Paraisolist Rankings
Countries with Low Income Tax 2025 (Under 10%)
These jurisdictions levy personal income tax of 10% or less — well below the OECD average of approximately 35%. Our database contains 20 such jurisdictions; Bulgaria ranks first with a score of 82/100. A favourable headline tax rate is only part of the picture — each profile also covers residency accessibility, banking quality, and international compliance standing. Tax laws change frequently; always verify current rates against official sources or a licensed tax adviser before acting.
Low Income Tax Jurisdictions (≤10%)
| Rank | Jurisdiction | Freelancer Score | Income Tax | Corp. Tax | Territorial |
|---|---|---|---|---|---|
| 1 | BulgariaEastern Europe | 82 | 10% | 10% | ✗ |
| 2 | Cayman IslandsCaribbean | 74 | 0% | 0% | ✗ |
| 3 | United Arab EmiratesMiddle East | 75 | 0% | 9% | ✗ |
| 4 | RomaniaEastern Europe | 77 | 10% | 16% | ✗ |
| 5 | AndorraSouthern Europe | 74 | 10% | 10% | ✗ |
| 6 | BahamasCaribbean | 74 | 0% | 0% | ✗ |
| 7 | BahrainMiddle East | 74 | 0% | 0% | ✗ |
| 8 | Antigua & BarbudaCaribbean | 72 | 0% | 25% | ✗ |
| 9 | Turks & Caicos IslandsCaribbean | 70 | 0% | 0% | ✗ |
| 10 | OmanMiddle East | 70 | 0% | 15% | ✗ |
| 11 | Saudi ArabiaMiddle East | 68 | 0% | 20% | ✗ |
| 12 | Bermudaregions.north_atlantic | 65 | 0% | 15% | ✗ |
| 13 | MonacoWestern Europe | 63 | 0% | 25% | ✗ |
| 14 | British Virgin IslandsCaribbean | 63 | 0% | 0% | ✗ |
| 15 | KosovoSouthern Europe | 65 | 10% | 10% | ✗ |
| 16 | St. Kitts & NevisCaribbean | 63 | 0% | 33% | ✗ |
| 17 | ParaguaySouth America | 65 | 10% | 10% | ✓ |
| 18 | GuatemalaCentral America | 62 | 7% | 25% | ✓ |
| 19 | KazakhstanCentral Asia | 61 | 10% | 20% | ✗ |
| 20 | BruneiSoutheast Asia | 60 | 0% | 19% | ✓ |
Scores calculated by Paraisolist scoring model. Methodology · Tax rates are indicative. Verify with current official sources.
About this ranking
Tax rates are sourced from official government legislation, OECD databases, and verified practitioner knowledge. Headline rates do not always reflect the effective rate after accounting for deductions, special regimes, or treaty benefits. Our score captures more than just the headline figure — it weighs banking accessibility, residency ease, international compliance, and cost of living alongside the tax rate.
Legal notice
This ranking is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently and individual circumstances vary significantly. The thresholds used in this ranking are based on our database at time of publication. Always consult a qualified professional licensed in the relevant jurisdictions before acting on any information presented here.
Frequently Asked Questions — Countries with Low Income Tax 2025 (Under 10%)
Countries with sub-10% income tax include Bulgaria (10% flat), Romania (10% flat), Georgia (1–20% depending on status), Hungary (15% flat — just above the filter), and various zero-tax jurisdictions in the Gulf and Caribbean. Territorial tax countries like Panama, where foreign income is exempt, also effectively offer very low rates for internationally mobile earners.
For high earners, flat rates are generally more favourable than progressive systems that push top earners into 40–50%+ brackets. Flat rates also simplify compliance. However, flat rate countries may have higher social security contributions or other levies that affect the net effective rate.
Bulgaria has a 10% flat personal income tax and a 10% corporate tax — both among the lowest in the EU. Dividend withholding tax is 5%. Social security contributions add approximately 13.5% for employees. Bulgaria is an EU member with full Schengen access (joining in 2025), making it an increasingly popular choice for European freelancers and entrepreneurs.
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