car, do not stop your car for strangers signalling for help – they could be carjackers.
Mauritius
Mauritius offers a one-year Premium Visa, tax-free offshore income and a tropical setting.
You can also fly via Paris or Amsterdam, avoiding popular layover hubs in the Middle East.
According to Tripadvisor: ‘Mauritius is a tropical paradise with tons to do and some of the most beautiful landscapes on the planet.
‘Of course, this Indian Ocean island nation is known for its gorgeous beaches, waterfalls, lagoons, and mountain views.
‘Port Louis, the modern capital of this 38-mile by 29-mile island, is a bustling port with a revitalised waterfront and busy market. It’s worth a visit, but most visitors gravitate toward resort areas such as ritzy Mont Choisy, quiet Trou-aux-Biches, and the bustling Flic en Flac.’
Downsides include a high cost of food, accommodation, and goods – and traffic and congestion can be severe.
Plus, the FCDO warns: ‘Most crime is non-violent such as burglaries from tourist villas or theft of unattended bags. Petty crime is common, particularly in tourist areas such as Port Louis, Grand Baie and Flic en Flac. There have been some reports of sexual assaults on tourists.’