North Korea
| Pros |
|---|
| Official abolition of direct taxation since 1974, offering a unique, albeit theoretical, tax-free environment. |
| Extremely low rates of street crime and theft due to pervasive state monitoring and strict enforcement. |
| Untapped market potential and lack of competition in a completely closed, resource-rich economy. |
| Cons |
|---|
| Absolute state ownership of land and resources, preventing any meaningful private property or individual enterprise. |
| Pervasive systemic corruption requiring constant informal payments to officials for basic operational survival. |
| Total absence of civil liberties, internet access, and freedom of movement for entrepreneurs and employees. |
Will North Korea tax what you earn?
NO. North Korea doesn't tax personal income, and doesn't reach for you when you settle. No withholding, no return, no centre-of-vital-interests test waiting to trip. Salary is a non-event here, both in the rate and in the paperwork.
Will North Korea tax what you own?
NO. North Korea doesn't tax what you hold. No capital gains, no annual wealth assessment, no inheritance regime. The value sitting in your portfolio compounds untouched, and leaves it the same way it arrived.
Is it easy to run a company in North Korea?
YES. North Korea has no corporate income tax, but treats misuse of corporate assets as a criminal offense. Even as sole shareholder, using company funds for personal purposes can trigger prosecution; your own consent doesn't waive the offense. Registries are non-public, so at least your name stays off the public web. Fiscal calm, legal discipline.
Is North Korea good for your holding company?
NO. North Korea doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
What does it cost to come and go from North Korea?
SOME. North Korea taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.
Will North Korea protect your privacy?
YES. North Korea has joined almost none of the major automatic-exchange frameworks (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are non-public. Account flows stay out of foreign hands; ownership stays out of public ones. Discretion is built into the system.
Is North Korea itself a liability?
SOMEWHAT. North Korea is flagged by one or two national tax authorities and sits outside FATF membership. Selective friction: anti-abuse rules trigger on transactions in specific corridors, and counterparties tend to ask more questions.
Will you feel free in North Korea?
NO. Press freedom in North Korea is restricted (RSF rank #179). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.
Other jurisdictions worth comparing
Picked by similarity of strategic profile to North Korea. No editorial ranking — neighbours in the same scoring space.