If you have the drive and ambition, starting a remote business when you’re young can be a great idea. Free from adult commitments, you will have more time and energy to dedicate to growing your business and ensuring success for yourself and the future.
Something you may not have considered are the benefits of starting a remote business abroad. Although it may take additional time and research, you might find that the lower operating costs, flexible regulations, and business-friendly laws offered in other countries appealing. Another benefit to operating abroad are incentives offered by other governments and significantly lower tax costs.
If you don’t know where to start, we’re here to help. This article looks at three of the most popular countries for starting a remote business. We based our choices on growth opportunities, ease of registration, and low tax cost. Let’s look at them now.
- Flat corporate tax rate of 9%; one of the lowest in Europe
- Possible corporate tax exemption
- Simple company registration process
- Low (€50) registration fee
- Offshore companies are not permitted in Montenegro
- Non-residents pay withholding tax on all income (dividends, interest, or royalties) taken home
- Need Montenegrin bank account and correspondence address
Montenegro is a beautiful country found in the Balkans region of Europe. It’s known for its view of rugged mountains, quaint villages, and beautiful beaches (there’s over one hundred of them!).
It’s also a great place for a budding CEO to start a remote business. Setting up a company in Montenegro is a simple process that takes as little as one week to complete for the low price of €50 (about $56 USD)
Montenegro offers one of the lowest corporate tax rates in Europe at only 9% regardless of how much money your company earns. To encourage growth, newly established companies operating in underdeveloped areas of the country are eligible for a corporate tax exemption. This incentive is offered for the first eight years of operation, saving you up to €200,000.
On the downside, if you aren’t a resident, you can expect to pay withholding tax on all income you bring home. You will also be required to have a Montenegrin bank account and correspondence address.
- Transferable, low-cost business license
- No tax on dividends or royalties paid to shareholders
- Generous tax refunds available for non-residents
- Double Taxation Agreements with many other countries
- 35% corporate tax rate before applying for tax refund
- Required to stay a minimum of 183 days per year in Malta
- Tax returns are not directly submitted to the company
- Lengthy wait for tax returns (six months or longer in some cases!)
Malta is an island country located in Southern Europe, around 80 kilometers south of Italy. With its beautiful weather, friendly residents, attractions, and historical monuments, it’s no wonder why it is a popular tourist destination, but do you know you could consider building a remote business here?
Malta’s company registration process is one of the quickest, only taking around two days to complete. Business licenses are priced fairly and are even transferable if needed. You won’t need to worry about taxes on any dividends and royalties paid to shareholders and Malta holds Double Taxation Agreements with many countries, saving you even more money.
Although Malta has a high corporate tax rate at 35%, you can shave most of the cost down by applying for the country’s generous tax-saving programs. You may need to wait upwards of six months to receive your tax refund, and you should plan to spend half the year in Malta to be eligible to run your business (but who’s complaining?).
- Established offshore banking status
- No corporate tax rate
- Minimal paperwork required for company registration
- The Bahamas’ International Business Companies Act of 1990 protects the privacy of businesses and shareholders
- Some types of businesses can only be operated by Bahamian citizens
- Can’t own property in the Bahamas
- Not permitted to conduct business with people living in the Bahamas
The Bahamas is not just a beautiful tourist spot with year-round tropical weather and sandy beaches – it’s a great place to run a remote business too!
It has established offshore banking status with no corporate tax rate, saving you thousands of dollars each year. Your privacy is protected through the Bahamas’ International Business Companies Act of 1990, so you can feel secure operating here. Bahamas company registration is one of the easiest, requiring minimal paperwork and time.
You won’t be permitted to own property in the Bahamas or conduct business with residents while operating a business here. You may also need to consider the type of business you plan to operate as some types are restricted to Bahamian citizens.