Places with no personal income tax, or with no corporate tax or tax on local profit only, where a non-resident-owned company pays no tax on foreign profit
Places with no personal income tax, or with no corporate tax or tax on local profit only, where a non-resident-owned company pays no tax on foreign profit
Tax havens, one by one
1. 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 0% depends on where you work, not where the company is registered: Hong Kong's source rules for service fees look at where the services are performed, so a founder who moves to Hong Kong and works there pays profits tax.
2. United Arab Emirates
The UAE has no personal income tax, and a self-employed person pays no corporate tax while business turnover stays at or below AED 1,000,000 (about $272,000) a year.
Under the United Arab Emirates' tax rules, foreign income is untaxed for new residents, and 90 days Source: tax.gov.ae, checked September 29, 2026. 90 days in 12 consecutive months with a residence permit plus a permanent home or UAE business (Federal Tax Authority's unofficial translation of Cabinet Decision No. 85 of 2022) in the country make you tax resident.
The UAE is a haven you use by moving there: a resident freelancer pays no income tax and, below the turnover line, no corporate tax. A UAE free zone company makes sense for a founder who also lives in the UAE.
3. Cayman Islands
The Cayman Islands tax no individual income at all, but the remote worker program closed to new applicants in 2022, so residence now takes a Cayman business, a local job or an investment of KYD 1,000,000 (about $1,200,000).
Under the Cayman Islands' tax rules, foreign income is untaxed for new residents, and there is no income tax residence test to pass.
A classic company haven that now works mainly for people who live there: the remote worker program is closed, so residence takes a Cayman business, a local job or an investment, and the independent means certificate bars local employment.
4. 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.
An IBC with no Seychelles-sourced income files no business tax return, and the dividends it pays a non-resident owner out of that foreign profit carry no withholding tax.
5. 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 BVI takes 0%, so the real question is where the company is managed. Its economic substance rules do not reach a one-person service company, which only files an annual substance report through its registered agent.
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.
The 0% needs a company doing all its business abroad with no operating notice in Panama; once it holds one, foreign-source profit is taxed at 5% on distribution, according to PwC's Panama summary.
7. The Bahamas
The Bahamas has no personal income tax, so a self-employed resident pays only National Insurance of 10.3% on profit up to BSD 43,160 (about $43,160) a year.
Under the Bahamas' tax rules, foreign income is untaxed for new residents, and there is no income tax residence test to pass.
A haven for people rather than companies: no income, capital gains or inheritance tax on individuals, and the BEATS permit sets no income minimum, so National Insurance is the main tax cost of living there.
8. St Kitts and Nevis
St Kitts and Nevis abolished income tax on individuals in 1980, but a self-employed resident pays a 4% Unincorporated Business Tax on service receipts above XCD 2,000 (about $741) a month and 10% social security on a declared income category, and there is no remote worker visa.
Under St Kitts and Nevis's tax rules, foreign income is untaxed for new residents, and there is no income tax residence test to pass.
No income tax on individuals since 1980, but no remote worker visa and a business tax on service receipts, so it suits people living on foreign investment income more than freelancers billing from the islands.
9. Monaco
Monaco has no personal income tax for residents who are not French, and a freelancer selling advisory or expert services abroad runs a civil activity outside the 25% profit tax, so the only charge is fixed social contributions of about €6,604 (about $7,510) a year, about 9% of profit at $100,000 of revenue.
Under Monaco's tax rules, foreign income is untaxed for new residents, and 91 days Source: monservicepublic.gouv.mc, checked September 29, 2026. The residence permit is for people who reside in Monaco more than 3 months a year (page updated September 25, 2026). The tax residence certificate then needs more than 183 days, or a principal place of business in Monaco, or the majority of the year in Monaco (certificate page updated December 23, 2024). 91 days is the permit floor; the principal place of business test sets no day count in the country make you tax resident.
No income tax for residents who are not French, and advisory freelancers stay outside the profit tax, but Monaco is on the FATF grey list and a residence permit needs a home there and a Monaco bank's reference.
What makes a country a tax haven
There is no single legal definition. For this list a place qualifies in 1 of 2 ways: it has no personal income tax, or it has no corporate tax or taxes only local profit and a company owned by a non-resident pays no more than 0.5% on $100,000 of profit earned abroad and paid out to the owner. A company that reaches 0% through a tax band or relief, as in the UAE, or through a pass-through entity such as a US LLC, falls outside this test.
Governments keep their own lists, and those lists judge cooperation and controls rather than rates. The EU's list of non-cooperative jurisdictions for tax purposes, as revised on October 9, 2026, puts Panama and the British Virgin Islands in Annex II, after moving Panama out of Annex I. The FATF's list of jurisdictions under increased monitoring of June 19, 2026 includes the BVI and Monaco. Hong Kong and the UAE, both at 0% on the right profit, are on neither.
Havens for people and havens for companies
The list mixes 2 kinds of place. The UAE, the Cayman Islands, The Bahamas, St Kitts and Nevis and Monaco are havens for people: move there, become resident, and your own income faces no income tax. Hong Kong, the BVI, Panama and Seychelles are havens for companies: the company pays nothing on profit earned abroad, and nobody has to live there. Only the first kind lowers your personal tax.
A 0% company: the setup that holds and the one that fails
Holds
You are not a US citizen, you live in The Bahamas and you hold your investments through a BVI company. The BVI exempts the company and its dividends, The Bahamas has no income tax on you, and no other country has a claim on the profit.
Fails
You live in a high-tax country, form a BVI company, run it from your home office and leave the profit in it. Your country treats the company as managed where you sit, or taxes its profit to you under CFC rules, and the BVI's 0% saves nothing.
Where a haven company's profit is really taxed
A company's 0% is only the company's rate. A low-tax company run from a high-tax home is usually taxed at home, either under controlled foreign company rules or because the company counts as resident where it is managed. US citizens include a controlled foreign corporation's net CFC tested income, the regime formerly called GILTI, in their income every year under section 951A of the Internal Revenue Code.
Territorial havens add their own catch. Hong Kong, Panama and Seychelles tax a company on profit from work done on their soil, so a founder who moves to Hong Kong to be near the company turns offshore profit into profit taxed at 8.25% on the first HKD 2,000,000 (about $254,900).
The haven's 0% does not follow you home
Owning a 0% company does not lower your tax while you live in a country that taxes controlled foreign companies or companies managed from inside its borders. The haven company only saves tax when you live somewhere that does not reach its profit: a country with no income tax, or one that leaves foreign company profit alone. Settle where you live first.
Before you use a tax haven company
- Decide where you will be tax resident, and check its CFC and company residence rules against the structure.
- Do the work outside a territorial haven if the 0% depends on offshore profit, as it does in Hong Kong.
- Check payments early: Stripe does not serve BVI, Panama or Seychelles companies.
- Check the EU list and the FATF grey list each time they are updated; a new listing can make banking harder.
- File what the registry and your home country require every year, including economic substance reports where they apply.
Near-haven options: territorial and low-tax countries
If a low personal bill matters more than a 0% company, territorial tax countries leave foreign income untaxed, and the low tax countries list covers every place where a remote worker pays 25% or less on $100,000 of revenue. Investors living off gains should know that the UAE, the Cayman Islands and Hong Kong also appear among the countries with no capital gains tax for individuals.
How this list is ranked
Rows run by the tax on $100,000 of profit: for a company, paid out in full to an owner who lives elsewhere; for a country, a self-employed resident's effective rate. Ties go to the Nomad Tax Index score. The EU list and FATF columns move a row only through that score, which loses points for a listing, but they also decide how much explaining a bank or payment firm will ask for.
David's note
I would choose where to live before choosing a company. A BVI or Hong Kong company run from a high-tax city is taxed in that city; the same company owned by someone who really lives in the UAE is a different thing. The residence does the saving, and the company is paperwork around it.
