Pakistan

Tax residency in Pakistan is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

FATF grey list removed June 2022. Growing IT sector; freelancers in IT: 0.25% on export remittances (very favourable). Corporate 29%. Tech Special Economic Zone Authority (STZA) incentives. Very low cost of living. Political instability (Imran Khan jailed 2023). Karachi, Lahore, Islamabad tech hubs.

The standard corporate income tax rate is 29%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking access in Pakistan is attainable but may require more documentation and time than in simpler jurisdictions. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Pakistan is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Pakistan ranks highest for Digital Nomad and Freelancer. It offers a reasonable proposition for digital nomad (score: 47/100). It offers a reasonable proposition for freelancer (score: 46/100). It scores lower for digital nomad and freelancer and founder / entrepreneur and high net worth individual, who may find other jurisdictions more suitable for their specific requirements.