We’re highlighting tax-friendly places to buy property around the globe. After all, who doesn’t love a tax break - especially when it comes to real estate. If you’re considering relocation or investing in a vacation home, keep reading to learn about five tax-friendly places that will save you money in the long-run.
Turks & Caicos
As if its turquoise waters and white sandy shores weren’t reason enough, the islands of Turks & Caicos offer substantial tax benefits when it comes to owning property. “With no income tax and no annual real estate tax or corporation tax, the structures in place are very beneficial for people moving here,” says Sean O’Neill, Managing Director at The Agency Turks & Caicos. “The last few years have highlighted how easy it is for people to base themselves here, with the environment, location and a beneficial tax structure being at the forefront of that.”
It’s more than just the tax breaks, however. “Residency in the Turks & Caicos doesn’t require a minimum number of days to be spent here,” Sean explains. ”So we are an ideal base for the new breed of digital nomads who can work remotely as they travel across the globe.”
When it comes to relocating to these beautiful coral islands, those in Canada tend to be first to take the plunge. “Historically, Turks & Caicos has been especially attractive to Canadian buyers as the combination of warm weather, golden beaches and a lower recurring tax bill is pretty appealing, particularly in the depths of a Canadian winter!” says Sean. If the Caribbean is calling your name, this could be the sign you were looking for.
Palm Beach, Florida
Florida enjoys its reputation as a state with no income tax. Those who purchase homes here have the benefit of year-round sunshine with serious tax breaks. “During the pandemic, a lot of businesses moved to South Florida, and they are here to stay,” says Brian Fairweather Jr., Managing Partner at The Agency Palm Beach. “From the hospitality industry to finance, many professionals recently started calling Florida their home and a lot of it’s due to Florida being a no tax state.”
Brian goes on to elaborate that the pandemic was the primary impetus in the market’s recent boom. “While a lot of states were shut down in 2020, Florida was open for business. Many people moved here and realized they could still run their businesses and save a ton of money on taxes. We started seeing primary home purchases go up and more people staying in South Florida. This trend has continued to stay strong even in 2023.”
Where are the majority of buyers coming from? “Most of the people migrating to our area are coming from the Northeast, which are high tax states, like New York. We also see quite a few people from Chicago, Connecticut, New Jersey and the occasional Californian calling South Florida home,” says Brian. “In the past 3 years, South Florida has grown into a place many industries are coming to and giving more and more people a reason to stay. It’s a very exciting time to be in Palm Beach!” Whether people choose to move to Florida full-time or be snow-birds for exactly six months and one day (to qualify for primary residence), one thing is certain: beautiful beaches, world-class golf courses and top-rated restaurants create a lifestyle that is hard to match.
Las Vegas, Nevada
Despite being neighbors with California - a state with one of the highest income taxes in the country - Nevada residents enjoy the very fortunate position of no income tax. This tax-friendly state has much to boast including sunny year-round weather, an affordable housing market, low property taxes and endless entertainment.
“With many cities across the country experiencing high crime rates, the Las Vegas luxury market is experiencing a growing demand from buyers from all over the country,” says Zar Zanganeh, Managing Partner at The Agency Las Vegas. “The higher interest rates have not affected our luxury listing sales, since we still have demand from luxury buyers relocating from high-tax states. Our out-of-state buyers previously went from 30 to 50% relocating to Nevada for being business-friendly and tax-friendly. Now, over 75% of our buyers are from places like California, the tri-state area and Canada.”
Together, the low property taxes, no state income tax, and sales tax of only 8% in Clark County make for a business-friendly environment.
“For many years The Bahamas has been a hot-spot for relocation and home ownership due to being the premier banking and financial center of the Caribbean, its convenient proximity to the U.S., having English as the official language and readily accepting the U.S. dollar as currency,” says Danny Lowe, Managing Partner at The Agency Bahamas. On top of this rolling list of attractive attributes, the relaxed Caribbean lifestyle and near-perfect weather also don’t hurt.
“The Bahamas recently experienced a large influx of buyers from Canada, Europe and Latin America,” explains Danny. “Canadians have been buying in the Bahamas for many years and making their Bahamian homes their primary residence in order to be compliant with Canadian law.”
Come for the BBQ and music, stay for the real estate. Nashville is another city with the winning combination of 0% state income tax and low property taxes, proving to be the perfect place for individuals and families fleeing high-tax states. “The state of Tennessee will give the feeling of a pay raise to people transitioning from overtaxed states,” says Managing Partner at The Agency Nashville, Scott Coggins. “Combined with low property taxes, there is no wonder why 127 people a day move to the Greater Nashville area.”
“We had one client from New York get a $100,000 ‘pay raise’ as a bonus for moving to Franklin, Tennessee,” adds Managing Partner Amy Doyle. “His current salary was being taxed at a high rate and he ended up buying a better property in Tennessee vs. his home in New York. The perception of a pay increase became a reality after moving to Tennessee. Everyone loves visiting Nashville for the food, entertainment and sports that our city provides. Many people who are tourists today end up becoming locals tomorrow.”
Whether you’re ready to take that next step and invest in a vacation home or you’re looking to start a new phase of life and relocate, The Agency has experts in 80+ offices across the globe. Reach out to your agent to learn more about these five tax-friendly places and how we can help.
Written by Nicole Wolf.