Ways to minimise taxes for a business
Registering a company in the country of second citizenship or residency might help to optimise taxes. Learn more about taxes for legal entities in the Caribbean, Vanuatu, Europe, and the Middle East.
Highlights: how to optimise taxes for a business
A second citizenship or residence permit helps to register a company abroad to minimise taxes.
As a rule, a company can become a tax resident of a country if registered there or managed from the state’s territory.
Corporate taxes start at 25% in Caribbean countries. But there are special conditions in some countries. For example, in St Lucia, legal entities pay corporate tax only on profits from activities performed in the country. In Antigua and Barbuda, International Business Companies may not pay taxes on income, dividends and interest from foreign sources.
Vanuatu has incentives for International Business Companies: they are exempt from most taxes for 20 years and only have to pay an annual fee of $300.
In Malta, shareholders can recover up to 100% of the corporate tax paid by the company.
UAE companies with an annual profit of at least AED 375,000 ($102,100) will pay a corporate tax of 9% from June 1st, 2023. Until then, most companies are tax-free.
Registration of companies in free economic zones helps to minimise taxes for businesses in Portugal, Turkey and the UAE.