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Countries With No Corporate Tax (2026 List and Rates)
The 2026 list of countries with 0% corporate tax, the territorial systems that tax only local profits, and how the 15% global minimum tax changes each one.
Licensed auditor & chartered accountant · 6 years of experience in offshore accounting
A handful of countries charge companies no tax on profits, and a second group taxes only the profits earned inside its borders. In this post, we’ll walk you through both lists as they stand in October 2026, with each rate linked to the tax authority or law behind it, plus the 15% minimum tax that now reaches large groups in most of them.
Quick Summary
The Bahamas, Bahrain, Bermuda, the British Virgin Islands and the Cayman Islands have no general corporate income tax, and Jersey and the Isle of Man have a 0% standard rate.
Territorial systems tax local profits only: Seychelles at 15% and 25%, Hong Kong at 8.25% and 16.5%, Panama at 25% and Singapore at 17%, with conditions on foreign income in Seychelles, Hong Kong and Singapore.
A Seychelles company outside a multinational group pays no Seychelles tax on foreign-source profits, while group members have been taxed on some foreign income since mid-September 2021.
The lowest general rates in our comparison are 9% in Hungary and the UAE, and Cyprus moved from 12.5% to 15% on 1 January 2026.
The 15% global minimum tax applies only to groups with revenue of EUR 750 million or more, and the Bahamas, Bahrain, Bermuda, Jersey and the Isle of Man now charge it themselves.
A 0% rate where the company is registered does not settle what you owe at home, because CFC and management rules can tax the same profits there.
Which Countries Have No Corporate Tax in 2026
Select a country on the map or in the list below to see what it charges.
Seven jurisdictions have a 0% headline rate that we could confirm from a government source in October 2026. None of them runs on zero revenue, so the last column shows the main charges a company meets in place of a profits tax.
Country | Headline corporate tax | What is charged in its place |
|---|---|---|
Bahamas | None | Business licence tax on the previous year’s turnover, and 10% VAT |
Bahrain | None | 10% VAT since 1 January 2022 |
Bermuda | None for companies outside large groups | Payroll tax on remuneration, split between employer and employee |
British Virgin Islands | None, and no capital gains tax | |
Cayman Islands | None: no income, corporation or capital gains tax | Stamp duty of 7.5% on most real estate sales, and customs duty |
Isle of Man | 10% on banking business and on retail profits above GBP 500,000, with a 15% rate for certain of those companies in the 2024/25 year of assessment only, and 20% on Isle of Man land and property income | |
Jersey | 10% for financial services companies, 20% for utilities and Jersey property income |
Bermuda, the Bahamas, Bahrain, Jersey and the Isle of Man each added a 15% tax for large multinational groups from 2025, covered below. These are corporate rates only, and the countries with no income tax for individuals make up a different list.
Countries With 0% Corporate Tax on Foreign Income
A territorial system has a normal corporate rate and applies it to local profits only. A company registered there that earns everything abroad can owe nothing locally, subject to the conditions in the last column.
Country | Rate on local profits | Foreign-source profits |
|---|---|---|
Seychelles | Not taxed for a company outside a multinational group. Since mid-September 2021, a company in a multinational group is taxed on foreign active income unless it is attributable to a permanent establishment outside Seychelles, and on foreign passive income (interest, rents, royalties, dividends and gains on shares) unless it has adequate substance | |
Hong Kong | Not taxed, even when remitted. Since 1 January 2023, members of multinational groups are taxed on foreign interest, dividends, IP income and disposal gains received in Hong Kong unless an exception applies | |
Panama | Not taxed. Income tax falls on activities carried out in Panamanian territory, whatever the owner’s nationality or residence | |
Singapore | Partial. Foreign income is taxable once received in Singapore, with an exemption for foreign dividends, branch profits and service income already taxed in a country whose headline rate is at least 15% |
The Seychelles row is the one we work with daily, and how a Seychelles company is taxed depends first on whether it stands alone or belongs to a group. The group rule has no size threshold. A standalone IBC with its customers, work and assets outside Seychelles has no Seychelles-source income, and that is the structure we form as a Seychelles IBC from US$850 all-in for year one.
Low Corporate Tax Countries Worth Comparing
These countries have a general corporate tax, at a headline rate of 15% or less.
Country | Corporate tax rate | Note |
|---|---|---|
UAE | In force for financial years starting on or after 1 June 2023. A qualifying free zone company can keep 0% on qualifying income | |
Hungary | Unchanged since tax year 2017. Local governments add a local business tax | |
Ireland | 25% on non-trading income such as rent and investment income. Groups with revenue of EUR 750 million or more pay a 15% minimum | |
Cyprus | Raised from 12.5% on 1 January 2026 | |
Bulgaria | One flat rate for corporate and personal income tax | |
Georgia | Tax is charged on distributed profit under Articles 97 and 98 of the Tax Code, so reinvested profit stays untaxed |
How the 15% Global Minimum Tax Affects Zero-Tax Countries
The OECD’s global minimum tax, known as Pillar Two, sets a 15% floor on the effective tax rate of large groups in every country where they operate. Under Article 1.1 of the OECD Model Rules, it applies to members of a multinational group with annual revenue of EUR 750 million or more in the parent’s consolidated accounts in at least two of the four preceding fiscal years. A company or group below that line is outside it.
For groups above the line, profits taxed below 15% in any one country attract a top-up tax. The OECD’s rule order lets the low-tax country collect it first, and if it does not, the parent company’s country can. Several zero-tax jurisdictions now collect it themselves:
Jurisdiction | Tax on in-scope groups | Applies from |
|---|---|---|
Bermuda | 15% corporate income tax, less foreign tax credits | 1 January 2025 |
Bahamas | 15% domestic minimum top-up tax under the Domestic Minimum Top-Up Tax Act, 2024 | Fiscal years starting on or after 1 January 2025, earlier where another country would otherwise charge the group |
Bahrain | Domestic minimum top-up tax to 15% under Decree-Law 11 of 2024 | 1 January 2025 |
Jersey | Multinational corporate income tax at an effective 15% | Accounting periods starting on or after 1 January 2025 |
Isle of Man | Fiscal years starting on or after 1 January 2025 |
Three of the low-rate and territorial countries did the same for financial years starting on or after 1 January 2025: the UAE through its domestic minimum top-up tax, Hong Kong through its minimum top-up tax and Singapore through its domestic top-up tax.
Does a Zero-Tax Company Mean No Tax for You?
Not on its own. The rate in the country of registration is one of three tests, and the other two are applied by your home country.
CFC rules. Many countries tax their residents on the undistributed profits of low-taxed foreign companies they control. Check how CFC rules apply to a Seychelles company, or to any zero-tax company, before you count on the 0%.
Place of effective management. A company run day to day from your home country can be treated as tax resident there, wherever it is registered.
Economic substance. Seychelles and Hong Kong both tie the foreign-income exemption for group companies to real activity, as the table above shows. The economic substance requirements in Seychelles apply to group companies with foreign passive income.
A zero-tax or territorial company works when the business is really run and earned outside your country of residence, and when you report it there as your local rules require.
FAQ
Which country has the lowest corporate tax?
Several share the lowest possible rate. The Bahamas, Bahrain, the British Virgin Islands and the Cayman Islands have no corporate income tax, as does Bermuda for companies outside large groups, and Jersey and the Isle of Man have a 0% standard rate. Among countries with a general corporate tax in our comparison, Hungary is lowest at a flat 9%, level with the UAE’s 9% on taxable income above AED 375,000.
Is there corporate tax in Dubai?
Yes. Dubai follows UAE federal corporate tax, which has applied to financial years starting on or after 1 June 2023: 0% on taxable income up to AED 375,000 and 9% above it. A qualifying free zone company can still pay 0% on its qualifying income, and groups with revenue of EUR 750 million or more face a 15% minimum from 2025.
Do offshore companies pay tax?
It depends on where the income arises and who owns the company. In a territorial system such as Seychelles, a standalone company pays local tax only on local-source income, so foreign profits are untaxed there. The owner’s home country can still tax those profits through CFC or management rules, and a Seychelles IBC pays its annual government fee whatever the profit.
