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Start a company in a low-tax country 2022

Top countries with the lowest business taxes in 2022

23. 12. 2021
2229

Choosing the country with the lowest taxes for business 2022, you must make sure that it is not on the EU blacklist, has a good business reputation, and successfully cooperates with international banks and important institutions. According to the latest data, 10 countries have a zero corporate tax rate, while 8 of them are neither blacklisted nor graylisted in the EU.

Which countries have a 0% corporate tax rate

The zero corporate rate applies in the following countries:

  • Anguilla;
  • Bahamas;
  • Bahrain;
  • Bermuda;
  • Cayman Islands;
  • Bailiwick of Guernsey;
  • Isle of Man;
  • Jersey;
  • Turks and Caicos Islands;
  • Vanuatu.

Two of them, Anguilla and Vanuatu, are blacklisted by the EU, so despite the interesting tax offers, it is better not to consider them for business. The Isle of Man, the Bahamas, Bermuda, Cayman Islands, and Guernsey are very interesting.

Isle of Man

It is profitable to open a company in the Isle of Man in 2022. The land is owned by the UK, but the taxation system is completely separate. Advantages of the island:

  • Zero corporate rate for businesses whose income is below £50,000 a year. If profits are higher, pay 10%;
  • No capital gains, no inheritance tax, no stamp duty;
  • Standard personal income tax is 10%;
  • The rate of 10% on income earned in the banking sector;
  • The rate for renting land and residential property is 20%;
    There is a cap of £125,000 per person on the total income payable, which has contributed to the influx of wealthy families to the Isle of Man. Property prices are high for the same reason;
  • Between the Isle of Man and the UK have signed a double taxation treaty.

Bahamas

The Bahamas offers quite a few tax incentives that attract businesses to start a company in the Bahamas in 2022:

  • No tax on income, wages, dividends, or personal income;
  • No capital gains, inheritance, or gift tax;
  • VAT IS 12%.

Businesses must obtain a license to operate, which is charged at either a flat rate of $100 or up to 3% of turnover depending on the amount of income generated.

Cayman Islands

The land is owned by the UK, but the taxation system is completely separate. Advantages of the island:

  • Zero corporate rate for businesses whose income is below £50,000 a year. If profits are higher, pay 10%;
  • No capital gains, no inheritance tax, no stamp duty;
  • Standard personal income tax is 10%;
  • The rate of 10% on income earned in the banking sector;
  • The rate for renting land and residential property is 20%;
  • There is a cap of £125,000 per person on the total income payable, which has contributed to the influx of wealthy families to the Isle of Man. Property prices are high for the same reason;
  • Between the Isle of Man. Maine and the UK have signed a double taxation treaty.

Bermuda

Opening a company in Bermuda in 2022 is advantageous because there are no taxes on the following:

  • income;
  • profit;
  • dividends;
  • capital gains.

There are no restrictions on the accumulation of profits and no requirements for the distribution of dividends. The government regularly issues tax guarantee certificates to exempt businesses, which guarantee that parliamentary taxes will not apply to the company and its operations in the future until March 31, 2035.

Bailiwick of Guernsey

Opening a company in Guernsey in 2022 will also allow you to pay no capital gains, inheritance, or sales tax. The standard corporate rate is 0%, but some businesses are taxed at 10% or 20%. Ten percent is paid by finance-related businesses; 20 percent is paid by companies that trade on the island, lease land, and real estate, and engage in gas supply.

How to choose a country to do business in

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