Looking to live well and not pay exorbitant taxes? Hong Kong, Luxembourg, and Sydney might be your best bets, depending on your current stage of life.
Those three places were named the most tax-efficient locations for the quality of life they offer, according to Knight Frank’s Global Lifestyle Review 2016 released Monday.
The real-estate consultancy worked with global accounting firm BDO, which provided a list of 26 top tax-friendly locations around the world (Hong Kong and Luxembourg have low tax regimes, while Australia offers tax breaks for new residents). Knight Frank then analyzed and ranked these places by taking into account lifestyle factors that motivate people at different stages of life before purchasing a property.
After factoring in elements such as education, healthcare and culture—in addition to political risk, personal safety and quality-of-life rankings by global consulting firm Mercer— Hong Kong was selected as the best place to live for an entrepreneur, Luxembourg was the top choice for a family, and Sydney ranked first for a retired couple.
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For the entrepreneur
Knight Frank selected Hong Kong as the No. 1 choice based on factors such as Mercer’s political-risk ranking and distance to a major international airport, with direct flights from at least three of the following international hubs: London, Paris, New York, Singapore, and Moscow. The number of Michelin-starred restaurants, of which Hong Kong has 61; the cost of a premium bottle of Champagne in a 5-star hotel ($515 in Hong Kong) and what leisure activities were available were also considered.
Homebuyers can also take advantage of cheaper housing costs, as prime residential prices in Hong Kong have gone down 3.6% since December 2015, according to the report.
Other major destinations for the entrepreneur, according to the Knight Frank index, are London, Vancouver, Dubai, and Geneva.
For families
What attracts families to a particular area might be entirely subjective, but the Knight Frank ranking is based on elements such as the number of international schools, Mercer’s Personal Safety Ranking, the cost of annual health care, available leisure activities and even hours of sunshine per year.
Taking these factors into account, Luxembourg led the ranking with 18 international schools, less than $7,000 in annual health costs and 1,550 hours of sunshine per year. Luxembourg, where mainstream home prices have gone up by 5.1% since December, was followed by Vienna, Hong Kong, Geneva, and Dubai.
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For retirement life
Finally, for retired couples, Knight Frank searched for a more relaxed lifestyle by considering Mercer’s Quality of Life Ranking and daily small pleasures like the cost of a cappuccino. It still included in the mix the cost of annual health care, hours of sunshine per year and distance to a major international airport.
The best choices for retirees, according to the index, are Sydney, Malta, Luxembourg, Limassol (in Cyprus) and Vienna.
While Sydney has experienced a 14.5% property price growth since December, the average cost of a gallon of gas is about $3, and it’s $2.68 for a cup of cappuccino, according to the report.
No top U.S. cities No U.S. city other than Miami was included in Knight Frank’s 26-location list, and Miami only appears in the family category at the bottom of the ranking—in 10th place. Annual healthcare costs, a major factor for families, reach $17,525 in Miami, more than double those in Luxembourg, and the sunny city has just five international schools, less than a third of Luxembourg.
Top tax-efficient locations for quality of life at three different stages of life
| Rank | Entrepreneur | Family | Retired Couple |
| 1 | Hong Kong | Luxembourg | Sydney |
| 2 | London | Vienna | Malta |
| 3 | Vancouver | Hong Kong | Luxembourg |
| 4 | Dubai | Geneva | Limassol |
| 5 | Geneva | Dubai | Vienna |
Source: Knight Frank