In this series, we’ll be covering income tax tips for amazon entrepreneurs, starting with countries with favorable tax conditions for expats and digital nomads.
As civilization continues it’s technological evolution at breakneck speed, the opportunities for anyone with a bit of ambition to make some serious money are also developing at record speeds. Such an influx of entrepreneurial minds, products, and money have drawn the prying eyes of multiple governments within the worlds most developed countries, especially with the advent of e-commerce and digital lifestyles. The result of their interest have become increasingly suffocating restrictions and regulations, yet maybe most frustrating of all, higher tax rates. Business owners are people too, digging into their pockets to extract mass amounts of wealth is wrong to say the very least. Understandably so, many of these folk have opted to move their businesses to operate in countries with lower restrictions and tax rates.
Now, with social and economic pressures only ramping up within our most developed countries like the United States, Canada, and The United Kingdom, many are looking to now take themselves to other countries to establish in. There’s many of these countries that offer the low corporate taxes that business owners seek, with the potential for cultures that may even remind them of home.
Singapore:
- No capital gains or income tax from outside the country
- Income tax: Up to 22% (Only on Singapore-based income)
- Corporate Tax Rate: 17%
- 1.7 million non-residents
Singapore offers a fantastic haven for those who plan to continue to acquire a vast majority of their income from outside of the country. Whilst the corporate tax rate does leave maybe a bit to be desired, it’s certainly a perfect line between competitiveness on a global scale, while still generating decent government revenue. Singapore offers a beautiful social aspect. It’s regarded as an extremely clean, and safe location to be in. Boasting a 0.10% crime rate. The country has a fantastic cuisine. A fine, and certainly extremely popular location for expats and digital nomads to reside in.
Greece:
- Amazing Culture, Great Food
- Income Tax: Up to 44%
- Corporate Tax Rate: 22%
- Non-Domiciled (Non-Dom) Tax Regime: 7 percent on total foreign income
While Greece’s tax rates certainly seem alarming upon first glance, they are EXTREMELY friendly towards digital nomads. They offer a fantastic, flat 7 percent tax rate on all foreign income for those who are not permanent residents. That fact alone makes them worthy of this list. That paired with the beautiful culture, rich history, stunning landscape and of course a mouth-watering cuisine make it worthy of consideration.
Cayman Islands:
- No personal income or capital gains tax
- No corporate tax
- No property tax
The Cayman Islands properly offers the least of a tax burden in just about every facet. There will be a few, albeit not many, fees that an expat will experience if they decide to move to the Cayman Islands. Such as gathering work permits, and taxes on items that pass through customs (Import fees). This island offers a multitude of benefits for our fellow expat, especially if one has a family they need to bring along with them. The island offers up-to-date infrastructure, safe communities, great schooling, and many quality of life enhancements and activities.
United Arab Emirates:
- Great infrastructure, fantastic education opportunities
- Income Tax: 0%
- Corporate Tax: 9% (Only if you generate more than AED375,000, or ~100k USD)
The United Arab Emirates features some of the most impressive numbers outside of the Cayman Islands. These allow expats, retirees, and digital nomads to live with relative ease. This paired with the high quality of life found within the UAE make it an extremely enticing option. The UAE leads the world in many of the specialized fields of infrastructure such as renewable energy, natural gas, and of course oil reserves. They also lead the world in some of the human rights campaigns. This makes it a stellar option for those looking for a booming economy, and a culture in good social standing.
Cyprus:
- Zero tax on capital gains
- Income tax: Up to 35%
- Corporate tax: 12.5%
- Low tax rate on Foreign Pension
Cyprus has made the list due to its stunning landscapes, great culture, low corporation taxes, and its friendliness towards retirees. They ask only a 5% percent tax rate on foreign pensions. There is no tax on stock dividends, interest, or rental income for Non-Dom’s. You are able to maintain the status of Non-Domiciled for an entire 17 years before they classify one as a permanent resident. Cyprus is a fantastic option for retirees or digital nomads. Though, I would caution moving here and starting a family. There has been a bit of talk about the education system leaving quite a bit to be desired. Though for singles, retirees, or empty-nesters, this option should certainly be considered.