Moving abroad as an entrepreneur: Portugal, Panama, Bahamas, Andorra or Georgia?
- Jul 17
- 6 min read
Summary
Introduction
Leaving France to develop your business elsewhere is no longer reserved for large corporations. Every year, digital freelancers, SME managers, and consultants take the plunge to reduce their tax burden and gain agility. The challenge lies in choosing the right jurisdiction , the one that truly suits your business and lifestyle.
Portugal, Panama, the Bahamas, Andorra, and Georgia are among the most sought-after destinations in 2026. Each operates according to a different logic: a system for skilled workers, territorial taxation , no income tax, capped rates, or reduced-rate entrepreneur status. Comparing these five models helps avoid costly mistakes.
This overview extends our analysis of the economic substance of a company relocation and details, for each country, the residency requirements, the tax logic and the profile of the entrepreneur concerned .
Why move abroad as an entrepreneur?
The primary motivation remains tax-related, but it is rarely the only one. Entrepreneurs also seek a stable environment, predictable administration, and reliable banking access. Legal tax optimization is only valuable if it is accompanied by a real and documented business presence.
The second driver is mobility. Consulting, software, and e-commerce activities can be managed from almost anywhere, making international tax residency accessible without losing clients. The third, more discreet driver relates to asset protection and its transfer.
However, changing one's residence is not something to be done on a whim. Government agencies verify the center of economic interests , the length of stay, and the legitimacy of the move. A poorly planned expatriation can lead to double taxation or reclassification.
Portugal: After the NHR, the IFICI regime
Portugal has long been attractive thanks to its non-habitual resident (NHR) status. This scheme ended on January 1, 2025, replaced by the IFICI , sometimes called NHR 2.0. The new scheme now targets skilled professionals in research, technology, and innovation rather than retirees or those with passive income.
In practical terms, the IFICI offers a flat tax rate of 20% on certain professional income from Portuguese sources and an exemption on several types of foreign income for ten years. Eligibility requires a higher education degree and employment in an eligible sector within a company meeting strict economic criteria.
For tech or digital entrepreneurs, Portugal remains highly attractive, provided they fall within the scope of the tax regime, as detailed on our page dedicated to expatriation as an entrepreneur in Portugal . Passive income, however, is now subject to the standard progressive tax scale .
Panama: territorial taxation
Panama applies a territorial tax system : only income from Panamanian sources is taxed. Profits derived from activities carried out outside the territory are generally exempt from local taxation, which attracts entrepreneurs with an international clientele.
The country combines this advantage with a currency pegged to the dollar, a developed banking sector, and flexible legal structures. However, establishing residency requires a physical presence and actual residence to be recognized by the French authorities.
This model is particularly well-suited to online commerce, consulting, and services provided abroad. Our page dedicated to entrepreneur expatriation to Panama details the residency procedures and required supporting documents.
Bahamas: no income tax
The Bahamas levies no income tax , capital gains tax, or inheritance tax. The state finances its services through VAT and various other taxes, a deliberate model that appeals to high-income entrepreneurs and investors.
This absence of direct taxation is accompanied by residency requirements and, often, a significant real estate investment or deposit. The jurisdiction clearly targets high-net-worth individuals, which implies a comfortable financial capacity .
For a business leader who has already established their operations, the archipelago offers a clear framework and valued political stability . Practical details can be found on our page about entrepreneur expatriation to the Bahamas .
Andorra: the European gateway at 10%
Andorra offers moderate taxation by European standards, with a maximum rate of 10% for both companies and individuals. The principality combines proximity to France and Spain, security, and a sought-after mountain lifestyle.
Since the tax treaty with France was signed in 2015, trade is regulated and the process of setting up a business there has become clearer. Andorra does not apply any exit tax , a point often decisive for mobile executives.
The country does, however, require actual residency and, depending on the status, a local investment or business activity. We detail these conditions on our page about entrepreneur expatriation to Andorra , which is particularly suited to European profiles .
Georgia: The 1% individual entrepreneur
Georgia has built its attractiveness on the 1% individual entrepreneur status. This "small business" scheme taxes turnover at 1% up to 500,000 GEL per year, then at 3% beyond that, one of the simplest mechanisms for a self-employed person.
The country also applies territorial taxation : a resident is not taxed on their foreign-sourced income. Opening a bank account is quick and the cost of living remains low, which explains its appeal to digital workers.
The status is lost if the threshold is exceeded for two consecutive years, hence the importance of rigorous monitoring . Our page on expatriating entrepreneurs to Georgia summarizes the conditions for obtaining and maintaining the status.
Comparative table of the five destinations
The table below summarizes the rationale for each destination. It does not replace a personalized study , as the applicable tax regime depends on your activity, income, and family situation.
Jurisdiction | Key taxation | Logic | Ideal profile |
Portugal | IFICI 20% | Skilled Talent Scheme | Tech, innovation |
Panama | Territorial | Foreign income exempt from tax | Services, e-commerce |
Bahamas | 0% income | No direct tax | High heritage |
Andorra | 10% maximum | European capped rate | Mobile leaders |
Georgia | 1% of revenue | Small local businesses | Independent contractors, freelancers |
Economic substance and exit tax
None of these destinations can function without economic substance . The French administration verifies that management is effectively exercised locally, with its own resources and real decision-making power. An empty structure exposes the entity to reclassification and abuse of rights.
Leaving France can also trigger exit tax on the unrealized capital gains of certain investments. Anticipating this can avoid unpleasant surprises and, in many cases, allows for a deferral of payment.
Finally, double taxation avoidance agreements and transparency rules govern the entire process. Compliance is not an obstacle; it is the prerequisite for the security of a sustainable project.
"I transferred my consulting business after two years of hesitation. The turning point was realizing that taxation alone was not enough: it was the coherence of the setup that made the arrangement solid," confides a manager supported by Coreway , now resident in one of these jurisdictions.
How to choose your destination
The right choice depends first and foremost on your business. A digital freelancer might favor the simplicity of Georgia or the territorial logic of Panama, while a wealth management executive might look towards the Bahamas or Andorra. Portugal is geared towards qualified professionals eligible for the IFICI (French real estate investment trust).
Next come lifestyle, proximity to family, and access to banking services. A tax haven that is ideal but unlivable on a daily basis often results in a return, with the associated tax burdens.
Coreway's method involves starting with your actual situation before considering a jurisdiction. The feasibility study prioritizes your needs and secures each step, from residency to substance.
Frequently Asked Questions
Should you sell your French company to move abroad?
No. It is possible to retain or restructure your company, but the location of the effective management must remain consistent with the new residence to avoid reclassification.
Does the exit tax apply to all entrepreneurs?
It primarily targets unrealized capital gains on significant investments. A payment deferral is often possible; a preliminary analysis determines your actual exposure.
Does the Portuguese NHR scheme still exist in 2026?
No, it has been replaced by the IFICI since 2025. This new scheme is reserved for qualified professionals in innovative sectors, with a flat rate of 20%.
How long do you need to stay there?
Most jurisdictions require a significant presence, often exceeding 183 days, and above all, a genuine transfer of the center of vital interests.
Can we retain French customers?
Yes, the clientele can remain French. What matters is the location of the business and the substance of the structure, not the nationality of the clients.
Does Coreway disclose its fees in advance?
Each situation is assessed individually, with the scope defined beforehand. A study tailored to your project is available upon request.
To determine the most suitable jurisdiction for your business, you can evaluate your project with Coreway .
