Where to Start a Business Abroad in 2026: Top Countries

Starting a company abroad gives entrepreneurs access to new markets, more favorable tax conditions, and—in certain jurisdictions—the right to residency. Each country offers its own set of advantages: some attract investors with a zero tax rate, while others offer fast registration or incentives for startups. Immigrant Invest recently wrote about this.

Which countries are best suited for business in 2026, how much it costs to get started, and where a company can pave the way to permanent residency or citizenship—we’ll cover all of this in the article below.

Are you planning to start a company abroad and choosing between several jurisdictions?

A business lawyer from the Visit World portal will compare tax conditions, requirements for non-residents, and immigration opportunities in different countries based on your goals.

How to choose a country for doing business abroad?

When choosing a country for your business, it’s important to evaluate five factors: the corporate tax rate, the speed of registration, government incentives, conditions for non-resident founders, and the availability of a business-based immigration pathway. The combination of these factors determines how advantageous a jurisdiction will be for a specific business model: export manufacturing, an IT product, a holding company, or trade.

It is easiest for foreign founders to register companies in Portugal, Malta, Latvia, Italy, Hungary, Cyprus, and Turkey. Standard corporate regulations apply in these countries, and the process is typically handled by local lawyers. In the Caribbean and Vanuatu, additional requirements apply to non-residents: in Saint Lucia, a foreign company needs a business license, and in Vanuatu, approval for foreign investment is required.

About the top 20 largest economies in the world in 2026—read more at the link.

Countries with the Lowest Income Tax Rates in 2026

Among popular jurisdictions, Vanuatu has the lowest tax burden with a zero corporate tax rate, followed by Latvia, where undistributed profits are not taxed. Hungary applies a 9% rate—the lowest in the EU. Malta formally sets a rate of 35%, but a tax refund system for foreign shareholders reduces the effective rate to approximately 5%.

Corporate Income Tax and VAT Rates in 2026:

• Vanuatu — 0% on profits, no personal income tax or capital gains tax; VAT 15%.
• Latvia—0% on reinvested profits, 20% on dividend distributions; VAT 21%.
• Hungary—9% plus a local business tax of up to 2%; VAT 27%.
• Cyprus — 15%; for income from intellectual property, the effective rate may be 2.5%; VAT 19%.
• Portugal — 19% on the mainland, 13% in Madeira and the Azores; VAT 23%.
• Italy — 24% (IRES) plus a regional tax of 3.9% (IRAP); VAT 22%.
• Turkey — 25%, 20% for export income; VAT 20%.
• Panama — 25% on local income only; VAT 7%.
• Caribbean countries — ranging from 25% in Dominica and Antigua and Barbuda to 33.3% in Saint Lucia; VAT 15–17%.

Panama applies a territorial taxation system: income earned outside the country is not taxed. Cyprus does not levy tax on outbound dividends, interest, and royalties, and none of the five Caribbean countries has a capital gains tax.

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How much does it cost and how quickly can you register a company abroad?

The fastest way to set up a company is in Hungary: registration via the electronic system takes as little as one business hour, though typically 1–2 business days. Companies are registered within 24 hours in Malta, Turkey, and Panama. Latvia and Portugal take 1–3 days. The process takes the longest in Vanuatu and the Caribbean—up to 18 and 21 days, respectively.

Timeframes, fees, and minimum capital requirements by country:

• Hungary — 1–2 business days, registration is exempt from duties; minimum capital of 3 million forints (≈7,500–8,000 euros).
• Malta — up to 24 hours, fee ranging from 100–245 euros; minimum capital of 1,164.69 euros.
• Turkey — 1 day; minimum capital 50,000 lira (≈$1,600).
• Portugal — 1–2 days, fee 220–720 euros; no minimum capital requirement for private companies.
• Latvia — 1–3 business days, fee starting at 30 euros; minimum capital of 2,800 euros.
• Italy — 5 days; minimum capital of 10,000 euros, with the option to reduce it to 1 euro.
• Cyprus — 7–10 days, fee of 165 euros; no fixed minimum capital requirement.
• Vanuatu — 9–18 days, annual fee of approximately 230 euros; no fixed minimum capital requirement.

Non-residents often have to go through additional steps. In Italy, you must first obtain a tax code (codice fiscale) through the consulate; in Portugal, you need a tax number (NIF) and a Digital Mobile Key for online registration. In Malta, a company is required to have a registered office on the island, and in Panama, a resident agent and a local legal address.

Starting a Business as a Path to a Residence Permit or Citizenship

You can obtain a residence permit through business investment in Latvia, Portugal, Italy, and Hungary, and citizenship in Turkey, Antigua and Barbuda, and Saint Lucia. Latvia remains the most accessible option in the EU: a contribution of at least 50,000 euros to the capital of a local company grants a residence permit valid for 2 years, renewable, with no minimum stay requirements.

Business visa program requirements by country:

1. Latvia — 50,000 or 100,000 euros invested in a company for 6 or 8 years; processing takes 3 months or more.
2. Hungary — registration of a legal entity with a minimum capital of 7,700 euros; permits are generally issued for up to 3 years.
3. Italy — 250,000 euros in an innovative startup or 500,000 euros in an existing company; a 2-year permit renewable for 3 years.
4. Portugal — €500,000 to establish a company with 5 jobs or 10 permanent jobs with no minimum investment amount; the Startup Visa does not require a fixed investment, but you must prove funds of at least €11,040.
5. Turkey — citizenship for an investment of at least $500,000 in a company’s capital or the creation of 50 jobs; processing takes 8 months or more.
6. Antigua and Barbuda — starting at $1.5 million for an individual or $400,000 for a group project.
7. Saint Lucia — starting at $3.5 million or $1 million in a group investment.

Malta, Cyprus, Panama, and Vanuatu do not offer business visa programs: status there is obtained through real estate, government contributions, or other investments. For example, Vanuatu citizenship can be obtained in as little as 2 months for a non-refundable contribution of $130,000.

The best countries for obtaining a Golden Visa in Europe in 2026 — listed here.

Free Economic Zones and Business Incentives Abroad

Special zones allow companies to significantly reduce their costs. In Turkey’s 19 free zones, manufacturers are fully exempt from income tax, VAT, and customs duties; in Latvia’s five special zones, there is an 80% discount on income and property taxes; and the Madeira International Business Center applies a 5% tax rate to income from international operations.

Panama has 18 free trade zones, the largest of which is Colón, where goods are imported, stored, and re-exported duty-free. Italy has a single special economic zone, ZES Unica, in the south of the country with a minimum investment threshold of 200,000 euros. Dominica and St. Kitts and Nevis offer tax holidays of up to 15 years for approved projects, while Malta supports startups through the Start-Up Finance program with funding of up to 400,000 euros.

Read about taxes for expats in 2026 in various countries in this article.

Tax Residency After Relocation: What’s Important to Know?

A residence permit or citizenship alone does not make a person a tax resident. In most countries, this status is acquired after staying for 183 days per year or transferring the center of one’s vital interests. Cyprus sets a lower threshold—60 days—while Panama taxes only income from local sources. A tax resident typically pays taxes on worldwide income.

Some countries offer special regimes for new residents. Italy allows high-net-worth individuals to pay a flat fee of 300,000 euros per year instead of tax on worldwide income for up to 15 years, while Portugal, under the IFICI regime, applies a 20% rate to qualifying income for up to 10 years. Malta and Cyprus have “non-dom” regimes: the Cypriot version exempts dividends and interest from taxation for up to 17 years.

We previously wrote about reliable jurisdictions that protect against account freezes.

Risks of Setting Up a Company Abroad

The main risks of setting up a company abroad are related to legal, financial, and compliance requirements. The terms of immigration programs may change even before an application is submitted; costs often rise due to notary services, translations, and apostilles; and banks conduct in-depth due diligence before opening a corporate account, which delays the launch of the business.

Additionally, it is worth considering:

• requirements for verifying the source of funds, especially when financing is provided through loans or multi-tiered corporate structures;
• the obligation to conduct actual business operations: having staff, a physical address, and filing financial reports;
• the limited validity period of criminal background checks, powers of attorney, and apostilles;
• tax implications arising from misconceptions about changing residency.

Important! A business law attorney from the Visit World portal will help you choose a country that suits your business model, prepare documents for company registration, and account for the tax implications of relocating. The specialist will advise you on requirements for non-residents, authorized capital, and business-based immigration routes to ensure the setup process proceeds without delays or unnecessary expenses.

Schedule a consultation with a lawyer on Visit World and launch your business abroad with a clear action plan!

Reminder! In our previous article, we discussed the top 5 real estate markets for investment in 2026.

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