Best Corporate Tax Havens for Your Business in 2025

For entrepreneurs and business owners, corporate tax is one of the most significant costs – and one of the few you can legally control.

Relocating your business to a low-tax or zero-tax jurisdiction isn’t just about saving money or pocketing profits: it’s about increasing flexibility, protecting assets and creating jobs.

But with dozens of so-called tax havens around the world, choosing the right one can be a daunting task.

Some offer ultra-low tax rates but come with compliance headaches. Others boast stability and strong business environments but are riddled with hidden costs.

To help you cut through the noise, the Nomad Capitalist team has identified nine of the best tax-friendly jurisdictions – places where firms thrive thanks to a combination of low taxes, strong financial systems and investor-friendly policies.

Let’s take a closer look at where you can legally reduce your company’s tax burden while building a globally competitive business.

Business Tax Havens: Pros and Cons

While every so-called tax haven offers a unique system, here are some of the primary considerations for them.

Pros:  

• You can reduce your tax rate to as low as 0% in some cases
• Strong privacy laws allow entrepreneurs to protect financial details
• Favourable business environments with minimal regulatory burdens
• Protection in the face of lawsuits and attempts to take your money
• No wealth, capital gains or personal taxes in some cases.

Cons:  

• It can be complicated to set up an offshore business from overseas
• Some jurisdictions face greater international scrutiny from governments looking to combat tax evasion 
• Some offshore tax havens have poor reputations, which can affect trust among potential customers
• In some jurisdictions, opening a bank account can be tricky.

Choosing the Best Corporate Tax Haven

When you’re considering moving your business overseas, your primary focus is likely to be the tax benefits. 

To execute this properly, you need to meticulously examine the headline corporation tax rate, as well as the entire tax landscape. 

Beyond corporation tax, you’ll need to consider potential liabilities such as import duties, payroll taxes or VAT – these can significantly impact your bottom line.

In addition, there are the legal and compliance requirements involved with setting up a business overseas to consider. 

This might not seem like an important factor until you end up dealing with issues such as opening a bank account, surprise charges or delays when setting up your business.

You should also consider how often you’ll need to visit the country where your business is located and how that experience will be for you. 

Can you fit these trips into your life, even if they’re only for a few days? 

Finally, consider the jurisdiction’s reputation. While a little-known island might have some tempting tax advantages, perception matters.

Potential clients, partners and, importantly, financial authorities may view such locations with a degree of scepticism. 

This could lead to lost business opportunities, increased scrutiny and admin headaches.

Nine Tax-Friendly Business Jurisdictions

With all that in mind, let’s explore some of the best corporate tax havens and what you can expect in them. 

1. British Virgin Islands

Set up your business in the British Virgin Islands (BVI), and you’ll pay no corporate tax, capital gains tax, dividends tax or inheritance tax.

However, if you have employees, you’ll pay payroll taxes (2 to 6%) and make social security contributions (5.9%). Additionally, import duties, ranging from 5% to 20%, should be factored into any business model involving physical goods.

Entrepreneurs love the BVI because it’s so easy to incorporate there without having to maintain a physical presence on the island. 

In fact, the less connection you have with the BVI, the easier it is to manage your business. 

Conversely, establishing a physical office or managing your business directly from the BVI can introduce complexities. 

This often entails applying for specific licenses relating to your industry niche, along with far more stringent and compulsory financial reporting requirements. 

Avoiding this ‘on-the-ground’ presence can drastically reduce administrative overhead.

Beyond the tax advantages, company formation in the BVI is fast, affordable and flexible. 

On top of that, there’s no minimum capital requirement for incorporation, offering a low barrier to entry. 

2. Cayman Islands

The Cayman Islands is another British territory that enjoys a degree of independence and offers a range of tax and company formation benefits. 

You’ll pay no corporate tax, capital gains tax, inheritance tax, or withholding tax when you set up a business here. 

There are no payroll taxes or social security contributions due either, although you’ll have to make mandatory pension and health insurance contributions if hiring employees.  

The jurisdiction is well-known for its strict privacy laws, making it simple for business owners to protect their identity. Its banking sector is famously safe and stable. 

What’s more, the Cayman Islands dollar is among the world’s strongest currencies.

3. Bahamas

The Bahamas is well-known for its glorious weather, turquoise waters and relaxed pace of life. Beyond the dream lifestyle available here, it’s also a tax haven.

No corporate tax, inheritance tax, capital gains taxes, estate taxes or withholding taxes are charged here. 

It also has a strong banking sector and is the world’s fourth-largest offshore financial sector. 

As a business owner, the only taxes you might be exposed to are VAT, import duties and social security payments.

Some businesses, including those in the banking, insurance, and fund management sectors, will need a substantial physical presence in the Bahamas to qualify for the tax benefits.

It’s hardly a chore to spend time in the Bahamas, though. You’ll enjoy picturesque surroundings, a high-quality business infrastructure and a friendly English-speaking population. 

The Bahamas doesn’t have double-taxation treaties with other countries, meaning you’ll need to take steps to ensure another jurisdiction doesn’t tax you on your worldwide income. 

4. Bermuda

Bermuda, another small British Overseas Territory in the Atlantic Ocean with a population of approximately 64,000, is a compelling option for offshore business incorporation.

Setting up a business in Bermuda is remarkably straightforward and can be done entirely remotely. If you do, you won’t have to worry about paying corporate tax, capital gains tax or withholding taxes (among others). 

However, payroll tax (up to 10.25%) and import duties (up to 25%) are higher in Bermuda than in other traditional tax havens.   

5. The Isle of Man

The Isle of Man is a British Crown Dependency based in the middle of the Irish Sea. Most businesses here pay 0% corporate tax, although banks and certain retail companies are subject to a 10% corporate tax. 

However, like many other attractive jurisdictions, the Isle of Man does not levy capital gains tax or inheritance tax.

There are strong compliance regulations tied to incorporating a business in the Isle of Man. To incorporate a business here, demonstrating ‘sufficient substance’ is mandatory.

This typically includes appointing a resident director, who must take part in the general management of the company. 

All of this adds a layer of complexity which can be a deal-breaker for many business owners. Furthermore, incorporation fees are also higher than many of the other options on this list.

Still, thanks in part to these tough regulations, the Isle of Man is a tax haven with one of the most credible global reputations. Many business owners are happy to spend a bit more for that reason. 

After all, it’s the price you pay for a premium offshore solution.

6. Dubai, United Arab Emirates (UAE)

Dubai has grown to become one of the most popular and fashionable tax havens of recent times due to its 0% income tax and world-class infrastructure. 

The UAE recently introduced a 9% corporate tax, but it’s still possible to pay 0% under limited circumstances with certain free zone companies.

UAE Company formation is relatively straightforward to implement in Dubai and can also pave the way for obtaining residency in the UAE. 

Furthermore, there are numerous banking options and the business infrastructure is world-class. 

7. Hong Kong

Hong Kong offers low tax rates, including no VAT, capital gains tax, inheritance tax, dividend tax, or withholding tax. 

While the corporate tax rate in Hong Kong is 16.5%, the Special Administrative Region has a territorial tax system. So, if you’re earning income outside of Hong Kong, you won’t be taxed on it. 

For more information, see our guide to Hong Kong tax rates for your offshore corporation.

8. Singapore

Singapore is another Asian destination with remarkable infrastructure, low tax rates and a territorial tax system.

That’s great news if you’re earning foreign-sourced corporate income, as you won’t be taxed on it as long as it’s not remitted into Singapore. However, if your income isn’t foreign-sourced, Singapore has a corporate tax rate of 17%. 

On a personal level, you can remit foreign-sourced income into Singapore and still not be taxed.  

There’s no capital gains tax in Singapore, so it can be a great location for investors to call home. 

On top of that, this city-state hosts some of the most reputable banks in the world. It also boasts one of the world’s lowest crime rates and has an exceptional talent pool if you’re looking to hire employees. 

9. Ireland

It’s not strictly a tax haven, but if you’re looking to base your company in the European Union and still pay low corporate taxes, Ireland could be the jurisdiction you’re seeking. 

Ireland also has a non-dom taxation scheme, available to those who aren’t domiciled in Ireland but are tax residents there. 

That would generally mean you need to spend some time there, typically more than 183 days per year on average.

To simplify this, Ireland has a popular entrepreneur visa that could get you a residence permit and access to the rest of the EU along with it. 

Its economy is thriving, thanks in part to the attractive business environment. 

Ireland has bowed to international pressure on its corporate tax rate, agreeing to change it to 15%. But that rate is only levied on large multinationals who count their income in hundreds of millions of Euros.

For everyone else, the corporate tax rate in Ireland is 12.5%, which is one of the lowest in the EU. There are also tax incentives for certain kinds of innovative and research-based companies. 

Best Corporate Tax Havens for Business: FAQs

Go Where You’re Treated Best

If you’re tired of paying high corporate taxes, particularly in legacy brand countries like the US, Australia, Canada and the United Kingdom, you might well be assessing your offshore options.

The value for entrepreneurs and investors in these places is in a downward spiral. With political uncertainty, rising taxes and spiralling costs, you’d be right to look elsewhere. 

The good thing, as our list shows, is that there are plenty of alternatives available to you. The cautionary note is that wherever you decide to go, it will first take planning. 

That’s where we come in.  

Nomad Capitalist specialises in helping high-net-worth individuals sort the wheat from the chaff and ‘go where they’re treated best’ with minimum fuss.

Our clients are paired with experts in tax, investment strategy, asset protection and immigration to create a holistic plan based on their unique personal and professional goals. To learn more about how our Nomad Capitalist plans can help you, get in touch today.