Company jurisdictions by tax on $100,000 of profit paid out to a non-resident owner, lowest first
Company jurisdictions by tax on $100,000 of profit paid out to a non-resident owner, lowest first
Corporate tax by jurisdiction, one by one
1. United States
Under the United States' company tax rules, a one-person service company pays 0% Source: irs.gov, checked September 29, 2026. Same as retained: the LLC is disregarded, so taking money out is not a dividend and triggers no US tax. The owner's residence country taxes the profit whether or not it is paid out on $100,000 of profit paid out to a non-resident owner, and 0% Source: irs.gov, checked September 29, 2026. US tax only. A foreign owner is taxed by the US on income effectively connected with a US trade or business, at graduated rates; a foreign person is usually engaged in a US trade or business when performing personal services in the US on a considerable, continuous and regular basis (IRS page updated August 18, 2026). A service business run entirely from outside the US with no US office has no ECI, so US tax on $100,000 profit is $0. The profit is taxed in the owner's country of residence as the owner's own income while the profit stays in the company. 0% Source: irs.gov, checked September 29, 2026. IRS (page updated July 27, 2026): an LLC with one member is disregarded as separate from its owner for income tax unless it elects corporate treatment on Form 8832, and its activities go on the owner's return. There is no entity-level federal income tax. A C-corporation pays 21% federal tax on its taxable income (26 USC 11(b), read September 29, 2026 at law.cornell.edu/uscode/text/26/11) is the headline corporate tax rate.
A single-member LLC owned by a non-US person pays no US income tax when all the work is done outside the US, so the profit is taxed only where the owner lives.
The LLC is disregarded, so its profit is simply yours, and an owner with no tax residency anywhere is still taxed where they actually live and work.
2. British Virgin Islands
Under the British Virgin Islands' company tax rules, a one-person service company pays 0% Source: laws.gov.vg, checked September 29, 2026. Section 242(1)(b): dividends paid by a company are exempt, so there is no BVI withholding on distribution. Distributed equals retained: 0% on $100,000 of profit paid out to a non-resident owner, and 0% Source: laws.gov.vg, checked September 29, 2026. Section 242(1)(a): the company is exempt from income tax, so tax on $100,000 of profit is $0 wherever the work is done while the profit stays in the company. 0% Source: laws.gov.vg, checked September 29, 2026. BVI Business Companies Act (Revised Edition 2020), section 242(1): a company, all dividends, interest, rents, royalties and other amounts it pays, and capital gains on its shares are exempt from all provisions of the Income Tax Ordinance. The BVI Business Companies (Amendment) Act, 2024 inserted section 242A but left section 242 unchanged is the headline corporate tax rate.
A BVI Business Company pays no income tax, and its dividends to owners abroad carry no withholding tax, so the company's profit is taxed only where the founder lives. The BVI is on the FATF grey list and Annex II of the EU list, Stripe does not serve BVI companies, and government fees alone are $550 a year.
The exemption under section 242 of the Business Companies Act holds wherever the work is done, but the profit is still taxed where you live once it reaches you.
3. United Arab Emirates
Under the United Arab Emirates' company tax rules, a one-person service company pays 0% Source: mof.gov.ae, checked September 29, 2026. Article 45(1): State Sourced Income of a non-resident is subject to withholding tax at 0% unless the Cabinet sets another rate. Paying out AED 367,250 of profit costs AED 0 in UAE tax on $100,000 of profit paid out to a non-resident owner, and 0% Source: mof.gov.ae, checked September 29, 2026. $100,000 profit = AED 367,250 at AED 3.6725 per USD, below the AED 375,000 zero band, so tax is AED 0 even without Small Business Relief. Revenue at 15% costs is AED 432,059, well within the AED 3,000,000 relief limit as well while the profit stays in the company. 9% Source: mof.gov.ae, checked September 29, 2026. Federal Decree-Law No. 47 of 2022 Article 3(1), consolidated to Federal Decree-Law No. 28 of 2025 (Ministry of Finance, unofficial translation dated January 2026): 0% on taxable income up to the Cabinet threshold and 9% above. Threshold AED 375,000 (Cabinet Decision No. 116 of 2022, Ministry of Finance announcement of February 1, 2023) is the headline corporate tax rate.
A UAE free zone company pays 0% on the first AED 375,000 (about $102,000) of taxable income and 9% above, can elect 0% under Small Business Relief while revenue stays within AED 3,000,000 (about $817,000) until 2029, and pays out dividends with no withholding tax.
Above the zero band, a company can elect Small Business Relief and pay 0% while revenue stays within AED 3,000,000 (about $817,000), a relief the Ministry of Finance extended to December 31, 2029.
4. Hong Kong
Under Hong Kong's company tax rules, a one-person service company pays 0% to 8.25% Source: legco.gov.hk, checked September 29, 2026. No dividend tax and no withholding tax on dividends paid to shareholders outside Hong Kong. Distributed equals retained: 0% on the offshore basis, 8.25% if the profit is Hong Kong-source on $100,000 of profit paid out to a non-resident owner, and 0% to 8.25% Source: ird.gov.hk, checked September 29, 2026. DIPN 21 (revised July 2012): the source of service fee income is the place where the services are performed. A founder who does all the work outside Hong Kong earns offshore profit, so Hong Kong tax on $100,000 (HKD 784,479 at HKD 7.84479 per USD) is HKD 0 once the offshore claim is accepted. If the claim fails or the work is done in Hong Kong, the first tier applies: HKD 64,720, 8.25% while the profit stays in the company. 16.5% Source: ird.gov.hk, checked September 29, 2026. Two-tiered rates for corporations since 2018/19: 8.25% on assessable profits up to HKD 2,000,000 and 16.5% above. Only profits arising in or derived from Hong Kong are charged; profits arising abroad are not taxed even if remitted to Hong Kong (Inland Revenue Department, Profits Tax page) is the headline corporate tax rate.
A Hong Kong company pays profits tax only on Hong Kong-source profit: 8.25% on the first HKD 2,000,000 (about $255,000) and 16.5% above. Service fees earned while the founder works outside Hong Kong are offshore and untaxed once the tax office accepts the claim, and dividends leave with no withholding tax.
The offshore claim turns on where you work, because service fees are sourced where the services are performed under DIPN 21; work done in Hong Kong brings back the 8.25% tier.
5. Seychelles
Under Seychelles's company tax rules, a one-person service company pays 0% Source: src.gov.sc, checked September 29, 2026. 0% when the founder works abroad: no Seychelles business tax on the profit and no withholding tax on dividends paid out of foreign-sourced profit on $100,000 of profit paid out to a non-resident owner, and 0% to 18.2% Source: src.gov.sc, checked September 29, 2026. Income from activities conducted outside Seychelles is non-taxable business income (SRC Tax System page), and an IBC that derives no Seychelles-sourced income has no business tax return to file (SRC IBC FAQ brochure). Tax on $100,000 (SCR 1,466,720 at SCR 14.6672 per USD) is SCR 0 when the founder works abroad. If the work were done in Seychelles: SCR 150,000 + 25% of SCR 466,720 = SCR 266,680, 18.2% while the profit stays in the company. 25% Source: src.gov.sc, checked September 29, 2026. Companies under the business tax regime pay 15% on the first SCR 1,000,000 (about $68,200) of taxable income and 25% above. Only Seychelles-sourced income is taxed: income from activities conducted, goods situated or rights used in Seychelles (Seychelles Revenue Commission, Tax System page) is the headline corporate tax rate.
A Seychelles IBC pays business tax only on income from activities in Seychelles, so a company whose founder does all the work abroad owes nothing there. Seychelles-sourced profit is taxed at 15% up to SCR 1,000,000 (about $68,200) and 25% above, and Stripe does not serve Seychelles companies.
Dividends paid out of profit earned abroad carry no withholding tax; dividends paid to a non-resident out of Seychelles-sourced profit carry the 15% the Seychelles Revenue Commission lists.
6. Panama
Under Panama's company tax rules, a one-person service company pays 0% to 32.5% Source: taxsummaries.pwc.com, checked September 29, 2026. PwC: dividend tax applies to entities that need an operating notice (Aviso de Operación), hold an operation key in the Colón Free Zone, operate in a free or special zone, or produce Panamanian-source taxable income. A corporation doing all its business abroad is none of these, so distributed equals retained: 0%. With an operating notice, foreign-source profit is taxed at 5% on distribution; Panamanian-source profit at 25% plus 10% of the remaining 75% is 32.5% on $100,000 of profit paid out to a non-resident owner, and 0% to 25% Source: taxsummaries.pwc.com, checked September 29, 2026. PwC, last reviewed August 4, 2026: resident companies are taxed on income generated within Panama, and income generated abroad is exempt from income tax. Services performed abroad for foreign clients give PAB 0 of tax on $100,000 of profit (PAB 1 = $1). If the profit were Panamanian-source: PAB 25,000, 25% while the profit stays in the company. 25% Source: taxsummaries.pwc.com, checked September 29, 2026. PwC Worldwide Tax Summaries, last reviewed August 4, 2026: corporations pay a fixed 25% on Panamanian-source income only (territoriality principle). Above PAB 1,500,000 ($1,500,000) of taxable income the base is the greater of net taxable income or 4.67% of gross taxable income (CAIR), which excludes foreign-source income is the headline corporate tax rate.
A Panama corporation pays income tax only on Panamanian-source profit, so a company whose founder works abroad for foreign clients owes nothing in Panama, and without a Panamanian operating notice it pays no dividend tax either. Panama moved from the EU's list of non-cooperative jurisdictions to its Annex II watch list on October 9, 2026, Stripe does not serve Panama companies, and the law requires 3 directors.
An operating notice changes the result: with one, foreign-source profit bears 5% when distributed, per PwC's Panama summary.
7. Malta
Under Malta's company tax rules, a one-person service company pays 5% to 15% Source: legislation.mt, checked September 29, 2026. Income Tax Management Act (Cap. 372), article 48(4A)(a): a shareholder receiving a dividend from the Maltese taxed or foreign income account may claim a refund of 6/7 of the company tax on the profits distributed (5/7 for passive interest and royalties). EUR 30,761 tax, EUR 57,128 dividend, refund 6/7 x EUR 30,761 = EUR 26,367, net Malta tax EUR 4,394 = 5.0% of profit. Cash flow: the full 35% is paid first; article 48(8) makes the refund payable within 14 days of becoming due, extendable by 12 months for due diligence checks. The high end is the optional 15% final tax without imputation (FITWI) from September 2, 2025 on $100,000 of profit paid out to a non-resident owner, and 35% Source: legislation.mt, checked September 29, 2026. $100,000 profit = EUR 87,889 at EUR 0.878889 per USD (ECB, 2026-09-28). Tax at 35% = EUR 30,761. No refund arises until a dividend is paid, so retained profit bears the full 35% while the profit stays in the company. 35% Source: legislation.mt, checked September 29, 2026. Income Tax Act (Cap. 123), article 56(6): tax is charged at 35 cents on every euro of the chargeable income of every company is the headline corporate tax rate.
A Malta Ltd pays 35% up front, and the owner claims 6/7 of it back when trading profit is paid out, so distributed profit bears about 5% in Malta.
The company pays the full 35% first, and the refund falls due within 14 days, extendable by 12 months for checks, under Cap. 372, article 48.
8. Singapore
Under Singapore's company tax rules, a one-person service company pays 8.17% Source: iras.gov.sg, checked September 29, 2026. IRAS: Singapore currently does not impose withholding tax on dividends, so paying out the SGD 117,337 left after tax adds nothing; the total stays SGD 10,436, 8.17% of profit on $100,000 of profit paid out to a non-resident owner, and 8.17% Source: iras.gov.sg, checked September 29, 2026. $100,000 profit = SGD 127,773 at SGD 1.27773 per USD. Partial exemption: SGD 7,500 + 50% x SGD 117,773 = SGD 66,387 exempt; chargeable SGD 61,387 x 17% = SGD 10,436 = 8.17%. The start-up exemption (5.17% here) needs the company to be tax resident in Singapore, which a company run by a founder abroad through a nominee director usually is not. The 50% rebate for YA 2026 applies only to YA 2026 tax, so a company formed now does not get it while the profit stays in the company. 17% Source: iras.gov.sg, checked September 29, 2026. IRAS: flat 17% of chargeable income for local and foreign companies. All companies get the partial tax exemption (75% of the first SGD 10,000 and 50% of the next SGD 190,000 of normal chargeable income, Income Tax Act section 43) unless they claim the start-up exemption is the headline corporate tax rate.
A Singapore company pays 17% corporate tax, which the partial exemption on the first SGD 200,000 (about $157,000) cuts to about 8.2% on $100,000 of profit, and pays dividends with no withholding tax. A founder abroad needs a Singapore-resident director.
The start-up exemption needs the company to be tax resident in Singapore, which a founder abroad working through a nominee director usually cannot show.
9. Bulgaria
Under Bulgaria's company tax rules, a one-person service company pays 10% to 14.5% Source: nra.bg, checked September 29, 2026. EUR 8,789 corporate tax, then the EUR 79,100 left is paid to the non-resident individual owner with a 5% final tax withheld by the company (EUR 3,955). Total EUR 12,744 = 14.5% of profit. A tax treaty between Bulgaria and the owner's country can lower the 5% on application, which is the low end on $100,000 of profit paid out to a non-resident owner, and 10% Source: nra.bg, checked September 29, 2026. $100,000 profit = EUR 87,889 at EUR 0.878889 per USD (ECB, 2026-09-28). Corporate tax 10% = EUR 8,789. Bulgaria adopted the euro on January 1, 2026 while the profit stays in the company. 10% Source: nra.bg, checked September 29, 2026. National Revenue Agency corporate tax page: 'Размер на данъка 10 на сто (чл. 20 от ЗКПО)', the rate is 10% under article 20 of the Corporate Income Tax Act is the headline corporate tax rate.
A Bulgarian EOOD pays 10% corporate tax, the second-lowest standard rate in the EU after Hungary's 9%, and 5% on dividends to an owner abroad, so fully distributed profit bears 14.5% in Bulgaria.
A tax treaty with your country can lower the 5% dividend tax on application, per the National Revenue Agency.
10. Cyprus
Under Cyprus's company tax rules, a one-person service company pays 15% Source: gov.cy, checked September 29, 2026. EUR 13,183 corporate tax, then the EUR 74,706 left is paid as a dividend to an individual owner who is not tax resident in Cyprus. Special Defence Contribution on dividends falls on Cyprus-resident, Cyprus-domiciled individuals (5% from 2026) and on non-resident companies in low-tax (5%) or EU non-cooperative (17%) jurisdictions; a non-resident individual pays none. Total 15% of profit in Cyprus. The owner's own country usually taxes the dividend on $100,000 of profit paid out to a non-resident owner, and 15% Source: gov.cy, checked September 29, 2026. $100,000 profit = EUR 87,889 at EUR 0.878889 per USD (ECB, 2026-09-28). Corporate tax 15% = EUR 13,183. Deemed dividend distribution no longer applies to profits from 2026, so retained 2026 profit bears nothing more in Cyprus while the profit stays in the company. 15% Source: gov.cy, checked September 29, 2026. Tax Department presentation of the Income Tax (Amendment) Law, Law 244(I)/2025, in force from January 1, 2026 (Greek): 'From 1/1/2026 companies are subject to corporate tax at a rate of 15%' (Second Schedule, Article 25). The rate was 12.5% up to December 31, 2025 is the headline corporate tax rate.
A Cyprus Ltd pays 15% corporate tax from 2026 and withholds nothing on dividends to an individual owner who lives abroad, but the mandatory audit puts running costs at about €3,600 (about $4,100) a year or more.
The rate rose from 12.5% to 15% on January 1, 2026 under Law 244(I)/2025, and deemed dividend distribution no longer applies to profit from 2026.
11. Georgia
Under Georgia's company tax rules, a one-person service company pays 19.25% Source: matsne.gov.ge, checked September 29, 2026. GEL 260,800 profit fully distributed: dividend GEL 221,680, profit tax GEL 221,680 / 0.85 x 15% = GEL 39,120 (Articles 97(10) and 98(1)), dividend tax at source 5% x GEL 221,680 = GEL 11,084 (Article 130(1)). Total GEL 50,204 = 19.25% of profit; the owner receives GEL 210,596 (about $80,800) before any tax in their own country on $100,000 of profit paid out to a non-resident owner, and 0% Source: matsne.gov.ge, checked September 29, 2026. Tax Code Article 97(1): profit kept in the company is not an object of profit tax. $100,000 profit = GEL 260,800 at GEL 2.608 per USD; tax GEL 0 while nothing is distributed or spent outside the business while the profit stays in the company. 15% Source: matsne.gov.ge, checked September 29, 2026. Tax Code of Georgia Article 98(1): profit tax rate 15%. Article 97(1): the object of taxation is distributed profit, non-business expenses, free supplies and excess entertainment costs. Article 97(10): the taxable amount is the payment divided by 0.85. Consolidated English text generated August 24, 2026 (last listed amendment Law No 134 of December 13, 2024 for Article 98). Banks and lenders pay 20% (Article 98(4)) is the headline corporate tax rate.
A Georgian LLC pays 0% on profit it keeps and about 19.25% on profit paid out to a non-resident owner: 15% profit tax on the distribution plus 5% dividend tax.
Profit tax falls due only when profit leaves the company, so reinvested earnings stay untaxed until you pay yourself or spend outside the business.
12. United Kingdom
Under the United Kingdom's company tax rules, a one-person service company pays 21.5% Source: gov.uk, checked September 29, 2026. Paying the GBP 59,166 left after tax to a non-resident owner adds no UK tax: dividends from UK companies are disregarded income for a non-resident, whose UK liability is limited to tax deducted at source (HMRC SAIM1170, updated April 7, 2026), and none is deducted. The owner's residence country taxes the dividend on $100,000 of profit paid out to a non-resident owner, and 21.5% Source: gov.uk, checked September 29, 2026. $100,000 = GBP 75,396 at GBP 0.753955 per USD (ECB, 2026-09-28). Tax = 25% x 75,396 minus 3/200 x (250,000 - 75,396) = 18,849 - 2,619 = GBP 16,230, or 21.5% of profit. No associated companies assumed while the profit stays in the company. 25% Source: gov.uk, checked September 29, 2026. HMRC rates and allowances (updated April 1, 2026), financial years 2025 and 2026: main rate 25%, small profits rate 19% for profits up to GBP 50,000, marginal relief between GBP 50,000 and GBP 250,000 with a standard fraction of 3/200. Both limits are divided by the number of associated companies is the headline corporate tax rate.
A UK Ltd pays 19% to 25% corporation tax on its worldwide profit wherever the owner lives, then pays dividends to a non-resident owner with no UK withholding.
Profit up to GBP 50,000 (about $66,300) pays 19%, with marginal relief up to GBP 250,000 (about $332,000), per HMRC's rates.
13. Estonia
Under Estonia's company tax rules, a one-person service company pays 22% Source: emta.ee, checked September 29, 2026. $100,000 = EUR 87,889 at EUR 0.878889 per USD (ECB, 2026-09-28). Paying it all out: net dividend EUR 68,553 (78%) plus income tax 22/78 x 68,553 = EUR 19,336, or 22% of profit. No further withholding on the dividend to a non-resident individual. The owner's residence country usually taxes the dividend again, often with no credit for the 22% on $100,000 of profit paid out to a non-resident owner, and 0% Source: emta.ee, checked September 29, 2026. Estonian tax only. Profit kept in the company is not taxed in Estonia until it is distributed. The same EMTA page warns that a company managed by an e-resident from outside Estonia 'will probably have a permanent establishment abroad' and must pay tax on its profit there. The page says nothing about controlled foreign company rules while the profit stays in the company. 22% Source: emta.ee, checked September 29, 2026. Estonian Tax and Customs Board tax rates for 2026 (page updated November 11, 2025): corporate income tax 22/78 of the net distribution, which is 22% of the gross profit distributed. The 14/86 rate for regular dividends ended on January 1, 2025. The e-Residency programme (post updated April 7, 2026) says no rate changes are planned for 2026 or 2027 is the headline corporate tax rate.
An Estonian OÜ pays 0% on profit it keeps and 22% of profit when it pays it out, but a founder who runs it from abroad usually makes it taxable in their own country too.
The Tax and Customs Board warns that an OÜ managed by an e-resident from abroad will probably have a permanent establishment there.
14. Hungary
Under Hungary's company tax rules, a one-person service company pays 22.65% to 24.47% Source: net.jogtar.hu, checked September 29, 2026. HUF 3,594,577 company taxes, then the HUF 28,669,423 left is paid to the non-resident individual owner. Dividend income is taxed at 15% (Act CXVII of 1995 on personal income tax, sections 8(1) and 66(1)), withheld by the company: HUF 4,300,413. Total HUF 7,894,990 = 24.47%. With no local business tax: 9% + 15% of 91% = 22.65%. The 13% social contribution tax on dividends applies only to people insured in Hungary and is not modeled on $100,000 of profit paid out to a non-resident owner, and 9% to 11.14% Source: net.jogtar.hu, checked September 29, 2026. $100,000 profit = HUF 32,264,000 at HUF 322.64 per USD (ECB, 2026-09-28); revenue at 15% costs = $117,647 = HUF 37,957,000. Total HUF 3,594,577 = 11.14%. The low end is a seat in a municipality with no local business tax while the profit stays in the company. 9% Source: net.jogtar.hu, checked September 29, 2026. Act LXXXI of 1996 on corporate tax and dividend tax, section 19: 'A társasági adó mértéke 9 százalék' (text in force February 28 to September 30, 2026, Hatályos Jogszabályok Gyűjteménye) is the headline corporate tax rate.
A Hungarian Kft pays 9% corporate tax plus up to 2% local business tax on revenue, and 15% on dividends to an owner abroad, about 24.5% on fully distributed profit, with HUF 3 million (about $9,300) of capital locked in.
A seat in a municipality with no local business tax brings profit paid out down to 22.65%, per the corporate and dividend tax act.
15. Ireland
Under Ireland's company tax rules, a one-person service company pays 25% to 43.75% Source: revenue.ie, checked September 29, 2026. 25% corporation tax, then no dividend withholding for an owner resident in an EU or EEA state or a treaty country who files Form V2A certified by their tax authority. Without the exemption, 25% withholding on the EUR 65,917 paid out takes the total to 43.75% on $100,000 of profit paid out to a non-resident owner, and 25% to 30.6% Source: revenue.ie, checked September 29, 2026. $100,000 = EUR 87,889 at EUR 0.878889 per USD (ECB, 2026-09-28). With the only person working abroad, no trade is carried on in Ireland, so the profit is foreign income under Case III, taxed at 25% (Revenue TDM Part 02-02-01: the 25% rate applies to Case III income such as foreign income): EUR 21,972. If the EUR 65,917 left is not paid out within 18 months, the close company surcharge can add more; at the service company rate (15% on half) it is EUR 4,944, for 30.6% in total while the profit stays in the company. 12.5% Source: revenue.ie, checked September 29, 2026. Revenue Tax and Duty Manual Part 02-02-02 (last reviewed January 2024), sections 21 and 21A TCA 1997: 12.5% applies generally to trading income; 25% applies to income chargeable under Cases III, IV and V of Schedule D, including foreign income, and to excepted trades is the headline corporate tax rate.
An Irish LTD pays 12.5% only on a trade carried on in Ireland. Run by one founder who works abroad, its profit is foreign income taxed at 25%.
An owner resident in the EU, the EEA or a treaty country avoids the 25% dividend withholding by filing Form V2A, certified at home.
16. Romania
Under Romania's company tax rules, a one-person service company pays 29.44% Source: static.anaf.ro, checked September 29, 2026. RON 74,228 profit tax, then the RON 389,694 left is paid to the non-resident individual owner with 16% withheld (art. 224(4)(b)): RON 62,351. Total RON 136,579 = 29.44% of profit on $100,000 of profit paid out to a non-resident owner, and 16% Source: static.anaf.ro, checked September 29, 2026. $100,000 profit = RON 463,922 at RON 4.63922 per USD (ECB, 2026-09-28). With costs at 15% of revenue, revenue is $117,647 = EUR 103,399, above the EUR 100,000 micro ceiling (art. 47(1)(c), art. 52(1)), so the company pays 16% profit tax: RON 74,228 while the profit stays in the company. 16% Source: static.anaf.ro, checked September 29, 2026. Fiscal Code (Law 227/2015, ANAF consolidated text, last updated by Emergency Ordinance 38/2026), art. 17: 'Cota de impozit pe profit ... este de 16%' is the headline corporate tax rate.
A Romanian SRL making $100,000 of profit pays 16% profit tax and 16% on dividends to an owner abroad, 29.4% in all; the 1% micro regime stops at €100,000 (about $114,000) of revenue and needs a paid employee.
A tax treaty with your country can lower the 16% dividend withholding if you give the company a certificate of residence.
Headline rate versus what a one-person company pays
The headline rate is what the law prints; the figure a founder lives on is the tax on profit that reaches them. That is why this list ranks by tax on $100,000 paid out to an owner abroad. The 16 jurisdictions use 4 models: no tax or a pass-through entity (the BVI, the US LLC), territorial systems that leave profit from work abroad untaxed (Hong Kong, Panama, Seychelles), tax only on distribution (Georgia, Estonia), and a classic corporate tax, sometimes with a dividend tax or a refund on top.
The gap between the 2 numbers can be wide in either direction. The UAE's 9% headline rate starts only above AED 375,000 (about $102,000) of taxable income, so $100,000 of profit pays nothing under the Ministry of Finance threshold. Malta's 35% ends near 5% after the shareholder refund, while Hungary's 9% becomes about 24.5% once local business tax and the dividend tax are added.
Reading "Ireland taxes companies at 12.5%"
Right reading
The 12.5% applies to a trade carried on in Ireland. A one-person Irish company whose only worker lives abroad has foreign income taxed at 25%, and its dividend leaves free of withholding only with a certified Form V2A.
Wrong reading
You form an Irish LTD, invoice clients from Lisbon and budget 12.5% on $100,000. The profit is taxed at 25%, and without the exemption form a further 25% is withheld on the dividend, 43.75% in all.
Where you live can tax your company
Every figure above is tax in the company's own country. A company is also taxed where it is run, and a one-person company is run wherever its founder sits. Estonia's tax board says so outright about companies managed by e-residents from abroad, Cyprus and the UK can lose a company's residence to the founder's country under a treaty tie-breaker, and Georgia treats an enterprise as Georgian when its management is in Georgia.
Then there is the money you take out. The dividend is usually taxed again where you live, often with no credit for the company's tax, and many countries also tax residents on the profit of a low-taxed foreign company before it is paid out. A 0% company only stays close to 0% for an owner whose own country taxes that income lightly.
A 0% company run from a high-tax home
You live in a country with a 40% top rate and run an Estonian OÜ from abroad, keeping the profit in the company to pay 0% in Estonia. The company is managed from your home, so your country treats it as having a permanent establishment there and taxes the profit every year, then taxes the dividend again when you finally pay yourself.
Matching the company to where you live
The low bills come from pairing a light personal tax with a company that adds little on the way out. Living where you incorporate is the simplest version: a UAE free zone company with UAE residency pays 0% under Small Business Relief, and a Cyprus non-dom with a Cyprus company pays 15% plus a small health contribution on dividends. Start from the personal side with the low tax countries and the income tax rates by country, then pick the company.
If a move is part of the plan, a digital nomad visa is the lightest way into many of these countries, although most bar local work and leave you taxed like any resident once you pass the day count.
Before you pick a company jurisdiction
- Price the tax on profit paid out to you, not the headline rate.
- Decide where the company will be managed from, and check whether that country will call it resident.
- Check how your own country taxes the dividend and any profit left in a low-taxed foreign company.
- Check banking and payments: several of the 0% jurisdictions are on the EU list or the FATF grey list.
- Count the running costs: audits, local directors, registered agents and annual filings.
- Claim treaty relief on dividend withholding where it exists, in Bulgaria, Hungary, Romania or Ireland.
How this list is ranked
Jurisdictions are ordered by the tax on $100,000 of profit paid out to an owner who lives abroad, lowest first, then by the headline rate, then by Nomad Tax Index score. The profile is a one-person company selling services to clients abroad, with the founder working outside the jurisdiction, converted at the exchange rates of September 28, 2026. The EU list column shows whether a jurisdiction is on Annex I or Annex II after the Council's October 9, 2026 revision.
David's note
I would choose the company last. Settle where you live and what that country does with foreign companies and dividends, then pick the company that adds the least on top. A 0% company paired with the wrong residence costs more than a 15% company in the right one.
