These requirements must be met

The LLC is treated as a partnership for tax purposes. This means that profits are taxed via the income tax return. The prerequisite for this is that there is only one shareholder. In addition, he must not be resident or taxable in the US states. This makes the LLC perfect for anyone who wants to emigrate to a tax haven and tax-advantaged countries outside the USA and enjoy tax advantages. But which countries are tax havens or which is at least the country with the lowest taxes? In addition, low taxes are only advantageous if the cost of living is not bombastic at the same time. Therefore, the question of the country with the least taxes is always linked to the question of the countries with the lowest cost of living.

These 10 countries are a real tax haven

The following countries in the world, among others, are considered absolute tax havens:

 

1. Bahamas

In the Bahamas, you don't pay income tax. There are also, unlike in Germany, for example, no wealth taxes. Tax revenues are only generated through indirect taxes such as sales tax and customs duties.

However, the Bahamas offers much more than just tax advantages: Only about 300 km away from the USA as the crow flies, many entrepreneurs are drawn to the Bahamas who want to be close to the United States for their business, but want to enjoy the Caribbean way of life. There are stunning beaches, a mild climate, a stable political situation and a modern health system. Accordingly, entrepreneurs and digital nomads will find conditions in the Caribbean state that are optimal for living and working. There is also a Digital Nomad Visa for the Bahamas.

Articles we wrote about the Bahamas:Bahamas: Tax haven with many advantagesMoving to the Bahamas, the 0% tax haven in the CaribbeanLiving and working in the Bahamas - A testimonialBahamas: An emigrant's paradise with many advantagesEmigrating to the Bahamas - the island paradise in the CaribbeanCrypto taxes in the BahamasWorking or studying in the Bahamas

 

2. United Arab Emirates (UAE)

The United Arab Emirates belongs to the group of tax-free countries, i.e. to the countries without income tax that are absolute tax havens. This is thanks to the economic situation there, which offers the best conditions for a liberal tax policy through oil exports and now also through the booming construction industry.

Skyscrapers, ultra-modern architecture, luxury shops, and a vibrant nightlife: Although Abu Dhabi is the capital, the desert metropolis of Dubai is the largest city in the United Arab Emirates (UAE) on the Persian Gulf and is considered the business center of the Middle East. Many digital nomads, investors and entrepreneurs are drawn to the United Arab Emirates as well as Dubai or Abu Dhabi.

In Dubai, more than 90% of the population are now foreigners who have settled in the sunny Gulf state for business purposes. So far, almost no taxes have been levied in Dubai, not even on real estate or income earned abroad, but corporate income tax is to be introduced in the United Arab Emirates (UAE) in June 2023.

There is also a Digital Nomad Visa for the United Arab Emirates. If you're not really interested in Dubai, here are 4 alternatives to Dubai for you, including more information about Abu Dhabi.

 

Articles we have written about the United Arab Emirates and Dubai in particular:Crypto taxes in the United Arab Emirates (UAE)Emigrating to the Northern Emirates & Ras Al Khaimah as an entrepreneurParadisiacal conditions: The tax-free desert metropolis of DubaiWhat attracts entrepreneurs to Dubai? Dubai - Living and working in the desert metropolisLiving & working in Dubai – these are the reasons why Dubai is worth considering as a business location

 

3. Malaysia

In Malaysia, income from abroad is exempt from income tax, at least until 2026.

This makes the country attractive, for example, for digital nomads who, as freelancers, only have clients outside of Malaysia.

Articles we wrote about Malaysia:Malaysia: Attractive taxes for freelancers and entrepreneursCrypto taxes in MalaysiaGerman pension tax in Malaysia?

 

4. Panama

Green mountains, white sandy beaches, untouched jungles and a modern capital: Panama is the pearl of Central America and a true insider tip. In this country, too, foreign income is exempt from income tax.

Panama is also attractive for investing in farmland.

If you are interested in living in Panama, you can listen to this experience report on our podcast: Panama as a new place to live?

You can also learn more about the Panama Digital Nomad Visa.

Articles we wrote about Panama:Moving to Panama as an entrepreneur, freelancer & investor & saving 80-90% on taxesInvestment and residency in beautiful PanamaOh how beautiful is PanamaThe advantages of moving to PanamaWith Farmland Investment to the second passport PanamaCrypto taxes in Panama
Panama as a future business and living location

 

5. Nicaragua

A low cost of living and a good quality of life make Nicaragua an attractive country of residence in Central America for expats. In addition, the population is considered extremely friendly. The country is considered a small insider tip when it comes to taxation. The tax rate on foreign income is 0%.

Articles we wrote about Nicaragua:Insider Tip Nicaragua: Safety, Nature, Luxury Residence and 0% Tax on Foreign Income
Emigrate to Nicaragua and Keep Track of TaxesLiving and Working in NicaraguaLiving in Nicaragua: A TestimonialLiving in Nicaragua - An Undiscovered Paradise

 

6. Dominican Republic

The Dominican Republic has a territorial tax system, which means that the income of people who earn their income abroad remains tax-free. Perfect for businesses with customers outside of this country. The Dominican Republic is very similar in terms of the tax system Panama. So you can live there and enjoy the Caribbean beaches completely tax-free. The only requirement is that your income must come from abroad. And this applies to both private individuals and companies.

An interesting article we wrote about the Dominican Republic: Moving to the Dominican Republic as an Entrepreneur, Freelancer & Investor & Saving 80-90% Tax

 

7. Monaco

In the city-state, the government or the tax office does not levy income tax. However, living in the Principality of Monaco comes at a high cost. This should be taken into account with regard to income.

Monaco is therefore not one of the countries on the taxless list that comes with a low cost of living.

You should also find out about Monaco corporate tax before you relocate your residence and/or company headquarters there.

Article we wrote about Monaco:Relocating to Monaco & living tax-freeMonaco - emigrants in the best companyEmigrating to Monaco
Monaco - a place to live for private individuals and entrepreneursMonaco - a small country with countless opportunities

 

8. Cayman Islands

Grand Cayman is a part of the Cayman Islands and the most livable island in the Caribbean. It has the fastest internet in the Caribbean, a wide range of real estate, culture, restaurants and a growing art scene, which makes the island particularly interesting for digital nomads and freelancers.

The Cayman Islands are also an absolute tax haven; there is no income tax (whether on foreign or domestic income), no property tax, no wealth tax and no corporate income tax to protect the income of multinational companies.

The new Cayman Enterprise City program is especially great for start-ups (tax benefits, permanent residency) and offers companies good opportunities to relocate to the Caribbean.

However, the cost of living is enormously high: The Cayman Islands are the 2nd most expensive island in the Caribbean and even the 7th most expensive place in the world.

9. French Polynesia

French Polynesia is a French overseas territory located in the South Pacific. The most populous and well-known island is the South Sea island of Tahiti. Other islands include Bora Bora, Tahaa or Maupiti, among others.

The cost of living is very high compared to many countries, but there are no income taxes. Income tax is waived without replacement. Instead, a certain percentage of the solidarity contribution is deducted from wages and salaries, which is based on certain monthly income limits. Since this contribution is collected directly by the employer, it is not necessary to report the income.

More information about French Polynesia (including information on entry requirements and visas when emigrating to Tahiti as a German)

 

10. St. Barts

The French luxury island of Saint Barthélemy, also known as St. Barts, St-Barth or St. Barths, is one of the most expensive islands in the Caribbean. But there is also a high quality of life, many designer shops, noble restaurants and luxury hotels. Around the capital Gustavia you will find numerous yachts at the harbor and also historical attractions and museums.

There is no income tax, no crime rate and you can live and work permanently on the island as a European citizen without a visa. So if you have a high income or have a lot of money to spend as a pensioner and like to enjoy luxury in the Caribbean, Saint-Barthélemy is the right place for you.

 

Tax havens without a residence permit: These countries are suitable for Europeans

Many countries that are tax havens are associated with residency outside of Europe. This sometimes involves a lot of organizational effort when moving, such as the residence permit. However, there are also countries with low taxes within Europe that can be considered tax havens. In addition to the lowest taxes in Europe, if you are looking for a country that has a low cost of living for private individuals in Europe, you will benefit twice.

 

Emigrate to Italy and save income tax with lump-sum taxation

If you want to escape cold Germany, Austria or Switzerland and enjoy tax exemption or at least favorable tax rates, Italy is the right place for you. Italy is one of the countries with low income tax. Due to the EU's freedom of movement, it is possible for EU citizens to stay here without a residence permit. This makes Italy not only a country with low taxes, but also offers an uncomplicated move.

At the same time, Italy is one of the countries where you have tax advantages and can enjoy the beautiful weather and life at the same time. The state does not require people who have not been resident in the country for the past nine out of ten years to declare their foreign income (no tax return that is due) to the Italian tax office.

If you opt for an annual lump sum tax of EUR 100,000 for a period of ten years, you do not have to tax foreign income here.

 

Seek tax advice

If you want to emigrate and save taxes with the help of the zero tax LLC, you should definitely seek the advice of an expert in advance. You can easily book a consultation with us.

We will help you on your way to becoming a tax-exempt LLC and answer your questions about emigrating to your personal tax haven, income tax return, tax system and opening an account for your foreign company. We are also the number one contact for crypto winners regarding their tax returns and the country in which you pay the lowest taxes in the world as a crypto entrepreneur. If you are a pensioner and have questions about your pension or German pension insurance in the event of a transfer of residence abroad, you can also contact us.

 

Also interesting:

• How do I open a foreign account?

• What is an offshore account and what should you consider?

• Tax Treatment of Zero Tax LLC in the USA

• Pay corporate income tax in Dubai or set up a zero tax LLC?

• The ultimate strategy for your wealth protection

In addition to the tax-free life, are you also interested in the exchange of information of tax data or the Financial Accounts Information Exchange Act (regarding the exchange of financial account information)?

Then you might also be interested in the topic of CRS (Common Reporting Standard).

Exit taxation was introduced in Germany in 1931 at 25% and still applies today.

(The Reich Flight Tax was introduced in 1931. Unlike the law against tax evasion, this law did not maintain personal tax liability after departure, but took the departure as an opportunity to impose a tax of 25 per cent of the existing assets on the taxpayer.)