What is tax freedom, and why the wealthy watch it

For high-net-worth individuals (HNWIs), tax is often the leading driver when considering a second citizenship or residence. But the "tax burden" is broader than the income tax rate alone.

What is really worth examining

• Tax basis: residence or citizenship? (The US taxes by citizenship.)
• Wealth, inheritance and capital gains taxes: many places have low income tax but heavy inheritance tax.
• Incentives for newcomers: non-dom regimes, lump-sum taxation and time-limited exemptions on foreign income.

Indices Tax Freedom Index converts these factors to a single 0–100 scale for objective comparison between countries. Note: this is reference data, not tax advice.