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Low-tax countries for international business 2022

Top low-tax countries for international business

13. 10. 2022
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Looking for a respectable low-tax jurisdiction for international business? Consider the Isle of Man, Gibraltar, Cyprus, and Hungary. Companies registered in these countries pay low corporate taxes and have many other benefits. Let's take a closer look at each of them.

Gibraltar

It is advantageous to open a company for international business in Gibraltar. The country offers a low corporate tax rate of 10% if the company operates within its jurisdiction. If the business is outside Gibraltar, there is no corporate tax at all. Also, there is the list of taxtaxes that the companies don't have to pay here:

  • Capital gain tax;
  • Wealth tax;
  • Tax on added value;
  • Withholding tax on dividends;
  • Sales tax.

Since it's an overseas territory of the UK, it has close ties to Great Britain and a flexible and stable economy. The business language in Gibraltar is English, and the main currency is the pound sterling.

Isle of Man

The Isle of Man is a superb low-tax jurisdiction for international business, especially if you plan to operate in the European market. It is located in the Irish Sea not far from the EU. As a British Crown possession, the Isle of Man is not part of the European Union, but is considered part of it in terms of customs duties, excise duties, and VAT. This greatly reduces the chain of intermediaries and fees, and increases profits for international businesses. Other advantages of doing international business from the Isle of Man include: 

Other advantages include:

  • Developed infrastructure for IT business, including fast Internet and implementation of advanced digital technologies.
  • Good transport connections with the EU by sea and air.
  • Active support of the government, including grants for start-ups and small businesses at the early stage of development. With the right approach, company owners can get up to £15k of benefits, and up to £10k if they move employees to the island.

So why else do we recommend opening a company on the Isle of Man? We should definitely mention that the corporate tax is 0%. In addition, offshore business does not pay tax on income obtained in the other jurisdiction.

Cyprus

Cyprus resident companies have one of the lowest corporate tax rates in the EU - 12.5%, while non-resident firms do not pay it. It is important to note that from December 2022 an important amendment comes into force: any company registered in Cyprus will be considered a resident, unless it is a resident of another country. This also applies to businesses that operate out of the jurisdiction.

Other advantages for which we recommend opening a company in Cyprus include:

  • Advantageous location;
  • Amazing climate;
  • Excellent logistics;
  • Moder transportation system;
  • Strong asset protection laws;
  • No blacklisting.

Hungary

Hungary offers interesting conditions for international business. It has one of the lowest corporate rates in Europe - 9%. Income tax is a fixed rate of 15%. However, you should pay attention to VAT which is 27%, but for some types of business, it is reduced (e.g., for Internet service providers).

Among other advantages of opening a company in Hungary for international business, we can mention the following:

  • The country is part of the EU, which opens access to the European market.
  • Excellent logistics.
  • Qualified labor force.
  • There is an opportunity to participate in EU tenders, which allow you to get grants.

Company registration in Hungary takes only 1 or 2 days, and the cost of the procedure is one of the lowest in the EU.

Where it is better to open a company

Contact IT-OFFSHORE experts to get a comprehensive answer and further assistance if you are looking for the most suitable and profitable jurisdiction for your international business. 

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