Countries with Low Taxes Ideal for Investors & Entrepreneurs

Countries with low taxes can be a goldmine for investors and entrepreneurs. By offering reduced tax burdens, these nations create attractive environments for businesses to thrive and individuals to grow their wealth. Our article features the top 40 countries with the most favorable tax rates!

Top 40 countries with low taxes

A favorable tax environment can boost a country’s economy in many ways. For instance, companies can reinvest their revenue to grow and innovate. Lower taxes also benefit investors seeking faster wealth creation. Since taxes come in many forms, we have created separate top charts focusing on different tax types. Let’s explore the top 40 countries with low taxes across these categories.

Corporate tax (dividend taxes excluded)

Corporate tax is a direct tax on the income or capital of businesses. Many companies choose to register in countries with lower corporate taxes to boost their profits.

Let’s take a look at the top 40 countries with the lowest corporate taxes.

• Wallis and Futuna 0%
• Vanuatu 0%
• Turks and Caicos Islands 0%
• Tokelau 0%
• Sark 0%
• Saint Barthélemy 0%
• Pitcairn Islands 0%
• Palau 0%
• Norfolk Island 0%
• Niue 0%
• Jersey 0%
• Isle of Man 0%
• Guernsey 0%
• Cayman Islands 0%
• British Virgin Islands 0%
• Bermuda 0%
• Bahrain 0%
• Bahamas 0%
• Anguilla 0%
• Georgia 0% (15% on profit distributions)
• Latvia 0% (20% on profit distributions)
• Estonia 0% (20% on distributions or 14% if below the 3-year average)
• Monaco 0% (25% for companies with over 25% of turnover outside the country)
• Pakistan 0% (applicable to some tech companies)
• Somalia 0%
• Belize 0.75-19%
• Marshall Islands 0.8-3%
• Brunei 1% (applicable to sole proprietorships and partnerships)
• Saudi Arabia 2% (applicable only to fully Saudi national-owned companies)
• Barbados 5.5% (on profits below BBD$1 million)
• Madeira 5% (applicable to licensed companies)
• Sudan 5% (applicable only to exempt companies)
• Turkmenistan 8%
• United Arab Emirates 9% (with certain exemptions)
• Montenegro 9%
• Hungary 9%
• Qatar 10%
• Paraguay 10%
• North Macedonia 10%
• Mongolia 10%

Capital gains tax

A capital gains tax is a levy on the profit earned from selling investments such as stock shares, bonds, or real estate. Investors seeking tax optimization often take advantage of countries with lower capital gains tax rates.

Here are the top 40 countries offering the lowest capital gains tax rates.

• Australia 0-45%
• Brunei 0%
• Sark 0%
• Svalbard 0%
• United Arab Emirates 0%
• Belize 0% (generally exempt, with some exceptions)
• Liechtenstein 0% (0% for shares, 24% for real estate)
• Armenia 10-20%
• Angola 10%
• Croatia 10%
• Romania 10%
• Colombia 10% (10% standard rate, 20% for special activities)
• Albania 15%
• Argentina 15%
• Czech Republic 15%
• Falkland Islands 15%
• Greece 15%
• Hungary 9% (9% for companies, 15% for individuals)
• Lithuania 15%
• Serbia 15%
• Algeria 15% (15% residents, 20 for non-residents)
• South Africa 18%
• Poland 19%
• Japan 20.315%
• China 20%
• Cyprus 20%
• Estonia 20%
• India 20%
• Latvia 20%
• United States 20%
• Brazil 22.5%
• Iceland 22%
• Norway 0%
• Azerbaijan 25%
• Botswana 25%
• Germany 25%
• Israel 25%
• Netherlands 25%
• Slovakia 25%
• Italy 26%

Countries with no taxes

While every nation has some form of tax system, some countries do not impose certain types of levies. Here are examples of countries that completely avoid taxing specific types of income.

Countries with no income tax

Income tax is levied on the annual income earned by individuals or businesses within a financial year. While most countries impose taxes on various forms of income, some countries have no income tax at all.

Countries with no income tax include:

• Bahrain
• Bermuda
• Brunei
• Cayman Islands
• Kuwait
• Maldives
• Monaco
• Nauru
• Oman
• Qatar
• Saint Kitts and Nevis
• Somalia
• The Bahamas

Countries with no capital gains tax

Countries with no capital gains tax can be highly advantageous for investors seeking tax optimization. The countries listed below not only impose zero capital gains tax but are also exceptionally welcoming to expats.

• Belgium
• Belize
• Hong Kong
• Monaco
• New Zealand
• Singapore
• Switzerland
• The Cayman Islands

Countries with no property tax

Property tax is a fee, typically charged annually or semi-annually, by local governments to individuals who own real estate within their jurisdiction. If you want to legally avoid paying property tax on your investment, consider these countries, which do not impose property tax on residents or non-residents:

• Bahrain
• Cambodia
• Croatia
• Dominica
• Fiji
• Georgia
• Israel
• Kuwait
• Liechtenstein
• Malta
• Monaco
• Oman
• Qatar
• Saudi Arabia
• Sri Lanka
• The Cayman Islands
• The Cook Islands
• The Faroe Islands
• The Seychelles

FAQ

Are there truly tax-free countries?

Every country has some form of tax system, as taxes are a key source of revenue for government budgets. However, countries have varying tax policies, and some offer more advantageous rates than others.

Are there really tax-free countries in Europe?

All European states have some kind of tax, but some countries have surprisingly low tax rates. For example, Hungary has the lowest corporate tax rate in the EU, at 9%.

Are there any countries with zero crypto tax in Europe?

Yes, Switzerland does not impose capital gains tax on income from crypto trades. This is why it is often referred to as the “crypto valley” by investors.

Conclusion

Crystal Worldwide Group is an international law firm that specializes in residency by investment, tax planning, and wealth protection. During our more than thirty years in operation, we have managed to earn the respect and trust of our clients by offering professionally sound and lawful immigration solutions, tax savings, and wealth protection, together with fast and timely services provided at the highest level of discretion.

If you have questions about low-tax countries, feel free to reach out to us!