Global Tax Havens - Invest Offshore

The U.S. National Bureau of Economic Research has suggested that roughly 15% of countries in the world are tax havens, that these countries tend to be small and affluent, and that better governed and regulated countries are more likely to become tax havens, and are more likely to be successful if they become tax havens. In 2010 it was reported that Google uses techniques called the “Double Irish” and “Dutch Sandwich” to reduce its corporate income tax to 2.4%, by funnelling its corporate income through Ireland and from there to a shell in the Netherlands where it can be transferred to Bermuda, which has no corporate income tax.

Andorra – No personal income tax.
Anguilla – A British Overseas Territory and offshore banking centre
Antigua and Barbuda
Aruba
The Bahamas levies neither personal income nor capital gains tax, nor are there inheritance taxes.
Barbados – A ‘Low-tax regime’ not ‘Tax haven’. The government of Barbados sent off a high level note to members of the United States Congress recently in protest of the label “Tax Haven” stating it has the potential to undermine or override the Barbados/United States double taxation agreement. Since appearing on the 2009 OECD/G-20 white-list, the Barbados government began an international ad-campaign to market the country as the only Caribbean country to be included on the white-list.
Belize – No capital gains tax.
Bermuda does not levy income tax on foreign earnings, and allows foreign companies to incorporate there under an “exempt” status. Companies are “exempt” from the local 60/40 ownership laws, and are not offered any special tax status. Exempt companies are also limited from doing local trade and may not hold real estate in Bermuda, nor may they be involved in banking, insurance, assurance, reinsurance, fund management or similar business, such as investment advice, without a license. The island also maintains a stable, clean reputation in the business world. At present, there are no benefits for individuals. In fact, for a non-Bermudian to own a house on the island, they would have to pay a foreign ownership tax of 25% of the purchase value, and minimum of $15,000 a year in land tax alone. They also can only purchase homes of a specific type and high value (over $4 million), so the tax is generally greater than $1 million.
Bosnia and Herzegovina – 10% corporate income tax, 10% income tax, 10% capital gain tax
British Virgin Islands: the 2000 KPMG report to the United Kingdom government indicated that the British Virgin Islands was the domicile for approximately 41% of the world’s offshore companies, making it by some distance the largest offshore jurisdiction in the world by volume of incorporations. The British Virgin Islands has, so far, avoided the scandals which have tainted less well regulated offshore jurisdictions.
Bulgaria – 10% corporate income tax, 10% income tax, 10% capital gain tax
Campione d’Italia an Italian enclave within Switzerland
Cayman Islands
In the Channel Islands, no tax is paid by corporations or individuals on foreign income and gains. Non-residents are not taxed on local income. Local taxation is at a fixed rate of 20% in Jersey, Guernsey, & Alderney and 0% in Sark.
Cook Islands
Cyprus: this jurisdiction has grown recently in popularity and anticipates further future growth. As a jurisdiction Cyprus is in a position to exploit its unusual position as an offshore jurisdiction which is within the EU. 10% corporate tax (0% for shipping companies), 20 – 30% income tax, 20% CGT
State of Delaware a State in the USA which charges no income tax on corporations not operating within the state.
Egypt – 20% corporate income tax, 20% income tax, No capital gain tax
Gibraltar is no longer considered a non-cooperative tax haven since 30 June 2006. No new Exempt Company certificates are being issued from that date.All previous Exempt Company certificates will be ineffective from 2010.
Hong Kong‘s tax rates are low (16.5%) enough that it can be considered a tax haven. Hong Kong does not levy tax on capital gain as well. However, it contains a highly vibrant service economy and its low taxes were not designed to make Hong Kong a tax haven. Hong Kong itself has usually rejected the label. The former financial secretary, Nicholas Haddon-Cave has asserted: “In Hong Kong we rely on our low tax structure and free movements across exchanges to encourage investment, and not on the usual
gimmicks of tax holidays and quick write-offs found in tax havens.”
The Isle of Man does not charge corporation tax, capital gains tax, inheritance tax or wealth tax. Personal income tax is levied at 10-20% on the worldwide income of Isle of Man residents, up to a maximum tax liability of £115,000 (as of April 2010). Banking income tax is levied on the profits of Isle of Man based banks at 10% and income from the rent of Isle of Man property is levied at the same rate.
Labuan, a Malaysian island off Borneo
Kuwait
Macau – Corporate tax rates between 9-12%. Personal Income tax rates between 5-12%. No capital gains tax. No tax for companies operating “off shore”. The overwhelming majority of the Macanese gov’t taxes are derived from a hefty casino tax of 39%. All Macanese Residents (Temporary and Permanent) are entitled to an annual cash handout from the gov’t of MOP3600 or MOP6000 (Approx. $450 USD/ $750USD).
Mauritius – based front companies of foreign investors are used to avoid paying taxes in India utilising loopholes in the bilateral agreement on double taxation between the two countries, with the tacit support of the Indian government, who are keen to improve figures relating to inward investment. The use of Mauritius as a gateway to funnel foreign investments into India has always been controversial. Mauritius’s
financial regime has a number of the key characteristics of a tax haven, which has helped to facilitate this.
Republic of Macedonia – corporate taxes 10%, income taxes 10%, tax on reinvestment profit 0%
Monaco does not levy a personal income tax.
Nauru – No taxes. Only tax in country is an airport departure tax.
Netherlands Antilles – In October 2008 the State Secretary of Finance announced that the Netherlands Antilles along with the Isle of Man would begin to seek ways to combat the ‘Tax Haven ‘ label that has been placed on their territory by some governments. The leaders hinted they would welcome a more level playing field in terms of the international financial services industry.
Nevis
New Zealand does not tax foreign income derived by NZ trusts settled by foreigners of which foreign residents are the beneficiaries. Nor does it tax the foreign income of new residents for four years.No capital gains tax.
Norfolk Island – no personal income tax.
Panama ‘Offshore’ entities are not prohibited from carrying on business activities in Panama, other than banks with International or Representation Licenses (see Offshore Business Sectors) but will be taxed on income arising from domestic trading, and will need to segregate such trading in their accounts.
Russia – 13% personal income tax
Samoa
San Marino
Saudi Arabia
Seychelles
St Kitts and Nevis
St Vincent and the Grenadines
Switzerland is a tax haven for foreigners who become resident after negotiating the amount of their income subject to taxation with most of the cantons of Switzerland in which they intend to live. Typically taxable income is assumed to be five times the accommodation rental paid. French-speaking Vaud is the most popular canton for this scheme, thus it is usually called “forfait fiscal”. For businesses, the canton of Zug is popular, with over 6000 holding companies.
Turks and Caicos Islands The attraction of the Exempt Company lies in a combination of its tax exempt status and minimal disclosure and administrative requirements. In order to obtain tax exempt status the subscribers must at the time of incorporation lodge at the Companies Registry a signed declaration stating that the business of the company will be mainly carried on outside the Turks and Caicos Islands. The subscribers are not required to inform the Registrar of the identity of the beneficial owners. An exempt company must nominate a representative resident in the Islands for the purpose of service of legal process. There are more than 15,000 International Business Companies registered in the Turks and Caicos Islands.
Ukraine – 15% income tax
United Arab Emirates for individuals and Jebel Ali Free Zone for companies.
United States Virgin Islands offers a 90% exemption from U.S. income taxes and 100% exemption from all other taxes and customs duties to certain qualified taxpayers.
United Kingdom no Capital Gains Tax for non-residents or foreign corporations or overseas Trusts, no worldwide taxation for non domiciles
Vanuatu‘s Financial Services commissioner announced in May 2008 that his country would reform its laws so as to cease being a tax haven. “We’ve been associated with this stigma for a long time and we now aim to get away from being a tax haven.”