20 years ago tax havens were primarily the instruments for the wealthy seeking to preserve their capital from the greedy tax authorities in their countries of residence. At present, almost anyone with a middle-class income is interested in offshore business and banking. Tax havens have become more universal, and tax rates are no longer the only criterion you rely on to pick a suitable jurisdiction. These offshore countries are living organisms that are constantly changing and developing.
As the choice of a low-tax jurisdiction is not as easy as it was before, you need to analyze more factors before you make a well-informed decision. With that in mind, we would like to invite you to our portal called International Wealth where you will find a more detailed article on offshore tax havens and get access to a knowledge base of articles written by practical specialists who advise people on the best ways to manage their money on a daily basis.
You can also book a session with our advisor to find out all you need to know about offshores and opt for this or that jurisdiction and methods of preserving your assets. We will choose a suitable jurisdiction that will be your tax haven free of charge! We also provide paid services: setting up a company for you, opening a bank account, helping with accounting or tax optimization, assistance in obtaining a second passport, and much more. Click on the link above to discover what we can do for you!
Tax Havens: Introduction
This is a well-known fact that tax havens are often blacklisted or greylisted for failure to comply with international requirements. It happened more often in the past, resulting in a major outflow of customers wishing to start their business or open an account in such insecure countries. As a result, the majority of jurisdictions made an effort to comply with the requirements of international regulators (such as FATF and FATCA) and follow EU directives. It means that zero-taxation jurisdictions are almost extinct, which is compensated by more security they provide.
Zero taxation is no longer regarded as something positive! And neither is a possibility to create some opaque entity that will not completely comply with the laws. Tax evasion is a crime, and you should keep the balance between tax optimization and tax evasion.
We are going to present a few of the best tax havens in our post that you can take advantage of. This is in no way a guide to follow! If you need hands-on assistance, send a message to our experts (use the above link) to discuss a practical solution to your problems.
How to Pick Top Tax Havens?
This was not an easy task as we had to determine the most important criteria we would use to choose the best of the best, and here is a list we finally made up:
- Tax rating. Your assets need to be stored, protected, and diversified. The highest possible score of 100 means that you can enjoy absolute confidentiality, zero taxes, and ample opportunities for tax optimization. However, this is impossible in the present day conditions (it was possible 20 years ago, but not now), which means that tax havens range between 50 and 75 as they can provide sufficient privacy and low tax rates.
- Average monthly rent. The ideal version of a tax haven provides excellent accommodation to wealthy people (used to luxury offers) and company owners who need a sufficient degree of comfort. In a real situation, however, you can usually find an apartment that suits your needs more or less at an affordable price.
- Safety. If you live in the tax haven, you will be interested in the crime rate, quality of roads, and potential weather dangers (like the number of hurricanes that occurred over the past few years). And if you are just a company owner, you will be interested in the level of protection that your legal entity registered here may potentially get.
- Internet connection. Stable high-speed internet connection is a vital factor for the majority of today’s businesses (and it adds comfort for those living in the jurisdiction).
- Climate and beaches. Potential tax residents who want to live in the jurisdiction want to know how good the weather conditions are (some of them prefer eternal summer) and whether there is a beach that can be easily reached. This is a degree of comfort that seems important for the majority of customers, so we included it in the rating.
- Cafes and restaurants. You would probably agree that tasty and varied local cuisine would be an important factor for potential immigrants. Some customers want to have an opportunity to taste the dishes of different countries, and this is an essential aspect, too.
- Business environment. This includes a legal framework, the ease of doing business and company incorporation, privacy level, the number of business structures and organization forms available, and the costs of company maintenance.
We have selected our Top Ten based on these criteria. Some of them may be more important to you, so pay attention to them when you see the figures in the rating. Click on the above link to see the full rating!
Top Three Tax Havens
Let’s look at the winners!
The 3rd place is given to Jersey.
This is a good place for investors. It used to be a zero-tax jurisdiction; at present, however, you will have to pay VAT (5%) and personal income tax (20%). All other taxes, like corporate income tax, withholding tax, or personal income tax, still equal 0%.
The 2nd place is taken by Anguilla.
This is still a zero-tax jurisdiction – one of those few that survived. No VAT, personal income tax, or corporate tax!
And the absolute winner is the Bahamas!
You will still have to pay VAT (12%), but other taxes equal zero. In addition, the jurisdiction offers a lot of legal forms to incorporate.
Click on the above link to read more detailed information on the three winners and on the remaining seven jurisdictions that we rated as top ones. You may have your own criteria – and in this case, you can simply get in touch with our expert and book a session to find a customized solution. Make the first step to moving your capital to a tax haven today!