Micronesia

Micronesia operates a moderate tax regime with a top personal income tax rate of 10% and a corporate tax rate of 21%. While not the lowest globally, the rates remain competitive within the region. Capital gains are not taxed in Micronesia, which is a significant advantage for investors, traders, and those holding appreciating assets such as cryptocurrency or equities. Micronesia taxes residents on their worldwide income, including foreign-sourced earnings. This means income from overseas employment, investments, and business activities is subject to domestic tax rates, though double taxation treaties may provide relief. Micronesia permits dual citizenship, which provides flexibility for tax planning through establishing residency in a second jurisdiction without forfeiting existing citizenship rights.