Best countries to open a business and get residency or citizenship by investment in 2026

International expansion has moved beyond a growth tactic. It is now a core strategy for companies that want to scale, reduce exposure to regulatory, political, and economic risks, and remain competitive in a global market.

Global trade scale and growth dynamics

Global data confirms the steady expansion of international business. UNCTAD estimates that global trade increased from about $32 trillion in 2023 to nearly $33 trillion in 2024, or roughly 3.3% growth. In 2025, trade flows were projected to exceed $35 trillion, showing continued acceleration[1].

Trade volumes also remain strong. Global goods trade grew by around 4.9% in the first half of 2025, with full-year growth estimated at 4.6%, despite tariffs and geopolitical pressure[2]. This shows that cross-border business continues to expand even in less stable conditions.

Such steady growth is driven by several structural trends:

1. Digitalisation, which reduces entry barriers.
2. Growth in services trade, which added about $500 billion to overall trade expansion and shows the rising role of digital and knowledge-based activities[3].
3. Supply chain restructuring, as companies diversify production and sourcing.
4. Investment flows: global FDI rose 14% in 2025 to $1.6 trillion after falling 11% in 2024, although much of the increase came from financial centres rather than underlying investment activity[4].

Business opportunities and strategic advantages

Expanding abroad gives a business several practical advantages:

• greater revenue potential through access to larger and faster-growing markets;
• lower dependence on one economy, which reduces exposure to local downturns;
• broader access to resources, including global supply chains, skilled talent, and more favourable operating conditions;
• stronger market positioning, which can improve investor interest, partnerships, and client trust.

International expansion also becomes easier in sectors that already grow across borders. In 2024, trade in services increased by around 7%, making it one of the main drivers of global trade growth. This shows that digital services, IT, consulting, and other remote business models can scale internationally faster than before, including for mid-sized companies.

As a result, operating in several countries is not only a way to increase sales. It also helps build a business that is more resilient, more competitive, and better prepared for long-term growth.

Combining company formation with a residency or citizenship programme

Opening a company abroad can do more than help enter a new market. In some jurisdictions, it can also create a path to residence or citizenship. This makes company formation not only a business tool, but also part of a wider mobility strategy.

Two key legal routes are often used:

1. Golden Visa, or residence by investment — allows obtaining a renewable residence permit in exchange for a qualifying investment, such as company formation, capital investment, or job creation.
2. Citizenship by investment — leads to full citizenship and a passport without a prior residence period.

A company in the target country gives a business the infrastructure it needs to operate: local banking access, contracts with partners, VAT registration, and invoicing and payroll. This makes company formation useful not only for market entry, but also for broader mobility planning.

Rising private wealth mobility makes this approach more relevant. Millionaire migration increased from about 120,000 in 2023 to 128,000 in 2024 and 142,000 in 2025, with 165,000 projected for 2026. This reflects growing demand for countries with stable regulation, business-friendly conditions, and flexible residence options[5].

When assessing the best countries to do business while also pursuing investment migration, decisions are driven by 5 key factors: the corporate tax regime, ease and speed of setup, available business incentives, access for non-residents, and the presence of a clear residency route.

Corporate tax environment

Corporate tax defines how profits are treated and how efficiently a business can reinvest earnings. The structure of the tax system often matters more than the headline rate, especially for international companies with cross-border income.

Some jurisdictions offer particularly favourable models. Latvia applies a 0% tax on retained earnings, taxing only distributed profits at 20%, which supports reinvestment. Hungary has a flat 9% corporate income tax, the lowest in the EU. Outside the EU, Vanuatu stands out with 0% corporate income tax, making it one of the most tax-neutral environments.

Ease and speed of company registration

The time required to register a company affects how quickly a business can enter a market. In practice, timelines depend on whether documents are prepared in advance and whether the process is fully digital.

Once all documents are ready, some jurisdictions offer very fast registration. Hungary allows company registration in as little as 1 working hour in the electronic system. Malta, Vanuatu, Dominica, and Türkiye typically complete incorporation within 1 day. At the slower end, Antigua and Barbuda may require up to 3 weeks.

Business benefits and incentives

Beyond tax rates, many countries offer additional incentives that improve the overall business environment. These may include tax refunds, special regimes, or sector-specific advantages.

For example, Malta operates a tax refund system that can reduce the effective corporate tax rate to around 5% for foreign shareholders. Other jurisdictions provide incentives through free zones, reduced rates for certain industries, or exemptions on specific types of income.

Company formation for non-residents

Portugal, Malta, Latvia, Italy, Hungary, Cyprus, and Türkiye are the most straightforward options: foreign founders can incorporate there under standard corporate rules, usually with support from local lawyers or corporate service providers.

In the Caribbean and Vanuatu, company formation is also possible, but non-residents more often face additional conditions. For example, St Lucia requires a trade licence for non-national companies, while Vanuatu requires foreign investment approval.

Residence and citizenship options linked to business investment

Not all investment migration programmes include a business route. Even countries with a strong business environment, such as Malta and Hungary, do not offer one.

By contrast, business investment is available in Portugal, Latvia, Italy, Türkiye, Antigua and Barbuda, and St Lucia, although each jurisdiction sets its own thresholds and conditions.

Portugal has built a strong reputation as an attractive environment for startups and innovation. The World Bank places it in the top 20% of economies in its Business Ready assessment, highlighting in particular the strength of its regulatory framework and digital infrastructure[6]. For investors, this business environment is further supported by two residence routes linked to company formation.

Company formation

Registration formats. Portugal offers one of the most accessible company registration systems in Europe. A company can be set up either online through Empresa 2.0 or in person through Empresa na Hora[7].

The in-person route is designed to complete incorporation in a single visit, while the online route allows founders to register a company in a few steps at any time. Portuguese residents can complete the online process using a Citizen Card or Digital Mobile Key.

Process, timing, and fees. Online registration is completed by filling in the company details, uploading or selecting the incorporation documents, and submitting the application electronically.

The cost of online company registration depends on the type of incorporation documents and the filing speed:

• €220 with a pre-approved template for the articles of association;
• €360 with custom articles of association;
• €440 for an urgent filing with a pre-approved template;
• €720 for an urgent filing with custom articles of association.

After submission, payment must be made within 48 hours.

If the application is approved, the founders receive access codes to the company’s electronic records, including the permanent commercial certificate. They must then deposit the share capital within 5 working days, unless it has already been deposited or declared available by the end of the first financial year[8].

What is needed to apply. Founders must indicate the information about:

• company type;
• shareholders and directors;
• business activity;
• registered office;
• company name;
• share capital;
• beneficial ownership information. 

All shareholders must be able to authenticate themselves digitally and sign the incorporation documents electronically.

Main company types. Portugal offers the following main company forms used for business activity: 

• single-member private limited company — sociedade unipessoal por quotas;
• private limited company — sociedade por quotas;
• public limited company — sociedade anónima. 

In practice, the first two are usually the most relevant for small and medium-sized businesses, while the public limited company is more suitable for larger projects with more complex capital structures.

Portugal has one of the most flexible capital requirement regimes in the EU. A private limited company can be set up with no minimum share capital, while a public limited company requires at least €50,000 in share capital[9].

Non-resident access. Portugal allows foreign founders to register companies, but the process requires additional preparation. Foreign nationals can use the online route only if they have a Digital Mobile Key linked to a passport or access through European eIDAS authentication.

To obtain a Digital Mobile Key, a foreign founder must first receive a Portuguese tax identification number — Número de Identificação Fiscal, NIF — and complete identity verification through Portuguese authorities or authorised service providers. In practice, many non-residents arrange a NIF in advance or use local representatives.

Corporate taxation and business advantages

Corporate taxation. Portugal applies corporate tax depending on location, company size, and activity[10]. The main rates are:

• 19% — standard corporate income tax in mainland Portugal;
• 13% — standard rate in Madeira and the Azores;
• 15% — for SMEs and Small Mid-Cap companies on the first €50,000 of taxable income;
• 10.5% — for SMEs in Madeira and the Azores on the first €50,000;
• 12.5% — for SMEs operating in inland regions of mainland Portugal;
• 8.75% — for SMEs in specific beneficiary areas of Madeira and the Azores on the first €50,000.

Additional taxes can increase the effective corporate tax burden:

• municipal surtax — up to 1.5% of taxable income;
• state surtax — 3 to 9%, applied progressively to large profits.

So the combined effective rate in mainland Portugal can reach 29.5% for large companies with profits exceeding €35 million.

VAT. Portugal applies three VAT rates:

• standard — 23% in the mainland, 22% in Madeira, 16% in the Azores;
• intermediate — 13% in the mainland, 12% in Madeira, 9% in the Azores;
• reduced — 6% in the mainland, 4% in Madeira and in the Azores.

The intermediate rate applies to selected goods and services, including restaurant meals, takeaway food, musical instruments, and some agricultural tools. The reduced rate applies to essential goods and priority sectors, such as certain food products, books and periodicals, medicines, hotel accommodation, passenger transport, some agricultural products, and renewable energy equipment[11].

Worldwide taxation and the foreign PE regime. Portugal taxes resident companies on worldwide income. However, there is an optional regime that allows Portuguese tax residents to exclude profits and losses of foreign Permanent Establishments, PEs, from taxation in Portugal.

The exemption applies provided that:

• PE is subject and not exempt from a tax similar to Portuguese CIT at a legal rate of at least 60% of the Portuguese rate;
• PE is not located in a blacklisted jurisdiction;
• tax effectively paid is not lower than 50% of the tax that would have been due in Portugal.

The option must be applied consistently to all PEs in the same jurisdiction and maintained for at least 3 years[12].

R&D tax credit. Portugal supports business Research and Development, R&D, through the SIFIDE regime, which provides tax incentives for research and innovation activities. 

Under SIFIDE, companies can deduct 32.5% of eligible R&D expenses, plus 50% of the increase in R&D spending compared with the previous 2 years, up to €1.5 million[13].

Special tax regime for international business. Madeira’s International Business Centre, IBC, offers a 5% corporate tax rate on profits earned from international activities with non-resident clients or with other companies operating within the Madeira IBC regime[14]. 

To qualify, a company must meet one of these conditions:

1. Create 1 to 5 jobs in the first 6 months of operation and invest at least €75,000 in fixed tangible or intangible assets during the first 2 years of operation.
2. Create 6 or more jobs in the first 6 months of operation.

The 5% tax rate does not apply without limit. It is available only up to a ceiling on annual taxable income, and that ceiling depends on the number of employees.

Portugal business residency options

The Portugal Golden Visa is one of the most popular residency routes in the country and one of the most recognised programmes globally, with nearly 40,000 residence permits issued since its launch. It grants a residence permit valid for 2 years, which can be renewed every 2 years thereafter.

The Portugal Golden Visa business route offers two main options:

• investment of €500,000 to establish a commercial company in Portugal and create at least 5 permanent jobs;
• creation of at least 10 permanent full-time jobs in Portugal, with no minimum investment amount.

Other qualifying routes include investment in funds, research activities, and arts and culture.

The main applicant can add a spouse or partner, children under 26, and parents. 

The Portugal Startup Visa is another residency option, explicitly designed for entrepreneurs who want to launch an innovative project in the country. Its core requirement is the creation of a company in cooperation with a certified business incubator. This route does not set a fixed investment threshold, although the applicant must show at least €11,040 in available funds to cover living expenses in Portugal.

The entrepreneur may include a spouse, children, and parents in the application.

After 5 years, both investors and entrepreneurs may apply for permanent residence or citizenship. The difference lies in the stay requirement: the Golden Visa requires only 7 days per year in Portugal, while the Startup Visa route normally requires physical presence of at least 183 days per year. 

To qualify for citizenship, the applicant must also demonstrate A2-level Portuguese, have no criminal record, and show sufficient ties to Portugal.

Malta is among the easiest countries to open a business, chosen not for size, but for efficiency. As an English-speaking EU hub, it offers a familiar legal and business environment for international founders. Its tax refund system can significantly reduce the effective corporate tax burden, which has made the country well known for international structuring, holding activity, and cross-border business.

Company formation

Registration authority. Companies in Malta are registered with the Malta Business Registry, MBR, which handles incorporation and maintains company records[15].

Process, timing, and fees. The registration process begins with the submission of incorporation documents. Once all required information is complete and compliant, the Registrar may issue the Certificate of Incorporation within 24 hours.

The registration fee depends on the authorised share capital. It starts from €100—245 for companies with low capital and increases on a sliding scale as capital grows, reaching around €2,250 for larger structures[16].

What is needed to apply. To register a company, founders must submit the Memorandum and Articles of Association, which define the company’s structure and rules. The application includes company name, registered office in Malta, business activity, shareholders and directors, company secretary, and share capital.

A Maltese company must have a registered office in Malta, and the memorandum must be signed by all shareholders.

Registration is completed once the Certificate of Incorporation is issued. After incorporation, companies must comply with ongoing obligations, including filing requirements with the Malta Business Registry.

Main company types. The most common structure is the private limited liability company, Ltd. It typically includes:

• one or more shareholders;
• limited liability of members;
• restriction on share transfers;
• maximum of 50 shareholders.

Public limited companies are also available but are generally used for larger structures.

Minimum share capital depends on the company type:

• €1,164.69 — private limited company;
• €46,587.47 — public limited company.

At least 20% of the subscribed capital must be paid up for private companies before registration.

Non-resident access. Companies can be incorporated by foreign individuals or entities, provided the legal and documentation requirements are met. A registered office in Malta is mandatory, and incorporation requires submission of company and beneficial owner information through the MBR.

Where a foreign legal entity is involved, corporate documents from the home jurisdiction may also be required.

Corporate taxation and business advantages

Corporate taxation. Companies in Malta pay 35% corporate income tax on profits, while the country’s full-imputation system is designed to avoid double taxation when dividends are distributed. 

In many trading structures, shareholders may claim a 6/7 refund of the tax paid at company level, which can reduce the effective tax burden to about 5%[17]. 

VAT. The standard VAT rate is 18%. Besides, Malta offers a flexible VAT system with different registration options depending on the type of business and its turnover:

1. Small business registration is available for undertakings below certain turnover thresholds, for example, around €35,000 for goods. They do not charge VAT and cannot reclaim it.
2. Separate VAT treatment applies to entities such as holding companies or businesses receiving services from abroad: VAT is accounted for through the reverse charge mechanism, without applying the standard charging model[18].

International tax advantages. For companies with international income, Malta offers two important tax advantages:

1. Tax is charged only on Malta-source income and on foreign income remitted to Malta for companies that are resident in Malta but not domiciled there.
2. Foreign capital gains are not taxed in Malta, even when they are remitted to the country[19].

Such tax treatment makes Malta a practical option for businesses that receive income from cross-border activities or hold assets abroad.

Exemption on income from qualifying shareholdings. Malta offers a participation exemption for income derived from a qualifying shareholding. Capital gains from such holdings are fully exempt. Dividends may also be exempt, provided certain conditions are met, such as the subsidiary being located in the EU, subject to at least 15% tax, or deriving mainly active income[20].

Funding programmes. Malta supports business growth through programmes aimed at investment, innovation, and expansion, which also benefit foreign entrepreneurs who obtain residency in the country, for example through the Malta Permanent Residence Programme.

One of the most practical schemes for smaller businesses is MicroInvest, which gives tax credits for eligible spending on growth and development[21]. The support can reach €70,000, and the scheme is open to businesses with up to 50 employees and up to €10 million in turnover or annual balance sheet total. In 2023—2024, a total of €13 million was allocated to Gozo firms via MicroInvest[22].

For early-stage companies, Start-Up Finance helps cover the cost of launching and developing a business. Support can reach €400,000 and may be used for salaries, rent, machinery, product development, and market entry[23]. 

Malta also offers broader support through investment aid and R&D incentives, which makes the country attractive for building and scaling an operating business[24].

Malta Permanent Residence Programme

The Malta Permanent Residence Programme, MPRP, grants lifelong residence with no minimum stay requirement. It is designed for investors seeking residence rights rather than a business-based route, as qualification is linked to property and government contributions, not company formation.

Investment requirement. To qualify, an applicant must meet all of the following requirements:

• rent residential property in Malta for at least 5 years at a minimum of €14,000 per year, or purchase property worth at least €375,000;
• make a government contribution of €37,000;
• pay an administration fee of €60,000 for the main applicant, plus €7,500 for each dependant over 18, excluding the spouse;
• donate €2,000 to a registered Maltese NGO;
• hold capital of at least €500,000, including €150,000 in liquid financial assets, or at least €650,000, including €75,000 in liquid financial assets.

In practice, the minimum outlay is about €169,000 under the rental option and around €474,000 under the purchase option.

Family inclusion. One application can cover a spouse or partner, children under 29, as well as parents and grandparents.

Caribbean jurisdictions offer tax-friendly conditions for business, including no capital gains tax and, in some cases, corporate tax holidays. At the same time, they offer citizenship by investment, which gives investors an additional advantage beyond the business environment.

Company formation

Registration authority. Company registration in the Caribbean is handled by different authorities depending on the country:

• Antigua and Barbuda — Antigua and Barbuda Intellectual Property and Commerce Office, ABIPCO;
• St Kitts and Nevis — Registrar of Companies under the Financial Services Regulatory Commission, FSRC;
• St Lucia — Registry of Companies and Intellectual Property, ROCIP;
• Dominica — Companies and Intellectual Property Office, CIPO;
• Grenada — Registrar of Companies through the Corporate Affairs and Intellectual Property Office, CAIPO[25].

Process, timing, and fees. The process is broadly similar across all five countries: founders clear or reserve the company name where required, submit the incorporation documents, and then receive the certificate of incorporation from the registry. Depending on the country, registration can take anywhere from 1 to 21 days.

Registration fees also differ by jurisdiction:

• St Kitts and Nevis — $100 for an ordinary private company, $200 for an international private company, and $400 for an ordinary public company;
• St Lucia — EC$125, or ≈ $46;
• Dominica — EC$750, or ≈ $280, for an ordinary company and EC$150, or ≈ $55, for a non-profit company[26].

In Antigua and Barbuda and Grenada, incorporation fees are prescribed by law and payable to the registry, but they are not presented as a single standard fee in the official public guidance.

What is needed to apply. The core requirements are broadly aligned across all five countries. In general, incorporation involves submitting the articles or memorandum of incorporation, along with details of directors and the registered office.

Share capital. A fixed minimum share-capital requirement is not clearly set out in the public guidance across Caribbean jurisdictions. Instead, the focus is on structure rather than a specific threshold. For example, in St Kitts and Nevis, the memorandum must state the authorised share capital and value per share, and each subscriber must take at least one share.

Non-resident access. Foreigners can incorporate companies across all five Caribbean countries. However, operating a business locally may require additional approvals depending on the jurisdiction. 

For example, in Antigua and Barbuda and Dominica, a company incorporated abroad must register as an external company before carrying on business locally. In St Lucia, non-national companies and non-CARICOM citizens need a trade licence to engage in trade locally[27].

Corporate taxation and business advantages

Corporate taxation. Corporate tax rates differ across the five countries:

• Dominica and Antigua and Barbuda — 25%;
• Grenada — 28%;
• St Kitts and Nevis — 33%;
• St Lucia — 33.3%[28].

VAT. Indirect tax rates are largely aligned across the region at 15%, with St Kitts and Nevis as the main exception, applying a higher 17% VAT rate[29]. Businesses in the Caribbean countries can recover refundable VAT or sales tax in certain cases instead of treating it as a permanent cost.

Tax advantages. Across all five Caribbean countries, there is no capital gains tax. In Antigua and Barbuda and St Kitts and Nevis, there is also no personal income tax. Another advantage is that dividends are not taxed again at the shareholder level, so business profits are usually taxed once at the corporate level without a second layer of tax on distribution.

CARICOM membership. All five countries are members of CARICOM, the Caribbean Community, and participate in the CARICOM Single Market and Economy, CSME. 

The CSME supports the free movement of goods, capital, services, CARICOM nationals, and the right of establishment, which makes these jurisdictions more attractive as regional business bases than their domestic market size alone would suggest[30].

OECS participation. All five countries also belong to the OECS, the Organisation of Eastern Caribbean States, which adds another layer of regional integration. For businesses, this helps make cross-border activity within the Eastern Caribbean more practical, especially when operating across several nearby islands rather than in just one market.

Tax holidays. Some Caribbean jurisdictions offer tax holidays, which means a temporary full or partial exemption from corporate income tax for approved projects. These incentives are usually granted to businesses in priority sectors rather than to every newly incorporated company.

For example, Dominica and St Kitts and Nevis can grant a tax holiday of up to 15 years, with Dominica also providing import-duty exemptions on equipment and machinery[31].

Citizenship by investment

All five Caribbean countries offer citizenship by investment, CBI, with the process usually taking 6 months or more. These programmes are consistently ranked among the strongest CBI options in the world due to their relatively fast timelines, flexible family inclusion rules, and broad mobility benefits.

Investment requirement. A business route is available only in Antigua and Barbuda and St Lucia. In Antigua and Barbuda, the applicant may either invest at least $1.5 million as a sole investor in a business project or join a group investment of at least $5 million, provided each participant contributes at least $400,000.

In St Lucia, the applicant may invest at least $3.5 million in a government-approved business or participate in a group investment of $6 million with a minimum individual contribution of $1 million. Eligible sectors include tourism, education, healthcare, and social development.

Family inclusion. All five Caribbean programmes allow investors to include family members. In most cases, this covers a spouse, children up to the age of 25 or 30, and parents. Some programmes also allow grandparents and siblings.

Vanuatu appeals through simplicity, offering a zero-tax environment. There is no corporate income tax, personal income tax, or capital gains tax in the country. It also has an English- and French-speaking environment and is known for a fast citizenship-by-investment route.

Company formation

Registration authority. Companies in Vanuatu are registered with the Vanuatu Financial Services Commission, VFSC, acting through the Registrar[32].

Process, timing, and fees. The registration process is handled online through the VFSC and the Vanuatu Trade Portal. It follows four steps: 

• creating a user account;
• submitting the application;
• paying the registration fee;
• obtaining the business registration certificate. 

The application stage usually takes 7 to 15 days, while payment and certificate issuance add about 0.5 to 1 day[33]. The online business registration fee is VUV 30,000, or ≈ €230. This fee is payable annually to maintain the company’s active status[34].

What is needed to apply. To register a local company, the applicant usually needs:

• UBO declaration form;
• valid ID or passport copy;
• proof of address for the last 6 months;
• recent bank statement as source of funds;
• police clearance not older than 6 months — for foreigners only[35].

Main company type. Companies in Vanuatu may be registered as private, public, or community companies. A private company cannot offer securities to the public and may have no more than 50 shareholders. There is no fixed minimum share capital for an ordinary company. Instead, a company must have at least 1 issued share, and shares have no nominal or par value[36].

Non-resident access. Foreigners can register a company in Vanuatu, provided they obtain an Investment Registration Certificate and comply with the conditions attached to it. These conditions are set individually for each project and may include limits on the type or location of the business, as well as requirements to demonstrate sufficient financial capacity[37].

Vanuatu also defines reserved activities, which are open only to its citizens. These cover small-scale, local businesses such as retail shops, market vending, kava bars, small food outlets, local transport services, and small-scale fishing and agriculture.

Corporate taxation and business advantages

Corporate taxation. Vanuatu does not levy corporate income tax. There is also no withholding tax on dividends, interest, or royalties, allowing profits to be distributed without additional tax layers[38].

VAT. Vanuatu applies a 15% VAT on most goods and services, including imports. Businesses must register once turnover exceeds VUV 4 million per year, or ≈ €30,000[39].

No restrictions on profit repatriation. Foreign investors can transfer profits, dividends, loan repayments, sale proceeds, compensation, and even the earnings of foreign personnel out of Vanuatu. This means capital is not trapped locally, which gives owners more flexibility to move money back to a parent company or reinvest it elsewhere.

Import duty exemptions for key sectors. Vanuatu offers import-duty exemptions for goods used in manufacturing or processing, agriculture, livestock and horticulture, mineral exploration and extraction, and fisheries equipment. This can lower startup and operating costs for businesses that need to bring in machinery, equipment, or production inputs from abroad.

Government support for investors. The Investment Registration Certificate gives the project formal legal standing and access to the protections available under the investment framework. The investment agency helps with investor guidance, confidence-building, site visits, and introductions to public- and private-sector counterparts.

Vanuatu citizenship by investment

Vanuatu citizenship by investment does not include a business route. Instead, the programme is based on contribution options, and it is among the fastest citizenship by investment programmes in the world, with processing starting at 2 months.

Investment requirements. The programme offers two contribution options:

• non-refundable contribution — $130,000+;
• contribution to the Cocoa Sustainable Development Fund — $165,000+.

Under the Cocoa Sustainable Development Fund option, the applicant receives a $50,000 fund unit after the passport is issued. This amount may be redeemed after 5 years, which makes this route partly recoverable.

The applicant must also demonstrate financial capacity, with at least $250,000 in a bank account.

Family inclusion. The application can include the spouse, children under 18, children aged 18 to 25 if financially dependent and in full-time education, and parents over 50 who are financially dependent and live with the investor.

Italy offers a scale few European countries can match. As the 3rd-largest economy in the EU and the 8th largest globally, it provides access to a large domestic market[40]. It is also gaining investor confidence, ranking 8th out of 25 economies in the 2025 Kearney FDI Confidence Index, up from 11th a year earlier.

Investment activity supports this trend: Italy recorded 224 FDI projects in 2024, up 5% year on year, while Europe overall declined by 5%. Growth is particularly strong in digital and IT services, professional services, and industrial products and mobility[41].

Italy also offers a business-linked residence route, making it relevant not only for investment, but also for relocation.

Company formation

Registration authority. Companies in Italy must be registered with the Business Register — Registro delle Imprese — which is kept by the local Chambers of Commerce. In practice, this is the main authority for incorporation filings[42].

Process and timing. Italy uses a single digital filing system called Comunicazione Unica[43]. Through one online submission, the company can complete registration with the Business Register and handle related steps with the Revenue Agency, the National Institute for Insurance against Accidents at Work, and the National Institute of Social Security.

The process is designed to simplify setup, and in some cases business activity can start the same day, depending on the type of activity and whether extra licences or notifications are needed.

What is needed to apply. The company needs:

• incorporation documents;
• PEC address — the company’s certified digital mailbox;
• digital signature for the legal representative or authorised intermediary;
• tax registration details, including a tax identification number — codice fiscale.

The VAT number is obtained by filing form AA7/10 with the Italian Revenue Agency, generally within 30 days of the start of activity[44].

Main company types. The main forms foreign investors usually consider are:

• SRL — the most common limited liability company for small and medium-sized businesses, requiring a share capital of €10,000, which can be reduced up to €1;
• SRLS — a simplified version of the SRL, generally used for smaller setups;
• SPA — a joint-stock company, more suitable for larger businesses and more complex structures, with a minimum share capital of €50,000[45];
• SNC and SAS — partnership forms, usually less attractive for foreign investors because they are not as straightforward for limited liability planning.

Non-resident access. To open a company in Italy, a non-resident first needs a codice fiscale. This tax code can be requested through the Italian consulate in the country of residence. 

For non-residents applying through a consulate, the request is normally submitted with the relevant form, a copy of an identity document, and the reason for the request. If applying in Italy, they must also prove they have the right to stay in Italy[46].

Corporate taxation and business advantages

Corporate taxation. Italy applies a corporate income tax, IRES, at a standard rate of 24%. Non-resident companies are taxed only on income generated in Italy[47].

A regional tax, IRAP, also applies. The standard rate is 3.9%, but it is higher for certain sectors: 4.65% for banks and financial institutions and 5.9% for insurance companies. Regional authorities may also increase or reduce the applicable rate by up to 0.92 percentage points[48].

VAT. The standard VAT rate in Italy is 22%. Reduced rates apply, including 10% and 4% for specific categories such as energy, medicines, food, and agricultural products. Resident companies and non-resident businesses that are VAT-registered in Italy, have a tax representative, or operate through a permanent establishment can apply for VAT refunds[49].

Business incentives. Italy supports business development through a range of incentives focused on innovation, R&D, and large-scale investment projects:

1. Patent Box — allows an additional 110% tax deduction on R&D costs linked to eligible intangible assets, making it particularly beneficial for companies developing software, patents, or other IP in-house[50].
2. R&D and innovation tax credits — apply to a broad range of activities, including research, technological innovation, design, personnel, and materials, with a 5% standard credit in 2025 capped at €2 million, subject to periodic revisions[51].
3. Development Contract — available to companies of any size, including foreign investors, and supports combined investment and R&D projects through grants, subsidised loans, and interest subsidies[52].

Special zones. Italy operates a unified Special Economic Zone, ZES Unica, covering Southern regions such as Sicily, Sardinia, Campania, and Apulia[53].

The regime offers tax credits, simplified procedures, and a one-stop-shop system for investors. Companies must maintain activity and jobs for at least 5 years to benefit. For 2026, investment tax credits apply to projects up to €100 million, with a minimum investment threshold of €200,000[54].

Customs free zones. Italy has customs free zones where goods can be stored, processed, or traded without customs duties while under the regime. These zones are mainly used for logistics, trade, and warehousing operations rather than standard business activities[55].

Italy Investor Visa 

The Italy Investor Visa is initially granted for 2 years and can then be renewed for 3-year periods.

Investment requirement. Italy’s Golden Visa offers two business investment options:

1. Investment in an established Italian company — €500,000+. The investor purchases shares or equity in an active Italian limited liability company. At the time of the visa application, the business must already be operating and have at least one financial statement available.
2. Investment in an innovative Italian startup — €250,000+. The investor purchases shares or equity in an innovative startup officially recognised by the Italian government. The list of eligible startups is updated weekly and published on the portal managed by the Italian Chambers of Commerce.

Other qualifying options include a philanthropic donation and an investment in Italian government bonds.

Family inclusion. The main applicant can also include a spouse, children under 18, and dependent parents.

Long-term settlement. After 5 years of continuous legal residence, the investor may apply for permanent residence. Italian citizenship becomes available after 10 years of continuous legal residence, subject to meeting the relevant conditions, including Italian language proficiency at B1 level.

Hungary has the lowest corporate tax rate in the EU and ranks 9th out of 38 OECD countries in the 2025 International Tax Competitiveness Index, indicating a favourable environment for business growth[56]. This is supported by the structure of its economy: exports accounted for 75.4% of GDP in 2024, reflecting deep integration into European and global supply chains[57].

Hungary also demonstrates strong investment performance. In 2025, it had Central-Eastern Europe’s 2nd-highest FDI-to-GDP ratio, highlighting its ability to attract foreign capital relative to its size. In practice, this makes it particularly attractive for export-oriented businesses and companies entering established manufacturing and cross-border trade networks[58].

For entrepreneurs planning to relocate, Hungary also offers a business residence route valid for up to 3 years.

Company formation

Registration authority. Companies in Hungary are registered in the Company Records, and the procedure is handled by the Court of Registration. 

The main company type in Hungary is the Kft., a limited liability company. It is the form most commonly used by small and medium-sized businesses, so the key company formation rules below focus on this structure[59].

Process and timing. Company registration is fully electronic, and legal representation is mandatory. For a Kft., registration is usually completed within 1—2 working days after the application is submitted and is exempt from duty.

What is needed to apply. For a Kft., the main requirements include the deed of foundation or company deed, company name, registered seat, members and their contributions, and a managing director. 

Share capital. The minimum registered capital for a Kft. is HUF 3,000,000, or around €7,500—8,000. The capital must be paid into the company’s bank account or cash desk within 2 years after registration, and non-cash contributions are also possible if set out in the founding document.

Non-resident access. Kft. may be founded by one or more natural or legal persons and does not limit this by nationality.

Corporate taxation and business advantages

Corporate taxation. Hungary applies a 9% corporate income tax, which is the lowest rate in the EU. Non-resident companies are taxed only if they have a local business presence, such as a branch office[60].

In addition, a local business tax of up to 2% may apply, depending on the municipality.

VAT. The standard VAT rate is 27%, the highest in the EU. Reduced rates of 18% and 5% apply to selected goods and services, including food, pharmaceuticals, and certain utilities[61].

Non-resident businesses can recover Hungarian VAT. EU-based companies apply through their home tax authority, while non-EU businesses apply directly in Hungary. Refunds are available on business-related expenses, provided the activity is taxable[62].

Development reserve. Hungary lets companies move part of their retained earnings into a development reserve for future investments. That amount reduces pre-tax profit in the same tax year, up to the amount of that year’s pre-tax profit, and is then treated as recognised depreciation.

Tax allowances. Hungary’s corporate tax system allows several reliefs to reduce the final tax bill well below the 9% headline rate. For example, the R&D tax credit is set at 10% of eligible costs. In certain cases, particularly for jointly conducted research, the benefit may reach up to 100% of eligible costs[63].

Cash incentives. Hungary offers non-refundable VIP cash subsidies, which means part of the investment cost can be covered by the state and does not have to be repaid. These subsidies are available for projects in manufacturing, R&D, and shared service centres, with the minimum investment threshold ranging between €2—10 million.

To qualify, companies usually need to meet business commitments during the monitoring period, including at least €15 million in additional revenue and €2 million in additional wages[64].

Business incentives. Government support for business in Hungary is provided through the Hungarian Investment Promotion Agency, HIPA, which assists investors with company setup and expansion. Each project is assigned a dedicated consultant, and HIPA operates as a one-stop shop, providing free support with:

• site selection;
• tailor-made information on state aid;
• supplier searches;
• public-utility development issues;
• dealings with public authorities. 

The scale of that support is visible in the results. Between 2014 and 2025, HIPA supported 2,305 projects worth more than €66 billion, linked to nearly 187,000 new jobs. In 2025 alone, it supported 108 projects, bringing €7.069 billion of fresh capital and creating 18,227 jobs[65].

Hungary business residency options

Opening a company in Hungary can lead to residence. To qualify, a foreigner must register a legal entity in the country, such as the local equivalent of an LLC or JSC. The status of an individual entrepreneur is not sufficient, as it can be obtained only by those who already hold a Hungarian residence permit. The minimum authorised capital is €7,700.

The business route does not lead to long-term settlement. The residence permit is granted for up to 3 years in total, and family reunification is limited: a spouse, children, and parents may join only in the second year.

The Hungary Guest Investor Programme, known as the Hungary Golden Visa, is an alternative way to obtain Hungarian residency. It is designed for investors rather than entrepreneurs and does not include a business investment route. However, it grants residency for 10 years from the outset, can be renewed once for the same period, and allows business activity in the country.

At present, there are two qualifying options under the Hungary Golden Visa:

• €250,000 for the purchase of units in a real estate investment fund;
• €1 million as a non-refundable donation to a higher education institution.

The main applicant can include a spouse, children under 18, and parents.

Permanent residency may become available after 3 years. Hungarian citizenship is possible after a further 8 years, subject to naturalisation requirements. These include long-term integration into the country and demonstrated proficiency in the Hungarian language.

For investors who want to build rather than extract profits, Latvia offers a particularly efficient setup. It ranks 2nd in the 2025 International Tax Competitiveness Index, which means its tax system is seen as one of the most investment-friendly in the OECD.

Company formation

Registration authority. Companies in Latvia are registered with the Register of Enterprises — Uzņēmumu reģistrs, which maintains the Commercial Register and handles incorporation. Company registration is carried out electronically via the official state platform, which makes the process faster and more standardised[66].

Process, timing, and fees. Documents can be prepared in a few minutes using automated templates for simple structures. Registration by the Enterprise Register is completed within 1—3 working days after submission. The fee depends on the company type and registration procedure and starts from €30[67].

What is needed to apply. To register a company in Latvia, founders must submit information and documents to the Register of Enterprises. The key details include:

• company name;
• registered address in Latvia;
• shareholders and board members;
• articles of association;
• information on beneficial owners;
• proof of share capital payment, if applicable.

All documents must be prepared in Latvian, and additional forms may be required for foreign individuals without a Latvian personal identity number.

Main company type. The most common structure is the limited liability company — sabiedrība ar ierobežotu atbildību, SIA, which has the following key features:

• it can be founded by one or more persons;
• it offers limited liability for shareholders;
• it provides a flexible structure suitable for most businesses.

This form is used for the majority of small and medium-sized companies in Latvia.

The standard minimum share capital for a SIA is €2,800 — fully paid before registration in most cases[68].

Non-resident access. Latvia allows foreign individuals and companies to register businesses. There is no strict residency requirement for founders or board members, but additional identification and documentation may be required.

Foreign applicants without a Latvian personal code must submit extra information forms and comply with identification requirements during the registration process.

Corporate taxation and business advantages

Corporate taxation. Latvia’s corporate tax system is built to encourage reinvestment. Retained earnings are taxed at 0%, and corporate income tax is charged only when profits are distributed as dividends or used for non-business purposes. The standard corporate tax rate, CIT, is 20% on distributed profit[69].

CIT payable in Latvia may also be reduced through donations to:

• public benefit organisations in Latvia;
• budget institutions or state-owned companies providing cultural services;
• qualifying NGOs in the EU or EEA, provided they have a similar status to Latvian public benefit organisations and the country has a double taxation agreement with Latvia.

VAT. Latvia applies a standard VAT rate of 21%. Reduced VAT rates of 12% and 5% also apply to specific categories of goods and services[70].

Special Economic Zones. There are five Special Economic Zones in Latvia — Riga Free Port, Ventspils Free Port, Liepaja Special Economic Zone, Rezekne Special Economic Zone, and Latgale Special Economic Zone that were established to promote entrepreneurial activities within the regions.

Companies operating there may receive:

• 80% rebate on corporate income tax and real estate tax;
• relief on some withholding taxes for dividends, management fees, and payments for the use of intellectual property to non-residents[71].

Government support for large investment projects. Latvia offers institutional support for major projects through the Coordination Council for Large and Strategically Significant Investment Projects[72]. It provides:

• faster coordination between ministries and state agencies;
• assistance in removing administrative and bureaucratic obstacles;
• government-level backing for projects with significant economic impact;
• structured process for resolving cross-agency issues that could delay implementation.

Latvia Golden Visa

The Latvia Golden Visa is one of the most affordable routes to EU residency through business. It is granted for 5 years and can be renewed, with no minimum stay requirement to maintain the temporary residence permit.

Investment requirement. Under the business route, the investor contributes €50,000 or €100,000 to a Latvian company for 5 or 10 years. The investment amount depends on the company’s turnover and number of employees.

Other investment options under the Latvia Golden Visa include real estate purchase and a bank deposit.

Family inclusion. A spouse and children under 18 can be included in the application.

Long-term settlement. After 5 years of continuous legal residence, the investor may apply for permanent residency. Latvian citizenship by naturalisation may become available after a further period of permanent residence, so the total timeline is around 10 years.

To qualify, the applicant must show Latvian language skills at A2 level, pass exams on the Constitution and civic knowledge, and take a loyalty oath. Physical presence of at least 183 days a year is required throughout the full 10-year period.

Panama’s appeal starts with its tax model: foreign-sourced income is not taxed there. This, together with a strong free-zone regime and a well-established role in trade and logistics, makes the country especially relevant for international business.

Company formation

Registration authority. Companies in Panama are registered with the Public Registry of Panama. To start commercial or industrial activity, the business also uses PanamaEmprende, the official platform for obtaining the Aviso de Operación[73].

Process, timing, and fees. The process is largely digital. The company is registered by:

• uploading the public deed;
• completing the filing details;
• paying the fee;
• submitting the application through the Registry’s telematic system[74].

The operating-notice stage can be completed online in just a few minutes. The fee is $15 if a person opens a business in their own name, and $55 if the business is established as a company, or legal entity[75].

What is needed to apply. The key incorporation document is the public deed filed through the Public Registry system. For the operating-notice stage, the application must include the details needed to identify the company and its business activity.

For a legal entity, the system also records the company’s corporate data and requires at least three company’s executive positions.

Non-resident access. Panama allows business setup with national and foreign capital. A company must have a resident agent and a registered domicile in Panama.

Corporate taxation and business advantages

Corporate taxation. Panama applies a 25% corporate income tax rate to legal entities[76]. One of its main advantages is the territorial tax system: income earned outside Panama is not taxed, while taxation is focused on Panama-source income.

VAT. Panama’s VAT is charged at a standard rate of 7%, which is relatively low by international standards. In general, a business starts charging VAT once its annual turnover exceeds $36,000[77].

Panama has a formal system for tax refunds and offsets administered by the tax authority. Where the law allows, businesses may recover excess tax instead of treating it as a final cost[78].

Free trade zones. Panama has a broad Free Trade Zone regime under which authorised zones across the country operate with tax, customs, immigration, and labour preferences. Investors may either apply to establish their own zone or operate within an existing one[79]. Panama currently has 18 such zones[80].

The main benefits include:

• exemption from import duties on goods brought into the zone;
• tax relief for qualifying export and re-export activities, including income tax, sales tax, export tax, and selective consumption tax;
• VAT exemption on merchandise and other goods introduced into the zone;
• special immigration options, including permanent residence for foreigners investing at least $250,000 and temporary permits for key foreign staff;
• more flexible labour framework, including broader options for scheduling rest days and holidays based on operational needs.

The Colón Free Zone is Panama’s largest and most established special economic zone, and one of the biggest free-trade zones in the world. Its clearest advantage is that it allows companies to import, store, and re-export goods duty-free.

Other preferential regimes. Panama also offers several location- and sector-specific regimes that give businesses additional tax, customs, and operating advantages:

1. Panama Pacifico — for logistics, trade, manufacturing, aviation, and regional services, with tax and customs relief and a reduced 5% corporate tax rate for certain activities.
2. City of Knowledge — for universities, NGOs, international organisations, and tech businesses, with import and VAT relief, tax incentives for some high-technology activities, and special visas for foreign staff.
3. Aguadulce Special Economic Area — for agro-industry, logistics, trade, port activity, tourism, real estate, and services, with broad relief on imports, exports, re-exports, and fuel-related charges.
4. Barú Special Economic Area — focused on investment and job creation, especially in agro-industry and petroleum refining, with VAT and stamp-duty relief, real estate tax incentives, and a reduced 5% dividend tax rate.
5. Tourist and Multimodal Logistics Support Zone — for tourism and logistics in Barú, with relief on imports, certain transfers of goods and services, and some real estate taxes.

Investor support. Foreign investors can rely on formal state support. Panama provides investor services through the Ministry of Commerce and Industries, which helps make market entry more structured for both local and international founders[81].

Panama Golden Visa

Panama’s Qualified Investor programme offers a route to permanent residence through investment, with status granted for life. There is no minimum stay requirement to keep permanent residence. A business investment option is not available under this programme.

Investment requirement. Applicants can choose between three options:

• purchase of real estate — $300,000+;
• investment in securities — $500,000+;
• bank deposit — $750,000+.

Family inclusion. The programme allows the main applicant to add close family members, including a spouse, children, and parents.

Long-term settlement. After 5 years, permanent residents may apply for citizenship. This requires 5 years of continuous residence and passing a Spanish-language test based on everyday communication.

Türkiye is one of the few countries where business investment can lead directly to citizenship. That alone makes it stand out. Added to this is a large domestic market, a strategic position between Europe and Asia, and broad opportunities in trade, manufacturing, services, and real estate.

Company formation

Registration authority. Companies in Türkiye are registered with the Trade Registry Directorates operating within the Chambers of Commerce. In practice, these offices act as a one-stop shop for company incorporation[82].

Process and timing. Company formation is carried out through the Central Registry System, MERSİS, which is the official digital platform for commercial registry procedures. 

The process includes filing the articles of association online, notarising the required documents, and completing registration with the Trade Registry. Once the documents are ready, incorporation can be completed within the same day.

What is needed to apply. The core requirements include:

• articles of incorporation;
• notarised signatures of the founders;
• passport copies and tax identification numbers for foreign shareholders;
• proof of legal status for foreign legal entities, if applicable;
• power of attorney, if the process is handled by a representative.

Main company types. Under the Turkish Commercial Code, businesses may be established as a Limited Liability Company, LLC, a Joint Stock Company, JSC, a general partnership, or a limited partnership. In practice, the LLC and JSC are the most commonly used structures.

Share capital. The minimum capital depends on the company type. For an LLC, the minimum share capital is TRY 50,000, or ≈ $1,600. For a JSC, the minimum is TRY 250,000, or ≈ $8,000[83].

Non-resident access. Türkiye applies the principle of equal treatment to foreign and local investors. This means foreign nationals can establish any company type available under Turkish law and operate under the same rules as local businesses.

Corporate taxation and business incentives

Corporate taxation. The standard corporate income tax rate in Türkiye is 25%. A higher 30% corporate tax rate applies to financial institutions, such as banks, financial leasing and factoring companies, payment and e-money institutions, authorised foreign-exchange institutions, and asset management companies[84].

Some businesses benefit from lower effective rates:

1. Export income — 20%.
2. Companies with an industrial registry certificate that are genuinely engaged in manufacturing — 24%[85].

Foreign companies are taxed in Türkiye only on income earned in the country if both their legal seat and management centre are outside Türkiye.

VAT. Türkiye’s standard VAT rate is 20%, with reduced rates of 1% and 10% applying to specific goods and services[86].

The country operates a structured VAT refund system, which is especially relevant for exporters and businesses carrying out VAT-exempt transactions. In practice, VAT paid on inputs can be refunded, which protects cash flow and prevents VAT from becoming a final cost. This is particularly important for export-oriented companies, where sales are zero-rated but input VAT is still incurred.

Business incentives. Türkiye offers a broad incentive system built around region, sector, scale, and project type. Depending on the investment, support may include:

• VAT exemption;
• customs duty exemption;
• corporate tax reduction;
• social security premium support;
• interest or profit-share support;
• infrastructure or energy support.

For larger or priority projects, the support can be substantial. In the project-based regime, the state may provide a capital contribution of up to 49% of the investment amount, alongside tools such as public purchasing guarantees, qualified personnel support, and training support[87].

Free zones. There are 19 free zones in Türkiye, and manufacturers operating there can benefit from 100% exemption from corporate income tax, VAT, customs duties, stamp duty, and real estate tax.

There is also a wage incentive: if at least 85% of the Free On Board value of production is exported, employees’ wages can be exempt from income tax. Companies may also transfer profits abroad freely, and goods can remain in the zones for an unlimited period[88].

Organised industrial zones. Businesses in such areas can benefit from no VAT on land acquisitions, a 5-year exemption from real estate duty after construction is completed, lower utility costs, and exemptions from several municipal charges.

The scale is significant: Türkiye has 392 organised industrial zones in 81 provinces, with more than 67,000 companies and over 2 million employees. That makes them a serious operating platform, not a niche tool.

Technology development zones. Türkiye has 92 technology development zones, which are attractive for software, R&D, and design businesses. Profits from these activities are 100% exempt from income or corporate tax, and sales of application software produced in these zones are 100% VAT-exempt.

There is also support for labour costs. The state covers 50% of the employer’s social security contributions calculated on the minimum wage. In addition, income tax support for R&D and design staff can reach:

• 95% for PhD holders;
• 90% for employees with a master’s degree;
• 80% for other qualified personnel[89].

Government support. The Investment Office provides free and confidential support with site selection, permits, coordination with public bodies, business-facilitation services, and incentive applications[90].

Türkiye citizenship by investment

Turkish citizenship by investment can be obtained through a business route, with the process taking at least 8 months. Dual citizenship is allowed in Türkiye.

Investment requirement. To qualify through business investment, the applicant must invest at least $500,000 in the share capital of a Turkish company or establish a business that creates at least 50 jobs. After 3 years, the investor may sell the share in the business.

Other qualifying options include the purchase of real estate, a bank deposit, government bonds, or units in an investment fund.

Family inclusion. The main applicant can include a spouse and children under 18 in the Türkiye citizenship by investment application.

Cyprus combines a low corporate tax rate with favourable treatment of dividends, securities gains, and intellectual property income. For investors who also want long-term EU residence, Cyprus brings a permanent residence route.

Company formation

Registration authority. Companies in Cyprus are registered with the Department of Registrar of Companies and Intellectual Property[91].

Process, timing, and fees. A company is incorporated through the Registrar of Companies. The process involves submitting the incorporation documents and completing the required registration formalities. Once approved, the Registrar issues a Certificate of Incorporation, which confirms that the company has been legally established.

The standard company incorporation fee is €165. An additional €100 is charged for accelerated registration, while incorporation of a public company also requires an extra €20 fee[92].

What is needed to apply. To register a company, the applicant usually needs to provide the following:

• Memorandum and Articles of Association;
• details of shareholders and directors;
• registered office address;
• share capital.

Main company types. The most common options are private companies, public companies, and companies limited by guarantee. Private companies in Cyprus do not have a fixed minimum share capital requirement under standard rules.

Non-residents access. Cyprus allows foreign investors to set up and own companies. The Registrar requires corporate documents from the country of incorporation, and if those documents are not in Greek or English, certified translation and, in some cases, apostille are required. Cyprus also actively promotes foreign direct investment through its national investment authority.

Corporate taxation and business advantages

Corporate taxation. Cyprus applies a 12.5% corporate income tax rate, which is one of the lowest in the EU[93]. 

VAT. Cyprus’s standard VAT rate is 19%. Reduced and zero rates also apply to specific goods and services[94].

Cyprus allows VAT refunds where a business builds up excess input VAT that cannot be offset in the normal way. This helps prevent VAT from becoming a long-term cash-flow cost for the company. There is also a refund route for businesses from other EU countries and, in some cases, for businesses from outside the EU that incur Cyprus VAT on local expenses[95].

Favourable tax treatment of income and gains. Cyprus does not impose withholding tax on outgoing dividends, interest, or royalty payments. It also does not tax gains from the disposal of securities or foreign exchange gains, which makes profit distribution and international transactions more efficient.

Notional interest deduction. Cyprus offers a Notional Interest Deduction for new capital introduced into a Cyprus tax-resident company. In the right structure, this can reduce taxable profits by up to 80% of the profits generated by that new capital, which makes equity funding more tax-efficient than in many other jurisdictions[96].

IP box regime. Cyprus has a competitive IP regime with an effective tax rate as low as 2.5% on qualifying intellectual property income. This is especially attractive for software businesses, technology companies, and groups that develop and exploit their own IP.

Government support. Cyprus provides investor support through Invest Cyprus and the Business Support Center, a one-stop shop for local and foreign investors. This means hands-on help with setting up, expanding, and connecting to government-backed opportunities, including priority projects in sectors such as tourism, renewable energy, healthcare, and education[97].

Cyprus Permanent Residence

Cyprus Permanent Residence is an investment-based route to long-term residence in Cyprus. The status is granted for life, provided the holder visits the island at least once every 2 years. The programme does not include a business investment option.

Investment requirement. All Cyprus Permanent Residence investment routes require at least €300,000. The options include the purchase of residential or commercial real estate, securities, or shares in Cypriot companies.

Family inclusion. The main applicant can obtain the status together with a spouse or partner and children under 25.

Long-term settlement. Cyprus citizenship by naturalisation requires 8 years of legal residence, including 12 months of continuous residence before applying. Applicants must also demonstrate Greek language knowledge at A2 level and integration into Cypriot society, including knowledge of the country’s political and social system.

When choosing a country for business, it is worth looking beyond company setup and corporate tax rates. For entrepreneurs who plan to relocate, personal tax can also become relevant. Some countries offer special regimes for new residents that can reduce the personal tax burden and make relocation more attractive.

Tax residency triggers

A residence permit or citizenship does not, by itself, make a person a tax resident. What matters is how and where the person actually lives. In most countries, tax residency is triggered by spending 183 days or more per year in the country, moving the centre of vital interests there, or both.

Cyprus offers a more flexible approach: an individual can qualify as a tax resident by spending at least 60 days in Cyprus. This is beneficial for entrepreneurs, as it allows them to establish tax residency with less physical presence, while continuing to manage international business activities.

Once a person becomes a tax resident, they are usually taxed on their worldwide income, not only on income earned locally. Panama stands out because it applies a territorial tax system: only Panama-source income is taxed, while foreign income usually falls outside the tax base.

Special tax regimes

Some countries offer special regimes designed to attract new residents, investors, and entrepreneurs. These regimes can significantly reduce personal tax exposure compared to standard progressive rates.

Italy — flat-tax regime. Italy offers a lump-sum taxation regime for high-net-worth individuals. Instead of paying tax on worldwide income, eligible individuals pay a fixed €300,000 per year. The regime can apply for up to 15 years and may be extended to family members for €50,000 per person per year[98].

Portugal — IFICI regime. Portugal offers the IFICI regime, available to new tax residents engaged in research and innovation. It provides a flat 20% tax rate on qualifying employment and self-employment income for up to 10 years, compared to standard progressive rates of up to 48%[99].

Malta — non-dom regime. Malta applies a non-dom system rather than a fixed-term regime. Tax is charged on Malta-source income and on foreign income only if remitted to Malta, while foreign capital gains remain tax-free, even if brought into the country. This treatment is not limited by a fixed duration[100].

Cyprus — non-dom regime. Cyprus also offers a non-dom regime, under which dividends and interest income are exempt from taxation. This benefit can apply for up to 17 years. After that, individuals may become deemed domiciled if they have been tax residents for 17 out of 20 years[101].

Beyond easier access to international business environments, residency and citizenship by investment provide flexibility in where to live, work, and structure assets. For investors, these programmes combine mobility, family security, and long-term planning into a single solution.

1. Plan B for the whole family

A second residence or passport creates a fallback option in uncertain situations. It allows relocation if political or economic conditions change, if banking access becomes restricted, or if travel limitations arise. This becomes relevant during currency controls, sanctions exposure, or sudden regulatory shifts.

2. Low physical presence requirement

One of the most practical advantages is flexibility of stay. Most residency and citizenship programmes do not require relocation to maintain status. Only a few programmes impose a minimum stay condition:

• Portugal — 7 days per year;
• Cyprus — once every 2 years;
• Latvia — once a year to renew the residence permit card;
• Antigua and Barbuda — 5 days within the first 5 years after citizenship is granted.

For those aiming at citizenship through residence, requirements are stricter. In most countries, naturalisation requires physical presence of more than 183 days per year over several years. Portugal remains a notable exception, allowing minimal stay while preserving eligibility.

3. Global mobility

Residence permits in EU countries provide visa-free travel across the Schengen Area for up to 90 days within any 180-day period. 

Caribbean citizenship offers broader global mobility, providing visa-free or visa-on-arrival access to more than 140 countries. This includes the Schengen Area, Singapore, Hong Kong, and South Korea, as well as China for Antigua and Barbuda, Grenada, and Dominica citizens. Access to the UK is also available via electronic travel authorisation for Antigua and Barbuda, St Kitts and Nevis, and Grenada citizens. 

In addition, citizens of Grenada, St Lucia, St Kitts and Nevis, and Türkiye may apply for long-term US B-1/B-2 visas. Grenada and Türkiye offer one more distinct advantage: their citizens are eligible for the US E-2 Investor Visa, allowing residence in the US through business activity.

4. Broader international banking access

A second residence or citizenship can make it easier to build banking relationships, open accounts, register companies, and operate across multiple jurisdictions. This is relevant for investors and entrepreneurs working internationally or seeking to reduce dependence on a single country’s financial and regulatory system.

5. Access to international education and healthcare

Residence in EU countries such as Portugal, Italy, Hungary, or Latvia provides access to public healthcare systems and emergency care across other Schengen states. Children can attend public schools free of charge. Access to universities on preferential or free terms is reserved for citizens rather than residents.

Caribbean countries are members of the Commonwealth, which can simplify access to UK education. Universities in the UK are familiar with qualifications from these countries, and applicants may benefit from streamlined recognition procedures and established admission pathways, although tuition fees remain at international levels.

Opening a company abroad can support a residency or citizenship strategy, but the process still involves legal, financial, and compliance risks.

1. Rule changes during the process. Programme terms can change before the application is filed. Investment thresholds, eligible business activities, company formation rules, or even the whole programme may be revised or closed.

2. Higher costs than expected. Setting up a company is only part of the budget. Investors may also face registration costs, legal fees, government charges, notary fees, translations, apostilles, accounting costs, office-related expenses, and banking fees.

3. Eligibility issues discovered too late. Approval is never automatic. Criminal records, sanctions exposure, adverse media, or politically exposed person status can lead to refusal even when the company is ready for registration or already incorporated.

4. Problems with source-of-funds documents. Applications often slow down when the origin of capital is not explained clearly. This risk is higher when the business is funded through loans, layered corporate structures, dividend income, or asset sales.

5. Failure to meet company-related requirements. In some cases, opening a company is not enough on its own. The authorities may expect active operations, local staff, a business address, tax filings, or proof that the company is genuinely trading rather than existing only on paper.

6. Banking and KYC delays. Opening a corporate bank account in the target country can take longer than expected. Enhanced Due Diligence is common, and delays at this stage can hold up both the business launch and the immigration process.

7. Confusion about tax residency. Opening a foreign company or obtaining residence through business activity does not automatically change a person’s tax residence. Wrong assumptions at this stage can create tax exposure or reporting obligations in more than one country.

8. Processing backlogs. Official timelines often look shorter than the real ones. Backlogs, administrative bottlenecks, and slow reviews can delay both company-related approvals and residence card issuance.

9. Document expiry and timing mistakes. Police certificates, corporate records, powers of attorney, apostilles, and civil status documents often have limited validity. If they expire before submission or biometrics, they usually need to be obtained again.

Immigrant Invest is a licensed consulting company that specialises in residence and citizenship by investment. We have worked in the investment migration industry since 2006 and have helped clients obtain more than 10,000 passports and residence permits.

Across the application process, Immigrant Invest provides the following services:

1. Preliminary Due Diligence to identify eligibility risks before the application is filed.
2. Licensed representation in programmes where the company is authorised to act for clients.
3. Individual cost calculation to show the expected investment, fees, and related expenses in advance.
4. Step-by-step case management to organise the process into clear stages with indicative timelines.
5. Document preparation support to reduce errors, omissions, and compliance issues.
6. Legal and compliance expertise through certified specialists handling complex cases.
7. Local coordination in multiple countries where in-person procedures or local support are required.

A structured approach across the whole process helps reduce errors, improve planning, and give investors a clearer understanding of what to expect at each stage.

1. Italy: the world’s 8th largest economy and best for established sectors such as manufacturing, machinery, logistics, and digital services, with a direct business-linked residency route.
2. Portugal: best for startups and innovative companies thanks to strong digital infrastructure, R&D incentives, the Madeira 5% regime, and two business-related residency routes.
3. Malta: best for international structuring and cross-border business, offering an English-speaking EU environment and a refund system that can reduce effective corporate tax to about 5%.
4. Hungary: best for export-oriented and manufacturing businesses, with the EU’s lowest 9% corporate and business visa for up to 3 years.
5. Latvia: best for companies that want to reinvest profits, with 0% tax on retained earnings and one of the cheapest EU business routes to residence.
6. Cyprus: best for holding, IP, software, and international trading structures, combining a 12.5% corporate tax rate with no tax on securities gains, no withholding tax on outbound payments, and an IP box regime with an effective rate as low as 2.5%.
7. Panama: best for trade, logistics, and re-export operations, as foreign-source income is not taxed and the country offers major free-zone advantages.
8. Vanuatu: best for a simple low-tax setup, with 0% corporate, personal, and capital gains tax, English- and French-speaking environment, and fast citizenship by investment.
9. Türkiye: a large market between Europe and Asia with strong incentives such as free zones, tax exemptions, broad sector opportunities, and citizenship through business investment.
10. Caribbean countries: best for regional business with mobility benefits, combining no capital gains tax, tax holidays in some jurisdictions, CARICOM and OECS market access, and citizenship by investment options across all five states.