This ranking lists 196 countries from lowest to highest by vat ascending. Eritrea leads at 0.0%, while Hungary has the highest rate at 27.0%. Data year: 2024.
📅 April 2026🌎 196 countries ranked📈 vat ascending🕑 Data: 2024
Key InsightLowest rates: Eritrea, South Sudan, Tuvalu lead this ranking. The top-ranked country charges only 0.0% — making it among the most attractive globally for tax residency optimisation. Compare the full list below.
The countries with the lowest VAT / GST Rate are: Eritrea, South Sudan, Tuvalu. Eritrea leads at 0.0%. Zero-tax or near-zero jurisdictions include UAE, Bahrain, and Cayman Islands for most income taxes. Among OECD nations, Bulgaria (10% flat), Hungary (15%), and Ireland (12.5% corporate) are notable low-tax options.
How does VAT / GST Rate affect expats and digital nomads?
VAT / GST Rate directly impacts take-home pay and investment returns for globally mobile professionals. A 30-percentage-point difference between countries can mean €30,000/year saved on €100,000 gross income. Key considerations: the 183-day residency rule, tax treaties between countries, territorial vs worldwide tax systems, and special regimes (Portugal IFICI 10% flat, Spain Beckham Law 24%). Always confirm current rates with official sources before relocating.
What is the methodology behind the Countries with Lowest VAT / GST Rate 2024?
This ranking uses statutory headline rates from vat ascending, data year 2024. Statutory rates are the official legal top rates — effective rates (after deductions, allowances, and tax treaty benefits) are typically lower. Corporate rates shown are the standard national rate excluding municipal or state surcharges. Rankings are updated annually as new OECD and official national data becomes available.
Data sources: OECD Tax Database, IMF Fiscal Monitor, national tax authorities.
Rates shown are statutory headline rates (top marginal for income tax, standard for VAT/corporate).
Effective rates depend on deductions, filing status, and individual circumstances.
Last updated April 2026. Not tax advice — consult a qualified advisor for your situation.