International Company Moves: Summary for Each Country

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International Company Moves: Summary for Each Country
International Company Moves: Summary for Each Country

International Company Moves: Summary for Each Country

There are pros and cons to holding your company, or parts of it, in a certain country. In this article, we will give a quick summary of the worldโ€™s most relevant countries and of how your business may gain by moving at least part of its operations to them. If youโ€™d like more details on one of these countries, we will likely cover it in depth in a later article.

The Americas

  • Argentina: Despite the countryโ€™s high taxation, commercial enterprises and companies are given tax incentives, particularly those engaged in the production of biofuel, software, biotechnology and power using renewable resources. Aside from having a well- educated workforce, Argentina is very rich in resources and it is one of South Americaโ€™s largest economies.
  • Brazil: It is constantly upgrading its national industry for development and innovation by spending on R&D (Research and Development) in order to support technological and product innovation.
  • Canada: Noticeably, Canadaโ€™s economic system is showing its resilience. Theyโ€™ve made investments to foster economic development, such as a fiscal policy, lowering the unemployment rate and interest rates. It has low inflation and itโ€™s working on revitalizing the economy with investments meant to grow the middle class.
  • Chile: The Chilean Economic Development Agencyโ€™s aim is to increase competitiveness in Chile and to make it a global innovation and entrepreneurial hub.
  • Colombia: Offers tax incentives, particularly in Research and Development activities (R&D), and technological research and development.
  • Mexico: Many of the advantages that Mexico offers include the affordable, highly skilled labor force with efficient production operations and affordable transportation costs.
  • Panama: Panama established a multinational headquarters. Panamanian law offers tax incentives for multinational companies that want to establish and locate their headquarters in Panama. These incentives help the economy benefit from foreign investments.
  • Puerto Rico: There are a variety of tax incentives available in Puerto Rico to diversify the economic system and to attract businesses and foreign investments. The government has created an economic stimulus package of tax incentive programs for corporate taxes with fixed rates, special deductions and tax exemptions, advantageous tax rates for pioneer activities and its training expense reimbursement.
  • USA: The United States is the leading global trader and is the largest recipient of foreign investments globally. It is very easy to do business with.

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Asia Pacific

  • Australia: Australia is an open market and has free trade agreements with its Pacific neighbors, North America and Europe. Growth is very positive in all aspects of their nation's economy, with its diverse natural resources, telecommunication infrastructure and transport system that attracts foreign investments.
  • China: Globally, China is the most productive manufacturer because of the working population and employment of unskilled and skilled workers. Foreign trade and investment keeps growing because it is measured on strengthening investments, and it has a relatively flat organizational structure.
  • Hong Kong: Hong Kong is the world's freest economy and a highly attractive market for foreign direct investments because of the low taxation system, government integrity, and their strong connection with their neighboring nations in Asia Pacific.
  • India: India has the labor force to grow its economy. Business outsourcing services are increasing because numerous foreign companies are setting up their facilities in India.
  • New Zealand: New Zealand's economy is an industrialized, free market, and is leading worldwide. Trade is significant for this country's economy, and GDP (Gross Domestic Product) has increased. Their economy is defined by agriculture where the industrialized sector has improved and benefited from an increase in production.
  • Singapore: Location is one distinct economic advantage of Singapore, with a pro-trade and business friendly environment for multinationals that operate in the Asia Pacific area. It is used by many International companies as an international or regional headquarter.

Europe and the Middle East

  • Belgium: Belgium's economic growth is developed by the countryโ€™s strategic location in the EU, being at the center of Europe, and also from its openness to investment and global trade. Belgium offers a full range of tax incentives that enable companies to invest in R&D for the establishment of a R&D center for holding and finance companies.
  • Cyprus: Cyprus is home for investments and a reliable business partner of Russia and Central European nations. The business community and various companies made Cyprus an investment destination for the financial and service sector due to low taxation and improved productivity and labor skills.
  • Hungary: A holding company in Hungary is compatible with other European countries because of its location. The destination is attractive for investments because of their corporate tax rate, which is at its lowest level and their practice of competitive taxes or the Intellectual property box regime (IP regime).
  • Ireland: Ireland is an attractive location for the holding and exploitation of IP. It has a wealth of human capital comprised of a highly educated workforce in the sector of technology and pharmaceuticals. Ireland has a good taxation regime and has a low corporate tax rate, particularly for companies carrying on a trade of exploiting IP.
  • Luxembourg: Luxembourg is where many IP and holding companies are located and is commonly used as a financing/treasury location.ย  On the 1st of January 2015, a new legal tax measure was proposed to the Luxembourg tax law, and now advanced agreements with the revenue agency are possible.
  • Malta: The cost-of-living index in Malta is lower than in other cities of Europe. Malta is a tax-friendly country and delivers a substantial labor market. The economic system is practically driven by service companies where the corporate taxation rate is achievable at < 5%.
  • The Netherlands: The Netherlands is a tax haven country and is attractive to multinational companies. They offer a competitive tax regime to encourage taxpayers to set up a Dutch holding company and to use them as a holding jurisdiction and a business hub for logistics and trading groups.
  • Spain: Spain is fiscally attractive to locate a holding company in because of its growing network of tax treaties with Latin America, and the good partnership channels for capital investment towards Latin America. There is a favorable tax treatment of IP and R&D in Spain, with low inflation and stable growth.
  • Switzerland:ย With their enhanced international competitiveness, the economic system of Switzerland benefits from a highly developed business sector, led by manufacturing industries and financial services, as well as widely known pharmaceutical and trading companies. Switzerland is a trading partner of the European Union and a business hub of international companies.
  • United Arab Emirates (UAE):ย The UAE has strong financial reserves, a durable banking sector, free zones and one of the most promising investor home economies. The UAE Free Trade Zones can be an attractive option for foreign investors because it provides a wide range of incentives.
  • United Kingdom (UK):ย Many foreign investors consider being under a UK holding company for their global operations. The United Kingdom is an attractive location to site a holding company because of many factors, such as language and communication, ease to set up, the legal system and a competitive incentives and taxation regime.

Written By:

Joe Webster
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Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing. 

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood. 

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.

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