Starting a business in
🇲ðŸ‡Marshall Islands
Checked November 9, 2026 · How we score
Corporate tax
0%
Top income tax
12%
Setup from
$1,500
all-in, first year
Time to form
3 days
can be done remotely
What is the corporate tax rate in Marshall Islands?
Marshall Islands charges no corporate income tax on most company profits in 2026, and individuals pay up to 12%. Non-resident domestic corporations and LLCs that do no business in the Marshall Islands are exempt from corporate, withholding and gross revenue taxes. Resident companies pay a gross revenue tax of 3% above US$10,000 of annual revenue instead of a profits tax. Economic substance reports are required for relevant activities.
| Corporate income tax | 0% Non-resident domestic corporations and LLCs that do no business in the Marshall Islands are exempt from corporate, withholding and gross revenue taxes. Resident companies pay a gross revenue tax of 3% above US$10,000 of annual revenue instead of a profits tax. Economic substance reports are required for relevant activities. |
|---|---|
| Personal income tax (top) | 12% A wage tax applies to individuals earning wages in the Marshall Islands: 8% on lower earnings and 12% above a threshold. There is no separate income tax on foreign-source income of non-resident entities, and no tax on overseas investment income for non-residents. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 0%No capital gains tax for non-resident entities; there is no standalone capital gains tax regime for individuals. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | None |
| Social security | No VAT or sales tax currently. Employers and employees pay social security contributions. A 10% withholding applies to payments for services to non-residents performed locally. Official plans to replace the gross revenue tax with a VAT and a profits tax are being phased in. |
Forming a company in Marshall Islands
| Usual entity | Non-resident domestic corporation (BCA) or LLC |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,000–$3,000 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Very hard |
Residency and visas
The Marshall Islands has no golden visa or digital nomad visa, and permits for foreigners are tied to local employment. Under the Compact of Free Association, Marshallese citizens can live and work in the US, but citizenship is not for sale.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Taxes for individuals living in Marshall Islands
The Marshall Islands has no income tax on investment or foreign-source income; only wages earned locally are taxed. The islands matter for the companies you form there, and your home country may still tax you.
| Foreign income of residents | Not taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%No inheritance or estate tax. |
| Wealth tax | No |
| Annual property tax on your home | No |
| Exit tax when you leave | No |
| When you become tax resident | Wage tax applies based on where work is performed, not on a day-count residency test. |
Special tax regimes
Non-resident domestic entities
A Marshall Islands corporation or LLC that does not do business in the islands is exempt from corporate, withholding and gross revenue taxes. It must keep a registered agent and office in the islands and file an economic substance report if it carries out a relevant activity.
DAO LLC
A 2022 law lets decentralised autonomous organisations register as Marshall Islands LLCs, with legal personality and limited liability for crypto and Web3 projects.
Ship registry
The Marshall Islands registry is one of the largest in the world; shipowners use non-resident domestic corporations to hold single vessels.
Pros and cons
Why founders pick Marshall Islands
- 0% tax for non-resident domestic entities with no local business
- DAO LLC legal framework
- Fast online incorporation, no public ownership register
- US dollar and a modern corporate law based on Delaware
Watch out for
- Banking for Marshall Islands entities is hard
- Not suited to US-owned vehicles because US tax rules still apply
- Economic substance and reporting rules apply
- Few residency options and a tiny local economy
Best for: Shipping companies holding vessels · DAOs and crypto projects needing a legal wrapper · Holding companies for non-US owners who need a zero-tax entity
Marshall Islands: common questions
What is the corporate tax rate in the Marshall Islands?
0% for non-resident domestic corporations that do not conduct business in the islands. Resident companies pay a 3% gross revenue tax on revenue above US$10,000, rather than a tax on profits.
Is the Marshall Islands a tax haven?
It is widely regarded as an offshore company jurisdiction, because non-resident entities pay no local tax. It is not on the EU's Annex I blacklist, having been removed in 2023.
How do I register a company in the Marshall Islands?
Use a registered agent to file with the Registrar of Corporations. A non-resident domestic corporation needs one director, a registered agent and a registered office in the islands, and can usually be formed in a few days.
What is a Marshall Islands DAO LLC?
A legal form created by the DAO Act of 2022 that lets decentralised autonomous organisations register as LLCs with limited liability. It is used by crypto projects looking for legal recognition outside the US.
Do non-resident corporations in the Marshall Islands pay tax?
No Marshall Islands tax on foreign income, but you may owe tax where you live or where the company is managed from. US persons face US reporting and attribution rules regardless of the Marshall Islands exemption.
Sources
- Marshall Islands Registrar of Corporations / International Registries
- Council of the EU: list of non-cooperative jurisdictions
- Marshall Islands Revenue, Customs and Taxation
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.