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I have plenty of clients established in Free Zones worldwide with all kinds of exotic structures, especially in Latin America. They do an immense amount of business, and many of them earn eight figures per year.
Do you have an real live example of what they offer - product / service ? o_O
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And I agree with you, but I think it's difficult for anyone to establish a legitimate business, for example, in the Seychelles if they have German, French, or Swedish customers. We're talking about real customers who are used to shopping in national stores, both online and offline.

Most consumers today check where they are shopping! And business customers do the same. Therefore, I can't see how one would establish anything serious if they set up their company in one of the countries mentioned here.
Yes, but outside Germany, France, Sweden, Switzerland and maybe Japan, it would work. No US company has an "Impressum" that anybody would click.

For offline shops, the Seychelles compant won't help much anyway as you have substance in Germany. But still then, there were enough Swiss companies selling in Germany in offline shops with 5% margin. It makes things more complicated, but you can still keep the goodwill in the Seychelles company.

Nevertheless, I have to point out that creating substantial goodwill in tiny islands is a logistical problem on its own. How will you get the workforce for and equipment for that? It is not like there is a good talent pool, efficient logistics and good supply chains. That's why those islands do not rely that much on taxation. There won't be any cars from Seychelles Motors or somthing.

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