Evaluating the best residency options: Which country fits your lifestyle & goals?

Choosing the right country for your residency is one of the most important decisions you’ll ever make—whether you’re an entrepreneur looking to minimize taxes, a digital nomad seeking freedom, or a retiree searching for the perfect place to relax. The right residency can unlock incredible opportunities, from business growth and tax optimization to a high quality of life and global mobility. But with so many choices out there, how do you find the right fit for your unique goals?

At Nerdy.Money, we’ve crafted this comprehensive guide to help you evaluate the best residency options based on your personal or business goals. Whether you’re considering a low-tax haven or a country offering a high standard of living, we’ll guide you through the process and help you choose the perfect residency. Let’s dive in!

Step 1: Key Factors to Consider When Choosing Residency

Choosing the right country isn’t just about taxes. Several factors can significantly impact your quality of life, your business success, and how easy it is to relocate and thrive in your new country of residence. These include taxation, cost of living, business environment, immigration policies, access to healthcare, education, and overall lifestyle. Let’s explore each one in more detail.

1.1 Taxation: Minimizing Your Tax Burden

Taxation is one of the primary drivers behind the decision to relocate. For entrepreneurs, minimizing corporate tax is key to protecting profits, while personal income tax and dividends tax impact freelancers, investors, and individuals looking to maximize their personal earnings. Here’s what to consider:

• Corporate Tax Rates: If you’re an entrepreneur, business owner, or investor, countries with low corporate tax rates can provide a huge advantage. Some countries have very competitive tax regimes that encourage business growth by taxing companies at a lower rate. Cyprus (12.5%) and Malta (5%) are known for their favorable corporate tax regimes, while Dubai (UAE) offers a tax-free zone for businesses in certain areas.
• Personal Income Tax: For digital nomads, freelancers, or retirees who want to protect their income, looking at personal income tax rates is important. Many countries like Portugal (14.5%) or Romania (10%) offer relatively low personal tax rates compared to other European countries.
• Dividends and Foreign Income: If you plan to receive foreign income or dividends, it’s essential to find a country that doesn’t heavily tax that income. For example, Cyprus offers 0% tax on foreign dividends for non-domiciled residents, making it highly attractive for international investors and entrepreneurs who want to receive income from overseas without paying hefty taxes.
• Capital Gains Tax: If you’re selling assets, stocks, or real estate, understanding capital gains tax rates is important. Cyprus, Malta, and Dubai offer low or no capital gains taxes, giving you more flexibility when managing your wealth.

Tax Comparison Table

Here’s a comparison of corporate tax rates, personal income tax, capital gains tax, and dividends tax for countries that are popular for residency due to their favorable tax systems.

1.2 Quality of Life: Health, Education, and Infrastructure

Once you’ve figured out your tax preferences, it’s time to consider how you’ll live in your new country. Will you have access to high-quality healthcare, affordable housing, reliable infrastructure, and safe surroundings? How’s the cost of living, and what’s the overall quality of life? For families or those seeking work-life balance, these factors are just as important as taxes.

Here are a few things to consider:

• Healthcare Quality: Countries like Malta, Liechtenstein, and Portugal offer excellent healthcare systems with high standards of care and short wait times. In Dubai, healthcare is of world-class quality, but private insurance can be costly.
• Cost of Living: Countries like Cyprus and Romania have relatively low living costs, while places like Dubai and Liechtenstein have a much higher cost of living. If affordability is a priority, then these factors should weigh heavily in your decision.
• Public Services: Consider public infrastructure like transport, waste management, and the overall efficiency of public services. Countries like Portugal and Malta offer good infrastructure, while Romania is improving rapidly.

Here’s a quality of life comparison between some of the most popular residency destinations:

This table shows the cost of living, healthcare, and safety factors in these countries to give you a clearer picture of what life will be like beyond the tax benefits.

1.3 Business Environment: Ease of Doing Business and Corporate Taxation

The business environment is a critical factor, especially for entrepreneurs. You’ll want to assess:

• Ease of Incorporation: How quickly and easily can you start your business in your new country? Some countries have incredibly simple incorporation processes, while others may require more paperwork and bureaucracy.
• Access to Talent: Does the country have a skilled workforce? Is it easy to hire qualified employees, or will you struggle to find the talent you need?
• Business-Friendly Environment: Countries like Estonia, Malta, and Cyprus offer business-friendly policies with low corporate tax rates, minimal bureaucracy, and streamlined company registration.

Business Environment Comparison Table

This table allows you to compare the ease of incorporation, tax rates, and overall business environment for each country, helping you decide where you can launch your business with the least hassle.

1.4 Residency Programs: Digital Nomad Visas, Golden Visas, and More

Many countries now offer specialized residency programs for entrepreneurs, investors, and digital nomads. These visa programs provide an excellent opportunity to live and work in countries that would otherwise be hard to access. Here’s a breakdown of some options:

Investor Visas: If you’re looking to make a significant investment in real estate or business, countries like Portugal and Cyprus provide residency by investment opportunities, which grant long-term residency or citizenship in exchange for a substantial investment.

Golden Visas: Countries like Portugal, Malta, and Cyprus offer Golden Visa programs that grant residency in exchange for investment. This is a popular choice for those who want access to an EU country without the bureaucratic hassle.

Digital Nomad Visas: Estonia and Portugal offer digital nomad visas that allow you to live in these countries while working remotely for a company outside of the country.

Step 2: Evaluating the Best Residency Options for Different Types of People

Choosing the best residency option varies greatly depending on your personal or business goals. Every individual or family has unique requirements when it comes to finding the right place to live, work, and thrive. From entrepreneurs and digital nomads to pensioners and high-net-worth individuals (UHNWIs), each group will have a different set of priorities, such as low taxes, business-friendly policies, access to global markets, or a high quality of life. In this section, we will evaluate which residency options are best suited for various types of people, taking into account their specific needs and lifestyle preferences.

2.1 Digital Nomads: Freedom to Work from Anywhere

Digital nomads have a unique lifestyle. They earn money online, often working remotely for companies located all over the world, and they tend to travel frequently. This lifestyle demands flexibility, affordable living, and access to easy-to-obtain residency options. The best countries for digital nomads are those that:

• Offer digital nomad visa programs or remote work visas.
• Have tax policies that are favorable for those earning foreign income (often tax-free or lower tax rates on foreign earnings).
• Are home to an active community of nomads, providing networking opportunities and a collaborative environment.
• Provide high-quality living at an affordable cost (as digital nomads often need to maintain a flexible lifestyle).

Key Considerations for Digital Nomads:

1. Visa Flexibility and Residency Options: Countries that provide specific digital nomad visas are ideal for nomads because they streamline the process of legally living and working in the country. These visas allow digital nomads to reside in the country while working remotely for clients or companies located elsewhere. Some countries, like Portugal and Estonia, have remote work visa programs specifically designed for digital nomads, which make the transition seamless. Other countries, such as Dubai (UAE), offer tax-free zones and attractive long-term residency programs for remote workers.Examples of countries with digital nomad visa programs include:
   • Portugal: Portugal’s D7 Visa is a popular option for digital nomads, especially because it allows remote workers to enjoy tax exemptions on foreign income.
   • Estonia: Estonia has a dedicated Digital Nomad Visa, enabling remote workers to legally reside and work for up to a year while enjoying access to EU markets.
   • Dubai: The Dubai Remote Work Visa allows remote workers to live in one of the world’s most exciting cities with zero personal income tax.
2. Taxation: The tax policies of a country are one of the most important factors to consider for digital nomads. Most digital nomads earn their income online from clients or businesses based in other countries, so foreign income tax policies are crucial. Ideally, digital nomads should choose countries where they can either avoid taxes on their foreign income or pay lower rates. Countries like Estonia, Portugal, and Dubai offer tax policies that are extremely favorable to remote workers.For example:
   • Portugal offers the Non-Habitual Resident (NHR) program, which allows you to receive foreign income tax-free for up to 10 years.
   • Estonia has a 20% flat tax on corporate profits, but it only taxes distributed profits, meaning digital nomads can avoid paying taxes on earnings they keep within their business.
   • Dubai (UAE) offers zero income tax, making it one of the best places for digital nomads who are looking for tax optimization.
3. Cost of Living: Many digital nomads choose destinations that offer an affordable cost of living while maintaining high standards of infrastructure, healthcare, and quality of life. Locations like Portugal and Georgia offer a low cost of living without sacrificing access to the necessities and comforts of modern life. These countries also boast vibrant expat communities, making it easier for nomads to find a place to settle, network, and thrive.
4. Community and Networking: Digital nomads thrive when they can connect with other like-minded individuals. An active community of expats and digital nomads can create opportunities for collaboration, networking, and business growth. Countries like Portugal and Estonia have well-established communities of digital nomads, with coworking spaces, networking events, and regular meetups. Countries with established nomad hubs also offer a social environment that can be beneficial for your personal and professional development.
5. Safety and Accessibility: Countries with a high level of safety, good public transport, and easy access to other regions are ideal for digital nomads. Portugal and Estonia, for instance, are known for their safe environmentsand excellent public transport systems, making it easy for nomads to live and work without hassle. Furthermore, being in the EU (in the case of Portugal and Estonia) offers ease of access to a larger market, facilitating easier travel for business needs.

Best Countries for Digital Nomads:

• Portugal 🇵🇹: Excellent tax incentives for remote workers, affordable living costs, and vibrant expat communities.
• Estonia 🇪🇪: Digital nomad visa, business-friendly tax policies, and a growing network of remote workers.
• Dubai (UAE) 🇦🇪: No income tax, modern infrastructure, and a central global business hub.
• Georgia 🇬🇪: Low cost of living, tax-free foreign income, and a welcoming environment for digital nomads.

2.2 Entrepreneurs: Building and Scaling a Business 🚀

Entrepreneurs need a business-friendly environment with low corporate tax rates, easy business incorporation, and access to an international market. In addition to tax advantages, entrepreneurs also benefit from networking opportunities, investment options, and access to a talented workforce.

Key Considerations for Entrepreneurs:

1. Business-Friendly Environment: The ease with which you can start and grow your business depends largely on the regulatory environment. Countries that minimize bureaucracy and offer easy company incorporation processes are often the best choices for entrepreneurs. Countries like Cyprus, Malta, and Estonia are known for their business-friendly policies that support entrepreneurs from the moment they decide to start their business.
2. Low Corporate Taxes and Special Programs: Many countries offer tax incentives for entrepreneurs, such as lower corporate tax rates and special tax programs for foreign investors or tech startups. For example:
   • Cyprus offers a 12.5% corporate tax rate, which is among the lowest in Europe, and a participation exemption that allows companies to benefit from tax breaks on dividends.
   • Malta offers an effective tax rate as low as 5% through its tax refund system for international businesses.
   • Estonia allows you to pay tax only on distributed profits, meaning if you keep profits in your business, they aren’t taxed, which is ideal for businesses that reinvest their earnings.
3. Access to Talent: As an entrepreneur, you’ll want to have access to a skilled workforce that can help you scale your business. Countries like Estonia and Portugal provide a highly educated labor pool, making it easier to hire employees with the expertise you need. In addition, these countries have a high number of tech professionals and entrepreneurs who can collaborate and bring innovative ideas to your business.
4. Investor-Friendly Environment: Countries like Malta, Cyprus, and Singapore have strong legal frameworksthat protect investors and business owners. These countries are particularly attractive to entrepreneurs looking for venture capital, funding, and business incubators.
5. Ease of Business Expansion: Entrepreneurs often need the flexibility to expand their business internationally. Countries like Cyprus, Malta, and Estonia offer access to global markets, particularly in Europe, the Middle East, and Asia. Moreover, tax treaties with other countries can help minimize the risk of double taxation, which is critical when doing business internationally.

Best Countries for Entrepreneurs:

• Cyprus 🇨🇾: Low corporate taxes, favorable business regulations, and a strategic location in Europe and the Middle East.
• Malta 🇲🇹: Attractive tax incentives, ease of doing business, and low effective tax rates for international companies.
• Estonia 🇪🇪: Easy online incorporation, a digital-first government, and tax advantages for companies that reinvest profits.
• Singapore 🇸🇬: Low corporate tax rate, robust infrastructure, and access to Southeast Asia’s business hub.

2.3 Ultra High Net-Worth Individuals (UHNWIs): Wealth Preservation and Global Mobility

For UHNWIs, the priority is often to preserve wealth, minimize taxes, and secure global mobility. UHNWIs typically have complex financial portfolios, including assets, investments, and property spread across multiple jurisdictions. The best residency options for UHNWIs offer tax exemptions, asset protection, and easy access to global markets.

Key Considerations for UHNWIs:

1. Wealth Protection: For UHNWIs, wealth preservation is key. Countries like Monaco, Switzerland, and Dubai offer strong asset protection laws and allow individuals to shield their wealth from excessive taxation. These countries often have no inheritance tax or estate tax, ensuring that family wealth can be passed on without a significant tax burden.
2. Tax Optimization: Countries like Monaco and Dubai are attractive to UHNWIs because they offer no personal income tax and low corporate tax rates. By relocating to these countries, UHNWIs can enjoy a tax-efficient lifestyle while still maintaining access to the global economy.
3. Global Mobility: UHNWIs often need to travel frequently for business or leisure. Countries like Monaco and Switzerland offer visa-free access to much of the European Union and other regions, making them ideal for those seeking global mobility. Additionally, the Golden Visa programs in countries like Portugal and Malta allow UHNWIs to obtain residency or citizenship by investment, granting them the ability to travel and do business freely.
4. Exclusive Residency Programs: UHNWIs benefit from exclusive residency programs, such as the Monaco Residency Program or the Switzerland C Permit, which provide permanent residency and tax advantages in exchange for investments in the local economy. These programs also offer high levels of privacy, security, and luxury living.

Best Countries for UHNWIs:

• Monaco 🇲🇨: No income tax, luxurious living, and complete privacy.
• Switzerland 🇨🇭: Strong asset protection laws, global mobility, and excellent financial infrastructure.
• Dubai (UAE) 🇦🇪: No income tax, luxurious lifestyle, and global business hub.
• Malta 🇲🇹: Residency by investment programs, strong legal protections, and access to Europe.

2.4 Pensioners: Relaxing in a Low-Tax, Low-Cost Environment 🌞

For pensioners, the ideal residency offers a low-tax environment on pension income, affordable living costs, and access to high-quality healthcare. Pensioners typically prioritize a peaceful lifestyle, good healthcare, and the ability to enjoy their retirement without being burdened by excessive taxes or high living expenses.

Key Considerations for Pensioners:

1. Tax Exemptions on Pension Income: Countries like Portugal and Malta offer tax exemptions on pension income, which makes them ideal for pensioners looking to maximize their retirement income. Portugal’s Non-Habitual Residency (NHR) program, for example, provides zero tax on foreign pension income for up to 0 years, making it one of the most attractive destinations for retirees from around the world. Additionally, countries like Cyprus and Malta also provide favorable tax regimes for retirees, with no inheritance tax and low property taxes, allowing retirees to keep more of their wealth intact while living comfortably.
2. Affordable Cost of Living: Pensioners often prefer countries with a low cost of living where their retirement income goes further. Countries such as Portugal, Cyprus, and Romania offer a relatively low cost of living compared to Western Europe or North America. This is particularly important if you’re living on a fixed income. For example, Portugal offers a comfortable lifestyle at a fraction of the cost of living in cities like London or Paris. Even in Malta, while slightly more expensive than other Mediterranean countries, the cost of living is still affordable relative to the quality of life offered.Additionally, places like Spain and Costa Rica also rank high on affordability for retirees. Portugal and Spain offer sunny climates, relaxed lifestyles, and lower utility costs, while also providing world-class healthcare.
3. Access to Healthcare: High-quality healthcare is essential for pensioners, especially those with ongoing medical needs. Countries like Portugal and Malta offer universal healthcare systems that provide affordable care to residents. While the quality of healthcare in Cyprus may not be on par with the best in Europe, the private healthcare system is efficient and reasonably priced, especially for expatriates. Additionally, Spain offers an excellent healthcare system, with many private and public options that retirees can access affordably.
4. Safety and Lifestyle: For many retirees, safety and a slow-paced lifestyle are crucial. Countries like Portugal and Malta are known for their safe, welcoming communities, which makes them ideal for retirees who want to enjoy their golden years without worrying about security. These countries also offer easy access to nature, from beachesto mountains, and are known for having exemplary quality of life. Moreover, Portugal and Malta have established expat communities, making it easier for retirees to settle in and make new friends.
5. Language and Integration: For some retirees, language can be a barrier, so looking for countries with a wide-spoken language can be helpful. Portugal and Malta both speak English widely, especially in urban areas, making it easier for retirees to integrate and communicate without language difficulties. Countries like Spain and Cyprus also have large English-speaking populations, so retirees can enjoy a stress-free experience with language challenges minimized.

Best Countries for Pensioners:

• Portugal 🇵🇹: No tax on foreign pensions through the NHR program, low cost of living, high-quality healthcare, and a friendly expat community.
• Malta 🇲🇹: Attractive tax benefits for retirees, beautiful Mediterranean climate, and English widely spoken.
• Cyprus 🇨🇾: No inheritance tax, low property taxes, affordable living, and strong healthcare system.
• Spain 🇪🇸: Low cost of living, high-quality healthcare, and a warm climate make Spain perfect for retirees.
• Costa Rica 🇨🇷: Affordable living, great healthcare, and an expat-friendly environment.

2.5 Freelancers and Highly Skilled Professionals: Flexibility and Work-Life Balance

Freelancers and highly skilled professionals, whether in the creative industries, IT, or consulting, need a country that provides flexibility, a business-friendly environment, and an opportunity to earn well while maintaining work-life balance. These professionals often prioritize freedom, high-quality infrastructure, and the ability to connect with other professionals and networks.

Key Considerations for Freelancers and Highly Skilled Professionals:

1. Freelancer Visa Options: Many freelancers are looking for specialized visa options that make it easy for them to work in a new country without the complexity of a regular work visa. Countries like Estonia, Portugal, and Malta offer freelancer visa programs that allow freelancers to live and work without requiring sponsorship from a local employer. The Estonian Digital Nomad Visa allows freelancers to legally live and work in Estonia for up to a year while earning foreign income. Portugal also offers the D7 Visa, which is ideal for self-employed individuals with a stable income stream from abroad.
2. Tax Benefits and Low Self-Employment Taxes: Freelancers typically want to minimize their tax burden and maximize the profitability of their work. Countries like Estonia and Portugal provide tax incentives for freelancers, such as low personal income tax rates or tax exemptions on foreign income for a set number of years under the Non-Habitual Residency (NHR) program in Portugal. Additionally, Cyprus and Malta offer favorable tax regimes for freelancers and small business owners, with both countries imposing relatively low taxes on self-employed individuals. Cyprus is particularly appealing, with a flat rate of 12.5% for corporate taxes and a favorable regime for freelancers in the IT and tech sectors. Malta offers a 5% effective tax rate for foreign income via tax credits and tax refunds, making it a highly attractive option for international freelancers and contractors (although it’s not as attractive as it sounds and may change soon).
3. Access to Professional Networks and Business Opportunities: As a freelancer or professional, having access to a network of like-minded individuals is essential. Countries like Estonia, Portugal, and Malta have a robust startup culture and coworking spaces, which provide the perfect environment for collaboration. Estonia has become one of the most digitally advanced countries in Europe, offering e-residency and facilitating cross-border digital business operations. Meanwhile, Portugal and Malta offer highly diverse professional communities, and coworking hubs where freelancers and entrepreneurs can meet and grow.
4. Quality of Life and Work-Life Balance: Freelancers and highly skilled professionals prioritize a healthy work-life balance. Countries that offer access to beautiful landscapes, outdoor activities, and a comfortable lifestyle are high on the list for freelancers. Portugal and Spain are famous for their laid-back lifestyle, sunny weather, and fantastic quality of life. Estonia, though cooler in terms of weather, offers efficient public services, excellent internet infrastructure, and a strong work-life balance ethos, especially for freelancers.
5. Cost of Living: Many freelancers choose countries with a lower cost of living so they can maintain a comfortable lifestyle without burning through their earnings. Portugal and Romania offer affordable living while maintaining high standards of safety, infrastructure, and healthcare. In contrast, Malta and Estonia are slightly more expensive but provide excellent quality of life, business infrastructure, and access to European markets.

Best Countries for Freelancers:

• Estonia 🇪🇪: Digital-first environment, low taxes, and a strong startup culture.
• Portugal 🇵🇹: Attractive tax rates for freelancers, great climate, and a solid expat community.
• Cyprus 🇨🇾: Low corporate taxes, and appealing for IT professionals and digital nomads.
• Malta 🇲🇹: Excellent tax incentives, a highly skilled workforce, and a thriving business environment.

Step 3: Recommendations – Which Residency is Best for You?

Now that we’ve evaluated the best residency options for various groups, let’s provide some clear recommendations based on your specific needs.

• For Digital Nomads: Look for countries with digital nomad visa programs and low tax rates on foreign income. Countries like Estonia, Portugal, and Dubai are perfect for nomads who need flexibility, tax savings, and an active community of remote workers.
• For Entrepreneurs: If you’re looking to start or scale a business, choose a country that has business-friendly policies, low corporate tax rates, and easy company incorporation processes. Countries like Cyprus, Malta, and Singapore are ideal for entrepreneurs.
• For UHNWIs: For individuals seeking global mobility, wealth protection, and tax efficiency, countries like Monaco, Switzerland, and Dubai provide excellent residency options for UHNWIs.
• For Pensioners: Choose a country with low taxes on pensions, affordable living, and quality healthcare. Portugal, Malta, and Spain offer ideal environments for retirees looking to enjoy a comfortable lifestyle without excessive taxes.
• For Freelancers: Seek out countries with freelancer visa options, low self-employment taxes, and a high quality of life. Countries like Estonia, Portugal, and Cyprus offer great opportunities for freelancers.

Still not sure? Get in Touch with us!

If you’re still not sure which country is the best fit for you or are considering multiple countries for business and residency, get in touch with us today. We’ll schedule a consultation to discuss your goals, answer your questions, and help you find the best solution for your needs.

We’re here to ensure that your transition to a new country or new business structure is as smooth as possible. From tax planning to residency management, we have the tools, knowledge, and support you need to succeed. Let us help you take control of your financial and personal future. We’ll make sure you’re on the right path, with a customized, legal, and tax-efficient solution that works for you. Reach out to us today, and let’s build your future, together!