Best Low-Tax Countries for Entrepreneurs in 2026

Tax Profile

Personal income tax: 0% Corporate tax: 0% for qualifying free zone companies, 9% for mainland (on profits above AED 375,000) VAT: 5% Capital gains tax: 0% for individuals

The 0% personal income tax is unconditional — there's no minimum spend, no special program, no sunset clause. If you're a UAE tax resident, you pay zero personal income tax. Period.

The corporate side is more nuanced since the 2023 corporate tax introduction. Free zone companies can still achieve 0% on qualifying income, but they need adequate substance and proper structuring.

The Reality Check

Setup costs: $10,000–15,000 in Year 1 (government fees + Vector's $7,500 starting fee) Annual maintenance: $7,000–11,000 Cost of living: $3,000–6,000/month for a comfortable lifestyle Physical presence: Must visit every 180 days minimum; 183+ days for tax residency certificate

Dubai works best for founders with $250K+ net worth who are genuinely willing to relocate. It's not a paper setup — you need real presence.

Tax Profile

Personal income tax: 0–10% (progressive; first EUR 24,000 tax-free) Corporate tax: 10% flat Indirect tax (IGI): 4.5% Wealth tax: 0% Inheritance tax: 0% for direct family

The combined 10% corporate and personal tax rate is the lowest in Europe. Compare this to Spain (25% corporate + up to 47% personal), France (25% corporate + up to 45% personal), or Germany (30% corporate + up to 45% personal).

The Reality Check

Setup costs: $12,000–16,000 in Year 1 plus EUR 50,000 refundable deposit Annual maintenance: EUR 10,000–15,000 Cost of living: EUR 2,500–4,000/month Physical presence: 183 days minimum, strictly enforced

Andorra requires genuine commitment. You must physically live there more than half the year. The upside: European quality of life, mountain lifestyle, proximity to Barcelona and southern France, and a growing community of digital entrepreneurs.

Tax Profile

Headline corporate tax: 35% Effective corporate tax after refund system: 5% (for non-resident shareholders) Personal income tax: 0–35% (progressive) VAT: 18%

Malta's tax system is counterintuitive. The headline 35% corporate rate is one of the highest in Europe — but through the shareholder refund mechanism, the effective rate drops to 5% for qualifying structures. This system has been approved by the European Commission and is not a loophole — it's the designed structure.

How it works: the company pays 35% corporate tax, then 6/7ths (approximately 30%) is refunded to non-resident shareholders upon distribution. The net effective rate on distributed profits is approximately 5%.

The Reality Check

Setup costs: $8,000–12,000 in Year 1 (Vector's fee from $6,500 + government fees) Annual maintenance: EUR 5,000–10,000 Cost of living: EUR 2,000–3,500/month Physical presence: Flexible — Malta does not strictly enforce minimum days for company directors

Malta's strength is EU market access. If you need an EU entity for regulatory purposes (fintech, gaming, crypto), Malta is the strongest option. The island also offers pleasant Mediterranean lifestyle at lower costs than most of Western Europe.

Tax Profile

Corporate tax (C-Corp): 21% federal LLC (single-member, non-US owner): 0% federal if no US-source income State franchise tax: $300/year (LLC) or $400+ (C-Corp) Sales tax: 0% in Delaware

A Delaware LLC owned by a non-US individual with no US employees or office can operate as a tax-transparent entity. The LLC itself pays no US tax — income passes through to the owner and is taxed in their country of residence.

The Reality Check

Setup costs: $1,700–2,300 in Year 1 (Vector's fee from $1,500 + government fees) Annual maintenance: $650–1,400/year Cost of living: N/A — you don't need to live in the US Physical presence: None required for LLC

Delaware is the most affordable option and the only one that doesn't require physical relocation. It's ideal as a complement to a personal tax residence elsewhere — set up a Delaware LLC for US payment processing while living in Dubai, Andorra, or anywhere else.

Singapore

Corporate tax: 17% headline, effective rates lower for startups (partial exemption on first SGD 200,000). No capital gains tax. Personal income tax up to 24%.

Singapore is excellent for businesses targeting Asia-Pacific markets. The banking infrastructure is world-class, the legal system is robust, and the talent pool is strong. However, it's expensive (cost of living rivals London or New York), the Employment Pass requirements are increasingly strict, and physical presence is expected for tax residency.

We don't operate in Singapore, but we can refer you to trusted partners there.

Portugal (NHR / New Regime)

Portugal's Non-Habitual Resident (NHR) regime was modified in 2024. The new "tax incentive for scientific research and innovation" regime is more restrictive than the original NHR. It offers a flat 20% tax rate on qualifying employment and self-employment income for 10 years, but no longer provides the broad exemptions on foreign-source income that made the original NHR famous.

Portugal remains attractive for lifestyle but is no longer the tax optimization tool it once was.

Estonia (e-Residency)

Estonia's e-Residency program lets you form and manage an EU company online. Corporate tax is 0% on retained profits (only taxed on distribution at 20%). However, e-Residency does not grant tax residency — you still need to be tax resident somewhere, and that somewhere determines your personal tax liability.

Estonia works well as a corporate vehicle for EU business, but it's not a personal tax solution.

Paraguay / UAE / Georgia — The "Zero Tax" Destinations

Countries like Paraguay, Georgia, and (for individuals) the UAE offer very low or zero personal income tax. However, each comes with trade-offs in terms of banking infrastructure, international credibility, and quality of life. The cheapest option on paper isn't always the best option in practice.

We recommend focusing on jurisdictions with established financial infrastructure, strong rule of law, and genuine business ecosystems rather than chasing the lowest possible tax rate.