avatarLevi Borba

Summary

The website article outlines ten business-friendly countries offering low tax rates and streamlined business processes, particularly attractive to entrepreneurs.

Abstract

The article "10 Business-Friendly Countries with VERY Low Taxes For Entrepreneurs" discusses the advantages of establishing businesses in countries with favorable tax environments. It highlights the ease of registering companies, often within a few hours, and the low corporate tax rates that these nations offer. The list includes European countries like North Macedonia and Lithuania, which have low tax rates and are actively integrating into the European Union. It also features Georgia, which has made significant strides in improving its business climate, and Bahrain, which stands out with a zero corporate tax rate. Additionally, the article mentions Ireland and Hungary, known for their competitive tax rates within the EU. Estonia is recognized for its digitalized government processes, while Thailand is noted for its appeal to expat retirees and its large English-speaking community. The article aims to motivate and inform entrepreneurs considering overseas ventures, emphasizing the potential benefits of these countries' business-friendly policies.

Opinions

  • Smaller nations often use lower taxes as a competitive edge to attract investment from larger economies.
  • The absence of Latin American and Sub-Saharan African countries in the World Bank Group’s assessment suggests a gap in business-friendly conditions in these regions.
  • European countries that have experienced rapid development are seen as particularly favorable for entrepreneurs due to their business environments.
  • The article conveys that North Macedonia's adoption of the Euro and its streamlined business processes make it an emerging business hub in Europe.
  • Georgia's transformation into a business-friendly nation with Free Industrial Zones is highlighted as an example of significant economic progress.
  • Singapore is portrayed as a model of urban planning and efficient bureaucracy, despite its high living costs and heavy workloads.
  • Lithuania's successful European integration and business environment are considered underrated compared to its neighbor, Estonia.
  • Bahrain's no corporate tax policy, backed by its oil and gas wealth, is presented as an attractive feature for foreign investors, despite potential political tensions.
  • Ireland's economy and support for entrepreneurs are praised, along with its role as a gateway between America and Europe.
  • Montenegro's European ambitions and low corporate tax rate are seen as promising for its emerging market status.
  • Hungary's position as a trade hub with the lowest corporate tax rate in the EU is noted, although some post-communist bureaucratic challenges remain.
  • Estonia is recognized for its digital innovation in government services, significantly reducing bureaucratic hurdles for entrepreneurs.
  • Thailand's appeal for foreign entrepreneurs, particularly in tourism, is acknowledged, but with a caution about strict adherence to local laws and regulations.

10 Business-Friendly Countries with VERY Low Taxes For Entrepreneurs

They have low taxes, programs that allow you to register a company in only 4 hours, and more.

You can read more about countries with low taxes for entrepreneurs here.

If you enjoy our articles, please clap and comment. That will be a great motivator for us :)

I prepared this list for entrepreneurs who are considering the hypothesis of venturing overseas. It is curious to see how smaller countries dominated it for a few reasons:

  • Competitive Edge: Smaller nations often offer lower taxes to attract investment that might otherwise flow to larger economies.
  • Missing Giants: Notably, no Latin American or Sub-Saharan African countries rank highly in the World Bank Group’s assessment.
  • European Success: Smaller European countries that have experienced rapid recent development dominate the top 10.

These observations suggest that smaller, more agile nations may be better positioned to create favorable conditions for entrepreneurs to thrive.

Let’s reveal their names.

World’s Best Low-Tax, Business-Friendly Countries

North Macedonia: A European Gem with Business Potential

Photo by Shalev Cohen on Unsplash

This country, with its stunning natural beauty, was once known as F.Y.R.O.M. Now on the path to EU membership, North Macedonia provides ample credit lines for entrepreneurs and smooth processes for construction permits. Y

ou can even register a company in just 4 hours! The government’s stable economic policies and a low 10% corporate tax rate (one of the lowest in Europe) make it an attractive business destination.

Place in the Ranking of Business-Friendly Countries: 17th.

Corporate Tax Rate: 10% (21st lowest in the world)

Georgia: From Struggles to Business Success

Photo by mostafa meraji on Unsplash

Georgia has made incredible strides in the past decade, transforming from a struggling post-communist state to a global leader in business ease. Simplified procedures for visas, property registration, and contracts draw investors worldwide.

The country even boasts Free Industrial Zones where you’ll find zero taxes on corporate income, profits, or property.

Place in the Ranking of Business-Friendly Countries: 7th

Corporate Tax Rate: 15% (36th lowest in the world)

Singapore: A Futuristic Business Hub

Photo by Zhu Hongzhi on Unsplash

Singapore feels like a successful experiment in urban planning — it’s incredibly clean and organized. While high living costs and heavy workloads are potential downsides, Singapore’s minimal bureaucracy is a major draw. Expect digitalized processes and efficient paperwork, making business setup a breeze.

Place in the Ranking of Business-Friendly Countries: 2nd

Corporate Tax Rate: 17% (48th lowest in the world)

Recommended book: Moving Out, Working Abroad, and Keeping Your Sanity

Lithuania

I remember the 2015 New Year’s Eve as if it was yesterday. I was in Vilnius, and people were thrilled because their country adopted the Euro, concluding years of European integration.

Since Lithuania left the now-defunct Soviet Union, this small Baltic nation had a streak of fortune. The Lithuanian journey upwards is somewhat ignored because of the bigger hype over their neighbor, Estonia. This is unfair, given the similar positions of both nations in most of the rankings.

Registering properties in Lithuania is easy, and the low real estate costs are attracting investors from other parts of Europe.

Place in the Ranking of Business-Friendly Countries: 11th

Corporate Tax Rate: 15% (36th lowest in the world)

Bahrain

Photo by Charles-Adrien Fournier on Unsplash

This small island nation in the Middle East is known for its lively atmosphere and its unique tax policy — there’s no corporate tax! Bahrain’s oil and gas wealth fuels this policy.

While relations with neighboring countries like Qatar can sometimes be tense, Bahrain does offer a relatively stable and welcoming environment for foreign investors.

Place in the Ranking of Business-Friendly Countries: 43rd

Corporate Tax Rate: 0% (lowest in the world)

Ireland: European Success with Competitive Taxes

Ireland boasts a thriving economy and a corporate tax rate that’s significantly lower than many other wealthy European nations. This, combined with government support for entrepreneurs and Dublin’s cosmopolitan atmosphere, makes it an attractive business destination.

Bonus point: Dublin is often an affordable entry point for flights from America to Europe.

Place in the Ranking of Business-Friendly Countries: 24th

Corporate Tax Rate: 12.5% ( 33rd lowest in the world)

Montenegro: An Emerging Market With European Ambitions

Montenegro is a recent addition to the map, having been part of Yugoslavia until a few decades ago. Now, they’re on the path to joining the European Union, and the business environment reflects this with easy access to credit for entrepreneurs.

The rock-bottom corporate tax rate of 9% (tied with Hungary for the lowest in Europe, excluding tax havens) is another major draw. While the language barrier might exist for older generations, many younger Montenegrins speak English.

Place in the Ranking of Business-Friendly Countries: 50th

Corporate Tax Rate: 9% (19th lowest in the world)

Hungary: The Heart of European Trade with Low Taxes

Photo by Gabriel Miklós on Unsplash

Hungary boasts the lowest corporate tax rate within the European Union, making it particularly enticing for businesses. This historical trading hub is well-connected within the EU.

However, keep in mind that some post-communist bureaucratic hurdles might still exist, like paperwork-heavy processes for construction permits and utilities.

Place in the Ranking of Business-Friendly Countries: 52nd

Corporate Tax Rate: 9% (19th lowest in the world)

Estonia

Photo by Ilya Orehov on Unsplash

I wrote an entire article about the solutions Estonia created for publishers, digital nomads, and remote businesses.

Estonia is not among the countries with low tax rates, but they are here for another reason.

The Estonian government digitalized most of its processes, so entrepreneurs will waste little time dealing with registrations, permits, and unproductive paperwork. You can incorporate a company in a matter of hours. Paying taxes and fees is also much faster. No time wasted.

This created a very business-friendly environment in this baltic nation that has a close connection to Nordic countries (especially Finland).

Place in the Ranking of Business-Friendly Countries: 18th

Thailand

The first business that I opened was in the tourism industry. As a result, many of the entrepreneurs that I contacted were foreigners who started firms in Thailand.

While this beautiful country in Southeast Asia has a natural advantage for the tourism industry, other sectors also benefit from its low costs, large English-speaking community, and high connectivity. So many airlines fly large planes to Bangkok that the two times I flew on the colossal A380, both were to the Thai capital.

A warning point: The Thai government has the fame for being harsh with foreigners who break the local laws or do not have all the needed permits. More than once I heard about the army seizing properties because of unpaid debts or broken regulations.

Still, the climate and inexpensive costs make Thailand attractive even to expat retirees.

Corporate Tax Rate: 20% (61st lowest in the world)

Recommended book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights

Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can find him on X here.

Business
Entrepreneurship
Digital Nomads
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