Personal Finance
9 / 12    

Countries With Zero Income Taxes


» more from Personal Finance

The Bahamas

Among the wealthiest Caribbean countries, the Bahamas features an economy that's heavily dependent on tourism and offshore banking.

About 70 percent of government revenue comes from duties on imported goods. Even though there is no personal income tax, employees have to contribute 3.9 percent of their salary, up to a maximum of $31,200 annually, for a form of social security called National Insurance. Employers also have to contribute 5.9 percent of a worker's salary for National Insurance, while self-employed individuals are charged 8.8 percent. The country also has a property tax of up to 1 percent.

Despite its prosperity as a financial center, The Bahamas credit rating was downgraded by Moody's in December by one notch, on limited economic growth prospects. The ratings agency said tourism, offshore financial services and the construction sectors continued to face downside risks because of an uncertain recovery in the U.S.

Pictured: New Providence Island, Nassau, The Bahamas.

Photo: Walter Bibikow | Getty Images