What are the best tax havens in the world? Again, the United States overtakes Switzerland. Here are the advantages offered by safer countries were to transfer capital and pay fewer taxes.
We return to talking about tax havens and the desire to know which countries are paid fewer taxes. But, unfortunately, real havens where companies and individuals move capital, found offshore, enjoy banking secrecy and negligible taxes, are renewed in some cases nonexistent.
The topic is now on the lips of the international media following the release of the Tax Justice Network report, which published its Financial Secrecy Index updated to 2020.
The independent network, specialized in the research, analysis, and protection of tax and financial regulation at an international level, has made known its ranking of the “best” tax havens in the world, taking into account the index of financial secrecy, which captures the level of secrecy of the legal and financial system useful, for those who need it, to recycle and defend their Money from the erosion of the tax authorities.
To make the news, however, it is not the presence of the usual Cayman Islands, Hong Kong, or Luxembourg, but the second place assigned to the United States, capable of avoiding the relative importance of Switzerland, composing the following ranking themed tax havens:
#COUNTRYSCORELEVEL OF SECRECY
1 Cayman Islands 1575.19 76.08
2 United States 1486.96 62.89
3 Swiss 1402.1 74.05
4 Hong Kong 1035.29 66.38
5 Singapore 1022.12 64.98
6 Luxembourg 849.36 55.45
7 Japan 695.59 62.85
8 Holland 682.2 67.4
9 British Virgin Islands 619.14 71.3
10 United Arab Emirates 605.2 77.93
The 10 “best” tax havens
Accounts abroad, shell companies, tax havens could also be questionable expedients. Still, there are legal methods that companies and individuals can avoid paying the very high taxes required by their country.
For single individuals, the best tax havens offer very low or even zero taxes on personal income, interest, capital gains, and so on. At the same time, corporations can save billions in taxes by recording profits in an offshore company based in a tax haven. And not only.
Among all, here are the 10 best tax havens, the countries that in the world offer the most advantageous conditions to escape the burden of taxation present in your country of origin, by Insurance noon on proposed tax rates, the quality of the local banking offer, legislation on foreign capital and the local presence of specialized companies.
- Cayman Islands
- Isle of Man
Luxembourg is a small European country bordering Belgium, France, and Germany with a population of 550,000. It is a tax haven because it enforces business-friendly legislation that allows companies to save billions in taxes.
Amazon, for example, has its European headquarters in Luxembourg and passed all earnings from sales made in Europe through its office in Luxembourg. The e-commerce giant was pushed to abandon the practice and have localized branches manage the sale. This could lead to a large increase in the company’s tax burden.
Amazon changed its management after the European Union opened an investigation into the tax evasions of this and other companies.
2) the Cayman Islands
The Cayman Islands are most likely the best-loved and best-known tax haven in the world.
The Caymans are a few countries with several laws that allow a company to be founded and maintained without paying taxes. Therefore, if the company exists for business reasons, it is perfectly legal and not tax evasion. However, enjoying the tax advantages and managing the red tape are quite complex tasks that require the help of a professional.
The tax savings could be worth it, as many European and US companies have assets in the Cayman Islands.
3) Isle of Man
The Isle of Man is a ” low-tax financial center” due to the absence of capital gains, inheritance, corporation, or stamp duty. The island, located between England and Ireland, also charges a very low-income tax. The maximum rate reaches 20% for a maximum total of about 150,000 euros.
The Isle of Man also offers some attractive benefits on the pension front. For example, many international companies have employee pension plans held in open accounts in this small country thanks to liquidity protection and the ability to retire from 50.
Up the sleeve between the UK and France, Jersey Island’s tax haven originates in the mid-20th century, when many wealthy Brits decided to move their assets into the island.
Britain’s inheritance tax on amounts over £ 1 million was 80%, while the self-governed island of Jersey had none.
There is still no inheritance or capital gains tax; Jersey has a standard corporate tax rate of 0% – except taxes on financial services, utilities, and real estate companies. All of this has made the island of Jersey a very popular tax haven in the UK, where $ 5 billion worth of assets is held every square mile.
Ireland is often referred to as a tax haven, despite the Irish government loudly denying it.
One Irish-based giant is Apple, which has made over $ 180 billion in offshore profits through its international subsidiaries, thus avoiding paying $ 59.2 billion in US taxes.
Mauritius, in the Indian Ocean off the coast of Madagascar, welcomes numerous foreign investments, especially those directed towards India.
Among the mega-companies that own subsidiaries in Mauritius are JP Morgan Chase, Citigroup, and Pepsi.
In Mauritius, companies are taxed at 15%, but fiscally resident companies can take advantage of tax breaks granted through agreements. Furthermore, Mauritius’s capital gains and interest are not taxable, which makes the island a very attractive tax haven.
Bermuda has been a tax haven for years.
Entrepreneurs and companies that transfer their capital to this country can benefit from banking secrecy, making it even illegal for Bermuda banks to disclose details about the identities of account holders. Large companies are also attracted to Bermuda due to low taxation, including no corporate tax.
Monaco has a size of 2.02 km² and 36,000 residents.
The small Principality offers enormous advantages: it has not taxed the income of residents since 1869. Anyone who can prove Monaco is their country of residence can keep all their Money without paying a euro in taxes.
The context has attracted some of the richest people in the world: one in three residents is a millionaire. Monaco’s popularity as a home for the super-rich has made the country’s real estate market the most expensive in the world. For businesses, taxes are very low.
In Switzerland, the combination of low taxes and a system that maintains banking secrecy on the names of account owners has made the European country a great tax haven.
Switzerland is a very popular financial center for individuals and companies. Geneva, the capital of the canton of the same name, is the 13th largest financial center globally and one of the most established.
10) the Bahamas
The Bahamas is another of the best tax havens globally, thanks to the absence of capital gains taxes, inheritance taxes, personal income taxes.
These are all extremely advantageous conditions for the wealthy, especially for older adults who want to limit the levels of taxation on their inheritance.