.webp)
The amount of taxes one pays varies from country to country. According to data provided in the Tax Foundation research, the average corporate income tax across 180 countries worldwide is around 23%.
The highest corporate taxes can be found in Southeastern Africa’s island country of Comoros, where they reach 50%. At the same time, the lowest corporate tax rates are not limited to the jurisdiction of a single country. There are more than 15 countries worldwide where you can benefit from paying 0% taxes.
Keep in mind, though, that some jurisdictions exempt you from corporate income tax only under certain conditions. Nevertheless, owning a company in those states can save you a fortune.
Location: between the Caribbean and North Atlantic Ocean
Dependency status: the UK overseas territory
Currency: Eastern Caribbean dollar (XCD)
Anguilla is a beautiful island country amidst the Caribbean. It attracts lots of wealthy foreigners not only because of its white sandy beaches with clean turquoise water but also a lucrative taxation system.
No income, capital gains, inheritance, gift, or corporate taxes are imposed there. Whether you have a resident or non-resident company in Anguilla, you will not have to pay a penny on your corporate income.
The majority of business owners in Anguilla open Limited Liability Companies (LLC) or International Business Companies (IBC) that benefit from the zero taxes mentioned.
Location: North Atlantic Ocean, Lucayan Archipelago
Dependency status: No
Currency: Bahamian dollar (BSD), United States dollar (USD)
Who hasn’t heard about this heavenly beautiful place in the North Atlantic Ocean? It is a top destination among wealthy vacationers from around the world, especially US citizens. The country’s economy is mainly dependent on the tourism sector.
The local authorities do not levy corporate, personal income, inheritance, dividends, royalties, income, gifts, or capital gains taxes.
Also, it is relatively easy to establish an offshore company in the country. One of the most popular business structures is the International Business Company (IBC). Such entities do not pay corporate taxes unless their income originates from the Bahamas.
All international companies in the Bahamas are subject to payment of the Annual Government License Fee that is due on the 1st of January. The amount of the fee depends on the authorized capital and can be either US$350 or US$1,000.
.jpg)
Location: Middle East, an archipelago in the Persian Gulf
Dependency status: No
Currency: Bahraini dinar (BHD)
It is one of the smallest nations in Asia yet one of the most prosperous thanks to its natural resources. Lots of wealthy expats go to Bahrain to establish their companies in this business-friendly Arab country.
The country attracts foreign investors thanks to zero taxes on income, capital gains, and sales. Currently, there is no corporate tax in Bahrain unless your deal with oil and gas exploration, extraction, or refinement.
However, according to local government plans, the corporate tax is likely to be introduced in the coming years.
Location: north-eastern coast of Central America
Dependency status: No
Currency: Belize dollar (BZD)
Belize is another country on the list washed by the Caribbean Sea and a member of CARICOM. It was part of the UK in the past and is still a member of the British Commonwealth.
Beautiful nature, rainforests, and coral reefs here are accompanied by favorable taxation. You are only required to give away some percentage of corporate income if the company operates within the country or in the oil sector.
The best way to benefit from the taxation law is to set up an International Limited Liability Company. Such entities do not pay income, gift, capital gains, inheritance, and other taxes.
Location: North America, the North Atlantic Ocean
Dependency status: the UK overseas territory
Currency: Bermudian dollar (BMD)
Located in the middle of the North Atlantic Ocean, this island nation has a mild tropical climate and is famous for its pink sand beaches.
The mystical activities of the Bermuda Triangle do not scare away thousands of tourists who want to enjoy its blue waters. Intrepid entrepreneurs and investors also strive to get the most out of this magnificent place, often referred to as a tax haven.
Companies here are exempt from paying taxes on corporate income as well as capital gains, dividends, interest, royalties, and personal income. Bermudan jurisdiction also offers 0% VAT.
Location: between the Caribbean and the North Atlantic Ocean
Dependency status: the UK overseas territory
Currency: United States dollar (USD)
The Virgin Islands is a self-governing British territory located in a volcanic archipelago. Visitors from abroad come here for its reef-fringed beaches and excellent sailing conditions.
Those who wish to incorporate an offshore company choose the British Virgin Islands because they do not have to pay any corporate income taxes. One can also avail of the country’s 0% VAT, corporate gains, personal income, dividends, royalties, personal income, and other taxes.
Setting up a business here is easily done through a streamlined process in as fast as 3 days. Hundreds of thousands of business individuals own flourishing businesses in this truly appealing haven.
Location: the western part of the Caribbean
Dependency status: the UK overseas territory
Currency: Cayman Islands dollar (KYD)
Located close to Mexico and Cuba, this country comprises three Bounty-like islands. Wealthy individuals like this place not only for its perfect vacation environment but also for the low tax rates, which can be as little as 0%.
The Cayman Islands is a famous offshore jurisdiction convenient for running business. It is one of the most attractive countries with 0% corporate tax. Also, you can be legally exempted from giving away money on your capital gains, dividends, personal income, interests, or royalties. VAT is also zero.
However, these conditions only apply to companies operating outside the country.
Entrepreneurs from abroad usually establish the so-called Exempted Companies or Limited Liability Companies in the Cayman. Both types of companies must pay the renewal fee every year.
Location: Western Europe, the English Channel
Dependency status: British Crown dependency
Currency: Guernsey pound – Pound sterling (£) (GBP)
The immediate proximity to Europe, highly-reputable jurisdiction, and lucrative taxation system made this island a sought-after place to set up business.
Opening a company in Guernsey is a simple process that usually takes only one day.
Business owners can rest assured that their personal and financial data will remain confidential.
Investors often opt for a Limited Liability Company business structure when incorporating a company in Guernsey. Other options exist as well: one can open an Unlimited Liability Company, Mixed Liability Company, Protected Cell Company, Incorporated Cell Company, or Company Limited by Guarantee.
The standard corporate tax rate is 0%, but those engaged in the financial sector are subject to 10%. Businesses that deal with oil, utilities, real property, and rental are due to give away 20% of their income.
As a plus, there are no VAT, interests, capital gains, or royalties taxes.
Location: Western Europe, the Irish Sea
Dependency status: British Crown dependency
Currency: Pound sterling – Manx pound (£) (GBP)
Another island under the British Crown dependency that attracts lots of individuals searching to incorporate a company overseas.
One interesting feature of this place: it is popular among e-gaming business owners. The main reason for this is that the Isle of Man offers a straightforward process for getting a license for such companies.
Those dealing with crypto must comply with the new legislation requiring them to follow specific rules, such as registering with the local Financial Supervision Commission.
Among the principal advantages of this island is 0% corporate tax for most companies, along with 0% on capital gains, dividends, interests, and royalties.
However, if you conduct your activities in a retail sector with yearly profits over £500,000 or banking, you must pay 10% to the government.
For land or property businesses, you will have to get rid of 20% of your profit voluntarily.
Location: Western Europe, the English Channel
Dependency status: British Crown dependency
Currency: Pound sterling – Jersey pound (£) (GBP)
Jersey is the largest among the Channel Islands and one of the most attractive centers for basing offshore companies.
The taxation conditions here are comparable with the Guernsey ones: there is a zero corporate income tax unless you have an establishment operating in a financial sector. In the latter case, you will have to give away 10% of the profit.
Also, real property businesses, oil and utility companies are levied 20%. The VAT in Jersey is set at 5%.
Location: between the Caribbean and the North Atlantic Ocean
Dependency status: overseas collectivity of France
Currency: Euro (€) (EUR)
The riches of this place are not limited to flora and fauna since millionaires and billionaires come here to gain more profit by taking advantage of the appealing tax regime.
St. Barth’s economy is largely dependent on tourism and duty-free luxury goods. Businesses in St Barthelemy are not charged any corporate income taxes 5 years after the establishment. Another way is to buy a company that has been in operation for 5 years to avoid paying for your wealth.
You can also qualify for French citizenship if spending enough time in Saint Barthelemy.
However, St. Barth is generally not considered a tax haven. There is no offshore banking, and strict French legislation is applied all across the island.
Location: Oceania, the South Pacific Ocean
Dependency status: self-administering territory of New Zealand
Currency: New Zealand dollar (NZ$) (NZD)
The country consists of three coral atolls and can be found on the map not far from New Zealand and Hawaii.
It is not a well-known place for moving your assets or registering a company but yet worth considering. Tokelau authorities plan to develop the island economy by attracting more tourists and betting on renewable energy sources.
Establishing a business there will definitely enrich your portfolio. There is a 0% corporate tax in Tokelau.
Location: between the Caribbean and the North Atlantic Ocean
Dependency status: the UK overseas territory
Currency: United States dollar (USD)
The Turks and Caicos Islands are generally known for their fabulous beaches and resorts.
More and more wealthy individuals invest in the economy of this country by setting up companies, particularly in the fintech sector.
You will not have to pay anything on personal income, dividends, inheritance, corporate profit, or capital gains. VAT is set at 0%.
Setting up a business entity there is an entirely legitimate and easy process that will allow you to optimize your expenses. Usually, you only need 1 day to register your entity on the Islands.
The most frequently chosen business structure is an Exempt Company.
Depending on a business license, one will pay about $150-$15,000 in fees annually.
Location: Middle East, the Gulf of Oman and the Persian Gulf
Dependency status: No
Currency: UAE dirham (AED)
The UAE is probably the most popular and famous place to seek liberation from oppressive taxation schemes while enjoying all the advances of the modern world.
Millionaires and billionaires from all around the world flock to the UAE to establish their businesses in this highly-respected jurisdiction. Evidently, the most commonly preferred destinations are Dubai and Abu Dhabi.
The Emirates offer Free Zones and Mainland to incorporate a company. You can become a founder and a CEO of your business, enjoying the fast and easy setup process.
While there is a 9% tax for Mainland companies and a newly introduced 9% tax for some Free Zone companies, you can still benefit from 0% corporate income taxes following certain criteria.
Also, you will not be subject to pay anything on personal income, inheritance, capital gains or capital transfer, gifts, or wealth.
Location: Oceania, the South Pacific Ocean
Dependency status: No
Currency: Vatu (VUV)
An island nation in Melanesia located next to Australia and New Zealand.
This is a classic offshore jurisdiction with 0% corporate tax. Most business founders select such forms of business organization as an International Company or Private Company limited by shares (LTD).
The process of company incorporation can be done remotely in only 10 days.
The local legislation grants you strong personal info protection so the information on the shareholders is not disclosed to the public.
The tax exemption is granted for the first 20 years.
Wealthy expats can also obtain Vanuatu citizenship by investment and get visa-free access to over 90 countries around the world, including a 5-year US visa.
Location: Oceania, the South Pacific Ocean
Dependency status: overseas collectivity of France
Currency: CFP franc (XPF)
It is a place of striking natural beauty with a tropical climate and kilometers of paradise-like coastline. The local economy is based on agriculture.
Wallis and Futuna Islands are gaining international interest as an advantageous site to set up an offshore business or open a bank account.
If you happen to create a business in this tiny island state, you will be glad to find out that there are no personal income and corporate taxes there.
The above list may be expanded by a number of other countries, such as St Kitts and Nevis, St. Vincent and the Grenadines, Marshall Islands, Cook Islands, Panama, Norfolk Island, and some more.
Businesses set up in those places are not subject to corporate tax under certain conditions.
For example, St Kitts and Nevis or Panama levy 0% corporate and capital gains tax if the income originates outside the country. Those wishing to access over 150 destinations without a visa and avail of 0% personal income tax can consider acquiring St Kitts and Nevis citizenship.
Non-resident companies in the Marshall Islands also fall under the rule of 0% taxes on corporate income.
As for Norfolk Island, there are no capital gains, corporate, personal income, or withholding taxation.
St. Vincent and the Grenadines impose no income taxes, including corporate tax, if you have an LLC.
Interested in setting up a company abroad?
Contact our experts to learn more about all the available routes. Streamline the incorporation process by contacting our team.
At Wealthy Expat, we make tax reduction and asset protection easy and fast.
.jpg)
.jpg)