Zero Corporate Tax Countries to Start a Business in 2025

For entrepreneurs, tax isn’t just an expense – it’s a strategic decision.

Setting up your company in the right jurisdiction can mean the difference between keeping more of your hard-earned profits or handing a chunk of them to the taxman.

So, it’s all about location, location, location and which country has the lowest corporate tax rate, right?

Well, yes and no. The corporate tax rate is important, but it’s not the only factor to consider. 

The best offshore business hubs offer a potent mix of financial freedom, ease of doing business and access to talent.

Pick the right one and your business will enjoy higher profits, fewer headaches, and a solid future.

So, where should you base yourself or at least your company? Which zero-tax destinations offer the best combination of benefits?

The answer is complex, so the Nomad Capitalist team has put together an in-depth guide to the top choices to help you decide which move is right for you.

Pros and Cons of Incorporating in Zero Tax Countries

Tax havens can be powerful tools for legally reducing your tax bill, but they’re not a one-size-fits-all solution. 

The obvious advantage of running your business in a tax haven is that you get to keep more of your profits. 

Instead of handing over large chunks of your income to the taxman, you can reinvest in your business, grow your wealth and enjoy financial freedom. 

Many zero-tax jurisdictions also have simple regulations, fast incorporation rules, and minimal reporting requirements, which makes life easier for entrepreneurs.

But there are downsides. 

Banking can be a challenge, as some offshore banks impose restrictions, require high deposits or refuse to work with businesses from certain industries. 

Some tax havens also face international scrutiny, meaning you may need to prove real economic activity within the country to stay compliant. 

You need to choose a jurisdiction that not only saves you money but also fits your long-term goals.

10 Countries with No Corporate Tax

Corporate tax havens come in many different forms. Here is a selection of countries with zero corporate tax rates you might want to consider.

1. Anguilla

Anguilla is a British Overseas Territory in the Caribbean with stunning beaches, a relaxed lifestyle and a business-friendly environment. 

It’s a pure tax haven with no corporate tax, income tax, capital gains tax, wealth tax or inheritance tax. If you’re looking to maximise your profits while keeping bureaucracy to a minimum, Anguilla is a solid choice.

You can register an International Business Company (IBC) online with minimal paperwork and no local director requirements. There’s no need to file annual financial statements or audits, making compliance a breeze.

For tax residency with a physical presence requirement of just 45 days, Anguilla offers the High-Value Resident (HVR) Program. 

This requires a US$75,000 annual lump-sum tax to cover your worldwide tax obligations. So, if you take this residency path, you won’t be living entirely tax-free. 

You’ll also need to invest at least US$400,000 in local real estate. 

Unlike some other zero-tax jurisdictions, Anguilla has no Controlled Foreign Corporation (CFC) rules. This means you won’t be taxed elsewhere just for having a business here. There are also no exit taxes if you decide to leave.

If you want citizenship, you’ll need to spend at least 183 days per year in Anguilla for five years to qualify for a British Overseas Territories Passport (BOTC). 

A UK passport is possible after ten years. If you don’t plan to live there full-time, you’re better off using Anguilla purely as a business base.

Consider our guide on how to get Anguilla Residence for more details.

2. British Virgin Islands

The British Virgin Islands (BVI) is one of the world’s most famous offshore financial centres. It’s also a true tax haven with no corporate tax, no income tax, no capital gains tax, no withholding tax and no inheritance tax. 

If you’re looking for a simple, no-nonsense jurisdiction to park your business profits, BVI is a top choice.

Setting up a company here is easy. A BVI IBC is the most popular structure, offering full tax exemption and no reporting requirements. 

You don’t need local directors or shareholders, and incorporation takes just seven days. 

However, if your business deals with third-party funds – especially in crypto or investment services – you’ll need to get a Financial Services Commission (FSC) licence, which comes with compliance obligations.

BVI doesn’t offer a clear residency program, so if you’re looking for a tax residence, you’re better off using it as a corporate base rather than a personal one. Long-term residency options exist, but they require you to spend a lot of time on the islands.

There are no CFC rules, so you won’t be taxed elsewhere just for having a business here. 

3. Vanuatu

Vanuatu is a tropical paradise in the South Pacific with some of the most business-friendly tax laws in the world. There’s no corporate tax, no income tax, no capital gains tax, no inheritance tax and no wealth tax. 

Setting up a company in Vanuatu is simple. Most businesses register as an IBC with full tax exemptions and minimal reporting requirements. 

However, if you’re dealing with third-party funds — such as running an investment firm or cryptocurrency exchange — you’ll need to obtain a licence under the Securities and Investment Business Act. 

Residency options in Vanuatu are flexible. If you want to live there tax-free, you can apply for a Self-Funded Resident Visa, which requires proof of a steady income (around US$2,100 per month for individuals). 

There are also investor visas, employment-based visas and a property-based residency route for those who purchase real estate worth a minimum of US$85,000. 

Permanent residency is available if you can show US$340,000 in worldwide investments.

If you’re looking for citizenship, Vanuatu offers one of the world’s cheapest citizenship-by-investment (CBI) programs. A US$95,000 donation (plus fees) gets you a Vanuatu passport in just a few months. 

There are no CFC rules here, so you won’t be taxed elsewhere just for having a company in Vanuatu. Banking, however, can be tricky, as many international banks have de-risked from the region. 

If you’re setting up a business here, make sure you have a solid offshore banking strategy.

Vanuatu is not as well-known as other tax havens, but that’s part of the charm — it flies under the radar while offering one of the simplest and most flexible offshore setups in the world.

4. Guernsey

Guernsey is a British Crown Dependency known for its stable economy, strong financial sector and low taxes. It has zero corporate tax for most businesses, no capital gains taxes and no inheritance tax. 

Certain industries, like financial services, pay a 10% corporate tax and large utility companies are taxed at 20%.

Setting up a Guernsey Limited Company is a popular choice, offering privacy, no local director requirements and minimal reporting obligations. 

For residency, Guernsey offers Investor and Entrepreneur Visas. 

The Investor Visa applicant must deposit £1,000,000 into a Guernsey bank account. The investment has to be: 

• £750,000 placed on deposit in a GFSC-regulated Guernsey bank, or 
• Purchasing and retaining an Open Market property worth at least £750,000, or
• Investment of £750,000 into another Guernsey opportunity of the applicant’s choosing that is considered satisfactory by the States of Guernsey.

The Entrepreneur Visa requires £200,000 invested in a local business where the applicant plays an active role. 

After five years, residents can apply for Indefinite Leave to Remain (ILR), and British citizenship is possible after six years with strict physical presence requirements.

Guernsey doesn’t have CFC rules or exit taxes. However, residents pay a 20% income tax, with a tax cap of £130,000 for non-Guernsey income and £260,000 for mixed-income sources. 

There’s also a special tax cap of £50,000 for the first four years if you invest in high-value property.

If you’re looking for a zero-tax corporate base with strong legal protections and access to UK markets, Guernsey is a top-tier option. It’s more expensive than some offshore jurisdictions, but it offers stability, financial credibility and a high quality of life.

5. Jersey

Another one of the Channel Islands, Jersey, offers an attractive mix of zero corporate tax for most businesses, no capital gains tax and no inheritance tax. 

Companies that operate in financial services here may face a 10% corporate tax rate.

Most companies here register as Jersey Limited Companies with no requirement for local shareholders or directors. 

Jersey’s stable economy, highly skilled workforce and location between the UK and France make it a strategic hub for those looking to access European markets.

If you’re looking to live and work in Jersey, the High-Value Resident (HVR) Program offers a pathway to residency. To qualify, you must show an income of at least £1,250,000 per year and assets exceeding £10 million. 

As a high-value resident, your worldwide income is taxed at 20% on the first £1.25 million, with anything above that taxed at just 1%. So, you won’t escape taxes entirely living here.

6. Cayman Islands

If we’re talking tax havens, we can’t overlook the Cayman Islands.

For a business-friendly environment with zero corporate tax, access to global financial markets and the possibility of easy immigration through investment, the Cayman Islands is an excellent option.

Here, you’ll find zero corporate tax, no income tax and no capital gains tax. 

Setting up a company in the Cayman Islands is also straightforward. Exempted companies are the most popular structure, offering flexibility for businesses operating internationally with minimal local presence. 

You only need one shareholder and one director (who can be the same person), and the company can operate tax-free. 

Importantly, economic substance rules are in place for certain sectors, but if you’re running a fund or holding international assets, your business will be largely free from these requirements.

The Cayman Islands offers various residency paths, including residence by investment. 

To qualify for permanent residence, you’ll need to invest at least US$2.4 million in developed real estate and show an income of US$120,000 per year. 

For those looking to establish a business presence, the Certificate of Direct Investment allows you to invest in local businesses and gain residence. A 25-year renewable residence permit is also available for those who meet the financial requirements.

Importantly, the Cayman Islands does not impose withholding taxes, so dividends and interest can be paid freely to non-residents. However, businesses must maintain economic substance in certain sectors like finance or insurance, showing a genuine local presence.

Of course, the Cayman Islands is also famous for its offshore banking.

7. Bermuda

Bermuda has long been a hub for international business, offering zero corporate tax, no income tax and no capital gains tax. 

While there are some recent tax developments for large multinational enterprises, Bermuda remains a tax-efficient jurisdiction for most businesses.

Setting up a business in Bermuda is relatively straightforward, particularly for exempted companies focused on international operations. 

These companies can operate without needing a physical presence in Bermuda and are not subject to local corporate taxes. 

Bermuda does have a 7% tax on corporate service providers, which applies to corporate administration, secretarial services and accounting. There’s also a 15% corporate tax – effective January 2025 – on large multinational enterprises with annual incomes in excess of US$750 million.

But there are many benefits.

In terms of residency, Bermuda offers a variety of residence permits. The Economic Investment Residential Certificate (EIRC) allows you to invest at least US$2.5 million in Bermuda’s economy. In return, you and your family can live and work in Bermuda indefinitely.

While Bermuda’s tax system is extremely favourable, certain industries – like multinational companies with over €750 million in annual revenue – will face a 15% corporate income tax from 2025. 

However, for the vast majority of businesses, Bermuda remains a zero-tax paradise.

Plus, banking here is great, too. Read our guide on Bermuda offshore banking for all the details.

8. Bahrain

Bahrain is an ideal place to set up your business, offering zero corporate tax, no income tax and no capital gains tax. 

Bahrain’s economy is also diversifying, making it an increasingly popular choice for both regional and international companies.

Incorporating a business in Bahrain typically takes around six weeks, with most operating as foreign-owned entities with a local presence requirement. 

Certain sectors, like retail or trading, may require a Bahraini national as a partner, but other activities, such as consulting, allow for 100% foreign ownership.

For those looking to live in Bahrain, the Golden Visa program offers a 10-year renewable residence permit. This visa gives you the right to work and reside in Bahrain, with only 90 days of annual stay required.

While Bahrain doesn’t impose taxes on profits or personal income, companies in certain industries like oil and gas do face taxes. 

There are also no exit taxes and no capital gains taxes here, so if you decide to sell your business or investments, there’s no tax penalty.

Bahrain’s cost of living is lower than that of other Gulf countries, making it a competitive choice for both your business and personal life. 

9. Bahamas

The Bahamas is one of the top choices for entrepreneurs looking to escape tax liabilities. Here you’ll find no corporate tax, no personal income tax and no capital gains tax. 

Beyond its tax advantages, the Bahamas boasts a stable economy, a strong legal framework and world-class infrastructure. This all makes it an excellent place to base your business.

In setting up a business in the Bahamas, you can incorporate as an Exempted Company, which is ideal for foreign investors. This allows 100% foreign ownership and is not subject to corporate taxes. 

You’ll need to establish a physical presence, such as a small office, but employees are not mandatory for many types of businesses. 

If you’re operating in sectors like consulting, marketing and holding companies, the Bahamas is an easy place to set up shop. However, certain sectors, like trading, may require a local partner.

The Bahamas offers a few different residency routes. The Residence by Investment option requires an investment of US$1 million either in residential real estate or zero-coupon bonds from the Central Bank of the Bahamas. 

After making the investment, you can apply for permanent residency, which also gives you the right to work and engage in foreign currency transactions. 

10. Turks and Caicos Islands

Turks and Caicos Islands (TCI) is an excellent destination and tax-efficient environment for businesses. With no corporate tax, no income tax and no capital gains tax, it’s a prime location for entrepreneurs looking to maximise profits. 

Incorporating a business in TCI is straightforward, especially for foreign investors. There are no restrictions on foreign ownership, and you can set up an Exempted Company, which enjoys tax-free status. 

However, if you’re looking to engage in certain types of businesses, such as retail, a local partner may be required. 

For most business activities like consulting, tech and investment, TCI is ideal, with 100% foreign ownership allowed.

The immigration process is also simple, with various options for residency. The Temporary Residence Permit lets you live in the country for one or three years, provided you invest in property or a business. 

For those looking to stay long-term, the permanent residency pathway is available after 10 years of legal residency. 

A minimum investment of US$500,000 in property or business is required, and there’s a fast-track option to citizenship after 15 years.

Other than the initial stamp duty on property purchases, there are no other direct taxes or wealth or withholding taxes. 

The tourism-driven economy is growing, and with real estate opportunities on the rise, TCI offers great potential for investment. 

Countries with Low Corporate Tax Rates

As this guide shows, there’s a diverse range of options out there for businesses in no-tax countries. 

However, when you’re thinking about setting up a business offshore, it’s not just about finding a country with zero corporate taxes. This is just one piece of the puzzle.

Sometimes, opting for a low corporate tax rate might be just as beneficial, especially if the country offers other advantages that fit your needs. 

For example, countries like Georgia, Qatar and the UAE offer very low taxes for businesses. When you factor in things like lifestyle and the ease of doing business, paying a small tax might make a lot more sense when you’re based in the right place. 

And if you’re looking for a location where you don’t pay tax on income earned outside the country, places like Hong Kong and Malaysia can also be perfect for setting up a business base. They have tax-friendly policies for businesses making money abroad.

Ultimately, tax rates, while they’re important, aren’t the only thing you need to think about.

Some countries might offer zero or low taxes, but you may need to live there or meet certain local requirements to take advantage. For example, you might need to hire local staff or maintain a physical presence in the country. 

You also need to factor in your personal income tax requirements, your physical residency, your company’s base and any tax requirements from your home country. Even if your business is based in the Cayman Islands, the tax authorities will still want to know all about your income if you’re a US citizen.

It’s important to weigh up how much the tax savings are worth compared to the other factors, like lifestyle or administrative burden.

Ultimately, choosing a country with a low corporate tax rate could be the better option if it aligns with your business goals and personal circumstances. 

Sometimes, the right balance of tax benefits, ease of operation, business environment and residency rules is what really matters. 

That’s why we help clients figure it all out through holistic offshore planning.

Zero Corporate Tax Countries: FAQs

Seeing the Bigger Business Picture

When choosing a country to establish your business, bear in mind that corporate tax rates are just one piece of the puzzle. 

You need to consider factors like ease of doing business, economic stability and how a particular country’s tax laws apply to your personal situation.

Some countries even offer the opportunity for citizenship when you set up a business in them, which could be a significant benefit. 

At Nomad Capitalist, we take a holistic approach to help you choose the best country for your business, ensuring it aligns with your goals. 

We don’t just sell a single solution, but take everything into account to ensure you live, work and invest where you’re treated best. Let us help you navigate the complexities of setting up a successful, tax-efficient business.