Yemen

Last update: 2026-05-25

YE YER﷼ Arabic

Pros
Absence of effective central regulation for maximum operational autonomy
Minimal tax enforcement and lack of bureaucratic oversight for informal business activities
Decentralized power structures with opportunities for local-level negotiation and private governance

Cons
Extreme physical security risks from persistent civil war and regional instability
Systemic corruption and extortion by various armed groups and competing authorities
Severely damaged infrastructure with restricted access to reliable energy, transport, and digital connectivity

Personal income

NONE

Corporate

NONE

Capital gains

NONE

VAT (standard)

NONE

i 2 CRYPTO HAVEN

i 2 PRIVACY GRADE

i 1.5 VERY LOW TAX

i 0.9 EASY CITIZENSHIP

i 0.8 HOLDING

i 0 DIVIDEND PIPELINE

─ On this page

01 Will Yemen tax what you earn? 02 Will Yemen tax what you own? 03 Is it easy to run a company in Yemen? 04 Is Yemen good for your holding company? 05 What does it cost to come and go from Yemen? 06 Will Yemen protect your privacy? 07 Is Yemen itself a liability? 08 Will you feel free in Yemen?

01/08

Will Yemen tax what you earn?

●income tax ●tax residency ●territorial system

NO. Yemen 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.

Personal income taxi

NONE

no personal income tax framework

Income simulatori

N/A

no income tax framework — nothing to simulate

Tax residence testi

N/A

no formal tax residency test · matters mainly for citizenship / immigration tracks

02/08

Will Yemen tax what you own?

●capital gains ●wealth tax ●inheritance ●dividends ●interest

NO. Yemen 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.

Capital gainsi

NONE

no capital gains regime

Dividend taxi

NONE

no dividend tax

Interest incomei

NONE

no interest income tax

Wealth taxi

NONE

no annual wealth tax · no real-estate wealth tax · no net-worth assessment

Crypto · tax regimei

Regime

UNREGULATED

Fallback rate

15%

The Central Bank of Yemen (CBY) has issued circulars (notably in 2018 and 2024) prohibiting banks and financial institutions from dealing with cryptocurrencies, effectively banning them from the formal financial system. There is no specific crypto tax legislation; however, under General Income Tax Law No. 17 of 2010, any income or gain is technically subject to progressive taxation (max 15% for individuals, 20% for business activities). Enforcement is currently non-existent due to the ongoing conflict and split administration.

Crypto-to-cryptoi

TAXABLE

each swap counts as a disposal — gains realised at every trade

FATF travel rulei

NOT SIGNED

no information-sharing obligation on VASP transfers

Inheritance systemi

NONE

no 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.

03/08

Is it easy to run a company in Yemen?

●corporate tax ●criminal liability ●public registry ●VAT ●IP box

YES. Yemen 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.

Corporate taxi

NONE

no corporate income tax framework

IP Box · Patent Boxi

NONE

no IP regime · IP income taxed under standard corporate rules

Misuse of corporate assetsi

CRIMINAL LIABILITY

Article 319, Paragraph 4 of the Commercial Companies Law (Law No. 22 of 1997)

Yemen follows the civil law principle of the 'Autonomy of the Legal Entity.' Under Article 319 of the Commercial Companies Law, any manager or director who uses company funds or credit for personal purposes in bad faith is subject to criminal penalties, including imprisonment for up to two years. Because the company is a separate legal person, a sole shareholder can technically be found guilty of misusing the company's assets even if they own 100% of the shares. While prosecution is rare in solvent, single-owner scenarios without a complaint from creditors or tax authorities, the legal framework classifies the act as a criminal offense rather than a purely civil matter.

Shareholders privacyi

PRIVATE

Commercial Register (Ministry of Industry and Trade)

Directors privacyi

PRIVATE

Commercial Register (Ministry of Industry and Trade)

Incorporation costi

Limited Liability Company (LLC)

شركة ذات مسؤولية محدودة

Ministry of Industry and Trade Registration Fee USD 63

Publication in the Official Gazette USD 126

Publication in the Trade Magazine USD 84

Publication of Trade Registration USD 84

Trade Registration Card and Administrative Fees USD 4

Professional Legal and Incorporation Services USD 2,096

Total USD 2,457

VAT standard ratei

NONE

no general VAT · no consumption tax framework

04/08

Is Yemen good for your holding company?

●treaty network ●participation exemption ●withholding

NOT REALLY. Yemen is structurally weak as a holding base: only 7 treaties signed and no participation exemption to soften the domestic layer. Cross-border dividend flows will leak value at every step.

Territorial systemi

Individuals

WORLDWIDE

Corporates

WORLDWIDE

Individuals: worldwide income taxation regardless of source. Corporates: worldwide.

Participation exemptioni

NONE

no dividend participation exemption regime

CFC rulesi

NONE

no controlled foreign corporation regime · foreign-source corporate income out of scope

WHT · dividendsi

—

no withholding on outbound dividends

WHT · interest

—

no withholding on outbound interest

WHT · royalties

—

no withholding on outbound royalties

Tax-haven WHT

—

no punitive rate on record

Treaties signedi

active

Treaties pending

in negotiation

Tax treaty networki

origin · YE 0% > 0% no treaty

⌖

Inspect a country

Hover any country on the map to read its withholding-tax treaty with YE.

Country	Status	Dividends	Interest	Royalties

∅ // no treaties match

05/08

What does it cost to come and go from Yemen?

●exit tax ●territorial system ●dual citizenship

SOME. Yemen 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.

Exit taxi

NONE

no triggers active · residence change tax-free · no deemed-disposal mechanism

Dual citizenship

FORBIDDEN

naturalisation requires renouncing existing citizenship

Citizenship paths

○ Residence

○ Marriage

● Birth

● Descent

○ Investment

06/08

Will Yemen protect your privacy?

●info exchange ●corporate registries

YES. Yemen 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.

Multilateral reporting frameworks 0/10 active

CRS

—

CARF

—

FATCA

—

MLI

—

BEPS

—

MAAC

—

GLOBAL FORUM

—

EOIR

—

CRYPTO-CARF

—

CRYPTO TRAVEL RULE

—

07/08

Is Yemen itself a liability?

●blacklists ●FATF standing

SOMEWHAT. Yemen 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.

Blacklist exposure Listed by 2 authorities

FATF

grey / black list

non-cooperative list

FRANCE

ETNC list

SPAIN

tax-haven list

PORTUGAL

favourable regimes

BRAZIL

low-tax list

08/08

Will you feel free in Yemen?

●press freedom ●crypto ●CBDC ●EU

NO. Press freedom in Yemen is restricted (RSF rank #154). 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.

Press freedom · RSF indexi

154/180

score 31 · · 0 rank year-on-year

Central bank digital currencyi

Program	Status	Cross-border	Sources
Yemen CBDC Central Bank of Yemen	RESEARCH	—	announce →

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Yemen. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.

South Sudan SS → Syria SY → Haiti HT →

NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

St. Martin MF → St. Pierre & Miquelon PM → San Marino SM →