Due to budget deficits, many countries continue to increase their tax rates as well as to apply stricter regulations to control the private and corporate income to impose taxes on such income. Thus international business and private persons, who are in the possession to consider relocation, are looking for the country which has the world best tax rates.
If we take a look at the majority of the developed countries, the tax rate is in total 50% or more whereby, on top of it, there are other taxes – VAT, inheritance tax, property tax, etc.
In our overview, we concentrate on the countries, which provide comfortable, safe and stable living in combination with best taxation rates. To be able to move to such countries – moving your business or moving yourself or both – you shall always be aware of the tax regulations in your present-day country of residence and what steps shall be done to make the right tax residency change. For this reason, you shall always consult with your local tax advisor.
When evaluating the country, you shall consider, along with taxes, a number of factors. These factors are:
- Level of taxation on personal income
- Taxes on business at all levels
- If the environment is business-friendly
- Is it easy or hard to set up a business
- How is it possible to receive residency visa
- Legal framework and its stability
- Country overall economic stability
- Location of the country and accessibility
- Safety of living – for you and your family
- Availability of infrastructure for business and living
- Overall life quality and acceptance of foreigners
In our review, we do not consider small countries or islands like Jersey or Cayman Islands as, even though they may offer attractive taxation rates, are rather small places and very few individuals choose such places as the places for residency.
Top 3 countries which have the Best Tax Rate in the World
There are various factors which may be considered when finding the answer to the question on the best country in the world for taxation. In our evaluation we choose three countries which are well known to business and wealthy individuals, have a great reputation, are well are developed and very safe. These countries also offer high life quality and are friendly to high net-worth individuals means offer possibilities to receive residency status over investment programs.
One of the eye-catching options is Switzerland. If provides great quality of life, is well known for its safety and stability.
It has some special regulations for wealthy individuals who decide to reside in this country. For such individuals, it offers flat taxation at some pre-defined rate. However, on the corporate side, this country is not being the best regarding taxation. Moreover, the procedure to receive residency visa here is rather costly and time-consuming. This country is also well known for its rather high costs of living.
Specifics: a very well-known country with the great and solid image. However no access to the sea as well as not so many advantages for taxation on business.
This country is the very specific one. It has the image of one of the most famous and upscale locations for living in the world. Monaco and neighboring France offer the great choice of places to visits and enjoy life.
The level of personal tax for the ones, permanently ling in Monaco, is 0%. However, to qualify for this status, a number of requirements must be fulfilled.
Specifics: high costs of obtaining the residency status as well as real estate costs – purchase or rent. No tax advantages for business. Great life quality. Living on the sea in the highly luxurious environment.
1. UAE – Dubai and other Emirates
UAE has developed within the last 30 years with the immense speed into the highly international business and leisure place. The country offers great and safe life quality and perfect international access as it has highly developed transportation network.
It is quite fast and comparably not expensive to get residency in this country. It offers total absence of taxes for private persons, living in the country, as well as applies no taxes for business.
Specifics: residency status can be received in the very short time. Reasonable costs of living. The only one country in our ranking which combines tax-free environment for private persons and business.
As you can see, each country from our top 3 list has its pros and contras. And for each specific case, one of the other countries may fit the best. Which country is the best for you – depends on your personal preferences and priorities. What we can definitely say is that regarding taxation the answer to the question on which country offers the tax rates which are best in the world - the answer when putting together all factors is the UAE.