The most popular destinations with favorable tax rates for registering/relocating a business are countries in the Caribbean, Europe, the Middle East, and Asia.
Antigua and Barbuda
In Antigua and Barbuda, tax benefits vary depending on the status of the legal entity and resident. Tax residents are exempt from paying income tax to the country’s treasury. There is no taxation on dividends, interest, and royalties.
Non-residents are subject to a tax rate of 25% on dividends, interest, and royalties. Antigua and Barbuda is an attractive jurisdiction not only for individuals but also for legal entities wishing to reduce their tax burden.
An investment program with several participation options is one of the most popular ways to obtain a passport for the country. Important! Investors must spend at least 5 days in the country within 5 years of obtaining citizenship. Failure to comply with this condition may result in the cancellation of status and deprivation of associated privileges.
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Saint Kitts and Nevis
Saint Kitts and Nevis does not tax residents on personal income, inheritance, or capital gains (this applies to both residents and non-residents).
Companies are subject to corporate tax at a rate of 33% depending on their income level. There is also a 15% tax liability on interest, royalties, and dividends paid by non-tax residents. In this country, these are citizens who do not reside permanently in Saint Kitts and Nevis.
Despite not having the lowest rates, Saint Kitts and Nevis is a fairly popular destination for businesspeople. The country’s passport is one of the most robust among the Caribbean states and allows visa-free travel to over 150 countries worldwide. The country’s investment program has been in operation since 1984 and is one of the oldest of its kind.
Cayman Islands
Another popular destination for businesspeople and investors. There are no taxes on personal capital, inheritance, income, capital gains, or corporate income. The offshore jurisdiction has favorable tax conditions.
The Bahamas
Residents of the Bahamas are exempt from corporate income tax. Companies registered here must obtain a business license and pay taxes based on their annual turnover.
United Arab Emirates
Since the discovery of oil deposits in the UAE, this desert state has undergone significant changes. From a small region with small private buildings, the Emirates have transformed into a modern, highly developed state with a high standard of living. There are several Free Trade Zones in the UAE, and registering a company in any of them allows you to export, import, and manufacture products without customs duties and tax obligations. If a company is not registered in a free zone, it will be subject to income tax from June 1, 2023. If the annual turnover is $102,100 or more, the tax rate is 9%; if less, it is 0%. VAT is calculated at a rate of 5%.
Foreign investors are attracted by the absence of tax obligations in the UAE on interest, royalties, dividends, and other income of individuals. It takes no more than two weeks to transfer an existing business to the UAE or register a company from scratch. Today, the Emirates are a global trade, financial, and tourist center. Some of the best programs for foreign investment and business are implemented here.
Monaco
Monaco can be an excellent choice for those who want to do business in Europe and optimize their taxation. The country does not levy income tax on residents (except French citizens), and there is no taxation on real estate, property ownership, or capital gains on foreign dividends.
If a resident inherits or is gifted assets located in Monaco, they are subject to taxation if the recipients are not first-degree relatives. Financially independent individuals are also completely exempt from global income tax.
Businesspeople can also count on a number of privileges if they register a company in Monaco. For the first two years, they are 100% exempt from income tax. For the next three years, they are taxed at a preferential rate.
