Where you can legally pay less tax, and what each place really costs

No personal income tax, and company tax of 9 percent only above a modest profit level.

Personal income tax

No personal income tax on salary, dividends or investment income.

Company tax

0 percent on taxable profit up to AED 375,000 and 9 percent above it. Small business relief lets a business with revenue up to AED 3 million elect to be treated as having no taxable income, now extended to periods ending on or before 31 December 2029.

Capital gains

No personal capital gains tax.

Dividends

No tax on dividends received by an individual.

Inheritance

No inheritance tax, though Sharia rules can apply to local assets without a registered will.

What being there costs

A free zone licence, office or flexi desk and visa typically run several thousand pounds a year, plus health insurance, plus a real place to live if you want residence to hold up.

Days and residence test

Tax residence normally needs 183 days in the country, or 90 days with a home and a job or business, for the 12 month period.

Reporting to your tax office

Reports UK, US and Australian account holders automatically under the Common Reporting Standard and FATCA.

Genuinely suits

• Remote business owners who genuinely move
• Traders and consultants with worldwide clients
• People selling a business after leaving home for good

Not for: Anyone who keeps living in the UK, the US or Australia and only registers a company there.

The catch: A free zone company is inside the corporate tax system, not automatically exempt. Only a qualifying free zone person with real substance gets 0 percent on qualifying income.

No personal income tax, 10 percent company tax.

Personal income tax

No personal income tax on employment income.

Company tax

10 percent on locally sourced business profit, with special rules inside the financial centre.

Capital gains

No personal capital gains tax on ordinary private gains.

Dividends

No personal tax on dividends.

Inheritance

No inheritance tax.

What being there costs

Employment or business sponsorship is normally needed, so this suits people with a job offer or a real local trade.

Days and residence test

Residence follows the visa and the physical presence, generally more than 183 days.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Employees on Gulf packages
• Engineering, energy and construction contractors

Not for: Passive residence shopping. Entry is tied to sponsorship.

The catch: Leaving your home country properly matters more than the Qatari rate. Your home rules decide who taxes you first.

No personal income tax, 20 percent company tax, and a fast growing jobs market.

Personal income tax

No personal income tax on salary.

Company tax

20 percent corporate income tax for foreign owned companies, plus zakat rules for Saudi and Gulf ownership.

Capital gains

Gains inside a business are taxed as profit. Private individuals have no personal capital gains tax on ordinary assets.

Dividends

No personal tax on dividends received.

Inheritance

No inheritance tax.

What being there costs

Regional headquarters and licence rules apply to businesses selling to government. Employment usually needs sponsorship.

Days and residence test

183 days of presence generally makes you resident.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Salaried professionals relocating
• Companies with genuine Gulf operations

Not for: Someone who wants a paper company with nobody there.

The catch: Withholding tax applies on many payments out of the country, which surprises consultants invoicing from elsewhere.

12.5 percent trading company tax inside the EU, with a real economy behind it.

Personal income tax

20 and 40 percent income tax, plus USC and PRSI, so personal tax is not low.

Company tax

12.5 percent on trading profit, 25 percent on non trading income, and a 15 percent top up for groups with revenue over EUR 750 million.

Capital gains

33 percent capital gains tax.

Dividends

Taxed as income, with a dividend withholding tax mechanism.

Inheritance

33 percent capital acquisitions tax above tax free thresholds.

What being there costs

Directors, an office, accounts and audit thresholds. Substance rules are taken seriously.

Days and residence test

183 days in a year, or 280 days across two years, makes you resident.

Reporting to your tax office

Full exchange of information with the UK, the US and Australia.

Genuinely suits

• Software and services businesses that really operate there
• Groups needing EU market access
• Holding companies with treaty needs

Not for: Someone wanting low personal tax. Ireland taxes people at normal European levels.

The catch: The 12.5 percent applies to trading profit earned in Ireland by people working in Ireland, not to profit you earn at home.

12.5 percent company tax, and 17 years of no tax on dividends and interest for new non domiciled residents.

Personal income tax

0 to 35 percent income tax, with the first EUR 19,500 free.

Company tax

12.5 percent corporate income tax.

Capital gains

Only on Cyprus immovable property. Share and fund gains are generally free.

Dividends

Non domiciled residents pay no defence contribution on dividends and interest for 17 years.

Inheritance

No inheritance tax.

What being there costs

Company running costs are modest. Social insurance and a general health contribution still apply on earnings.

Days and residence test

183 days, or the 60 day rule if you are not tax resident anywhere else and have a home, a business or a job there.

Reporting to your tax office

EU exchange of information plus the Common Reporting Standard.

Genuinely suits

• Investors living on dividends
• Consultants and fund managers
• Company owners who want an EU base and low personal tax

Not for: Someone who wants to keep living in the UK. Cyprus residence needs you actually there.

The catch: The 60 day rule is strict. You must not be tax resident anywhere else, and you must not spend 183 days in another country.

A 35 percent headline company rate with refunds that can bring the real cost near 5 percent, plus a 15 percent flat rate for some residents.

Personal income tax

Progressive to 35 percent, with a remittance basis for resident non domiciled people.

Company tax

35 percent, reduced by shareholder refunds that commonly bring the effective rate to about 5 percent on qualifying distributed trading profit.

Capital gains

Taxed as income on Maltese assets. Foreign gains not remitted are generally outside the charge for resident non domiciled people.

Dividends

Refund system applies on distribution.

Inheritance

No inheritance tax, but a stamp duty applies on property and share transfers.

What being there costs

Two company layers, audits and advisers make Malta more expensive to run than its headline suggests. The Global Residence Programme has a minimum tax and a property requirement.

Days and residence test

183 days for ordinary residence. Programme residents have their own conditions.

Reporting to your tax office

EU exchange of information plus the Common Reporting Standard.

Genuinely suits

• Trading groups with proper advice
• Aviation, gaming and shipping businesses
• People wanting a remittance basis inside the EU

Not for: Small one person businesses. The professional cost eats the saving.

The catch: The refund arrives after tax is paid, so you need cash to fund the 35 percent in the meantime.

The old non habitual resident scheme is closed. The replacement is narrower but still 20 percent for qualifying work.

Personal income tax

Progressive to 48 percent normally. The IFICI incentive gives a 20 percent flat rate on qualifying Portuguese employment or self employment income, with exemptions on most foreign income, for ten years.

Company tax

20 percent standard corporate tax, with a reduced rate on the first slice of profit for small companies, plus municipal surcharges.

Capital gains

28 percent on securities for residents, with an option to be taxed at scale rates. Property has its own rules.

Dividends

28 percent flat, or scale rates by election.

Inheritance

No inheritance tax between close family. A 10 percent stamp duty applies to others.

What being there costs

You must qualify for IFICI through a listed research, innovation or highly skilled role. Ordinary remote workers usually do not.

Days and residence test

183 days, or a home in Portugal used as your habitual residence.

Reporting to your tax office

EU exchange of information plus the Common Reporting Standard.

Genuinely suits

• Researchers and skilled professionals in listed roles
• Startup employees in certified companies
• Retirees who accept normal rates for the lifestyle

Not for: Anyone still quoting the old non habitual resident 10 percent pension deal. That door shut for new arrivals.

The catch: Portugal replaced the old scheme in 2024. Old blog posts are the single biggest source of bad advice here.

A flat 10 percent on personal income and company profit, inside the EU.

Personal income tax

Flat 10 percent income tax.

Company tax

Flat 10 percent corporate tax.

Capital gains

Taxed as income at 10 percent. EU regulated market share sales are exempt.

Dividends

5 percent final tax.

Inheritance

Low local inheritance tax, with close family generally exempt.

What being there costs

Social security contributions on earnings are real and capped. Company running costs are low.

Days and residence test

183 days, or your centre of vital interests being in Bulgaria.

Reporting to your tax office

EU exchange of information plus the Common Reporting Standard.

Genuinely suits

• Owner managers who will really live there
• Software and services businesses
• People who want simple numbers

Not for: Someone who needs a prestigious address for clients.

The catch: 10 percent plus 5 percent on dividends is still a real bill, and social security adds to it.

No company tax until profit leaves the company.

Personal income tax

Flat personal income tax, with a tax free allowance.

Company tax

0 percent on retained profit. Tax arrives on distribution at 22/78 of the net amount paid out.

Capital gains

Taxed as income when realised by an individual.

Dividends

Taxed on distribution through the company charge.

Inheritance

No inheritance tax.

What being there costs

Accounting and payroll filings every month. Company cars, personal purchases and loans to yourself can all count as distributions.

Days and residence test

183 days in a 12 month period, or a permanent home there.

Reporting to your tax office

EU exchange of information plus the Common Reporting Standard.

Genuinely suits

• Businesses reinvesting everything for years
• Digital businesses that want clean EU paperwork

Not for: Anyone who needs to take the money out each year. Then it is an ordinary rate.

The catch: The famous 0 percent is a delay, not a gift. It ends the moment value leaves the company in any form.

1 percent turnover tax for small businesses, and a territorial slant on foreign income.

Personal income tax

Flat 20 percent income tax, with a small business status charging 1 percent of turnover up to a yearly limit.

Company tax

15 percent, taxed on distribution in the Estonian style.

Capital gains

Generally taxed as income, with exemptions for property and shares held over two years.

Dividends

5 percent withholding.

Inheritance

No inheritance tax between close relatives.

What being there costs

Very low. Registration is quick and banking is simple for residents with substance.

Days and residence test

183 days in any rolling 12 month period.

Reporting to your tax office

Common Reporting Standard participant since 2023.

Genuinely suits

• Freelancers and small consultancies
• People who will really move outside the EU

Not for: Anyone needing EU market access or a European banking passport.

The catch: Small business status has activity exclusions, including consulting in some readings. Get local confirmation before relying on 1 percent.

Company tax from about 12 percent depending on canton, and a lump sum deal for some wealthy arrivals.

Personal income tax

Federal, cantonal and communal tax combined, from roughly 22 to over 40 percent depending on where you live.

Company tax

Around 12 to 21 percent in total depending on canton, with Zug and Lucerne at the low end.

Capital gains

No tax on private capital gains on movable assets for individuals who are not trading professionally.

Dividends

Taxed as income, with relief for qualifying holdings.

Inheritance

Cantonal, and usually nothing between spouses and children.

What being there costs

High cost of living, and the lump sum arrangement needs a minimum annual tax agreed with the canton.

Days and residence test

A permit and a home, plus intention to stay, rather than a simple day count.

Reporting to your tax office

Common Reporting Standard participant. Banking secrecy no longer blocks reporting.

Genuinely suits

• Owners selling shareholdings
• Wealthy families wanting stability
• Trading and commodity businesses

Not for: Someone on a modest income. Living costs cancel out the tax saving.

The catch: No capital gains tax on private assets is the real prize, not the income tax rate.

No personal income tax for residents, unless you are French.

Personal income tax

No personal income tax, except for French nationals under the 1963 treaty.

Company tax

33.33 percent business profits tax where more than 25 percent of turnover comes from outside Monaco.

Capital gains

No personal capital gains tax.

Dividends

No personal tax on dividends.

Inheritance

0 percent in the direct line, rising to 16 percent between unrelated people.

What being there costs

You must rent or buy a home in Monaco and deposit a substantial sum with a Monaco bank, typically several hundred thousand euros, and property is among the most expensive in the world.

Days and residence test

You must keep the home and normally live there, with cards renewed periodically.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Very high net worth individuals
• Sports professionals and traders

Not for: Almost everyone else, on cost alone.

The catch: The tax is zero and the rent is not. Run the total cost, not the tax rate.

A 10 percent cap on personal and company tax in the Pyrenees.

Personal income tax

0 percent to EUR 24,000, 5 percent to EUR 40,000, then 10 percent.

Company tax

10 percent corporate tax.

Capital gains

10 percent, with exemption for holdings under 25 percent held over ten years.

Dividends

Andorran source dividends are exempt in the hands of residents.

Inheritance

No inheritance tax.

What being there costs

Passive residence needs an investment in Andorra, commonly EUR 600,000, plus a deposit with the regulator and private health cover.

Days and residence test

90 days for passive residence, 183 days for active residence.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Business owners wanting low tax with European life
• Investors and retirees

Not for: People who need an airport on the doorstep or EU membership benefits.

The catch: It is not in the EU, so EU VAT and free movement rules do not apply to your business.

0 percent company tax on most trading, sterling banking, and a cap on personal tax.

Personal income tax

10 and 21 percent income tax, with a yearly tax cap of around GBP 220,000 per person by election.

Company tax

0 percent on most income, 10 percent on banking and retail above a threshold, 20 percent on Manx land and property.

Capital gains

No capital gains tax.

Dividends

Taxed as income for residents.

Inheritance

No inheritance tax.

What being there costs

Real presence expected. Directors, offices and economic substance rules apply to relevant activity.

Days and residence test

Six months in a year, or an average of three months across four years.

Reporting to your tax office

Common Reporting Standard participant reporting to HMRC.

Genuinely suits

• Owner managers who genuinely relocate
• E gaming, shipping and aircraft businesses
• Families wanting sterling and UK proximity

Not for: Anyone staying UK resident. HMRC will still tax you in full.

The catch: A Manx company controlled from the UK can be UK tax resident by management and control. Where the decisions are made is what counts.

0 percent company tax on most trading, 20 percent personal, and a high value residence route.

Personal income tax

20 percent flat, or the 2(1)(e) high value residence route with a large minimum annual tax contribution.

Company tax

0 percent standard, 10 percent for financial services, 20 percent for utilities and property income.

Capital gains

No capital gains tax.

Dividends

Taxed as income for residents.

Inheritance

No inheritance tax, but probate fees apply.

What being there costs

High value residence needs an expensive home purchase and an agreed minimum tax bill each year.

Days and residence test

Presence and a place of abode, with a 183 day and three month average test.

Reporting to your tax office

Common Reporting Standard participant reporting to HMRC.

Genuinely suits

• Funds and holding structures
• High net worth families
• Trust and estate planning

Not for: Small businesses who cannot fund the professional cost.

The catch: Jersey is excellent for holding assets and poor for pretending your UK work happens there.

0 percent company tax on most income, with a personal tax cap.

Personal income tax

20 percent flat, with caps on total tax for new residents and on non Guernsey income.

Company tax

0 percent standard, 10 percent for regulated finance, 20 percent for property and utilities.

Capital gains

No capital gains tax.

Dividends

Taxed as income for residents.

Inheritance

No inheritance tax.

What being there costs

Housing market is restricted by licence categories, which makes moving there harder than it looks.

Days and residence test

91 days, or 35 days a year averaged over four years.

Reporting to your tax office

Common Reporting Standard participant reporting to HMRC.

Genuinely suits

• Insurance and fund businesses
• Investors and retirees with capital

Not for: Anyone needing quick, cheap housing.

The catch: Open market housing is far more expensive than local market housing, and that decides who can actually move.

15 percent company tax, sterling, English law, and a capped tax status for wealthy residents.

Personal income tax

Two systems, allowance based or gross income based, with an effective top rate near 25 percent, plus Category 2 status capping tax on a limited slice of income.

Company tax

15 percent corporate tax on income accrued in and derived from Gibraltar.

Capital gains

No capital gains tax.

Dividends

No tax on dividends from a Gibraltar company for non residents, and relief for residents.

Inheritance

No inheritance tax.

What being there costs

Category 2 status needs approved residential accommodation and a minimum net worth, and there is a minimum and maximum annual tax.

Days and residence test

183 days in a year, or 300 days over three years.

Reporting to your tax office

Common Reporting Standard participant reporting to HMRC.

Genuinely suits

• Insurance, gaming and shipping businesses
• Wealthy individuals wanting English law and sterling

Not for: Someone wanting EU market access post Brexit.

The catch: Accrued in and derived from Gibraltar is a narrow test. Work done elsewhere is often taxed elsewhere.

17 percent company tax with generous start up exemptions, no capital gains tax, and a first class banking system.

Personal income tax

0 to 24 percent for residents, territorial in practice for most foreign income.

Company tax

17 percent, with partial exemption and a start up exemption on early profit.

Capital gains

No capital gains tax.

Dividends

One tier system, so Singapore dividends are tax free in the shareholder's hands.

Inheritance

No estate duty.

What being there costs

Directors resident locally, real office, high salaries, and employment pass criteria that are getting stricter.

Days and residence test

183 days in a calendar year.

Reporting to your tax office

Common Reporting Standard participant and FATCA partner.

Genuinely suits

• Asian trading and holding companies
• Fund managers and family offices
• Businesses selling into the region

Not for: Anyone hoping for a cheap shell. Substance requirements and costs are high.

The catch: No capital gains tax is the real advantage. The corporate rate is not the lowest around.

8.25 percent on the first slice of company profit, and tax only on Hong Kong sourced income.

Personal income tax

2 to 17 percent progressive, or 15 percent standard rate, whichever gives less.

Company tax

8.25 percent on the first HKD 2 million of profit, 16.5 percent above, with a territorial source rule.

Capital gains

No capital gains tax.

Dividends

No tax on dividends.

Inheritance

No estate duty.

What being there costs

Company setup is cheap. Bank account opening is the hard part and often needs a visit and real trade evidence.

Days and residence test

Presence based, with 180 days in a year or 300 days over two years for treaty purposes.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Trading with mainland China and Asia
• Holding intellectual property with real management there

Not for: Someone who cannot travel there to open banking.

The catch: Offshore profits claims are examined closely, and getting one wrong is expensive.

No income, company, capital gains or inheritance tax at all.

Personal income tax

None.

Company tax

None.

Capital gains

None.

Dividends

None.

Inheritance

None.

What being there costs

Government fees, a registered office and, for residence, a substantial investment in local property plus a minimum annual income requirement.

Days and residence test

Residence certificates carry their own presence and investment conditions.

Reporting to your tax office

Common Reporting Standard participant, plus economic substance filings and a beneficial ownership register.

Genuinely suits

• Investment funds
• Group holding vehicles
• Insurance and reinsurance

Not for: A working person's income. A Cayman company does not change where you pay tax on your own work.

The catch: For a UK, US or Australian resident owner, anti avoidance rules commonly tax the profit at home anyway, so the zero rate delivers nothing.

No corporate or capital gains tax, and the world's most used holding company.

Personal income tax

No income tax, but a payroll tax on employment.

Company tax

No corporate income tax.

Capital gains

None.

Dividends

None.

Inheritance

None.

What being there costs

Annual government fees, registered agent fees, economic substance filings and beneficial ownership reporting.

Days and residence test

Residence is separate and rarely the point of a BVI company.

Reporting to your tax office

Common Reporting Standard participant with a beneficial ownership register accessible to authorities.

Genuinely suits

• Joint venture and holding vehicles
• Property holding for multi country investors

Not for: Trading businesses run from a home country.

The catch: Banks are cautious with BVI companies, so opening an account is often harder than forming the company.

No income tax, and the global centre for insurance and reinsurance.

Personal income tax

No income tax. A payroll tax applies to employers and employees.

Company tax

No corporate income tax historically, with a 15 percent corporate income tax from 2025 for large multinational groups.

Capital gains

None.

Dividends

None.

Inheritance

None. Stamp duty applies on local estates.

What being there costs

High cost of living and government fees, plus real staff for insurance licences.

Days and residence test

Work permits govern presence.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Insurance and reinsurance
• Large group holding structures

Not for: Small businesses.

The catch: The new 15 percent charge for large groups shows that zero rates are being closed off worldwide.

No income tax, and residence available through property investment.

Personal income tax

No income tax. VAT and property taxes are the main charges.

Company tax

No corporate income tax, with a business licence fee on turnover.

Capital gains

None.

Dividends

None.

Inheritance

None.

What being there costs

Permanent residence normally follows a substantial property purchase, with accelerated consideration above a higher figure.

Days and residence test

Residence permits set the conditions rather than a day count.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Retirees and investors with capital
• Family offices

Not for: People needing a European time zone workday or cheap living.

The catch: No income tax does not remove the UK, US or Australian charge until you have properly ceased residence at home.

Territorial tax, so foreign income of residents is generally untaxed.

Personal income tax

0 to 25 percent on Panama source income only.

Company tax

25 percent on Panama source profit. Foreign source profit is outside the charge.

Capital gains

10 percent on local share sales, with withholding rules.

Dividends

5 to 10 percent withholding on local distributions.

Inheritance

None.

What being there costs

Residence routes include the friendly nations visa with a local economic tie or property purchase, plus legal fees.

Days and residence test

183 days for tax residence certification, plus permit conditions.

Reporting to your tax office

Common Reporting Standard participant.

Genuinely suits

• Location independent business owners who really move
• Latin America facing trade

Not for: Anyone who wants EU or UK banking to stay simple. Panama raises questions with banks.

The catch: Reputation matters. Panama on a bank form triggers extra checks even when everything is correct.

The one route where a US citizen can legally cut US federal tax without giving up the passport.

Personal income tax

Act 60 individual resident investor decree gives 0 percent Puerto Rico tax on interest, dividends and certain capital gains accrued after moving, and Puerto Rico source income is excluded from US federal tax under section 933.

Company tax

4 percent fixed income tax rate for qualifying export services businesses under Act 60.

Capital gains

0 percent on gains accruing after becoming a bona fide resident. Pre move gains stay taxable in the US.

Dividends

0 percent on qualifying Puerto Rico sourced distributions under a decree.

Inheritance

US federal estate tax still applies to US citizens.

What being there costs

Annual filing fees, a charitable donation requirement, a property purchase requirement, and you must genuinely move: presence, closer connection and no tax home elsewhere.

Days and residence test

The bona fide residence test: 183 days presence, no tax home outside, and no closer connection elsewhere.

Reporting to your tax office

Inside the US system. The IRS audits Act 60 claims actively.

Genuinely suits

• US business owners with export service income
• US investors sitting on future gains

Not for: Non US people, and any US person unwilling to actually live there.

The catch: Gains that built up before you moved remain US taxable. Only future growth benefits.

A US company with no US federal tax where the owner and the work are both outside the US.

Personal income tax

No US personal tax for a non resident with no US trade or business and no US source income.

Company tax

A single member LLC is disregarded, so profit is taxed to the owner where the owner is resident. Wyoming and Delaware charge no state income tax on out of state activity.

Capital gains

Taxed where the owner is resident.

Dividends

No withholding on a disregarded LLC's distribution to its owner in most cases.

Inheritance

US estate tax can catch US situs assets held by non residents.

What being there costs

Registered agent, franchise or annual report fee, and Form 5472 with a pro forma 1120 every year, with a USD 25,000 penalty for missing it.

Days and residence test

Not applicable. The point is that you are not there.

Reporting to your tax office

The US does not join the Common Reporting Standard but exchanges under FATCA and bilateral agreements.

Genuinely suits

• Non US freelancers and e commerce sellers wanting USD banking
• Software businesses selling to US customers

Not for: UK, US or Australian residents hoping the LLC hides profit. Your home country taxes it in full.

The catch: For a UK resident owner, an LLC can be taxed twice through mismatched treatment. Get specific advice before using one.