'Tax Hells': The Countries with the World's Most Hostile Tax Environments

In a new version of its Tax Hell Index , The 1841 Foundation ranked the countries with the most hostile tax environments in the world. In this fourth edition, Colombia joined the list, which is topped by Russia.

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According to the foundation, Russia climbed from fifth to first place, driven by institutional deterioration resulting from the war with Ukraine, a rising fiscal deficit, and increasing restrictions on private property.

Venezuela, marked by institutional collapse and hyperinflation, and Argentina , which once again returns to the podium after a 2023 with record inflation, debt, and currency restrictions, follow.

In addition to these three countries, the list of twelve jurisdictions considered "tax hells" includes Ukraine, Belarus, Ecuador, Bolivia, Brazil, Mexico, Colombia, Moldova, and Nicaragua , all singled out for their combination of high tax burden, low institutional quality, instability, and poor protection of fundamental rights.

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According to this report, Brazil remains in the top 10, while Ecuador and Colombia have entered the list, having been left out of the previous version of this index.

On the other hand, Ireland and Denmark stand out among the best-positioned countries, which manage to combine reasonable tax systems with high standards of governance and transparency.

What has changed since the last edition?

Between the 2023 and 2024 editions of the Fiscal Hell Index, a slight improvement in the global average was observed—for the first time—dropping from 6.48 to 6.07 points.

Beyond the "rise" of Russia, which now tops the ranking, and that of Argentina, which moved from fourth place to the podium, another significant change was the reduction in the total number of countries classified as tax havens, which went from 13 in 2023 to 12 in 2024.

Countries such as El Salvador, Haiti, Suriname, and Honduras , which were in the most critical category in 2023, were displaced by economies such as Colombia, Ecuador, Moldova, and Mexico , which recorded a clear deterioration in their qualitative indicators, especially in governance and respect for individual rights.

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Brazil, which had entered the ranking strongly in 2023 (position 5), remains in the group of the ten most critical jurisdictions in 2024, confirming a trend of sustained deterioration.

In contrast, Denmark and Ireland continue to establish themselves as global benchmarks for fiscal efficiency, transparency, and institutional strength, consistently ranking among the highest in the index.

What does this index measure?

The Tax Hell Index is an annual measurement that identifies jurisdictions with the most restrictive or challenging tax environments. This edition assesses 82 countries and jurisdictions in Europe and the Americas, combining fiscal and governance indicators.

The index is constructed based on a quantitative assessment (60%), which includes tax pressure, public debt, inflation and deficit, and a qualitative assessment (40%), which measures the rule of law, accountability, political stability, government effectiveness and control of corruption.

“A tax hell isn't just a country with high taxes. It's, above all, a country where property rights, privacy, and the rule of law are disrespected,” said Martin Litwak, founder of The 1841 Foundation. “What's worrying is that, while some countries have made slight improvements, the combination of aggressive tax policies and institutional decay persists in many corners of the world,” he concluded.

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