In 2025, the cost of choosing the wrong jurisdiction for an IT company may not only be measured in millions of euros but also in lost scaling opportunities, account blockages, or the inability to attract investments. According to Gartner data, more than 60% of international IT companies have faced payment blocks or banking service refusals due to non-compliance with new compliance and AML requirements. Even more alarming is the statistics on tax burdens: in 2024, the average effective tax rate increase for IT businesses in “unsuitable” jurisdictions amounted to 18% due to the tightening of global information exchange rules (CRS), substance requirements, and CFC.
Why do some IT companies attract venture capital and go public, while others are forced to change their country of registration, losing benefits and reputation? How to choose a country for registering an IT company in 2025 so that the business not only meets international standards but is also prepared for future challenges: from ESG to cryptocurrency regulation?
How to Choose a Jurisdiction for an IT Company
choosing a jurisdiction for a business is a strategic step that affects the tax burden, market access, investment attractiveness, and even the cost of company ownership. COREDO’s practice confirms: there are no universal solutions, but there are clear criteria that allow selecting the optimal country for registering an IT company abroad.
Tax Benefits for IT Companies
In 2025, tax optimization for IT companies goes beyond simply comparing rates. Key significance is given to tax benefits for IT companies (such as incentives for R&D, IP Box regimes), specific tax residency requirements for IT businesses, and double taxation avoidance agreements. It’s important to consider transfer pricing, CFC, and substance requirements, with real presence demands becoming stricter in the EU, the UK, and Singapore.
- The COREDO team has implemented projects where smart structuring accounting for international financial reporting standards (IFRS) and jurisdictional investment attractiveness allowed clients to reduce their tax burden by 20-30% without losing benefits when changing the country of registration.
Compliance and AML for IT Business 2025
Modern IT businesses face growing compliance and AML requirements. Automatic CRS information exchange, KYC/AML procedures, FATF recommendations, and new AML standards demand not only transparency but continuous monitoring. A solution developed at COREDO allows the integration of compliance procedures into the corporate structure, minimizing compliance risks and ensuring adherence to banking and investor requirements in different countries.
Licensing and Regulation of IT, Fintech, Cryptocurrencies
For fintech and crypto companies, Licensing becomes a key factor. In 2025, the best countries for registering a fintech startup offer not only fintech licensing but also access to regulatory sandboxes, simplifying the launch of new products. The COREDO team has supported licensing for cryptocurrency and payment companies in Lithuania, Singapore, Estonia, and UAE, considering legal opinion nuances, capital requirements, and startup visas.
Corporate Structure and Reporting
The corporate structure for international IT projects must be not only flexible but also compliant with corporate reporting, reporting automation, and IFRS standards. It’s important to assess capital requirements, corporate reporting automation capabilities, and the availability of corporate secretarial services. COREDO’s experience shows: efficient corporate governance can reduce service costs and increase investor transparency.
Intellectual Property and GDPR: How to Protect?
Choosing a jurisdiction for an IT company directly affects intellectual property protection, trademark registration, and GDPR compliance. International shareholder rights protection, trademark registration, and data protection become critical for SaaS companies working with clients from the EU and the US. COREDO’s practice confirms: countries with strong IP protection systems and transparent data regulations ensure long-term sustainability and attractiveness for investors.
Best Jurisdictions for IT Companies
In 2025, registering a company in Europe, Asia, or Africa requires deep analysis not only of tax rates but also of substance requirements, banking infrastructure, investment attractiveness, and the reputation of the jurisdiction for IT companies. Below is an overview of key areas that the COREDO team works with in practice.
Cyprus, Estonia, Lithuania, Poland, Gibraltar: What to Choose?
- Cyprus – a classic choice for IT companies thanks to its 12.5% corporate tax rate, fintech licensing, and strong banking infrastructure. An important detail: since 2024, substance requirements have been tightened, requiring actual presence and staff on the island.
- Estonia – a leader in corporate reporting automation and a unique taxation system: 0% on undistributed profits. For IT businesses, this means the ability to reinvest income without immediate tax payments. Registering an IT company in Estonia is especially popular among SaaS and startups targeting the EU.
- Lithuania and Poland – attractive for fintech and crypto companies due to transparent regulation, startup visas, and R&D support. COREDO’s experience shows that obtaining a payment or crypto license in Lithuania is possible in an average of 4-6 months.
- Gibraltar, known as a “crypto jurisdiction,” but requires thorough Due Diligence and readiness for high compliance demands.
Singapore, Hong Kong, UAE, Turkey: Comparison
- Singapore, one of the world leaders in fintech licensing and banking infrastructure. Minimal authorized capital, just 1 USD, but substance requirements and local director demands are quite strict. Regulatory sandboxes for fintech startups are actively developed in Singapore, and opening a bank account is possible only with full transparency of structure and business processes.
- Hong Kong: retains the status of an international financial center. However, since 2024, AML/KYC requirements and CRS automatic exchange information have tightened. For IT companies working with cryptocurrencies, licensing and data protection nuances are relevant.
- UAE: attractive low corporate tax rate (9%), registration possibilities in free economic zones, and a developed banking infrastructure. Here it’s important to consider high substance requirements and specifics of cryptocurrency regulation.
- Turkey, becoming increasingly popular for IT companies due to flexible conditions for startups and growing innovation support.
Offshores in Africa: Seychelles, Belize, Panama
Jurisdiction Table for IT Companies 2025
| Jurisdiction | Corporate Tax | Substance Requirements | AML/KYC | Fintech Licenses | GDPR | Registration Cost | Banking Infrastructure |
|---|---|---|---|---|---|---|---|
| Cyprus | 12.5% | Medium | High | Yes | Yes | Average | Strong |
| Singapore | 17% | High | High | Yes | No | High | Strong |
| Estonia | 0% (reinvest) | Medium | High | Yes | Yes | Low | Medium |
| UAE | 9% | High | Medium | Yes | No | High | Strong |
| Seychelles | 0% | Low | Medium | No | No | Low | Weak |
Registration and Support of IT Companies Abroad
Registering an IT company abroad: it’s not just about choosing the country, but also a set of procedures: from opening a bank account to setting up compliance and corporate governance. COREDO’s practice shows: success depends on a systematic approach and professional support at all stages.
Open an Account in an International Bank
In 2025, opening a bank account abroad requires not only full KYC/AML compliance but also having substance: a real office, employees, and a transparent structure. This is especially relevant for opening an account for an IT company in the EU, where banks conduct deep due diligence and ask for proof of business activity. Solutions developed at COREDO allow speeding up the process by preparing a full package of documents and preliminary agreements with banks.
Legal business support
International legal support: key to minimizing risks and optimizing costs. Corporate secretarial services, reporting automation, preparation of legal opinions, and setup corporate governance allows IT companies to focus on development, not bureaucracy. COREDO’s experience has shown: timely implementation of compliance procedures reduces the probability of account blockage and fines by 3-5 times.
Changing Jurisdiction: Risks and Consequences
Exit strategies and changing the country of registration require thorough preparation. It’s important to consider the risks of losing preferential taxation, automatic information exchange, and potential consequences for cross-border M&A. COREDO’s practice confirms: only a comprehensive analysis of long-term consequences allows maintaining investment attractiveness and minimizing costs when changing jurisdictions.
Choosing a Jurisdiction for an IT Company in 2025
Choosing a jurisdiction for an IT company in 2025 becomes one of the key strategic tasks for technology businesses. In the context of globalization and rapid ICT sector development, the right country registration directly affects growth opportunities, international collaboration, and access to funding.
How to Choose a Country for Registering an IT Company
- Conduct due diligence for each jurisdiction: assess tax burden, substance requirements, and the country’s reputation.
- Check for fintech licenses, AML/KYC requirements, and the possibility of opening a bank account.
- Compare registration costs, corporate reporting requirements, and banking infrastructure availability.
- Evaluate intellectual property protection, GDPR compliance, and R&D support programs.
- Engage an expert for preparing legal opinions and assessing long-term risks of jurisdiction change.
Common Mistakes When Choosing a Jurisdiction for IT Business
- Ignoring substance requirements and real presence demands.
- Underestimating compliance risks and CRS automatic information exchange.
- Choosing a country without considering long-term tax and investment access consequences.
- Errors in the structure of corporate governance and reporting.
- Lack of an exit strategy and assessment of risks of losing benefits when changing jurisdiction.
Registering IT Companies Abroad: Trends 2025–2027
If your goal is long-term success in the international market, choose your jurisdiction consciously, based on deep analysis and professional support. The COREDO team is always ready to be your partner on this path, offering solutions proven by practice and adapted to future challenges.