In an increasingly globalised world, wealth taxation has become a key consideration for high-net-worth individuals (HNWIs), expatriates, and international investors.
While some European countries impose annual wealth taxes on assets, others have moved away from this approach entirely, creating attractive opportunities for those seeking tax-efficient wealth planning.
At Private Client Consultancy, we regularly advise clients on cross-border financial planning, residency considerations, and long-term wealth structuring.
Understanding which EU countries with no wealth tax is an important first step in building an effective strategy.
A wealth tax is typically an annual tax levied on the net value of an individual’s assets, including property, investments, cash, and sometimes business interests, minus liabilities.
Although intended to target high levels of wealth, these taxes can significantly impact long-term capital preservation and investment returns.
Over the last decade, many EU countries have abolished wealth taxes, citing administrative complexity, capital flight, and limited revenue generation.
Below are several EU member states that do not currently impose a general wealth tax, making them particularly attractive for internationally mobile individuals.
Germany abolished its wealth tax in 1997.
While residents are subject to income tax, capital gains tax, and inheritance tax, there is no annual tax on net assets.
Germany remains a popular base for entrepreneurs and professionals with internationally diversified portfolios.
Austria eliminated its wealth tax in 1994.
There is also no inheritance or gift tax, which further enhances its appeal for long-term family wealth planning.
Income and capital gains taxes still apply, but asset accumulation itself is not taxed annually.
Belgium does not levy a traditional wealth tax on individuals.
Although there is a tax on securities accounts above certain thresholds, this is not a comprehensive wealth tax.
Capital gains on private investments are generally tax-free, making Belgium attractive for investors.
Malta has no net wealth tax and offers favourable regimes for non-domiciled residents.
Foreign income not remitted to Malta is typically not taxed, making it a popular jurisdiction for expatriates and retirees seeking tax efficiency within the EU.
Cyprus abolished its wealth tax in 1999 and has since positioned itself as a competitive financial hub.
With no wealth tax, no inheritance tax, and attractive residency programmes, Cyprus is often considered by internationally mobile families.
Estonia stands out for its simple and transparent tax system.
There is no wealth tax, no inheritance tax, and corporate profits are only taxed when distributed.
This makes Estonia particularly appealing for business owners and digital entrepreneurs.
Both Latvia and Lithuania do not impose a general wealth tax.
While property and capital income taxes apply, the absence of a net wealth tax can be beneficial for individuals holding diversified asset portfolios.
It is worth noting that some EU countries still impose wealth-based taxes or variants, such as Spain (wealth tax reintroduced and extended), and France, which replaced its general wealth tax with a real estate-focused tax.
These distinctions are crucial when considering relocation or restructuring assets.
Spain is unique in Europe as it levies a wealth tax that is collected regionally, leading to vast disparities across the country.
Regional Wealth Tax (Impuesto sobre el Patrimonio): Historically, regions like Madrid and Andalucia offered a 100% relief, effectively reducing the wealth tax to zero. However, other regions charge up to 3.5% on worldwide assets. You can read more about wealth tax in Spain here.
The Solidarity Tax (Impuesto de Solidaridad): To harmonise taxation, the central government introduced a “Solidarity Tax” on net assets exceeding €3 million. This acts as a floor, ensuring that even residents in “zero-tax” regions pay if their wealth is substantial.
The “Beckham Law” Shield: Crucially for new residents, the Special Expats Regime (Beckham Law) may shield you from wealth tax on non-Spanish assets for up to six years, making Spain highly attractive despite the general rules.
France abolished its general wealth tax (ISF) in 2018, replacing it with the Property Wealth Tax (Impôt sur la Fortune Immobilière or IFI).
Scope: This applies only to real estate assets (worldwide for residents) if the net value exceeds €1.3 million.
Exclusions: Financial portfolios, shares, and cash are generally exempt, which is a major advantage for those with liquid wealth rather than property portfolios.
The 5-Year Holiday: New tax residents in France benefit from a five-year exemption on IFI for all assets located outside of France.
While Italy technically applies a mini-wealth tax on foreign assets (IVAFE at 0.2%), it is often a top choice for HNWIs due to its “Lump Sum” regime.
The Regime: New residents can opt to pay a single flat tax (recently increased to €200,000 – €300,000 per year depending on entry date) in lieu of standard income tax on all foreign-sourced income.
The Benefit: This payment also covers wealth taxes on foreign assets and exempts you from gift and inheritance taxes on foreign wealth, effectively acting as a cap on your liability.
For high-net-worth individuals, the lack of a wealth tax can offer:
However, tax efficiency should never be assessed in isolation. Income tax, capital gains tax, inheritance rules, and residency status all play a critical role in determining the overall effectiveness of a financial strategy.
Relocating or investing in a country with no wealth tax does not automatically guarantee lower taxation.
Residency rules, double taxation treaties, and reporting obligations must be carefully analysed to avoid unintended consequences.
At Private Client Consultancy, we take a holistic approach to wealth management. We work closely with clients to:
Note: This is a fictional scenario for illustrative purposes.
The Situation: Sarah and John Miller (aged 55 and 58) recently sold their technology business in the UK for €15 million. They were looking to relocate to the EU for a better lifestyle but were concerned about eroding their capital through annual wealth taxes.
The Assessment:
The Solution: The Millers chose Cyprus.
No.
“No Wealth Tax” specifically means there is no annual levy on the holding of assets.
You may still be liable for Income Tax on earnings, Capital Gains Tax when you sell assets, and Inheritance Tax upon death.
Portugal (via the NHR regime or its successor), Malta, and Cyprus are often top choices.
They combine warm climates with tax systems that do not tax accumulated wealth and often offer low rates on pension income.
Portugal does not have a general wealth tax.
However, it does apply the AIMI (Additional Municipal Property Tax), which functions as a limited wealth tax solely on high-value Portuguese real estate (generally property holdings exceeding €600,000).
You can read more about this in our article about Wealth tax in Portugal.
Residency rules are strict.
If you are a tax resident in a country with a wealth tax (like Spain), you are typically taxed on your worldwide assets, not just those located in the country.
Proper cross-border planning is essential to avoid double taxation.
A Wealth Tax is an annual charge on the value of your assets while you are alive.
Inheritance Tax is a one-off charge levied when assets are passed on after death. Some countries, like Austria and Estonia, have abolished both.
EU countries with no wealth tax can offer meaningful advantages for wealth preservation, but successful outcomes depend on careful planning and professional advice. What works for one individual may not be suitable for another, particularly in a multi-jurisdictional context.
If you are considering relocating, restructuring your assets, or simply want to understand how wealth tax, or the absence of it, may affect your financial future, Private Client Consultancy is here to help you navigate the complexities with clarity and confidence.
UK State Pension update for EU residents
From April 2026, the rules around voluntary National Insurance contributions for people living outside the UK are changing.
If you live in the EU and expect to rely on the UK State Pension, it may be worth reviewing your position while current options remain available.
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