Eight jurisdictions offer a route to 0% in 2026, but only four are unconditional. The rest depend on where your revenue comes from, how big you are, or whether you ever take the money out.
The era of "set up a shell in the Caymans and pay nothing" ended around 2018. Three things killed it: the OECD's BEPS project, the Common Reporting Standard forcing automatic exchange of banking data, and the Economic Substance Acts that every major offshore centre adopted between 2018 and 2020.
A 0% company in 2026 is legal only if it is real, an office, employees and revenue-generating activity in the jurisdiction. Founders routinely lose more to back-taxes and penalties than they ever saved.
Since June 2023 the UAE levies 9% federal corporate tax on mainland profits above AED 375,000, but qualifying free zone persons earning qualifying income remain at 0%.
To qualify, an entity in one of the 40+ free zones must meet economic substance, derive income from other free zone persons or non-UAE customers, avoid excluded activities, and not elect out of QFZP status. DIFC, ADGM, DMCC and JAFZA are the most treaty-friendly.
Estonia is the outlier here: a full EU member, CRS-compliant, on no blacklist. Retained profits are taxed at 0% indefinitely; tax triggers only on distribution, at 22% since January 2025.
The 2% security-tax rise that would have taken the rate to 24% in 2026 was cancelled before it took effect. For founders reinvesting everything into growth, the effective rate is genuinely zero, with full single-market access and no substance drama.
No corporate income tax, no capital gains tax, no withholding, no payroll tax. The largest domicile globally for hedge funds, private equity vehicles and captive insurance, formed under the Companies Act as exempted companies.
The International Tax Co-operation (Economic Substance) Act 2018 requires real activity for entities carrying on relevant activities, banking, insurance, fund management, financing, IP, holding, shipping, headquarters. Budget roughly $1,500 in government fees plus $3,000–8,000 annually for agent and registered office.
The most numerous offshore incorporation globally, with over 400,000 active BVI business companies. Zero corporate tax, no capital gains, no withholding, governed by the BVI Business Companies Act 2004.
Since the Economic Substance Act 2018, relevant activities require local substance or the entity risks reclassification. Useful as a holding vehicle, joint venture company or single-asset SPV, not for live trading without real presence.
Historically 0% and still so for the vast majority of companies. In response to Pillar Two, the Corporate Income Tax Act 2023 introduced a 15% rate applying only to Bermuda-resident entities within multinational groups above €750 million of consolidated revenue, for fiscal years beginning on or after 1 January 2025.
Below that threshold Bermuda remains a genuine zero. It dominates insurance, reinsurance and captive structures, and the regulatory regime is the strongest of any jurisdiction on this list.
No corporate income tax, no capital gains tax, no inheritance tax. International business companies are the usual vehicle, and the Bahamas enacted economic substance requirements in 2018 alongside its peers.
Banking is under particular stress: the Bahamas reports under CRS and local banks have de-risked to the point where new non-resident accounts are very hard to open. Best used today by Bahamian residents and substance-backed regional businesses.
No corporate income tax, no personal income tax, no capital gains tax, no inheritance tax, one of the few genuinely tax-free jurisdictions. International companies are governed by the International Companies Act.
Vanuatu also runs one of the fastest citizenship-by-investment programmes, from around $130,000. It is the most remote and least banked jurisdiction here, and spent several years on the EU list of non-cooperative jurisdictions before being removed, worth verifying its current listing status before you commit.
No personal income tax for residents other than French nationals, and 0% corporate tax for companies deriving more than 75% of turnover inside Monaco. Cross-border businesses, the typical SaaS or trading company, pay 25%, the same as France.
Monaco therefore suits high-net-worth individuals establishing personal residence, or genuinely local service businesses. Residence requires a substantial bank deposit and a rental contract in one of the most expensive property markets in the world.
Every jurisdiction on this list enforces some version of these tests. Failing them means penalties, information exchange with your home tax authority, and often reclassification of the company as tax resident somewhere else entirely.
A 15% global minimum effective rate applies to groups above €750m of consolidated revenue, enacted across the EU, UK, Japan, Korea and Canada from 2024–25. Below that threshold it does not touch you. Bermuda's new 15% tax exists because of it; the UAE's 9% regime was shaped by it.
Cayman Islands exempted companies remain the global default for hedge fund and private equity structures, especially master-feeder arrangements. The combination of 0% tax, flexible governance, and investor familiarity is unmatched. BVI is the second choice for smaller funds and crypto trading entities.
UAE free zones. Genuine operations with UAE-based staff and customers qualify for 0% tax on qualifying free zone income, plus treaty access to 140+ jurisdictions, and 0% personal income tax for resident owners. See our UAE guide for the free zone selection framework.
Estonia. If you plan to retain all profits for reinvestment over multiple years, Estonia's 0% on retained earnings is the single most efficient legitimate structure globally. Full EU access, zero substance drama, clean reputation.
Monaco, UAE, and Bahamas offer 0% or near-0% personal income tax for residents. Each requires a real residence move and often a substantial deposit or visa fee. Best explored with dedicated wealth planners rather than a generic formation agent.
Once CFC attribution, substance costs and banking friction are counted, Singapore or a UAE free zone typically nets more than a pure haven. Model it before you file.
