Best Countries for International Entrepreneurs with Favorable Tax Policies in 2025

Find out where to set up your global business with minimum tax exposure.

International borders do not hinder entrepreneurs and start-ups in today’s rapidly changing digital world. As remote jobs, global eCommerce, and international businesses grow, the need for efficient tax planning rises. One of the most effective methods to legally reduce your business tax liability is to set up your company in a tax-friendly country.

Whether you are a digital nomad, eCommerce seller, a consultant, or an aspiring entrepreneur, selecting the right jurisdiction permits faster scaling, reduced taxes, and compliance without excessive red tape. In this article, we discuss the best countries for international entrepreneurs based on their low or zero corporate tax, ease of doing business, flexibility of compliance, and reputation on the international stage.

1. Relocation: United Arab Emirates (UAE) – A Striking Global Tax Haven.

Corporate Tax: 0% (up to AED 375,000) | 9% for higher profits

Personal Income Tax: 0%

Best for: E-commerce sellers, consultants, digital agencies, trading businesses.

The entrepreneurial landscape in the UAE remains attractive with the absence of personal tax and the presence of business-friendly Free Zones. A federal 9% corporate tax was implemented in 2023, but there remains no tax for startups with revenue under ~USD 100,000. Moreover, the lack of federal with holding taxes, absence of capital gains tax, and full foreign ownership make Dubai and Abu Dhabi go-to places for new businesses.

IFZA, Meydan, and RAKEZ free zones simplify business and residency visa processes, providing bank and visa access for streamlined business operations, ideal for solopreneurs and remote-traveling teams.

2. Estonia: Europe’s E-Residency Pioneer.

Corporate Tax: 0% on retained earnings | 20% on distributed profit

Personal Income Tax: Flat 20%

Best for: SaaS startups, remote founders, software developers.

Estonia remains a top choice online-only business owners. Start and manage an EU business under e-Residency without the need to visit the region. The key highlight is the tax policy that allows businesses to only pay tax on distributed profits and not on retained earnings.

Estonia’s membership in the European Union offers a strong advantage for cross-border services and for executing international payments using SEPA. Furthermore, the country’s government is digital-first, which means low red tape and quick turnaround times for compliance.

3. Georgia – Low Taxes, Minimal Hassle

Corporate Tax: 0% (Small Business status) | 15% standard

Personal Income Tax: 1%–20%

Most suitable for: Freelancers, consultants, service professionals, and small business proprietors

The country of Georgia has one of the most attractive tax policies in Eastern Europe. Through the country’s “Small Business Status” program, qualifying business owners can enjoy a tax rate of only 1% on revenue below GEL 500,000 (approximately $180,000 annually). Furthermore, there is no tax on retained earnings, and profits from cryptocurrency transactions are not taxed for individuals.

In the Georgian cities of Tbilisi and Batumi, the company registration process is quick and inexpensive. In addition, the country is unique in that it facilitates account openings, offers a low cost of living, and is home to a thriving community of entrepreneurs, making Georgia easy for foreigners to relocate and settle.

4. Cayman Islands – Offshore Superpower with Taxes Set to Zero

Corporate Tax: 0%

Personal Income Tax: 0%

Best for: Hedge funds, investment vehicles, structures for asset protection

The Cayman Islands continues to be a Cayman for high-net-worth entrepreneurs seeking a purely tax-neutral jurisdiction. There are no corporate taxes, income taxes, capital gains, or estate taxes. This jurisdiction is perfect for global funds, fintech ventures, and wealth management.

However, Cayman is not small business friendly and is better for offshore protection and those dealing with high-value assets due to high setup and annual maintenance costs.

5. Switzerland – Strategically Important for Holding Companies

Corporate Tax: ~11%–21% depending on the canton

Personal Income Tax: Progressive up to ~40%

Best for: Holding companies, IP-intensive businesses, wealthy founders

Switzerland is known for its stable legal and banking framework along with having not too high corporate tax rates. Some cantons, for example, Zug, have effective tax rates as low as 11.9% for holding and IP companies.

Switzerland is not zero tax, but provides value through treaty benefits, business friendly environment, and high status. This is excellent for those entrepreneurs with long-term monetization plans for their IP or those managing multi-country operations.

6. United States (Wyoming, Delaware, New Mexico) – Non-Resident Smart Structures

Corporate Tax: 0% (Wyoming, New Mexico LLCs)

Personal Income Tax: Depends on the state

Ideal for: Dropshippers, affiliate marketers, SaaS and Amazon FBA business owners

Surprisingly, even the US can be tax-advantageous with the right business structure. Non-resident business owners usually set up LLCs in Wyoming, Delaware, or New Mexico, as they carry no state corporate tax, franchise tax, and in New Mexico’s case, no annual reporting.

Additionally, as a non-resident without US-sourced income, you may not be liable for federal tax. Having an LLC with an EIN, combined with a virtual US address and bank account, enhances global business appeal while tax responsibilities remain minimal.

Bonus Mentions: Other Low-Tax Countries to Consider for 2025

Singapore: The corporate tax is capped at 17%, but there are generous tax exemptions for new businesses.

Ireland: Maintains a 12.5% corporate tax and is friendly to technology companies, but has strict residency requirements.

Hong Kong: Utilizes a territorial tax system, only local income is subject to tax.

Panama: Income earned outside the country is not taxed.

Malta: The intricacies of the system can lead to a low effective corporate tax rate because of tax refunds.

Key Tips Before Choosing a Tax-Friendly Country

Check residency rules: Some countries have controlled management or residency-based taxation.

Understand compliance costs: Minimal tax does not always mean lower maintenance effort.

Banking and payment access: Is it possible to open a business bank account?

Reputation matters: Avoid blacklisted jurisdictions that have limited global credibility.

Get professional advice: Collaborate with professionals for legal and tax matters.

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 Key Takeaways  : Best International Business Locations Considering Favorable Tax Structures in 2025

• The United Arab Emirates (UAE) is advancing forward as a global leader in 2025 as it still has no corporate taxes for most businesses, digital nomads and global founders still do not have to pay personal taxes, and the infrastructure remains modern.
• Singapore has not changed positions as it is still one of the favorites as it has a strong double tax treaty and corporate tax still is only at 17%. Moreover, they offer a perfect blend of innovation and financial ease.
• Ireland is mainland Europe’s most welcoming country for entrepreneurs as it has a 12.5 corporate tax rate with R&D credits and access to European Union (EU) markets.
• Estonia has an uncommon approach in which for local businesses, corporate tax is only payable after profits are withdrawn and with Poland’s reforms, businesses are encouraged to reinvest.
• Singapore remains one of the outstanding countries in Asia as it possesses the two-tier tax system and foreign income tax exemption as well as low compliance burdens.
• With its low (11.9%) corporate tax and offering, Switzerland is a stable country which has high valued international companies and fosters innovation.
• Cayman islands and BVI serve as the number one countries with no corporate tax that reserve the right for the companies to shield corporate taxation, hence usage for companies and funds.
• Delaware in the USA, while not tax exempt, still taxes preferred with its flexible corporate laws such as not having to pay tax on out-of-state income. Startups and VCs are partial to this offering.