Best Tax Countries For Freelancers In 2026: How To Reduce Taxes The Right Way

Every day I get questions from clients about the best tax country for freelancers.

In this way, I have helped hundreds of digital nomads to improve their tax setup and save on taxes.

Reach out if you also need help with your international tax strategy!

Why Tax Residency Matters More Than Low Tax Rates

The best way to lower your taxes is by choosing the right tax residency.

What the best tax residency is will depend on the criteria that are important for you.

Some countries have flexible conditions to become a tax resident so you don’t have to spend too much time there. Others might have very low taxes or even no income tax at all.

Therefore, it’s always about finding a balance that works for you.

Case Study: How I helped Fiona Reduce Her Taxes

Fiona was a German client who reached out to help her with improving her tax setup.

She was still registered in Germany although she would only spend limited amount time there. She was mostly traveling through South East Asia.

We looked at different options but eventually we came to the conclusion that she actually would be happy to spend six months per year in Thailand. Not necessarily in one specific place but on various islands and the mainland.

With the Destination Thailand Visa she would be able to do this and consequently qualify as a Thai tax resident.

In Thailand, she would only have to pay tax on the money she would bring into the country. She budgeted for EUR 1.500 per month or EUR 9.000 for six months in total.

On this income, she would pay around EUR 300 in taxes in Thailand or around 3%!

And then we’re not even taking into account the remainder of her income would remain tax free as we would run her business through a US LLC.

A great example of how digital nomads can save on taxes without adjusting their lifestyle too much.

Top Countries for Freelancers in 2026

Let’s now have a look at some countries where you can save taxes as a freelancer.

Bulgaria

In Bulgaria, you can opt to register yourself as a sole-proprietor or to open a company. Both can be beneficial and the best option will depend on your situation.

• Tax residency:
  • 183 days during twelve month period
  • Center of vital interest
• Personal income tax: 10%
  • Freelancers get a 25% lump sum cost deduction
• Corporate income tax: 10%
• Dividend tax: 5%
• Social contributions: 27,80-31,30%
  • Maximum contribution: EUR 680 per month
  • Minimum contribution: EUR 165 per month

You can find more information in my article about tax residency in Bulgaria.

Cyprus

Cyprus is popular option because you can obtain tax residency by just spending 60 days per year in the country.

Because of its progressive personal inocme tax rates it’s mainly interesting to register a company in Cyprus. You can learn more about it in my article about setting up a company in Cyprus.

• Tax residency:
  • 183 days during tax year
  • 60 days if you meet certain conditions:
    • Don’t spend >183 days in any other country
    • No tax resident of another country
    • Work for a Cypriot company or have your own business
    • Rent or own a property
• Personal income tax: progressive up to 35%
• Corporate income tax: 12,50%
• Dividend tax: 2,65% (health contribution)
• Social contributions:
  • Company director:
    • Company: 15,40%
    • Director: 11,45%
  • Sole proprietor: 20,60%

Czech Republic

If you operate as a sole-proprietor you can exempt up to 60% of your income from taxes up to around EUR 80.000.

Opening a company in the Czech Republic is not recommended.

• Tax residency:
  • 183 days during tax year
  • Center of vital interest
• Personal income tax: two brackets of 15% and 23%
  • As a freelancer you can get a lump sum tax deduction from 60% up to CZK 2m
• Corporate income tax: 21%
• Dividend tax: 15%
• Social contributions: self-employed
  • Social contributions: 29,20% calculated on 55% of your taxable income
  • Health insurance: 13,50 % calculated on 50% of your taxable income
  • Sickness (optional): 2,10% calculated on 55% of your taxable income

Check out my dedicated article if you want to learn more about tax residency in the Czech Republic.

Georgia

Georgia offers some good opportunities from a tax point of view.

However, for most people this is only an option if you spend enough time in the country.

• Tax residency:
  • 183 days in twelve months
  • Specific regime without physical presence for high net worth individuals if they meet certain conditions
• Personal income tax: 20%
  • Small business regime whereby you can just pay 1% or 3% on your revenue
  • Exemption of foreign income
• Corporate income tax: 15%
• Dividend tax: 5%
• Social contributions: only pension contributions
  • Employer: 2%
  • Employee: 2%
  • Self-employed: 4% (optional)

In this article you can find more information about tax residency in Georgia.

Greece

Greece is only interesting if you qualify for its tax scheme for new tax residents where you get a 50% tax reduction.

You can find more information about it in my article on tax residency in Greece.

• Tax residency:
  • 183 days during twelve month period
  • Center of vital interest
• Personal income tax: progressive tax rates up to 48%
  • As a new tax resident you can get a 50% tax reduction for seven years bringing your maximum tax rate to 24%
• Corporate income tax: 22%
• Dividend tax: 5%
• Social contributions: self-employed
  • Works with brackets depending on the coverage you want
  • Minimum contribution is EUR 330 per month
  • First five years you can get a lower rate of EUR 233 per month

Paraguay

Paraguay offers an attractive territorial tax regime.

Moreover, even if your income is subject to local taxes, the rates are low.

• Tax residency:
  • 120 days during tax year
  • Have tax ID and file monthly tax returns
• Personal income tax: 10%
  • Small business regime (IRE Simple) with effective tax rate of 3% of your revenue
  • Exemption of foreign earned income
• Corporate income tax: 10%
• Dividend tax: 8% for local dividends, foreign dividends exempt under territorial taxation
• Social contributions: only pension contributions
  • Employer: 16,50%
  • Employee: 9%
  • Self-employed: 13% (optional)

In this guide you can find more information about tax residency in Paraguay.

Thailand

Thailand can be great place to have your tax residency because you only have to pay income tax on the money you bring into the country.

Yet, this also means you shouldn’t use a local entity. Therefore, I would recommend using a foreign business structure in this case.

• Tax residency:
  • 180 days during the tax year
• Personal income tax: progressive tax rates up to 35%
  • Only tax on income remittance into Thailand
• Corporate income tax: 20% but lower rates for small businesses
• Dividend tax: 10% for local dividends and progressive tax rates for foreigner
• Social contributions: only pension contributions
  • Employer: 5%
  • Employee: 5%
  • Self-employed: various rates (optional)
  • Maximum contribution: THB 750 / month

Check out this article to learn all the details about tax residency in Thailand.

Turkey

Most people won’t associate Turkey with tax optimization.

However, if you qualify for the tax incentive for businesses working for foreign clients, you can really do a good deal in Turkey.

• Tax residency:
  • 183 days during twelve months
  • Center of vital interest
• Personal income tax: progressive tax rates up to 40%
  • As a freelancer you can get a 80% tax reduction if you meet certain requirements which brings your maximum tax rate to 8%
• Corporate income tax: 25%
  • Also companies can benefit from the 80% tax reduction bringing the corporate tax rate to 5%
• Dividend tax: progressive tax rates
• Social contributions:
  • Employer: 22,75%
  • Employee: 15%
  • Self-employed: depends on your situation but TRY 7.700 per month for most nomads

Check this article if you want to learn more about the 80% deduction or tax residency in Turkey in general.

United Arab Emirates

The last and most obvious best tax country for freelancers is the United Arab Emirates of which Dubai is known best.

The UAE is famous for the fact that it doesn’t levy any personal income tax.

• Tax residency:
  • 183 days during twelve months (for international tax residency certificate)
• Personal income tax: no personal income tax
  • Freelancers fall under the corporate tax if they have a revenue of >1mAED
• Corporate income tax: 9%
  • Companies with a profit of <375kAED are exempt
• Dividend tax: not applicable because of lack of personal taxation
• Social contributions: only applicable to UAE-nationals

In this article you can read all the details about Dubai tax residency.

Setup to Minimize Your Taxes

The most easy and straightforward option is to move your tax residency to a low tax country and open your business there.

However, in some cases, it might make sense to open a business abroad.

This will depend on the tax rules of your country of tax residency. Therefore, that’s the starting point you need build on.

How to Pick the Right Country for You

Here are some elements to take into account when you want to pick the best tax country for freelancers:

• Citizenship
• Travel pattern
• Income level
• Tax residency conditions
• Tax rates

Work With Me and Reduce Your Taxes Without Having Headaches

Reach out if you need help with building a plan for your international tax strategy!