Stateless

Timor-Leste

TL USD$ Portuguese
Pros
Low corporate tax rates and simplified fiscal regime for small businesses
Untapped market potential in tourism and natural resources with minimal regulatory hurdles
High degree of personal freedom and a relaxed lifestyle in a developing coastal nation
Cons
Pervasive corruption and weak judicial systems for contract enforcement and property rights protection
Inadequate infrastructure with unreliable power grids and limited high-speed internet connectivity
Heavy economic reliance on state-managed oil funds and volatile government spending

Long story short: The state will never hassle you over taxes: it lives off oil money, not your business, and the local tax office has neither the means nor the will to check on you. The flip side: the administration crawls at a snail's pace, property titles are a genuine mess, and without a local network, you'll rot for months in paperwork.

Beyond that: Dili and its posh neighborhoods stay quiet, the local banking system is skeletal, roads crumble outside the capital, but grilled fish, coffee, and landscapes stretching from mountains to reefs are well worth the trip.

VERYLOW TAX 8.1/10 HOLDING 2.2/10 DIVIDENDPIPELINE 1.7/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 7.3/10
─ On this page
01 Will Timor-Leste tax what you earn? 02 Will Timor-Leste tax what you own? 03 Is it easy to run a company in Timor-Leste? 04 Is Timor-Leste good for your holding company? 05 What does it cost to come and go from Timor-Leste? 06 Is your money watched in Timor-Leste? 07 Is Timor-Leste itself a liability? 08 Will you feel free in Timor-Leste? 09 Is Timor-Leste connected to the rest of the world?

Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
Timor-Leste taxes income lightly (top rate 10%), and the residency test won't jump you in a dark alley.

The pressure is readable, the rules play fair, and nobody's hunting for an excuse to claim you.

01.1 Income tax
Personal income tax
0 → 10%
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De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 2 brackets
Bracket (USD)Rate
0 – 6,000exempt
6,000 +10%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
Economic interest
does not exist here
Family centre
does not exist here
Habitual abode
does not exist here
Extended-stay test
does not exist here
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Timor-Leste takes a light trim on capital gains (10% at the top), with no annual wealth levy and no inheritance regime.

Your portfolio compounds with barely any friction; the state only shows its face when you sell. And even then, politely.

02.1 Investment income
Capital gains
10%
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De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesprogressive
Bracket (USD)Rate
0 – 6,000exempt
6,000 +10%
Dividend tax
0%
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De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
10%
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De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesprogressive
Bracket (USD)Rate
0 – 6,000exempt
6,000 +10%
02.2 Wealth & estate
Wealth tax
NONE
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De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesno annual wealth tax · no real-estate wealth tax · no net-worth assessment
Inheritance system
NONE
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De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
UNREGULATED
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesFallback rate: 10% · Timor-Leste has no specific cryptocurrency legislation. Under the Taxes and Duties Act 2008, residents are taxed on worldwide income, which is broadly defined as any increase in economic capacity. Individual residents are subject to a 10% tax rate on annual income exceeding $6,000 USD. The Banco Central de Timor-Leste (BCTL) has issued public warnings stating that virtual currencies are not legal tender and are unregulated, but they are not explicitly banned for personal holding.
Crypto-to-crypto
TAXABLE
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentaireseach swap counts as a disposal — gains realised at every trade
FATF travel rule
NOT SIGNED
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De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairesno information-sharing obligation on VASP transfers

Easy to run a company there?

Long story short: YES.
Corporate tax in Timor-Leste sits at a low 10%, VAT included in the good mood. Setting up and running a company is cheap; whatever ends up killing your venture here, it won't be the tax bill.

03.1 Rates
Corporate tax
10%
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De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesflat
VAT standard rate
0%
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De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentaires2 distinct tiers in force
0%5%
Food & drink
0%
food
0%
non-alcoholic
0%
alcohol
Print media
0%
books
0%
ebooks
0%
newspapers
Culture
0%
cultural events
0%
cinema
0%
theatre
0%
museums
0%
sports
Transport
0%
public transit
0%
rail
0%
air
Hospitality
5%
hotels
5%
restaurants
5%
takeaway
Health
0%
pharma
0%
medical dev.
Energy
0%
electricity
0%
natural gas
0%
district heat.
0%
domestic fuel
Utilities
0%
water
0%
waste
Clothing
0%
kids clothing
Digital & telecom
0%
digital
5%
telecom
0%
broadcast
Construction
0%
construction
0%
social housing
Agriculture
0%
farm inputs
0%
animal feed
Personal services
0%
funeral
0%
hairdressing
03.2 Regime & registry
IP Box · Patent Box
NONE
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De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairesno IP regime · IP income taxed under standard corporate rules
Misuse of corporate assets
NO CRIMINAL
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De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairesno criminal liability · Timor-Leste's legal system, based on the Commercial Code (Decree-Law 4/2004) and the Penal Code (Decree-Law 19/2009), does not include a specific criminal offense for the 'Misuse of Corporate Assets' (Abuso de Bens Sociais). While the company is a separate legal entity, general property crimes such as 'Infidelity' (Art. 252 of the Penal Code) require the intent to cause 'important property damage' to the interests of another. In a scenario involving a sole shareholder and a solvent company, the lack of a specific statute means the act is treated as a civil breach of fiduciary duty (Articles 164-167 of the Commercial Code) or a tax irregularity rather than a criminal matter.
Shareholders privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesServiço de Registo e Verificação Empresarial (SERVE)
Directors privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesServiço de Registo e Verificação Empresarial (SERVE)
03.3 Incorporation cost
In this country, the most standard company form is called Sociedade por Quotas (Lda) (Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only.
SERVE Government Registration Fee
USD 0
Professional Incorporation & Legal Service Fees
USD 2,000
Notarization and Translation of Corporate Documents
USD 200
Total
USD 2,200

A good fit for a holding?

Long story short: NOT REALLY.
Timor-Leste is a structurally weak holding base: a measly 1 treaties and no participation exemption to soften the domestic layer.

Cross-border dividends get clipped at every step of the journey. Keep walking.

04.1 Substance & exemptions
Territorial · individuals
WORLDWIDE
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De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesworldwide income taxation regardless of source
Territorial · corporates
WORLDWIDE
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Source et informations complémentairesworldwide corporate taxation
Participation exemption
NONE
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De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentairesno dividend participation exemption regime
CFC rules
NONE
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De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesno controlled foreign corporation regime · foreign-source corporate income out of scope
04.2 Withholding tax · non-resident
WHT · dividends
10%
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De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
10%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
10%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
NONE
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Source et informations complémentairesno punitive rate on record
04.3 Treaty network
Treaties signed
1
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De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
—
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Source et informations complémentairesin negotiation
Tax treaty network
origin · TL 0% > 0% no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with TL.
Country Status Dividends Interest Royalties
∅ // no treaties match
treaties /

Easy to come and go?

Long story short: SOME.
Timor-Leste taxes your worldwide income while you're resident, but at least the exit is free: no exit tax on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

05.1 Exit & dual nationality
Exit tax
NONE
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De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
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Source et informations complémentairesnaturalisation requires renouncing existing citizenship
05.2 Citizenship paths
Residence
10 years
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Source et informations complémentairesavailable path to naturalisation
Marriage
5 years
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Source et informations complémentairesavailable path to naturalisation
Birth
jus soli
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Source et informations complémentairesavailable path to naturalisation
Descent
—
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Source et informations complémentairesnot available
Investment
—
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Source et informations complémentairesnot available

Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in Timor-Leste: it has signed few exchange frameworks.

But the corporate registries are public: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

Multilateral reporting frameworks 0/9 active
CRS
—
CARF
—
FATCA
—
MLI
—
BEPS
—
MAAC
—
GLOBAL FORUM
—
EOIR
—
CRYPTO TRAVEL RULE
—

Is it blacklisted?

Long story short: NO.
Timor-Leste sits on no major blacklist, though it's outside the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

Blacklist exposure Clear everywhere
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short: PARTLY.
Timor-Leste sits in the middle band of the RSF press-freedom index (rank #39): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

08.1 Press freedom
Press freedom · RSF index
39/180
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De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Source et informations complémentairesscore 71 · ↓ 19 ranks year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
eCentavos
Enhance transparency and traceability of transactions, offer tools to reach underserved populations, and support evolution of the country’s digital economy.
Banco Central de Timor-Leste
 RESEARCH — announce →
programs 1

Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in Timor-Leste. Stripe won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. Amazon doesn't deliver either.

Some secondary services run (3/11), but for an online business this is swimming against the current.

Accept payments 1/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 1/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

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