Where to open a company in 2025: TOP 5 profitable countries in terms of taxation

Choosing a country to register your business is not just a formality. It is the foundation of your tax strategy, stability with banks, and compliance with international requirements. With global pressure on offshore jurisdictions, stricter CRS rules, and the need for EU-compliant reporting, it is especially important to make an informed choice that takes into account all tax implications.

Legal Solutions experts have prepared an overview of five countries that offer optimal conditions for international business in 2025, taking into account fiscal efficiency and regulatory stability.

1. UAE — tax flexibility + prestige

Suitable for: international trade, IT, holding companies, family offices

Income tax: 0% in free zones (subject to conditions).
VAT: 5%, applied selectively.
Reporting: required, but no audit for small companies.
Substance: mandatory for certain types of activities.
Bank account: possible if you have a physical office.

✅ Переваги: no tax on dividends and capital gains, possibility of obtaining residency, legal flexibility.
⚠️ Risks: increasing economic presence requirements, need for local partners outside the free zone.

2. United Kingdom — transparency with tax advantages

Suitable for: online services, holding companies, structures with partners in the EU/US

Income tax: 19%.
VAT: from 20%, applicable to local transactions.
Reporting: mandatory, including zero reporting.
Substance: desirable for strengthening the tax position.
Bank account: consistently available in British and European banks.

✅ Advantages: trust of banks and counterparties, flexible forms (LTD, LLP), extensive double taxation agreements.
⚠️ Disadvantages: mandatory reporting, even in the absence of activity.

3. Singapore — Asian tax strategy

Suitable for: fintech, e-commerce, Asian businesses

Income tax: from 0% (benefits for new companies) to 17%.
Dividend payments: tax-free.
Reporting: mandatory, audit — for turnover exceeding S$10 million.
Substance: critical for opening an account and tax residency.
Bank account: only possible with physical presence.

✅ Advantages: access to the Asian market, international reputation, intellectual property protection.
⚠️ Challenges: stricter KYC and corporate structure requirements.

4. Panama — an offshore jurisdiction with international compatibility

Suitable for: holding companies, crypto projects, structures with income from abroad

Tax on foreign income: 0%.
Internal taxes: apply only to resident activities.
Reporting: no obligation if there is no local activity.
Substance: not required.
Bank account: a complicated process, especially without a local representative.

✅ Advantages: simple and quick registration, low maintenance costs, confidentiality.
⚠️ Limitations: reduced bank loyalty, increased attention from regulators.

5. Estonia — a digital jurisdiction with zero tax on reinvested profits

Suitable for: IT companies, SaaS, European startups

Income tax: 0% until dividends are distributed.
Reporting: mandatory, including for e-Residents.
Substance: desirable, especially for opening an account in the EU.
Bank account: most often outside Estonia (Lithuania, Poland).

✅ Advantages: transparency, simplicity, possibility of fully remote management via e-Residency.
⚠️ Disadvantages: increased control, strict licensing requirements and requirements for real business activity.