Lowest tax countries

These are the countries with tax rates in the single-digits and low-to-mid teens.

Small business in Georgia 🇬🇪

Individual Entrepreneur (IE) with Small Business Status (SBS)
- special tax regime for sole proprietors
  - must be self-employed (contractor, not employee)
- earn less than GEL 500k (~ USD 170k) in turnover/year
- cannot engage in prohibited activities (forex, gambling, consulting, etc.)
1% tax on turnover, can hire employees and contractors
- 3% if you exceed GEL 500k in a tax year
- if you exceed GEL 500k in 2 consecutive years, this status is revoked
if your VATable transactions exceed GEL 100k/year, must register for VAT
- B2B activities with foreign companies are exempt from VAT
- you can claim VAT back on business purchases if VAT-registered
NOTE: GE didn't join CRS until 2023, and banks have been more risk-averse since 2019 and 2022

incorporated (LLC) with turnover less than EUR 500k in fiscal year
- LLC = SRL (Societate cu răspundere limitată)
- once RON 300k/y is exceeded, must register for VAT
- revenues from consulting and management must not exceed 20%
taxed on turnover in quarterly installments
- 1% if revenue <= EUR 60k
- 3% if revenue > EUR 60k or engages in certain activities (Art. 51 (1) b)
requires 1 or more full-time (40h/week) employee(s)
- can hire yourself (as a director) and pay min salary of RON 3,300/mo (2024)
- otherwise, must switch to 16% CIT
also: 8% divs, 10% PIT + socials
socials on gross salary are uncapped
- employee: 25% social insurance (CAS), 10% health insurance (CASS)
- employer: 2.25% labor insurance (CAM)

freelance = свободна професия/практика
- professional activity, ex: CPA, consultant, lawyer, translator, engineer, etc.
- not registered as sole trader (ET, Едноличен Търговец)
- self-insured person within Social Security Code
pay 10% PIT + socials (capped)
- pension fund 19.8% + health insurance 8% (здравни осигуровки, EU citizens or permanent residents only)
- base: min BGN 11,196 (BGN 933 min wage in 2024 * 12), max BGN 45,000 (BGN 3,750 * 12)
25% deduction on gross income (operating expenses) (Art. 29 3.)
- not required to provide any receipts
must register for VAT if turnover exceeds BGN 100k in fiscal year

incorporated as OOD (LLC) or EOOD (sole-owned LLC)
- corp residency is based on registration + CFC rules (2019)
pay 10% CIT + 5% divs, also 10% PIT + socials
- considered self-insured person as capital owner/shareholder, also pays socials
socials 32.7-33.4%
- pension fund: 14.12-14.82% employer, 10.58% employee
- health ins: 4.8% employer, 3.2% employee (EU citizens or permanent residents only)
- min base: BGN 933/mo (BGN 11,196/y) (same as min wage, 2024)
- max base: BGN 3,750/mo (BGN 45,000/y)
must register for VAT if turnover exceeds BGN 100k/y

exempt from CIT with net income up to ALL 14M (~ USD 131k) until Dec 2029
- excludes certain professional services
- taxable income over ALL 14M is taxed at CIT 15%
- CIT is reduced to 5% for automotive, software production/development, agricultural coop, and agrotourism entities
also: 8% divs (individual), 0-23% PIT, min salary ALL 40k/mo (2023)
- socials: 16.7% ER + 11.2% EE
VAT registration threshold (on taxable supplies) at ALL 10M

exempt from CIT (9%) for the first 8 years up to EUR 200k in profit
- must be based in an economically underdeveloped municipality (Northern region)
- does not apply to: agriculture, transport, shipyards, fisheries, steel, trade, and hospitality
- must submit a request to the tax authority, which decides whether to grant the tax exemption
also: 15% divs (individual), min salary EUR 450/mo (2023) + socials

60 day rule for tax residency
- reside in CY for 60 days or more (in aggregate)
- not reside in another country for 183+ days (in aggregate)
- not be a tax resident in any other country
- have defined ties in CY
  - carry out business in CY / employed in CY / director of a company in CY
  - permanent residential property (owned or rented)
also: hasn't been a tax resident of CY for last 20y (prior to 2015)
- status granted for 17 years max
CIT 12.5%, div 0%, int 0%, CGT 0% (mostly)
- exempt from SDC (Special Defense Contribution)
100% exemption on salary from a non-CY employer
- must work outside CY for 90+ days/year
50% exemption on salary from CY employer for 10y if you earn EUR 100k+
- 20% exemption for 5y if you earn less than EUR 100k
first EUR 19,500 tax exempt, excess taxed at 20-35% + socials

9% CIT (as of June 2023)
- first AED 375k (USD 102k) of profit is exempt
- qualifying income of a free zone (QFZP) is also exempt
- salary is exempt but beware of GAAR (general anti-abuse rule)
natural persons are also subject to CIT if turnover exceeds AED 1M (USD 272k)
- applies to business income when unincorporated (ex: freelancer)
Small Business Relief until Dec 2026
- exempt from CIT, simplified tax return
- turnover must not exceed AED 3M (USD 816k)
0% tax on employment, investment, and real estate income