The choice of jurisdiction for relocating an international business is a strategic decision that determines the company’s development trajectory for years to come. Entrepreneurs and investors carefully analyze tax regimes, regulatory environments, economic stability, and quality of life before making a final decision.
On the global stage, three centers of attraction for capital stand out: the United Arab Emirates (UAE) with their futuristic infrastructure, Singapore as a benchmark of financial order, and Vanuatu—a Pacific jurisdiction offering a unique combination of tax freedom and confidentiality.
The UAE and Singapore have long established themselves as prestigious and reliable hubs for conducting business. They attract entrepreneurs with their developed economies, political stability, and access to global markets. However, against the backdrop of tightening global financial transparency standards and the introduction of new taxes, many businesspeople are turning their attention to alternative options. Vanuatu, with its consistent zero-tax policy for corporations and individuals, offers a completely different philosophy. This jurisdiction focuses not on complex tax incentives and benefits but on a simple and clear system that frees businesses from fiscal burdens, allowing them to grow and develop without bureaucratic obstacles.
Comparative analysis of tax systems
The basis of any business relocation strategy is a deep understanding of the tax burden. This is where the differences between Vanuatu, the UAE, and Singapore are most evident, showcasing three different approaches to shaping fiscal policy.
Vanuatu: Absolute Tax Neutrality
Vanuatu builds its economic appeal on the concept of a complete absence of direct taxes. As of 2025, the country has a zero corporate income tax rate. This rule applies to income earned domestically as well as profits from abroad. Companies registered in Vanuatu are entirely exempt from the need to maintain complex tax accounting and file income tax returns. Additionally, the jurisdiction lacks:
- Personal Income Tax (PIT): Residents and citizens of Vanuatu do not pay tax on their salaries, dividends, or any other personal income.
- Capital gains tax: Profit from the sale of assets, such as real estate or stocks, is not taxed.
- Inheritance and gift tax: The transfer of assets by inheritance or as a gift is not subject to taxation.
- Withholding Tax: Payments of dividends, interest, or royalties abroad are made without any deductions.
The only significant indirect tax is VAT. Such a system maximally simplifies financial planning and allows 100% of profits to be reinvested in business development.
UAE: A New Era of Corporate Taxation
The United Arab Emirates has long followed a model similar to Vanuatu, offering almost no taxes. However, starting from 2024-2025, the country entered a new fiscal era. In 2024, a federal corporate tax was introduced at a rate of 9% on taxable profits exceeding 375,000 UAE dirhams. Profits below this threshold are taxed at a zero rate.
Despite this, the UAE retains significant tax advantages, especially in Free Zones. Companies registered in these zones and meeting certain criteria (Qualifying Free Zone Persons) can still benefit from a 0% rate on “qualifying” income. However, in 2025, the UAE will also introduce a 15% Domestic Minimum Top-Up Tax for large multinational corporations, aligning with global OECD initiatives. At the same time, personal income tax (PIT) in the Emirates remains absent, preserving the jurisdiction’s attractiveness for employee relocation.
Singapore: Competitive Rate and Developed Benefits System
Singapore represents a model of a classic low-tax jurisdiction with a more complex but predictable system. The corporate income tax rate here is fixed at 17%. Although this figure seems high compared to the UAE and especially Vanuatu, Singapore offers numerous tax deductions, benefits, and grants aimed at encouraging innovation, research, and international development. For example, the Double Tax Deduction for Internationalisation (DTDi) program allows companies to deduct 200% of expenses related to entering foreign markets.
Personal income tax in Singapore is progressive, with a maximum rate of 24% for incomes exceeding 1 million Singapore dollars. The system is aimed at attracting highly skilled professionals and wealthy investors, offering them a stable and respectable environment.
Thus, if the UAE and Singapore offer tax optimization models through benefits, free zones, and complex structures, then Vanuatu attracts with absolute simplicity and the absence of direct fiscal pressure. This factor becomes decisive for businesses striving for maximum freedom and minimization of administrative costs.
Registration and running a business: from bureaucracy to freedom
The procedure of incorporation and subsequent requirements for company administration directly affect operating expenses and the speed of business launch. Each of the three jurisdictions offers its own level of flexibility and confidentiality.
Vanuatu: Simplicity and Privacy
The process of registering an international company (International Business Company, IBC) in Vanuatu is characterized by efficiency and minimal requirements. As a rule, incorporation takes only a few business days. The key advantages of doing business in this jurisdiction include:
- Minimum reporting requirements: IBCs are exempt from mandatory audits and the submission of annual financial statements. Only internal record-keeping is required to reflect the company’s financial condition.
- High level of confidentiality: Information about directors and shareholders is not entered into the public register. Vanuatu laws reliably protect commercial and banking secrecy, disclosure of information is possible only by decision of the local court.
- Flexibility of corporate structure: It is allowed to have only one director and one shareholder, who can be the same person. Both individuals and legal entities of any residency can act as directors and shareholders. Shareholder and director meetings can be held anywhere in the world.
- The absence of currency control: Companies can freely open accounts in any currency and seamlessly repatriate 100% of profits and capital.
The registration of a foreign investor is coordinated by the Vanuatu Investment Promotion Agency (VIPA), which ensures a transparent and clear process for obtaining all necessary permits.
UAE: A Structured Approach with Two Contours
Starting a business in the UAE involves choosing between registration on the mainland or in one of the numerous free economic zones (FEZ).
- SEZ (Free Zones): This is the most popular option for foreign investors. It allows maintaining 100% foreign ownership, offers full exemption from import and export duties, and simplified registration procedures. However, the activities of such companies are usually limited to the territory of the SEZ and international markets.
- Mainland: Such registration allows conducting business throughout the UAE and entering into contracts with government bodies, but until recently required the involvement of a local sponsor. Legislative reforms have eased this requirement for many types of activities.
The registration process in the UAE is more bureaucratic compared to Vanuatu and requires obtaining various licenses and permits depending on the type of activity. The requirements for accounting and submission of audited reports are becoming increasingly stricter, especially in light of the introduction of corporate tax.
Singapore: Maximum Transparency and Regulation
Singapore is known for its strict but fair regulatory environment. The company registration process is fully digitized and efficient, but compliance requirements are very high. Companies are required to submit financial statements annually, undergo audits (for most companies), and strictly adhere to corporate law. Information about directors and shareholders is publicly accessible, ensuring a high level of transparency but excluding confidentiality. Singaporean law requires at least one resident director, which creates additional operational tasks for foreign founders.
The comparison shows that Vanuatu offers entrepreneurs maximum operational freedom and confidentiality. While Singapore and the UAE build respectable but strictly regulated business ecosystems, Vanuatu remains true to the principles of a classic offshore jurisdiction, where business can operate with minimal government interference.
Relocation and quality of life: choosing personal space
The decision to relocate a business is inextricably linked to the relocation of its owners, top managers, and their families. Therefore, assessing the quality of life, cost of living, and ways of legalizing residence in the country is an integral part of the process.
Vanuatu: Harmony with Nature and Affordable Living
Vanuatu offers a unique lifestyle that is radically different from the metropolises of the UAE and Singapore. It is a choice for those who value nature, tranquility, and personal freedom.
- Cost of living: Compared to global financial centers, the cost of living in Vanuatu is significantly lower. This applies to housing rent, food, and leisure. An entrepreneur can provide a high level of comfort for themselves and their family for reasonable money.
- Ecology and leisure: The archipelago is famous for its untouched nature, crystal-clear waters, opportunities for diving, yachting, and other types of active recreation. It is an ideal environment for restoring energy and maintaining a balance between work and personal life.
- The Citizenship by Investment (CBI) program: Vanuatu offers one of the fastest and most efficient citizenship programs in the world. Investments, typically in the form of a non-refundable contribution to a government fund (starting from $130,000), allow obtaining a passport within 2-4 months. Vanuatu citizenship not only resolves the issue of legalizing residency but also provides visa-free access to more than 90 countries, opening up additional opportunities for travel and conducting international business.
UAE: Cosmopolitan Comfort and Luxury
The UAE, and Dubai in particular, offer the highest standard of living, comparable to the best global capitals. Everything necessary for a comfortable and safe life is here: modern infrastructure, top-class schools and medical facilities, world-class shopping malls and restaurants. However, this comfort comes at a price. The cost of living in Dubai and Abu Dhabi is high, especially when it comes to housing rental and education. Obtaining a residence permit is usually linked to company registration or property purchase.
Singapore: Organization, Safety, and High Cost
Singapore consistently ranks at the top of quality-of-life ratings due to its safety, cleanliness, excellent education, and healthcare systems. It is a highly organized city-state where everything operates like clockwork. However, Singapore is also one of the most expensive cities in the world. The cost of rent, purchasing a car, and daily expenses here are extremely high. Obtaining Permanent Residence or an EntrePass is a challenging and competitive process, requiring applicants to meet high standards.
Economic stability and international relations
The long-term sustainability of a business depends on the economic and political stability of the chosen jurisdiction.
Vanuatu demonstrates political stability and a commitment to developing a business-oriented economy. Forecasts from international organizations such as the IMF predict an economic growth recovery to 1.7% by 2025, supported by the development of tourism and foreign investments. An important aspect is the limited number of Double Taxation Avoidance Agreements (DTAA). This can be both a disadvantage and an advantage. For businesses aiming to minimize taxes globally without ties to specific partner countries, the absence of such agreements simplifies the structure and eliminates automatic information exchange.
The UAE is actively diversifying its economy, reducing dependence on the oil and gas sector. The country has an extensive network of DTAA (more than 140 agreements), making it a convenient hub for structuring international holdings and trade operations. The UAE’s economy is characterized by high resilience and significant financial reserves.
Singapore possesses one of the most competitive and diversified economies in the world. Its political stability and strong legal system are beyond doubt. Singapore also has a wide network of DTAA, which strengthens its position as a global financial center.
Which harbor suits you best?
The choice between Vanuatu, the UAE, and Singapore depends on the strategic priorities of the business and the personal preferences of its owner.
Singapore is the choice for large corporations and businesses that value an impeccable reputation, access to Asian capital markets, and a developed ecosystem for innovation. Entrepreneurs are willing to pay higher taxes and tolerate strict regulations for the sake of prestige and stability.
UAE is the optimal option for companies focused on trade, logistics, and services in the Middle East, Africa, and Europe region. Tax benefits in free zones remain attractive, but the overall trend towards tightening fiscal policy and increasing transparency is evident.
Vanuatu is a strategic choice for entrepreneurs who prioritize tax efficiency, operational simplicity, and confidentiality. It is an ideal jurisdiction for international trading companies, holdings, IT businesses, and consulting firms not tied to physical infrastructure. Zero rates on all key direct taxes, fast and simple registration, as well as the opportunity to quickly obtain second citizenship, make Vanuatu a unique offering in the market. In a world where fiscal pressure and regulatory control are only increasing, Vanuatu remains an island of economic freedom, allowing businesses not just to survive but to thrive.
