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Top tax-free escapes

Victoria Hampton by
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For those wanting to spend wisely on holiday, a low tax or tax-free holiday destination is often a great choice for the frugal traveller. Holidaymakers can enjoy the duty-free status of these countries which often equates to cheaper accommodation, cheaper food and cheaper drinks!

Andorra is a great skiing holiday destination

Europe has a couple of hidden gems regarded as tax havens - one of these is Andorra, which nestles within the eastern Pyrenees Mountains between France and Spain and is one of Europe’s tiniest nations. This striking country offers rugged alpine landscape and cut prices... so it holds a unique intrigue for Europe aficionados wanting to visit somewhere a little unusual. 

Luxembourg has a great selection of Michelin starred restaurants 

Likewise, Luxembourg also offers tax-saving benefits for travellers seeking a good value holiday in Europe. If you can forget its radio station and its Eurovision roots, this tiny country is actually a really cultured and interesting destination not dissimilar to Germany - but much less expensive! Despite this, Luxembourg has more Michelin-starred restaurants per square mile than possibly any other country in the world and is also famous for its delicious Moselle wine, Villeroy & Boch porcelain and high-quality chocolate.

However, if you're after a slightly more exotic tax-haven, then Panama in southern Central America is a great place to visit. With endless beaches, deep rainforests, tropical weather and a unique mix of Latin American, Native American and European culture, it's a country with something for everyone.  

Belize is a prefect holiday spot with fantastic beaches 

Belize is also considered a Caribbean tax-haven, offering plenty of advantages for travellers holding onto their purse strings. It also boasts breathtaking beaches, a culturally-rich society and great diving, with natural wonders such as the Great Blue Hole and the Belize Barrier Reef - the second longest in the world after the Great Barrier Reef, as well as ancient Mayan ruins. What's more, Belize offers the perfect tropical escape for British travellers, as it is the only country within Central America where the official language is English.

Another exotic holiday destination that offers zero per cent tax on goods is Hong Kong. It's hard to imagine how such a prosperous, hustling, bustling city is built on a system that requires no tax, but it makes Hong Kong a great choice for travellers.  Aside from shopping and spectacle, this densely populated Chinese island is also famous for its impressive skyline and beautiful natural harbor. While those looking for more beach time, should visit the neighbouring islands of Taipa and Coloane. 

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