There are many countries around the world that attract foreign investors and businessmen with their lenient tax policies. These countries offer a wide range of benefits, making them an ideal place to do business and invest. Learn more about the countries with the lowest taxes for foreigners in 2024

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Often, foreigners want to register their business or work abroad, but for this it is necessary to take into account not only the profit, but also the amount of taxes.

Today, many people seek to minimize their financial obligations, including tax expenses. In this context, countries with a low tax level, which are becoming attractive to entrepreneurs and investors from all over the world, attract special attention.

We offer you an overview of the TOP-5 countries with the minimum tax burden. The editors of Visit World have prepared this material for those who are looking for opportunities to do business and live abroad, avoiding excessive financial costs.

To learn more about which countries will be the easiest to obtain dual citizenship in 2024 and which countries prohibit having a second passport, please follow the link.

TOP-5 most favorable countries for doing business

1. Monaco 

Monaco, located on the French Riviera, is famous for its atmosphere of luxury and attracts the wealthy from all over the world. The principality is known for the absence of taxes on personal and corporate income, which makes it an attractive destination for wealthy individuals.

However, there are several important aspects to consider before choosing Monaco for your residence:

1. High cost of living: Monaco is one of the most expensive places in the world. The costs of renting a house, food and transportation are much higher than in many other countries;

2. Difficulty of obtaining residence: it is not easy to obtain residence in Monaco. To do this, you need to meet strict requirements, including investment in the economy of the principality and the availability of significant financial resources.

2. United Arab Emirates

Dubai, Abu Dhabi and Sharjah are megacities that have become powerful business centers and centers of international trade. The United Arab Emirates attracts foreign entrepreneurs with a number of attractive conditions:

1. 0% income tax: An ideal opportunity for business development without tax liabilities;

2. Developed infrastructure: modern skyscrapers, free economic zones and high-tech parks create favorable conditions for entrepreneurship;

3. High standard of living: luxurious hotels, restaurants and shopping centers make the UAE attractive even for the most demanding residents.

However, there are several aspects worth keeping in mind:

1. To do business in the UAE, you need to obtain a special visa;

2. Living in Dubai or Abu Dhabi can be quite expensive, especially in comparison with other countries in the region.

3. Saint Kitts and Nevis 

St. Kitts and Nevis are picturesque islands in the Caribbean that offer unique opportunities for investors. Becoming a citizen of this country gives you significant advantages:

1. 0% income tax: you can do business and manage your finances without tax restrictions;

2. Citizenship for investment: by investing $150,000 in real estate or making a donation to a public fund, you will receive a St. Kitts and Nevis passport;

3. Visa-free entry to 150 countries: the ability to travel the world without complicated visa procedures.

This country is ideal for:

1. Remote work;

2. Online business: due to low taxes and no currency controls, St. Kitts and Nevis is an attractive destination for entrepreneurs doing business online.

4. Oil countries: Kuwait, Bahrain, Qatar 

The Gulf states are known for their rich oil and gas reserves and offer unique opportunities to foreigners:

1. Personal and corporate income taxes are among the lowest in the world, making these countries attractive to investors and entrepreneurs;

2. Modern infrastructure, quality education, a developed healthcare system and a high level of security ensure a comfortable stay for everyone who chooses these countries to live in.

However, it is worth considering:

1. It is not always easy for foreign workers to obtain a work permit, especially those without special qualifications;

2. In some regions, the Internet can be unstable, which creates certain difficulties for those who work online.

5. Bahamas

Known for its fabulous beaches and turquoise waters, the Bahamas is an attractive destination for foreign entrepreneurs. This archipelago in the Atlantic Ocean offers unique opportunities:

1. 0% income tax;

2. Fast company registration;

3. Comfortable business atmosphere: the stability of the political system, the English-speaking population and the developed infrastructure create favorable conditions for entrepreneurial activity.

However, it is worth considering:

1. A special visa is required to do business in the Bahamas.

2. Living in the Bahamas can be quite expensive, especially compared to other Caribbean countries.

Countries in Europe with the highest and lowest taxes in 2024

Income tax rates and the amount of contributions paid by employees differ significantly in different countries of the world.

- European countries with the highest taxes

Particularly high taxes are observed in the Scandinavian countries.

According to Euronews Business, in the countries of the Organization for Economic Co-operation and Development (OECD), people with high incomes are forced to give a significant part of their earnings to the state. On average, the maximum income tax rate in these countries is about 42%.

1. Finland ranks first in the world in terms of income tax - the rate is 56.95%.

2. Denmark (56.5%).

3. Austria (55%).

4. Portugal (53%).

5. Sweden (52.85%).

6. Belgium (50%).

7. Germany is also among the countries with high taxes, where the income tax rate reaches 45%, which is significantly higher than the average for the European Union (37.77%).

Despite the difference in tax rates, single workers without children in Germany experience a significant tax burden, with 39.7% of their gross income going to taxes.

- European countries with low taxes

However, there are countries with low taxes in Europe, such as Bulgaria, Bosnia and Herzegovina, Kosovo, North Macedonia and Romania, where the income tax rate is only 10%.

- How do high taxes affect people's lives?

In Denmark, where the tax rate exceeds 56%, residents treat it calmly and consciously. They understand that high taxes are a payment for a high standard of living and an investment in the future of the country and society. Danes believe that thanks to such taxes, all residents of the kingdom have equal access to education, social services, medical care and other benefits. The system includes all levels of education, social benefits, security, child benefit, maternity leave and unemployment insurance. In addition, students from EU countries have the opportunity to receive scholarships to study in Denmark.

In Austria, where taxes are also high at 55%, people also value social security, which includes compulsory health insurance, pension insurance and occupational accident insurance. The social security system includes maternity and unemployment benefits, ensuring that all workers are adequately protected. The state requires that all workers be insured, as well as those receiving unemployment benefits or pensions.

In Belgium and France, despite the high quality of health care, participation in social security programs and public health insurance can be a difficult and lengthy process. In these countries, single people without children often bear the brunt of the highest taxes, while families with children pay slightly less. In Belgium, many taxpayers face the fact that up to 65% of their salary goes to taxes, which causes frustration among the population, which does not always see these funds returned in the form of services, especially compared to neighboring Scandinavian countries.

For safe relocation to any country in the world, obtaining citizenship and employment, use the advice of an international lawyer. We help to solve complex and simple issues for your comfort and safety in any part of the world. 

Top 5 Asian countries with low taxation

Asia is developing rapidly and is becoming a center of attraction for companies seeking to expand their business and investors looking for new opportunities. One of the key drivers of this growth is the proliferation of low-tax jurisdictions across the continent.

Previously, Europe and North America held dominant positions in the business world, but the situation is changing. Thanks to a lower tax burden, Asia is becoming more attractive to entrepreneurs who want to keep most of their profits. This fosters business growth and innovation. Lower taxes also mean higher returns for investors.

For expats, Asia, with its low tax rates, offers not only a higher standard of living, but also the opportunity to enjoy more of their salary. Many countries in the region also offer beautiful natural scenery, rich culture, and many exciting opportunities to live and work.

Oman

0% income tax | 15% corporate tax

Known for its majestic deserts and ancient forts, Oman is becoming an attractive destination for companies and expats due to its favorable tax conditions. There is no personal income tax, which allows expats to keep most of their salary while enjoying a high standard of living.

Oman also offers favorable conditions for business. The general corporate tax rate is only 15%, making the country an attractive region for business development and expansion in the Middle East. In addition, Oman has free economic zones that provide full exemption from corporate tax and import duties, as well as simplified business registration and regulation.

However, it should be borne in mind that certain types of income are subject to taxation, including royalties paid to foreign companies. Also, the oil and gas industry is taxed at higher rates. In general, Oman's tax system offers significant advantages for most entrepreneurs and foreign nationals who choose this country for business or residence.

Macau

12% income tax | 12% corporate tax

Macau is known as the Asian Las Vegas, attracting not only with its luxurious nightlife, but also with favorable conditions for doing business and living. It offers favorable tax conditions for expats. In particular, tax liabilities on personal income are minimal, which allows you to keep most of your earnings. This makes Macau attractive to professionals seeking to maximize their salaries.

In addition, Macau applies a territorial taxation system, which means that taxes are levied only on income earned in the country. This is a significant advantage for international companies, which can minimize the tax burden by placing profitable operations outside of Macau. The corporate tax rate for most companies here is only 12%, which is significantly lower than in other countries.

However, it should be noted that some areas of activity, such as casinos, are subject to a special tax regime. There are also taxes on real estate rentals and on certain goods, such as alcoholic beverages. 

Hong Kong

15% income tax | 16.5% corporate tax

Hong Kong has long established itself as a tax haven for expats and companies looking for favorable business conditions. One of the main advantages is the territorial taxation system, which provides for the payment of taxes only on income earned in Hong Kong. This is especially beneficial for expats with income from other countries, as these funds are not taxed in Hong Kong.

Hong Kong also has a progressive income tax system, where the tax rate on initial amounts of earnings is lower, and the maximum rate reaches only 15%. This creates a comfortable environment for most expats, allowing them to keep a significant portion of their income.

In addition, Hong Kong offers a variety of tax deductions and exemptions that further reduce tax liabilities. This makes Hong Kong an attractive place to work and live.

However, it is worth noting that Hong Kong has a property tax and capital gains tax on the sale of local shares, as well as a goods and services tax (GST). Nevertheless, the overall tax burden in Hong Kong remains significantly lower compared to many other countries, making it popular with expats and international companies.

Brunei

0% income tax | 10% corporate tax

Brunei, located on the picturesque island of Borneo, is becoming increasingly popular as a new tax haven for wealthy individuals and successful companies. The main advantage of this country is the complete absence of personal income tax, which allows expats to keep all their earnings. This is especially attractive for professionals in such high-paying industries as finance, engineering and medicine.

In addition, Brunei has one of the lowest corporate income tax rates in Asia - only 10%. This policy makes the country a cost-effective place to start a business and expand it regionally. The government also offers additional tax incentives for certain industries.

It is worth noting that Brunei's tax system is focused on attracting foreign investment rather than mass expatriation. Therefore, there are certain restrictions on foreign business ownership in some sectors.

Tajikistan

12% income tax | 18% corporate tax

Tajikistan offers an interesting and diverse tax system, which, while not a traditional tax haven, can be an attractive option for certain companies and individuals seeking favorable taxation. The country's corporate tax rate is 18%, which is quite favorable, especially when compared to more developed countries.

Additionally, the Tajik government provides tax incentives for businesses operating in key sectors, such as tourism and agriculture, to encourage the development of these industries. This targeted approach is aimed at supporting economic growth in important areas.

It is worth noting that Tajikistan's tax system has its own peculiarities. For example, residents pay a flat income tax rate of 12%, while non-residents are subject to higher rates. Despite these difficulties, the government is actively working to attract foreign investment, especially in infrastructure projects and resource extraction.

In addition, Tajikistan has special economic zones that offer lower tax rates and simplified regulations, which may be an additional incentive for companies considering expanding their operations in the region.

Tax refunds for expats

In addition to favorable tax conditions, it is worth considering that expats who work abroad and pay taxes are entitled to a tax refund.

A tax refund is the return of money that has been overpaid in taxes to the host country's government. This usually happens when employers withhold too much from an employee's wages.

To find out if there is an overpayment and what its amount is, the employee needs to submit a tax return for the country in which you worked, to declare all the income you earned and determine whether you should be refunded the tax and in what amount. Also, in addition to the tax refund, after submitting the income declaration, the employee will not only be able to count on a tax refund, but will also receive additional benefits from the country's government, such as child support.

An expat can submit a declaration independently, but for this it is necessary to have a good command of the language of the country of residence and to know the legislation.

That is why many foreigners often cooperate with tax experts, one of the most experienced is RT TAX. Founded in 2000, the company occupies a leading position in the field of tax refunds worldwide. The network has more than 400 representative offices in 40 countries. Over the entire period of work, 250,000 workers from all over the world became clients of the agent.

The main advantage of RT TAX is that the company works on the basis of a successful commission, which means that clients pay for services only when they receive a refund, without the need for an upfront payment.

We remind you! Working abroad can be a great experience for personal and career development. However, finding the perfect place can be quite difficult, as can obtaining a work visa. Read more about which countries offer the best work visas in the world and what are the conditions for obtaining a permit.

Igor Usyk - Head of Migration department at VisitWorld

To ensure a safe move to a new country, I advise you to consult a specialist. My colleagues, qualified specialists with a legal education, will help you avoid unpleasant situations during migration.

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