10 Best Tax Haven Countries in 2025

2025-07-17

12 minute read

Tax haven countries

Best Tax Haven Countries

1.

Hong Kong: 0% - 16.5%

2.

Switzerland: 8.5% - 20.5%

3.

Luxembourg: 14% - 16.5%

4.

Netherlands: 19% - 25.8%

5.

Singapore: 17%

6.

Cayman Islands: 0%

7.

British Virgin Islands: 0%

8.

UAE: 0% - 9%

9.

Jersey: 0% - 20%

10.

Bermuda: 0% - 15% 

In 2025, entrepreneurs around the world are under pressure to rethink how — and where — they structure their businesses. With new global tax rules rolling out, rising regulatory scrutiny, and political shifts like Trump’s push for U.S. tax reform, the old playbook for cross-border business no longer guarantees the same advantages.

In today’s global economy, you might register a company in one country, bank in another, and serve clients everywhere — but where you base your business still matters. The right jurisdiction can reduce your tax burden, protect your assets, and simplify your operations. The wrong one? It could trigger compliance headaches or raise red flags with regulators.

Not all tax havens are created equal. Some offer zero taxes but little credibility. Others strike the right balance — combining low or no corporate tax with legal substance, strong banking, and global legitimacy. These are the havens that work for startups, remote founders, holding companies, and globally minded entrepreneurs.

This guide will cover:
✅ What a tax haven actually is (and what it isn’t)
✅ The top tax haven countries with key benefits, costs, and regulations
✅ How to legally use tax havens for international business
✅ Misconceptions you should avoid when considering offshore options

Let’s get started.

What Is a Tax Haven?

A tax haven is a jurisdiction that offers low or zero taxes on certain types of income, typically to attract foreign businesses and investors. But low tax alone doesn’t make a country a tax haven. What sets them apart is the combination of tax exemptions, investment-friendly policies, flexible regulations, and, in some cases, financial privacy laws.

These jurisdictions are often favoured by international companies and individuals looking to optimise their tax strategy, reduce administrative burdens, or protect assets. While many tax havens overlap with well-known low tax jurisdictions, not every low-tax country qualifies as a tax haven.

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Tip: Many tax havens also serve as popular offshore banking locations. Our guides explain more about offshore banking and the 11 best countries in 2025

Are Tax Havens Legal?

Tax havens operate under their own legal frameworks, which vary by jurisdiction. Therefore, incorporating offshore companies or relocating assets in a tax haven is legal when done in compliance with the laws of both the tax haven and its home country. 

Although using tax havens is not inherently illegal, it becomes unlawful when they are misused for tax evasion or when users do not comply with the financial reporting requirements and legal regulations in both their home country and the tax haven. 

Individuals and companies must adhere to their home country’s rules on reporting foreign income and assets.

Top Tax Haven Countries

Here are the top jurisdictions that offer both tax benefits and additional advantages beyond just minimal rates.

Before we explore each country in detail, here’s a quick comparison to help you identify which jurisdictions may suit your business best based on tax rates, setup ease, and key advantages.

Country Corporate Tax Rate Setup Cost (Estimate) Key Advantage
Hong Kong 0% (offshore), 8.25–16.5% HKD 9,053 Asia access, FSIE exemption
Switzerland 11.9%–20.5% CHF 20,000–100,000 Stability, IP tax relief
Luxembourg 14%–16.5% (tiered) From EUR 20,000 EU access, IP & holding benefits
Netherlands 19%–25.8%, 9% on R&D EUR 1,500–3,000 Innovation Box, EU base
Singapore Flat 17% From SGD 365 Startup tax relief, Southeast Asia hub
Cayman Islands 0% USD 850–3,400 + annual renewal fees No corporate tax, fast offshore setup
British Virgin Islands 0% From USD 550 + annual fees Zero tax, minimal compliance
UAE 0%–9% AED 15,000–50,000 Free zones, Middle East access
Jersey 0%–20% (sector-based) EUR 4,000–12,000+ 0% base rate, UK ties
Bermuda 0%–15% USD 2,000–20,000 or more No corporate tax, UK-aligned

Disclaimer: This information is accurate as of July 2025. Tax rates and policies may change over time.

1

Hong Kong

Hong Kong as a tax haven

Ideal for: Entrepreneurs and SMEs seeking fast setup, low tax on offshore income, and easy access to Asian markets.

Hong Kong is one of Asia’s top business hubs, known for its strong financial infrastructure, strategic location, and access to China and the wider Asian market. Its corporate tax rate is relatively low, sitting below the global average of 23.51%. The jurisdiction also offers a foreign-source income exemption (FSIE), under which offshore income may be tax-exempt if certain conditions are met.

Combined with a business-friendly environment and tax incentives for both SMEs and global companies, Hong Kong remains a leading choice for entrepreneurs seeking a competitive edge in Asia.

Hong Kong Tax and Financial Overview

Corporate Tax Rate • Offshore: 0%
• First HKD 2 million: 8.25%
• On the remainder: 16.50%
Tax Incentives • Two-tier profits tax system: 8.25% on first HKD 2M
• FSIE regime: Offshore income may be exempt if conditions are met
• Patent Box: 5% tax on qualifying IP income
• R&D deductions: 300% on first HKD 2M, 200% thereafter
• No withholding tax on dividends and interest
Primary Currencies Hong Kong Dollar (HKD)
Financial Privacy Moderate. Hong Kong follows the OECD’s CRS, requiring financial institutions to report foreign account data to local tax authorities for exchange with 100+ jurisdictions.

Ownership details are kept private but accessible to authorities.
Economic Outlook The Hong Kong Government forecasts GDP growth of 2%–3% for 2025, driven by solid export performance, steady recovery in tourism, and stronger trade with the Mainland.
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Tip: Our guide gives a detailed insight into Hong Kong’s tax systems and rates.

Starting a Company in Hong Kong

Setting up a company in Hong Kong is generally straightforward, with regulatory steps including business registration and tax registration. There are also various incorporation services offering professional assistance that can help you set up a company 100% online, such as Statrys.

Restrictions on Foreign Investment With no specific restrictions on investment, 100% foreign ownership is possible.
Costs Varies depending on complexity, but typically around HKD 9,053
How Long Does it Take? 1–4 business days
Specific Requirements At least one shareholder and one director of any nationality, along with a company secretary who is a Hong Kong resident and has a registered address in Hong Kong.
Annual Compliance Annual return (NAR1), business registration renewal, profit tax filing, and the employer’s return. A company secretary must handle most filings.
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Tip: Consider opening a multi-currency account to manage cross-border payments efficiently. Learn more about your options for Hong Kong business accounts in our guide.

The Easiest Way to Set Up Your Hong Kong Company

Statrys offers everything you need in one company formation package – 100% online.

10% discount promotion for Statrys company registration service in hong kong

2

Switzerland

Switzerland as a tax haven

Ideal for: Businesses seeking stability, strong legal protections, and tax incentives for innovation and R&D.

Switzerland offers political stability, a strong economy, and a long reputation for banking privacy. Competitive tax incentives also make it attractive for international businesses.

While now aligned with OECD transparency standards, it still offers more financial privacy than most jurisdictions.

Switzerland Tax and Financial Overview

Corporate Tax Rate Federal: 8.5%
Total: 11.9%–20.5%, depending on canton
Foreign income taxed unless linked to a foreign PE or overseas real estate
Tax Incentives • Patent box regime: Up to 90% exemption on qualifying IP income (varies by canton)
• R&D super deduction: Available in most cantons
• Cantonal tax holidays: Up to 10 years for new or expanding businesses
• Federal tax holidays: Available in select regions under specific conditions
Primary Currencies Swiss Franc (CHF)
Financial Privacy Switzerland follows OECD’s AEOI rules, with banks sharing foreign account data with partner jurisdictions. There is no public register of beneficial owners, and privacy remains stronger than in most EU countries.
Economic Outlook Switzerland expects 1.7% GDP growth in 2025 as the global economy recovers, though some financial risks remain.

Starting a Company in Switzerland

Switzerland consists of 26 cantons, each with its own administration and regulations, including tax and company incorporation laws. The difficulty of opening a company can vary significantly depending on the location.

Non-EU/EFTA nationals face greater challenges starting a business in Switzerland, including the need for special authorisation, permits, and substantial investments.

Restrictions on Foreign Investment There are no formal requirements or restrictions under a general FDI regime. However, sector-specific rules may still apply in regulated industries.
Costs Company registration fees vary by canton, notary costs, and capital requirements (CHF 20,000–100,000 depending on the legal structure)
How Long Does it Take? 2–4 weeks
Specific Requirements At least one Swiss director, minimum share capital, notary approval, and a business plan are required
Annual Compliance Companies must prepare annual financial statements, file tax returns, and undergo audits based on size and legal structure.

3

Luxembourg

Luxembourg as a tax haven

Ideal for: Businesses looking for strong financial protections, EU access, and tax benefits for IP and holding structures.

Luxembourg is a stable EU hub for multinational firms and investment funds. It combines a strong financial sector with a tax-friendly system for IP and holding companies.

Its tiered corporate tax offers lower rates on small profits, plus exemptions for dividends and capital gains.

Luxembourg Tax and Financial Overview

Corporate Tax Rate Tiered: 14% up to EUR 175,000
EUR 24,500 + 30% on profits between EUR 175,000–200,000
16.5% for profits above EUR 200,000
Residents taxed on worldwide income
Non-residents taxed only on Luxembourg-source income
Tax Incentives • 80% exemption on income from qualifying IP (patents, software, etc.)
• Dividend and capital gains exemptions under holding company rules
• Tax deferral and SME incentives under certain conditions
Primary Currencies Euro (EUR)
Financial Privacy Luxembourg complies with CRS and FATCA, requiring financial institutions to report account data. Beneficial ownership must be registered, but public access is limited and overall privacy remains stronger than in most EU countries.
Economic Outlook Luxembourg's GDP growth is projected to be 2.3% in 2025 and 2.2% in 2026. Inflation is expected to rebound slightly.

Starting a Company in Luxembourg

Setting up a company in Luxembourg is generally straightforward, but obtaining a business permit and completing the paperwork may take time depending on the business type.

Non-residents can establish some types of companies, including branch offices, provided that they meet the specific requirements.

Restrictions on Foreign Investment There are no specific restrictions on non-residents or foreigners owning or setting up companies.
Costs Averaging more than EUR 20,000.
Registration, notary, and statutory fees vary by type of company. Capital requirements also vary, typically around EUR 12,000 for SARL and EUR 30,000 for SA.
How Long Does it Take? Anywhere from 1 – 12 weeks
Specific Requirements At least one director (resident or non-resident), minimum share capital, notary approval, registered office address, company statutes
Annual Compliance Companies must file annual accounts and maintain accounting records. Audit requirements apply based on company size, legal form, and activity.

4

The Netherlands

The Netherlands as a tax haven

Ideal for: Entrepreneurs and SMEs seeking EU market access, IP tax benefits, and an investor-friendly setup.

The Netherlands stands out as a strategic base for companies seeking tax-efficient operations in the EU. With a broad tax treaty network, competitive corporate tax rates, and the popular Innovation Box regime for R&D income, it combines fiscal appeal with practical access to the European market.

The country consistently attracts high levels of foreign investment and shares the top spot with Luxembourg as one of the largest recipients of FDI in the EU.

The Netherlands Tax and Financial Overview

Corporate Tax Rate • 19% on profits up to EUR 200,000
• 25.8% on profits above EUR 200,000
• 9% on qualifying R&D income (Innovation Box)
• Investment funds and shipping may qualify for special treatment (0% or deemed taxation)
Tax Incentives • Small investments are deductible up to 28%, exemption on qualifying dividends and capital gains.
• Double taxation on foreign dividends, interest, and royalties is relieved via a tax credit.
Primary Currencies Euro (EUR)
Financial Privacy The Netherlands follows strict EU data rules under GDPR. Banks must share information with authorities when required, but still offer strong confidentiality overall.
Economic Outlook Netherlands’ GDP growth is projected at 1.6% in 2025 and 1.5% in 2026, with modest growth, a strong labour market, and gradually decreasing inflation.

Starting a Company in the Netherlands

The Netherlands offers a relatively streamlined process for company formation, with support from Dutch government organisations to help entrepreneurs get started.

EU, EEA, and Swiss nationals can live, work, and establish businesses in the Netherlands without needing a visa.

Restrictions on Foreign Investment There are no specific restrictions on companies owned by foreigners.
Costs A one-off government fee of EUR 82.25 (tax-deductible), share capital requirements (EUR 0.01 for a private limited company), and notary fees apply.
Total startup costs typically range from EUR 1,500 to EUR 3,000, depending on the business structure, notary fees, and registered office address.
How Long Does it Take? A few weeks, depending on the complexity of the business structure and required permits.
Specific Requirements Non-EU founders may require an MVV (residence permit), TWV (work permit), business plan, registered address, and relevant industry permits.
Annual Compliance Companies must file annual financial statements and tax returns.
Medium and large businesses may require an audit under Dutch GAAP or IFRS.
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Tip: Non-EU entrepreneurs can apply for the Startup Visa, a 1-year residence permit for launching an innovative business with support from a recognised facilitator. The Essential Personnel scheme, extended to 1 June 2026, also makes it easier for startups to hire foreign talent.

5

Singapore

Singapore as a tax haven

Ideal for: Businesses seeking regional headquarters, attractive startup tax relief, and access to Southeast Asia through a stable, transparent financial hub.

Singapore is a leading financial hub in Southeast Asia, known for its pro-business environment, free trade agreements, and competitive corporate tax policies. It serves as a key base for regional headquarters and cross-border operations in Asia.

While Singapore offers low corporate taxes and no tax on capital gains, it also maintains strong compliance with international transparency standards. In 2025, new regulations under the OECD’s BEPS 2.0 framework are set to take effect, further aligning Singapore with global tax reforms.

Singapore Tax and Financial Overview

Corporate Tax Rate A flat rate of 17% for both domestic and foreign companies
Tax Incentives • Tax exemption for qualifying foreign income, high-tech products manufacturing and services.
• Reduced tax rates for companies expanding or upgrading operations.
• Tax exemption based on capital expenditure (up to 100%).
• 400% tax deduction (up to SGD 400,000) on qualifying activities, including R&D, IP registration and licensing, employee training, and innovation projects with certain partners.
Start-up tax exemption scheme
Primary Currencies Singapore Dollar (SGD)
Financial Privacy Singapore enforces strong AML and CTF rules. While business data is kept confidential, financial institutions must share information with authorities under international transparency laws.
Economic Outlook Forecasted GDP growth for 2025 ranges from 0% to 2%, reflecting caution due to global challenges and slower performance in certain sectors like hospitality.
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Tip: Take a closer look at Singapore’s tax system and rates in our detailed guide.

Starting a Company in Singapore

Singapore’s limited natural resources have resulted in its dependency on foreign investment to fuel its economic growth. This factor has contributed to a business-friendly environment characterised by supportive policies for foreign companies, making it easy to start a business there

Restrictions on Foreign Investment A foreigner can fully own a business in Singapore.
Costs Company name application (SGD 15), registration fee (SGD 300), Certificate of incorporation purchase fee (SGD 50), and other administration fees
How Long Does it Take? Typically 1 working day or up to 2 months for more complex business registrations
Specific Requirements The basic requirements for company incorporation in Singapore include having at least one director who is a Singapore resident and appointing a local corporate secretary within six months of incorporation.
Annual Compliance Companies must file annual returns and tax filings. Most must hold an AGM. Small firms may qualify for audit exemption.
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Interested in doing business in Singapore? Opening a business account is essential to operate smoothly. Also, explore the 5 common business challenges to get started confidently. 

Launch in Singapore and Access Startup Tax Reliefs

Set up in 5 days with Statrys — fully compliant from day one.

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6

Cayman Islands 

Cayman Islands as a tax haven

Ideal for: Companies prioritising zero corporate tax, fast offshore incorporation, and minimal regulatory complexity.

The Cayman Islands, a British Overseas Territory in the Caribbean, is known for being a no-tax jurisdiction. As a result, it has become a major offshore financial hub and a popular destination for holding companies and subsidiaries seeking tax advantages.
Despite having a population of just over 75,000, the territory hosts more than 122,449 active companies. However, the Cayman Islands also ranks among the most expensive places to live, due to its geographic isolation, import dependency, and limited local resources.

The Cayman Islands Tax and Financial Overview

Corporate Tax Rate 0%
Tax Incentives Not applicable, as there are no corporate income, capital gains, or other taxes.
Primary Currencies Cayman Islands Dollar (KYD)
Financial Privacy Historically strong, but now aligned with international transparency standards such as the OECD’s Common Reporting Standard (CRS). Beneficial ownership details must be filed with local authorities but are not publicly accessible.
Economic Outlook The Cayman Islands’ GDP growth rate is expected to reach 3.5% by Q3 2025, with a long-term forecast of 2.8% in 2026 and 3.0% in 2027.

Starting a Company in the Cayman Islands

Setting up a company in the Cayman Islands can be relatively straightforward, with some requirements to comply with local regulations and laws.

Restrictions on Foreign Investment No restriction on foreign shareholders, but businesses with significant foreign ownership looking to operate locally need a license under the Local Companies Control Act.
Costs Government registration fees typically range from USD 850–3,400 depending on share capital. Expect annual renewal fees and registered office costs on top.
How Long Does it Take? 3–5 business days, or within 24 hours with express service
Specific Requirements Foreign businesses must apply for a Trade and Business Licence
Annual Compliance Companies must file an annual return in January and pay fees. AGMs and audits are generally not required for exempted companies.

7

British Virgin Islands

BVI as a tax haven

Ideal for: Entrepreneurs seeking zero-tax incorporation, simple offshore structuring, and fast company setup with full foreign ownership.

The British Virgin Islands (BVI), a British Overseas Territory in the Caribbean, is widely known for its tax-free corporate structure and simple offshore company formation. With no taxes on income or capital gains and full foreign ownership allowed, it’s a popular destination for global entrepreneurs. While BVI once relied on strong banking confidentiality, new international transparency rules now apply. Its digital infrastructure and island lifestyle also appeal to digital nomads.

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Living the digital nomad lifestyle? Check out the best banks and banking alternatives for digital nomads to ensure easy access to your money, no matter where your work takes you.

The BVI Tax and Financial Overview

Corporate Tax Rate 0%
Tax Incentives No taxes on income, capital gains, or withholding taxes on individuals or companies
Primary Currencies US dollar (USD)
Financial Privacy Historically strong, now aligned with global standards like the CRS and TIEAs. Beneficial ownership remains confidential unless disclosure is legally required.
Economic Outlook No official GDP forecast for 2025, but the economy is expected to stay strong in financial services and steadily recover in tourism. Growth will also be supported by infrastructure projects and global investment trends.

Starting a Company in the BVI

The BVI offers a streamlined company formation process to attract international businesses, including minimal requirements and a short incorporation timeframe. 

Restrictions on Foreign Investment There is no specific requirement for local shareholders or directors, allowing foreigners to own 100% of a company.
Costs Incorporation and annual government fees start from USD 550, depending on the company’s share structure.
Additional costs like a registered agent and licence renewal also apply.
How Long Does it Take? Within few days
Specific Requirements Must appoint a licensed registered agent and maintain a registered office address within the BVI.
Annual Compliance Most BVI companies must file an annual return within 9 months of their financial year-end. Some entities are exempt. Non-compliance must be reported by the registered agent.

8

The United Arab Emirates (UAE)

UAE as a tax haven

Ideal for: Entrepreneurs seeking 0% tax zones, quick setup, and a strategic base in the Middle East.

The United Arab Emirates (UAE) is a major business hub in the Middle East. It offers more than 40 free zones, especially in Dubai and Abu Dhabi, that provide full foreign ownership, 0% corporate tax on qualifying income, and exemptions from import and export duties. These benefits, along with a well-developed infrastructure and business-friendly environment, make the UAE a strategic base for global entrepreneurs.

The UAE Tax and Financial Overview

Corporate Tax Rate 0% for taxable income up to AED 375,000.
9% for non-qualifying taxable income above AED 375,000.
Tax Incentives Various tax incentives, including foreign tax credits, small business reliefs, and 0% CIT in free zones (on qualifying income).
Primary Currencies UAE Dirham (AED)
Financial Privacy Strong AML and CTF controls. Business ownership and financial records are subject to international transparency standards.
Economic Outlook The UAE’s GDP is expected to reach USD 558.56 billion in 2025, with growth driven by sectors like technology, finance, and tourism.

Starting a Company in the UAE

Opening a company in the Dubai Free Zones is not complicated, and the UAE government is actively working on streamlining the business setup process.

Restrictions on Foreign Investment Foreigners can establish companies with 100% ownership, but some activities may have restrictions.
Foreign direct investment is allowed in the UAE, subject to licensing and ownership conditions.
Costs Typically ranges from AED 15,000 to 50,000, depending on the specific free zone, type of business, and office space requirements
How Long Does it Take? 3–5 working days
Specific Requirements Business licence, shareholder details, minimum capital (varies by zone), and sometimes audited financials.
Free zone companies must also prove they operate within the zone (e.g., employees, office space).
Annual Compliance Annual licence renewal is mandatory. Businesses must also comply with tax filings, UBO reporting, and audit requirements (varies by zone).
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Still exploring options? Check out this comparison of Hong Kong, Singapore, and Dubai for more insights on the best location to start a business.

9

Jersey

coastal town in jersey, channel islands, featuring a castle atop a hill overlooking a marina with boats.

Ideal for: Entrepreneurs seeking a 0% corporate tax rate in a well-regulated, British-aligned jurisdiction with a strong financial services sector.

Jersey is a self-governing British Crown Dependency in the Channel Islands. Most businesses benefit from a 0% corporate income tax, while sectors like finance, utilities, and property face higher rates. With strong regulation and ties to the UK, Jersey offers a stable base for entrepreneurs seeking tax efficiency.

Jersey Tax and Financial Overview

Corporate Tax Rate 0%: Standard corporate tax rate
10%: Financial services tax rate.
20%: Utility companies, large retailers, and property income tax rate.
Tax Incentives No withholding tax on dividends, interest, or royalties paid to non-residents
Primary Currencies The currency used is sterling, although the island has its own currency, the Jersey pound, which holds the same value as the British pound.
Financial Privacy Jersey follows global transparency rules under the CRS, with some exemptions for corporate finance under local law.
Economic Outlook Jersey’s real GVA is forecast to grow by 0.4% in 2025, slightly below earlier estimates. Financial services are expected to drive growth, while non-finance sectors may slow due to rising costs and weaker consumer demand.

Starting a Company in Jersey

Starting a business or company in Jersey is relatively straightforward. Still, founders should be aware of local regulations, a small domestic market, and potential funding or licensing hurdles.

Restrictions on Foreign Investment There are no significant restrictions on foreign investment, aside from potential regulations regarding real estate acquisition.
Costs Initial registration: Starts at around EUR 1,200+, with additional fees for services like registered office, local director, and support, potentially totalling over EUR 4,000.
Annual costs: Can exceed EUR 12,000 depending on the service providers used.
How Long Does it Take? 2 – 4 weeks
Specific Requirements You must have a registered office, appoint a nominated person who is a Jersey resident, and have at least one shareholder, one director, and a company secretary.
Annual Compliance Companies must file an annual confirmation online by the end of February to verify company details. A nominated person is required, and a small fee applies.

10

Bermuda

waterfront cityscape in Bermuda

Ideal for: Entrepreneurs seeking a 0% corporate tax rate in a well-regulated, British-aligned jurisdiction with a strong financial services sector.

Bermuda is a British Overseas Territory known for its 0% corporate tax rate, which has made it attractive to international businesses. Starting in January 2025, a 15% corporate income tax will apply to large global companies with yearly revenue of EUR 750 million or more. The government plans to offer tax credits under the new rules to keep Bermuda competitive and support its economic goals.

Bermuda Tax and Financial Overview

Corporate Tax Rate 0%. Most companies are not taxed on their profits, income, dividends, or capital gains.
15% for multinational companies with annual revenue of EUR 750 million or more.
Tax Incentives Bermuda offers no additional tax incentives, though companies can apply for a Tax Assurance Certificate to guarantee exemption from future taxes until a specified year.
Primary Currencies Bermudian Dollar
Financial Privacy Bermuda upholds confidentiality in financial dealings while also meeting global transparency obligations.
Economic Outlook Bermuda’s GDP is expected to grow by 5.5% in 2025, driven by foreign investment, tourism recovery, and infrastructure projects.
Longer-term growth is projected at 3.0% in 2026 and 4.0% in 2027.

Starting a Company in Bermuda

Starting a business or company in Bermuda can be challenging due to the need to navigate local legal standards, especially when it comes to obtaining licenses and work permits, which may vary depending on the nature of the business.

Most companies opt to register as "exempted companies" to benefit from local tax exemption on business activities conducted outside of Bermuda.

Restrictions on Foreign Investment A foreigner can own 100% of a company in Bermuda, provided it is registered as an "exempted company."
Costs From a few thousand USD to over 10,000 USD, depending on the type of business.
Some reports indicate costs could reach 18,000 USD to 20,000 USD or more.
How Long Does it Take? From a few working days to several weeks, depending on the complexity.
Specific Requirements A registered office address in Bermuda, a local registered agent, and compliance with the Economic Substance Act are necessary.
Annual Compliance Companies must file an annual declaration by 31 January and pay a fee. They must also keep company records updated and report changes to directors or ownership within required timeframes.

Other Notable Tax Haven Countries

Apart from the top 10 we ranked above, here are some other commonly known tax havens you may have heard of:

  • Ireland - 12.5% corporate tax on trading income. Offers tax relief for startups and R&D but comes with high labour costs and regulatory complexity.
  • Isle of Man - 0% corporate tax (10% for banks). Attractive for offshore banking, but limited talent pool and resources may pose challenges.
  • Bahrain - No corporate, personal, or capital gains tax outside oil sector. Low-tax environment but high living costs and bureaucratic hurdles.
  • Panama - Territorial tax system (25% on local income). Strategic location but affected by judicial delays and occasional political instability.
  • Macau - 3%-12% corporate tax. Favourable for small profits and free port status, though the economy is highly reliant on gambling.
  • Bahamas - 15% corporate tax with no personal income or capital gains tax. Investor-friendly but VAT and stamp duties apply.
  • Malta - Official 35% rate, but tax refunds can reduce it significantly for shareholder distributions. Popular for holding companies.

Benefits and Misconceptions of Tax Havens

Tax havens are often discussed in global finance, surrounded by both their advantages and controversy. This section explores the true benefits of tax havens as well as some of the common misconceptions surrounding them.

Benefit of Tax Havens

The primary goal of tax havens is to attract investors by offering favourable tax policies and business climates. In return, these countries benefit from increased economic activity, job creation, and enhanced financial infrastructure. 

Below are the actual main benefits of tax havens:

  • Tax Benefit - Tax havens are known for offering low corporate tax rates and various tax incentives. Many also offers exemption from capital gains tax and have an extensive network of tax treaties with other countries to prevent investors from being taxed twice.
  • Favourable Business Environment - Tax havens typically provide a business-friendly environment with simplified regulations, a robust financial infrastructure, and access to skilled labour. By reducing bureaucratic hurdles, they enable companies and small businesses to operate more efficiently and grow their operations.
  • Banking Privacy - Strong banking privacy laws are a hallmark of many tax havens. These laws offer confidentiality, which builds trust in the system. However, it's important to note that these privacy protections are not meant to support illegal activities and banks typically have their own monitoring and anti-money laundering rules in place.
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Tip: Tax laws and regulations in these jurisdictions can evolve. Tax rates may increase, so it's important to stay updated.

Misconceptions About Tax Havens

Many of the misconceptions surrounding them stem from misinformation or oversimplification of the complex legal and financial systems involved. Let's clarify some of the most common myths:

  • Misconception 1: Moving to a Tax Haven Equals No Taxes

Simply moving to a tax haven doesn’t guarantee immunity from taxes. In reality, tax residency rules are complex. Most of the time, you need to meet specific conditions and prove that your business qualifies for tax benefits. More importantly, some countries require their residents to pay taxes on global income, especially citizens of high-tax countries like the US. Before making any decisions, it's essential to thoroughly research both your home country's tax laws and those of the tax haven, as well as the relationship between the two. Look into whether they have DTAs in place. 

  • Misconception 2: Tax Havens Are for invading Tax

It's crucial to distinguish between tax evasion and tax optimisation. Tax evasion is illegal and involves hiding income or assets to avoid taxes, leading to severe penalties, including fines and imprisonment. In contrast, tax optimisation, sometimes called tax avoidance, uses legal methods, like claiming deductions or tax incentives. Using tax havens for legitimate planning is legal and not considered tax evasion, as long as there is transparency and full compliance with all tax rules and authorities involved.

  • Misconception 3: Tax Havens Are Only for the Wealthy

While it is true that affluent individuals and corporations often use tax havens to reduce their tax liabilities, the benefits of tax havens can extend to a broader range of individuals and businesses. Small business owners, expatriates, and even retirees seeking to optimise their financial situations may also find tax advantages in these jurisdictions. Many of these jurisdictions offer tax incentives and supportive infrastructure to encourage entrepreneurship and SME growth. 

  • Misconception 4: Tax Havens Facilitate Illegal Activities

Many tax havens have now implemented strict regulations and cooperated with international efforts to combat financial crime. In fact, some jurisdictions, such as Switzerland, have adopted higher transparency standards and agreed to share information with foreign tax authorities under certain conditions. Whether it's the tax haven or the bank itself, it's important to recognise the difference between the system's intended purpose and those who exploit it.

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Caution: Always report your business activities and income accurately. Failing to declare cash sales or to maintain accurate financial records can be classified as tax evasion.

Bottom Line

Tax havens are no longer just for large corporations. They’re now a strategic option for SMEs and global entrepreneurs seeking legal tax optimisation and operational flexibility.

When choosing a jurisdiction, weigh not just tax rates but also setup costs, legal requirements, and access to banking or markets. A lower tax bill only pays off if you can stay fully compliant and operate with confidence.

The Easiest Way to Set Up Your Hong Kong Company

Statrys offers everything you need in one company formation package – 100% online.

10% discount promotion for Statrys company registration service in hong kong

FAQs

What are the best tax haven countries?

Our picks for the best tax haven in 2025 are Hong Kong, Switzerland, Luxembourg, the Netherlands, Singapore, the Cayman Islands, the British Virgin Islands, UAE, Jersey, and Bermuda. The best tax haven depends on individual or corporate needs. However, companies should look for factors like political stability and good infrastructure in addition to tax benefits to ensure growth. 

Are offshore tax havens legal?

Which country has the lowest or no corporate tax?

Which EU countries are considered tax havens?

Is Ireland a tax haven?

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