Best Countries for Entrepreneurs to Start a Business (2025)
Where to bootstrap your startup with maximum runway. Real costs, tax benefits, and visa requirements for indie hackers, solopreneurs, and bootstrapped founders.
TL;DR - Best Countries for Bootstrapped Founders
- Best Overall Value: Paraguay - $800-1,500/mo, 0% foreign income tax, easiest residency
- Best for EU Access: Portugal - startup visa, tech community, but expensive
- Fastest Setup: Georgia - 1-year visa-free, company in 1 day, low costs
- Best Nomad Scene: Thailand - huge community, cheap food, visa complexity
- Best US Timezone: Paraguay (EST) or Mexico (CST/PST)
The Runway Calculation: Why Location Matters
For bootstrapped founders, your runway is everything. The math is simple: lower monthly burn = more months to find product-market fit. Moving from a high-cost city to an affordable country can extend your runway 2-4x.
$50,000 Savings: How Long Does It Last?
Paraguay's combination of low costs + 0% foreign income tax gives you 3x+ the runway of a US city.
More months to iterate, pivot, and find customers. Less pressure to raise funding or get a job.
In territorial tax countries, your online revenue from foreign clients is completely tax-free.
Serving US customers? Paraguay is on Eastern Time. Europe? Portugal or Georgia work better.
Country-by-Country Breakdown
Paraguay
Best ValueBootstrappers wanting maximum runway
- Lowest cost of living
- 0% foreign income tax
- Easiest residency (no income req)
- US timezone friendly
- 3-year path to citizenship
- Limited international flights
- Spanish helpful
- Developing infrastructure
- Smaller expat community
Portugal
EU market focus, community seekers
- Startup visa program
- EU market access
- Large tech community
- English widely spoken
- Great quality of life
- Getting expensive (Lisbon)
- NHR tax regime ended
- Slow bureaucracy
- High rent in major cities
Georgia
Quick setup, Europe-adjacent timezone
- 1-year visa-free (most passports)
- Very fast company setup
- Low cost of living
- Growing tech scene
- Geopolitical concerns
- Cold winters
- Limited banking for foreigners
- Small market
Thailand
Asia market, established nomad scene
- Huge nomad community
- Great food and weather
- Cheap daily life
- Easy flights to Asia
- Visa complexity
- Tax rules changing 2025
- Far from US/EU
- Language barrier
Mexico
US timezone, frequent US travel needed
- Easy US access
- Great timezone for US clients
- Large expat communities
- Good infrastructure
- Tax residency rules strict
- CDMX getting expensive
- Safety varies by area
- Crowded nomad spots
Estonia
EU company structure, digital-first founders
- e-Residency for EU company
- Fully digital government
- Strong startup ecosystem
- EU banking access
- Cold climate
- Higher living costs
- Small local market
- e-Residency ≠ tax residency
Quick Comparison
| Country | Monthly Cost | Foreign Tax | Residency | Timezone |
|---|---|---|---|---|
| 🇵🇾 Paraguay★ | $800-1,500 | 0% | 3-6 months | US Eastern |
| 🇵🇹 Portugal | $1,800-2,800 | 0-20% | 2-6 months | European |
| 🇬🇪 Georgia | $800-1,200 | 0% | 1 day (1yr visa-free) | Europe/Asia bridge |
| 🇹🇭 Thailand | $1,000-1,800 | Complex | Visa runs or Elite ($5k+) | Asia |
| 🇲🇽 Mexico | $1,200-2,200 | Complex | 6-month tourist, temp residency available | US Central/Pacific |
| 🇪🇪 Estonia | $1,500-2,500 | 0% on retained, 20% distributed | Digital Nomad Visa or e-Residency | European |
Which Country is Right for You?
Choose Paraguay if you...
- • Want maximum runway on limited savings
- • Serve US/Americas clients (EST timezone)
- • Value easy residency with no income requirements
- • Want 0% tax on foreign income, legally
- • Plan to stay 1-3+ years and want citizenship path
- • Don't need a big expat/nomad scene
Choose Portugal if you...
- • Want EU market access
- • Value a strong startup/tech community
- • Have a higher budget ($2,500+/month)
- • Prefer European timezone
- • Want English widely spoken
- • Qualify for the startup visa
Choose Georgia if you...
- • Need quick setup (visa-free 1 year)
- • Want low costs with European feel
- • Serve EU/Middle East clients
- • Can handle cold winters
- • Don't need strong banking options
- • Want to register a company in 1 day
Choose Thailand if you...
- • Want a large established nomad community
- • Serve Asian/Australian clients
- • Prefer tropical climate and food
- • Can navigate visa complexity
- • Want cheaper daily living than Lisbon
- • Don't need formal tax residency
Why Paraguay Wins for Bootstrapped Founders
Paraguay is the best-kept secret for bootstrapped entrepreneurs. While everyone talks about Lisbon or Bali, Paraguay offers something they don't: maximum runway with legal tax benefits and a real path to residency.
Nice apartment, food, utilities, coworking. 72% cheaper than NYC.
Territorial tax system. Your SaaS revenue from US clients? Tax-free.
No income requirements. No investment minimums. Just documents and ~$1,500.
Same hours as NYC. Perfect for US clients and async Europe.
Sample Monthly Budget - Asunción
Getting Started: Practical Steps
Step 1: Choose Your Base
Consider: timezone for your customers, visa/residency ease, cost of living, tax treatment, and personal preferences (climate, language, community).
Pro tip: Start with a 1-3 month trial before committing to residency.
Step 2: Set Up Your Business Structure
Many bootstrappers keep a US LLC (Wyoming, Delaware) for credibility and payment processing, while living in a territorial tax country. Your LLC income passes through to you personally.
Pro tip: Consult a cross-border tax professional. This is complex and varies by citizenship.
Step 3: Establish Residency
For tax purposes, you typically need to establish formal residency. In Paraguay, this takes 3-6 months and ~$1,500. In Georgia, you can stay 1 year visa-free while you figure things out.
Pro tip: In Paraguay, you can start the residency process while on a tourist visa.
Step 4: Set Up Your Workspace
Find reliable internet (50+ Mbps minimum), a comfortable workspace (apartment, coworking, or cafe rotation), and establish a daily routine. Most cities on this list have fiber internet available.
Pro tip: Test internet in any apartment before signing. Ask for a speed test screenshot.
Frequently Asked Questions
What is the best country to start a business as a foreigner?
For bootstrapped entrepreneurs, Paraguay offers the best combination: $800-1,500/month living costs, 0% tax on foreign income, easy 3-6 month residency with no income requirements, and US Eastern timezone. Portugal and Georgia are strong alternatives for European timezone, while Thailand offers the lowest costs in Asia but weaker visa options.
What is the cheapest country to start a business?
Paraguay and Georgia offer the lowest total costs for entrepreneurs: $800-1,500/month in Paraguay, $800-1,200/month in Georgia. Both have territorial tax systems (0% on foreign income). Thailand and Vietnam are cheaper for daily living ($600-1,000/month) but require visa runs and have less favorable tax treatment.
Which countries have the best tax benefits for entrepreneurs?
Countries with territorial tax systems offer 0% tax on foreign-sourced income: Paraguay, Panama, Costa Rica, Georgia, UAE, and Hong Kong. For online businesses serving foreign clients, this means your revenue is tax-free. Paraguay combines this with the lowest cost of living and easiest residency among these options.
How much money do I need to start a business abroad?
To bootstrap abroad for 12 months, budget $15,000-25,000 total: $10,000-18,000 for living expenses (depending on country), $2,000-4,000 for residency/visa costs, and $3,000-5,000 for business expenses. In Paraguay, $20,000 gives you 18+ months runway. In Portugal or Thailand, expect 12-15 months.
What are the best countries for indie hackers and solopreneurs?
Top countries for indie hackers: Paraguay (cheapest, 0% tax, US timezone), Portugal (startup visa, EU access, community), Georgia (1-year visa-free, low costs), Thailand (established nomad scene, cheap), and Estonia (e-Residency for EU company). Paraguay offers the longest runway on limited savings.
Can I run a US LLC while living abroad?
Yes. Many entrepreneurs maintain a US LLC (typically Wyoming or Delaware) while living in a territorial tax country like Paraguay. Your LLC income flows through to you personally, and if you're tax resident in Paraguay, that foreign-sourced income is tax-free there. US citizens still owe US taxes but can use the Foreign Earned Income Exclusion.
What visa do I need to start a business abroad?
Options vary by country: Paraguay offers easy temporary residency (no income requirements), Portugal has a startup visa and D7 passive income visa, Georgia allows 1 year visa-free for many nationalities, Thailand requires visa runs or an Elite visa ($5,000+). Most bootstrappers start on tourist visas while applying for residency.
Is it worth moving abroad to start a business?
For bootstrapped founders, absolutely. Moving from a high-cost city to Paraguay can extend your runway 3-4x. $50,000 in savings lasts ~12 months in San Francisco but 3+ years in Asunción. Lower burn rate means more time to find product-market fit, less pressure to raise funding, and less personal financial risk.
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