Using offshore accounts, moving to tax havens or using shell companies; we’ve heard them all before. But what do they really mean and are they worth looking into? The important thing to note to start with is that they are all legal things to do. Moving your business (or yourself) to a country that is a tax haven, is a completely legitimate thing to do in order to reduce costs. For an individual, tax havens can offer little or no tax on your capital gains. So your income, your inheritance, and your pension. Corporations can save money too. So if you think this kind of thing might be for you, then here are some of the best tax havens in the world that you’d have to relocate to.
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Luxembourg
The small landlocked country in Europe has a pretty small population of 550,000. The country got its ‘tax haven’ status because of some laws that were passed that make it a very business-friendly place to live. It allows many businesses to have a set amount of their business based there, in order to have a reduction on tax. For example, Amazon has its European head office in the country. For individuals it might not be the best option, but for business, it can be a good option for you.
Cayman Islands
Often associated with many big money movies, the Cayman Islands often get a bit of a bad reputation for being all about dodgy dealings. But really, the Cayman Islands are one of several countries that that have laws that allow a corporation to be created and to keep all of its assets without paying any tax. So again, for a business, this can be a huge benefit, especially if you are just starting out. However, there can be some complications and implications on this. So it can be a good idea to seek professional advice on a relocate to the Cayman Islands if you’re unsure.
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Monaco
The small region of Monaco is only around a square mile in size, so it really is a tiny principality, rather than a country. However, it still manages to pack in plenty of residents, with a population of over 35,000. Since the 1800s it hasn’t charged any of its resident’s income tax, so you can see why there are plenty of people wanting to fit into the tiny region. If you are a wealthy individual that is looking to reduce how much you are charged on things, then looking at Monaco Relocation Services could be a good idea for you. You’ll be at home with the many super rich residents, as long as you can claim that Monaco is your primary nation of residence.
Jersey
The small British island located between England and France has become a popular tax haven for Brits, especially for individuals rather than business. For things like inheritance tax in the UK, the tax can be 80% on large amounts, compared to nothing in Jersey. So if you’re older it could a place worth looking into.
