As far as EU countries are concerned, it has one of the most attractive tax systems. It has the freest economy in the Balkans, a maximum tax rate of 11%, a corporate tax rate of 9% and a capital gains tax of 9%. While Montenegro had a citizenship through investment programme, it lets it expire at the end of the year, mainly because it wants EU membership and the EU is against such programmes (see discussion on this topic with regard to Bulgaria and Malta above). Instead, Montenegro is working on the details of a new programme that will attract highly skilled workers to the country and currently offer at least one sensible EU pathway to citizenship. Wait a moment. Bulgaria has the lowest personal and corporate tax rates in the European Union (Andorra is not a member), both of which are a flat rate of 10%. Although you also pay a 10% capital gains tax on profits from the sale of real estate, there is no capital gains tax on your profits if you have investments or trade on the stock market in the EU. Explore our weekly European tax maps to see how countries are performing in terms of tax rates, structure and more. The Republic of Georgia is located in the Caucasus between Asia and Europe on the eastern edge of the Black Sea. As the only European country with a predominantly territorial tax system, i.e. a tax system that excludes from its tax base income earned abroad, properly structured foreign income for people with georgian tax residence is not taxed.

For anyone living in a country that does not tax foreign income, especially if you do not live in your home country, it is quite simple not to pay taxes on profits if you have a tax residence in Georgia. If you are a person with funds, it is also possible to become a tax resident in Georgia without ever having lived there. On the other hand, the cost of living in Georgia is low, it is a very safe country and there are not many financial regulations that make life difficult, so this can be a good choice for a home base. Of course, if you are a U.S. person (citizen or foreigner), you are out of luck at every level because the U.S. taxes your income no matter where it is earned and no matter where you live, and Georgia is committed to ensuring tax transparency with foreign countries until 2023. The following rates do not include the 17% of social security contributions. Citizenship in Andorra is the only way to create a permanent residence that does not require renewal.

To apply for citizenship, you must have been a resident (active or passive) for 20 years or have completed your studies in the Andorran school system and have lived there for 10 years. Of course, you don`t have to have a criminal record anywhere. In addition, you will have to renounce your citizenship in your country of birth and in any other country where you have citizenship, as Andorra does not allow dual nationality. If you do not fully commit to being an Andorran citizen and only an Andorran citizen, it seems preferable to renew your residence according to the required schedule. Romania is at 5% on dividends, 10% on income (from investments, rents) and taxes on wage income (20+%). These are personal level rates. You can get a tax rate of 1 to 3% if you start a micro-business (limited liability company), depending on the business you operate. If you want to establish permanent residence in Bulgaria, the fastest way is investment and includes only one visit to Bulgaria. If an investor buys €512,000 worth of government bonds with the intention of maintaining the investment for at least 5 years, permanent residency will be granted in 6 months. It can be elevated to Bulgarian citizenship after 5 years or, if €1,024,000 is invested, Bulgarian citizenship can be granted within one year.

Of course, permanent residence and citizenship can be obtained without investment by moving to Bulgaria with a temporary visa, which is renewed every year for a period of five years, and living in the country for at least half of these five years (30 months). Member States have now agreed that they are free to set reduced rates for most goods and services, including e-books; domestic fuel; clothing; and feminine hygiene products. The highest tax rate in Liechtenstein is 8% for people earning more than CHF 200,000 ($219,000). However, there are local communities in Liechtenstein that levy an additional tax on the national tax, which increases the effective tax rates in the different national classes from 2.5% at the lower end to 22.4% at the upper end. There is also a 7.7% VAT on many goods and services, a real estate capital gains tax of 3-4%, a 4% wealth tax on the market value of assets, and a tax on charitable donations that would otherwise reduce the wealth tax paid. On the positive side, there is no inheritance, inheritance or gift tax in Liechtenstein, and capital gains from the sale of shares to domestic or foreign companies are exempt from tax. So, overall, there are better places than Liechtenstein for people who want tax relief to establish tax residency. In addition, there is fierce competition around the 89 residences offered each year, and if you want an investor visa, it will cost you at least $110,000 and result in the obligation to create new jobs for Liechtenstein residents. Your temporary residence can be converted to permanent residence after 5 years, and you are eligible to apply for citizenship after living in the country for 30 years. Source: OECD, ”Tax Database: Table I.7. The highest statutory tax rates and the highest marginal tax rates for employees,” April 2021, www.stats.oecd.org/index.aspx?DataSetCode=TABLE_I7.

Although Portugal is a high-tax country, foreigners can benefit from a ten-year tax exemption for non-ordinary residents, which exempts up to 100% of their income from Portuguese tax. .