Home | Forms Library | How to File | Decision Flow | Contact
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.
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.
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.
16%–30% headline personal income tax rate. Compare both paths before choosing.
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.
Advertisement
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, The | NA |
| Bahrain | NA |
| Bermuda | NA |
| Bolivia | 13% |
| Bosnia and Herzegovina | 8%–10% |
| Brunei Darussalam | NA |
| Bulgaria | 10% |
| Cayman Islands | NA |
| Greenland | 10% plus municipal tax |
| Guatemala | 7% |
| Hungary | 15% |
| Iraq | 15% |
| Kazakhstan | 15% |
| Kosovo | 10% |
| Kuwait | NA |
| Libya | 10% |
| Macau SAR | 12% |
| Moldova | 12% |
| Montenegro | 15% |
| North Macedonia | 10% |
| Oman | 5% on taxable income above threshold, effective 2028 |
| Palestinian territories | 15% |
| Paraguay | 10% |
| Qatar | NA |
| Romania | 10% |
| Saudi Arabia | NA |
| Timor-Leste | 10% |
| United Arab Emirates | NA |
| Uzbekistan, Republic of | 12% |
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 |
|---|---|
| Albania | 23% |
| Angola | 25% |
| Armenia | 20% |
| Azerbaijan | 25% |
| Bangladesh | 30% |
| Barbados | 28.5% |
| Botswana | 25% |
| Brazil | 27.5% |
| Cabo Verde | 27.5% |
| Cambodia | 20% |
| Chad | 30% |
| Costa Rica | 25% |
| Czech Republic | 23% |
| Dominican Republic | 25% |
| Egypt | 27.5% |
| El Salvador | 30% |
| Equatorial Guinea | 25% |
| Estonia | 22% |
| Georgia | 20% |
| Gibraltar | Maximum effective rate of 25% |
| Guernsey, Channel Islands | 20% |
| Honduras | 25% |
| Hong Kong SAR | 16% |
| Isle of Man | 21% |
| Jamaica | 30% |
| Jersey, Channel Islands | 20% |
| Jordan | 30% |
| Lao PDR | 25% |
| Lebanon | 25% |
| Liberia, Republic of | Resident 25%; non-resident 20% |
| Liechtenstein | 22.4% |
| Madagascar | 20% |
| Malaysia | 30% |
| Mauritius | 20% |
| Mongolia | 20% |
| Myanmar | 25% |
| Nicaragua | Residents 30%; non-residents 20% |
| Nigeria | 25% |
| Panama | 25% |
| Peru | 30% |
| Rwanda | 30% |
| Saint Lucia | 30% |
| Serbia | 10%–20% |
| Singapore | 24% |
| Tanzania | Residents 30%; non-residents up to 30% |
| Trinidad and Tobago | 25%–30% |
| Ukraine | 18% |
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 |
|---|---|
| Algeria | 35% |
| Argentina | 35% |
| Australia | 45% |
| Austria | 55% |
| Belgium | 50% plus communal taxes |
| Cameroon, Republic of | 38.5% |
| Canada | Federal 33% plus provincial/territorial rates |
| Chile | 40% |
| China, People's Republic of | 45% |
| Colombia | 39% |
| Congo, Democratic Republic of the | 40% |
| Congo, Republic of | 40% |
| Croatia | Up to 36% |
| Cyprus | 35% |
| Denmark | Up to 57% |
| Ecuador | 37% |
| Eswatini | 33% |
| Ethiopia | 35% |
| Finland | Residents up to approximately 52%; non-residents 35% |
| France | 45% plus surtax and social surcharges |
| Gabon | 35% plus complementary tax on salaries |
| Germany | 45% plus surcharges |
| Ghana | Residents 35%; non-residents 25% |
| Greece | 44% |
| Guyana | 35% |
| Iceland | 31.35% plus municipal tax |
| India | 39% to 42.744%, depending on regime |
| Indonesia | 35% |
| Ireland | 40% |
| Israel | 50% |
| Italy | 43% |
| Ivory Coast (Côte d'Ivoire) | 32% |
| Japan | 45% plus surtax |
| Kenya | 35% |
| Korea, Republic of | 45% |
| Latvia | 36% |
| Lithuania | 32% |
| Luxembourg | 42% plus solidarity tax |
| Malta | 35% |
| Mauritania | 40% |
| Mexico | Residents up to 35%; non-resident salaries up to 30% |
| Morocco | 37% |
| Mozambique | Residents 32%; non-residents 20% |
| Namibia, Republic of | 37% |
| Netherlands | 49.5% |
| New Caledonia | 40% |
| New Zealand | 39% |
| Norway | 39.7% |
| Pakistan | 35% to 45%, depending on income type |
| Papua New Guinea | 42% |
| Philippines | 35% |
| Poland | 32% plus possible solidarity tax |
| Portugal | Residents up to 48% plus possible solidarity surtax |
| Puerto Rico | 33% plus gradual adjustment tax |
| Senegal | Up to 43% |
| Slovak Republic | 35% |
| Slovenia | 50% |
| South Africa | 45% |
| Spain | Residents up to 47%; regional rates may be higher |
| Sweden | 20% plus municipal tax; non-residents 22.5% |
| Switzerland | Federal 11.5%; overall maximum may reach 43.2% depending on canton |
| Taiwan | Residents 40%; non-residents vary by income type |
| Thailand | 35% |
| Tunisia | 40% |
| Turkey | 40% |
| Uganda | 40% |
| United Kingdom | 45% |
| United States | 37% |
| Uruguay | Residents 36%; non-residents 12% |
| Venezuela | 34% |
| Vietnam | Residents up to 35%; non-residents 20% for employment income |
| Zambia | 37% |
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.
Advertisement
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.