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TOP Tax-free countries for business 2023

Tax-free countries for businesss

22. 03. 2023
1434

Small island countries, in order to attract investment to the country, often offer zero or low-cost fees for doing business. This is beneficial because the money earned stays in circulation and benefits the company. Offshore states also benefit. Tax-free countries for businesses make money on the registration itself, the issuance and renewal of licenses, and some other government fees.

The Bahamas

Opening a company in the Bahamas saves on corporate tax. Non-residents may not have to pay for:

  • wealth, dividends,
  • interest on shares,
  • donations,
  • capital gains,
  • inheritance,
  • personal income.

The government earns by taking property tax, import and export duties, stamp and license fees, and VAT. There are also Social Security contributions - employers pay 5.9%, employees pay 3.9%, and the self-employed pay 8.8%.

The Bermuda

Registering a company in Bermuda also avoids the corporate tax rate. Organizations that are owned by non-residents are exempt from currency control. In addition, there is no charge for:

  • income;
  • dividends;
  • interest;
  • capital gains;
  • withholding tax;
  • non-resident trusts.

Bermuda earns land tax, takes a percentage of wages, fees for licensing and stamp duties. Customs duties are high, so goods are expensive here.

British Virgin Islands

Opening a business in the British Virgin Islands allows you to avoid paying for:

  • capital gains;
  • value added;
  • profit;
  • endowment;
  • wealth;
  • offshore accounts.

Nominally there is income tax here, but at a zero rate. There are also no currency controls, which greatly simplifies transactions and encourages trade and investment.

The state charges for land, real estate, wages, and earns stamp duties on licenses. Import duties are low and are used more to combat local traders from the nearby U.S. Virgin Islands.

Cayman Islands

Opening a company in the Cayman Islands is advantageous because the country does not charge corporate tax. There is no income tax, on capital gains, at source, property, wages. You don't have to pay dividends, interest that was earned outside the Cayman Islands.

Caymans earn on fees related to tourism, imports, financial transactions, work permits. Offshore businesses pay an annual licensing fee, the amount of which is affected by the amount of registered capital.

Vanuatu

Business in Vanuatu is profitable. The country does not impose corporate taxes not only on foreign but also local companies. The company must pay VAT - 12.5%, but there are exceptions. For example, an international organization is exempt from VAT if it does not operate in the local market.

Also in Vanuatu there are no such fees:

  • On property (other than rental income);
  • Capital Gains Tax;
  • Income tax;
  • On wealth, inheritance;
  • At source.

A business must pay a fee on behalf of its employees to the National Reserve Fund, which does not exceed 6% of their salary. The business must also pay stamp duty at a flat rate of 2%, which is one of the lowest in the region. Duty for essential goods is between 5 and 15%.

How to open a business offshore
To open a company in a country with favorable tax rates for businesses, contact IT-OFFSHORE managers.

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