In jurisdictions with preferential taxation, the level of income tax is lower in comparison with other jurisdictions. At the same time, in some jurisdictions, when receiving income from other countries, some of these jurisdictions apply a system of unique tax benefits. Moreover, tax rates at the source on the distribution of dividends, royalties, interest in these jurisdictions are very low or equal to zero.

Countries with preferential taxation include: Andorra, Bermuda, Great Britain, Scotland, Hungary, Hong Kong, Ireland, Cyprus, Latvia, Lithuania, Liechtenstein, Luxembourg, Madeira, Macao, Malta, Monaco, New Zealand, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Uruguay, the Czech Republic, Switzerland and Estonia.

Applicable in tax planning schemes of jurisdiction, can be divided into the following categories:

1. States with zero taxes, also called Classic Offshore. Such countries are characterized by a low level of economic development, while these jurisdictions are politically stable. In such courts, the income tax is absent. In many classical offshore jurisdictions, there is no requirement for filing financial statements; the only condition that the state makes is to pay an annual fixed fee to the treasury. These jurisdictions also apply maximum measures to preserve the confidentiality of information about the ultimate beneficiaries of companies.

2. Countries with low taxes. The establishment of low fees in such countries is carried out to stimulate the economy and attract foreign capital. Offshore such jurisdictions are not, because companies in their territories pay taxes and submit accounting reports.

3. Countries with a national tax system. In the states of this category, the level of taxation is affected by the place of origin of the income. To prove eligibility, companies are audited every year and submit financial statements. In some jurisdictions, the application of tax rates depends on whether the funds were transferred in any way to “home” jurisdiction, or not.

4. High-tax countries with exclusive benefits. In such jurisdictions, the location of the source of income does not affect taxes. It is possible to distinguish rather high tax rates, as well as mandatory financial statements. Several organizational and legal forms of business are fully exempted from taxes (corporate):

  • LLC company;
  • Limited partnerships (LP, LLP, SLP);
  • Specialized companies.

5. Countries with special economic zones. Some states create special economic zones to achieve individual goals. Residents of economic zones are taxed at preferential rates or exempted from taxation in general. Among such countries can be identified as UAE, Georgia, Belarus, Russia.

Preferential jurisdictions
Country Cost of registration $ The cost of the second year $ Financial statements
Andorra 2620.00 USD 710.00 USD Yes
Bermuda 9900.00 USD 8900.00 USD No
Costa Rica 1950.00 USD 1850.00 USD No
Cyprus 1770.00 EUR 1760.00 EUR Yes
Czech Republic - A.S. 2160.00 EUR 660.00 EUR Yes
Czech Republic - S.R.O. 2340.00 EUR 840.00 EUR Yes
Estonia 1460.00 EUR 750.00 EUR Yes
Gibraltar 1950.00 USD 1890.00 USD Yes
Great Britain (LP, LLP) 1460.00 USD 1320.00 USD Yes
Great Britain - LTD 1330.00 USD 1290.00 USD Yes
Hong Kong 2290.00 USD 2190.00 USD Yes
Hungary 1780.00 EUR 670.00 EUR Yes
Ireland 1975.00 EUR 1725.00 EUR Yes
Latvia 1400.00 EUR 670.00 EUR Yes
Liechtenstein - AG 6880.00 EUR 3980.00 EUR Yes
Liechtenstein - Anstalt 6850.00 EUR 3520.00 EUR Yes
Lithuania 1640.00 EUR 660.00 EUR Yes
Luxembourg - S.A. 7460.00 EUR 4980.00 EUR Yes
Luxembourg - S.A.R.L. 7490.00 EUR 5630.00 EUR Yes
Macau 6000.00 USD 2625.00 USD Yes
Madeira - LDA 1680.00 EUR 1275.00 EUR Yes
Madeira - SA 1860.00 EUR 1130.00 EUR Yes
Malta 2650.00 USD 2430.00 USD Yes
Monaco - SAM 5380.00 USD 2660.00 USD Yes
Monaco - Sarl 5240.00 USD 2660.00 USD Yes
New Zealand 1800.00 USD 940.00 USD Yes
Poland - SA 1730.00 EUR 840.00 EUR Yes
Poland Sp. z o.o. 1730.00 EUR 1020.00 EUR Yes
Portugal - Lda 1720.00 EUR 1020.00 EUR Yes
Portugal - SA 2600.00 EUR 1150.00 EUR Yes
Romania - SA 1720.00 EUR 870.00 EUR Yes
Romania - SRL 1670.00 EUR 870.00 EUR Yes
San Marino 13060.00 USD 10160.00 USD Yes
Singapore 2499.00 USD 2395.00 USD Yes
Slovakia 1790.00 EUR 1500.00 EUR Yes
Slovenia 2170.00 EUR 840.00 EUR Yes
Switzerland Zug - GmbH 3040.00 EUR 840.00 EUR Yes
Switzerland Zug - AG 2600.00 EUR 840.00 EUR Yes
Tunisia 2900.00 EUR 2900.00 EUR Yes
Uruguay SA 3415.00 USD 1420.00 USD Yes
Uruguay SRL 3450.00 USD 1425.00 USD Yes
All prices are for reference only and it is not a public offer
For accurate information, contact the specialists