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

  1. A second citizenship or residence permit helps to register a company abroad to minimise taxes.

  2. As a rule, a company can become a tax resident of a country if registered there or managed from the state’s territory.

  3. 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.

  4. 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.

  5. In Malta, shareholders can recover up to 100% of the corporate tax paid by the company.

  6. 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.

  7. Registration of companies in free economic zones helps to minimise taxes for businesses in Portugal, Turkey and the UAE.

Material prepared by an expert

Frequently asked questions

  • Which Caribbean countries have no capital gains tax?

    There is no capital gains tax in the Caribbean countries.

  • Do Caribbean countries have 0% corporate tax?

    Caribbean countries don’t have 0% corporate tax for companies registered and controlled in the Caribbean. In this case you need to pay corporate tax on net profit earned both in the country and abroad. The only exception is St Lucia. There you pay corporate tax only on the income earned in the country.

    Non-resident companies pay corporate taxes only if they earn money in the Caribbean.

  • How much is corporate tax in UAE?

    Right now the UAE doesn’t have corporate tax. However, it will introduce one in June 2023. The rate will be 9%. Only the companies that have an annual profit of $102,100 will need to pay the corporate tax.

  • Is Turkey a tax haven country?

    Yes, Turkey can be called a tax haven. If the company is registered in one of the free zones it is exempt from income and corporate taxes, stamp duties, real estate and property taxes.

    VAT rate in Turkey is 18%. However, it can be reduced to 1% and 8% for deliveries and services.

  • Do foreigners pay taxes in Turkey?

    Yes, both residents and non-residents of Turkey pay taxes on income, dividends, interests, inheritance and gifts. There are also social security and unemployment insurance contributions. However, wealth is not subject to taxation.

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Zlata Erlach
Zlata Erlach

Head of the Austrian office

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