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Country Tax Rates and the FEIE vs. FTC Decision

The country where you live can affect whether the Foreign Earned Income Exclusion or the Foreign Tax Credit deserves closer attention. This table gives you a quick way to see whether your country is generally low-tax, medium-tax, or high-tax for planning purposes.

How to Use This Table

This page is not telling you which form to file. It is a planning tool. If you live in a lower-tax country, FEIE may be the first path to understand. If you live in a higher-tax country and paid local income tax, the Foreign Tax Credit may deserve a closer comparison.

The table uses headline personal income tax rates. Your actual tax result depends on residency, income level, deductions, local taxes, social contributions, business structure, and the type of income involved.

Low-tax signal

0%–15% headline personal income tax rate. FEIE may be the first path to understand, especially if little or no foreign income tax was paid.

Medium-tax signal

16%–30% headline personal income tax rate. Compare both paths before choosing.

High-tax signal

31%+ headline personal income tax rate. FTC may deserve a closer look if you paid foreign income tax on the same income.

Before making the choice, review the FEIE vs. FTC Guide.

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Low-Tax Countries and Territories

These countries and territories generally show a headline personal income tax rate of 0%–15%, or no applicable headline personal income tax in the source table.

Country / Territory Headline PIT Rate
Bahamas, TheNA
BahrainNA
BermudaNA
Bolivia13%
Bosnia and Herzegovina8%–10%
Brunei DarussalamNA
Bulgaria10%
Cayman IslandsNA
Greenland10% plus municipal tax
Guatemala7%
Hungary15%
Iraq15%
Kazakhstan15%
Kosovo10%
KuwaitNA
Libya10%
Macau SAR12%
Moldova12%
Montenegro15%
North Macedonia10%
Oman5% on taxable income above threshold, effective 2028
Palestinian territories15%
Paraguay10%
QatarNA
Romania10%
Saudi ArabiaNA
Timor-Leste10%
United Arab EmiratesNA
Uzbekistan, Republic of12%

Medium-Tax Countries and Territories

These countries and territories generally show a headline personal income tax rate between 16% and 30%. In this range, it is especially important to compare both paths.

Country / Territory Headline PIT Rate
Albania23%
Angola25%
Armenia20%
Azerbaijan25%
Bangladesh30%
Barbados28.5%
Botswana25%
Brazil27.5%
Cabo Verde27.5%
Cambodia20%
Chad30%
Costa Rica25%
Czech Republic23%
Dominican Republic25%
Egypt27.5%
El Salvador30%
Equatorial Guinea25%
Estonia22%
Georgia20%
GibraltarMaximum effective rate of 25%
Guernsey, Channel Islands20%
Honduras25%
Hong Kong SAR16%
Isle of Man21%
Jamaica30%
Jersey, Channel Islands20%
Jordan30%
Lao PDR25%
Lebanon25%
Liberia, Republic ofResident 25%; non-resident 20%
Liechtenstein22.4%
Madagascar20%
Malaysia30%
Mauritius20%
Mongolia20%
Myanmar25%
NicaraguaResidents 30%; non-residents 20%
Nigeria25%
Panama25%
Peru30%
Rwanda30%
Saint Lucia30%
Serbia10%–20%
Singapore24%
TanzaniaResidents 30%; non-residents up to 30%
Trinidad and Tobago25%–30%
Ukraine18%

High-Tax Countries and Territories

These countries and territories generally show a headline personal income tax rate of 31% or higher. If you actually paid foreign income tax in one of these countries, the Foreign Tax Credit may deserve careful comparison.

Country / Territory Headline PIT Rate
Algeria35%
Argentina35%
Australia45%
Austria55%
Belgium50% plus communal taxes
Cameroon, Republic of38.5%
CanadaFederal 33% plus provincial/territorial rates
Chile40%
China, People's Republic of45%
Colombia39%
Congo, Democratic Republic of the40%
Congo, Republic of40%
CroatiaUp to 36%
Cyprus35%
DenmarkUp to 57%
Ecuador37%
Eswatini33%
Ethiopia35%
FinlandResidents up to approximately 52%; non-residents 35%
France45% plus surtax and social surcharges
Gabon35% plus complementary tax on salaries
Germany45% plus surcharges
GhanaResidents 35%; non-residents 25%
Greece44%
Guyana35%
Iceland31.35% plus municipal tax
India39% to 42.744%, depending on regime
Indonesia35%
Ireland40%
Israel50%
Italy43%
Ivory Coast (Côte d'Ivoire)32%
Japan45% plus surtax
Kenya35%
Korea, Republic of45%
Latvia36%
Lithuania32%
Luxembourg42% plus solidarity tax
Malta35%
Mauritania40%
MexicoResidents up to 35%; non-resident salaries up to 30%
Morocco37%
MozambiqueResidents 32%; non-residents 20%
Namibia, Republic of37%
Netherlands49.5%
New Caledonia40%
New Zealand39%
Norway39.7%
Pakistan35% to 45%, depending on income type
Papua New Guinea42%
Philippines35%
Poland32% plus possible solidarity tax
PortugalResidents up to 48% plus possible solidarity surtax
Puerto Rico33% plus gradual adjustment tax
SenegalUp to 43%
Slovak Republic35%
Slovenia50%
South Africa45%
SpainResidents up to 47%; regional rates may be higher
Sweden20% plus municipal tax; non-residents 22.5%
SwitzerlandFederal 11.5%; overall maximum may reach 43.2% depending on canton
TaiwanResidents 40%; non-residents vary by income type
Thailand35%
Tunisia40%
Turkey40%
Uganda40%
United Kingdom45%
United States37%
UruguayResidents 36%; non-residents 12%
Venezuela34%
VietnamResidents up to 35%; non-residents 20% for employment income
Zambia37%

Do Not Let the Table Make the Decision for You

The country rate is only one clue. The real FEIE vs. FTC choice depends on your actual income, whether the income qualifies as foreign earned income, how much foreign income tax you paid, and whether you have already made or revoked an FEIE election in prior years.

A high-tax country does not automatically mean FTC is better. A low-tax country does not automatically mean FEIE is better. This table simply helps you know which path deserves a closer look.

Source: PwC Worldwide Tax Summaries — Personal income tax rates. PwC describes the headline PIT rate as generally the highest statutory personal income tax rate, inclusive of surtaxes but exclusive of local taxes. This page reorganizes that information into low, medium, and high planning bands.

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Next Step

After checking your country’s tax level, return to the FEIE vs. FTC Guide to compare the two filing paths before choosing between Form 2555 and Form 1116.

If you are self-employed, also review Self-Employment Tax for Expats, because FEIE does not automatically remove self-employment tax.

Disclaimer: Expat Tax Savvy provides general educational information only. This table is for planning orientation and is not legal, tax, or accounting advice. Country tax rates, residency rules, and U.S. filing rules can change. Review current source guidance or consult a qualified professional before making filing decisions.