This video is closed-captioned
Tax havens are a rarity but do exist.
These havens are countries that offer individuals or businesses little or no tax liability.
While tax avoidance schemes do happen, there are incredible advantages for those who legally
live in these countries.
A few states in the United States do not have income tax obligations, but you'll have to
go offshore to find entire countries that offer this perk.
Tax havens are often frowned upon because of the difficulty other nations have enforcing
their financial legislation.
Cooperation is needed between these groups if illegal operators are to be brought to
light.
But tax havens would often rather spend their efforts protecting these financial schemers,
making them attractive safety nets for some investors.
Number ten.
Monaco.
Monaco is a sovereign country - it's one of the smallest nations, second only to Vatican
City.
It's often thought to be part of France, as that is the national language.
It's closer to Italy, snugly in the Mediterranean.
In order to qualify for the lax tax laws, individuals need to show proof of living in
Monaco for a year and be self-sufficient.
The country does not collect personal income tax, property tax, or capital gains taxes.
Rental properties do incur a one percent take on the annual rental income, but that's about
it.
Corporate income tax is also a nonstarter, making it an attractive choice for businesses
that can establish themselves in Monaco.
Once proof of residency is established, people must stay longer than three months in a year
to keep residency status.
Since the country isn't making money on taxes, they have to make it elsewhere.
Monaco relies heavily on tourism, and there is a steep 20 percent value-added tax (VAT)
and a 33.33 percent tax on corporations that generate more than 25 percent of their profits
from offshore sources.
Number nine.
The Maldives.
The Republic of Maldives isn't technically a tax haven but does have some more favorable
tax laws.
Income below 720,000 Maldivian rufiyaas (MVR) does not get taxed.
That's just under $50,000 . Income and taxes assessed for over 720,000 Maldivian rufiyaas
are based on a sliding scale that tops out at a 15 percent tax bracket.
Compared to many countries, this level of taxation will seem generous.
Foreign nationals should also double-check with their home countries for any treaties
with the Maldives that might incur additional tax penalties.
On an island where speedboats are the preferred transportation over motor vehicles, a respectable
break on taxes makes it an attractive place to move and do business from.
Number eight.
The United Arab Emirates.
The UAE has a wild nightlife and zero income tax, a desert paradise.
The UAE even has a minister of state for happiness and wellbeing - they want to be one of the
five happiest countries in the world.
The nearly complete lack of taxes is a significant draw for ex-pats.
A minor tax put in place in 2018 is a VAT - a tax on goods and services - and sits at
five percent.
There is also a tax on select items that the government believes are harmful to the environment
or human health.
This might include things like energy drinks, tobacco, and smoking devices.
There are also no capital gains taxes, making it an option for a business that doesn't mind
headquartering overseas.
Number seven.
The Cayman Islands.
The Cayman Islands are probably the first location that comes to mind when asked to
think about tax havens.
It's one of the most well-known on earth.
It is alluring for individuals because of a complete lack of taxation, but there are
also zero corporate taxes.
There's no payroll tax, withholding tax, capital gains, or property taxes.
So how do the Cayman Islands make money?
They rely on tourism, heavy taxes on imported goods, and taxes on financial transactions.
Number six.
Bahrain.
After Bahrain committed in 2018 to adapt its tax rules to EU standards, it lost its status
as a tax haven.
They were placed on the black list in 2017 and worked to reverse the situation.
The main target was fighting corporate tax avoidance.
But that doesn't mean this country isn't still a valuable place from a tax perspective.
It's a small Arab constitutional monarchy located in the Persian Gulf.
Eighty-four islands create the archipelago that is the Kingdom of Bahrain.
Bahrain has no system for income tax.
There are no laws for tax collection, and there isn't even a tax office.
And they don't have the anxiety-inducing tax return season, as there are no filing tax
returns.
But they don't get off scot-free.
Employees contribute six percent of their wages to a social security contribution and
social insurance tax.
The kingdom generates revenue through property and import taxes and relies heavily on the
oil and gas industry.
If you enjoy our videos join us on our journey around the world by subscribing to our channel
please click the bell icon to get notified when we publish a new video.
Number five.
Vanuatu.
Vanuatu is a unique South Pacific island nation made up of more than 80 islands.
What is truly remarkable about the nation is that you can quite literally buy your way
into citizenship.
That's right.
If you have money to spare - about $130,000 United States dollars, you can get citizenship.
The contribution goes to the national development fund, so it's an intelligent way for the nation
to generate some additional wealth.
If you are married, have children, or both, the contribution requirement increases with
each dependent.
You can even partake in the Oath ceremony that makes things official from abroad, making
the whole process extremely hands-off.
There are no personal income or corporate taxes, making a one-time contribution to get
the year-over-year benefits particularly enticing.
There are also no estate, wealth, or gift taxes.
Finally, you won't ever pay a withholding tax or capital gains tax as a Vanuatu citizen.
Number four.
The British Virgin Islands.
The British Virgin Islands, or BVI for short, is a British territory with laws and regulations
designed to attract offshore investors.
They are in good standing with international financial bodies.
They are members of the International Organization of Securities Commissions, the Caribbean Financial
Action Task Force, and the Organization for Economic Cooperation and Development.
The BVI is home to almost 40 percent of the world's offshore companies, and more than
600,000 companies have been established since it allowed non-resident companies.
Number three.
Saint Kitts and Nevis.
A few places on our list actively attempt to keep their Tax Haven status and instead
make the illegal activity easier for their wealthy customers than offer more transparency
to other financial organizations.
Nevis allows clients to create shell corporations with levels of anonymity not seen anywhere
else.
Even leaked corporate registry records don't hold ownership information.
Nevis is close to Miami and is the smaller of the two islands that make up Saint Kitts
and Nevis in the Caribbean.
Its primary feature is a dormant volcano in the middle of the island.
Number two.
Turks and Caicos.
A British overseas territory located southeast of the Bahamas and is an archipelago filled
with 40 coral islands.
The islands are home to pristine beaches, picturesque ocean views, and an "offshore
finance center" created by a government-sponsored study in 1970.
Many tax havens developed over time, but Turks and Caicos were made.
There is no direct taxation on personal or corporate income, including capital gains
and withholding taxes.
There are also no exchange controls, which means that people are able to move money in
and out of the country freely without restrictions or fees.
The official currency is the US dollar, and the official language is English, so conducting
business in this group of idyllic islands has a low barrier to entry.
The country doesn't view non-payment of taxes in other countries as an offense that warrants
the sharing of client information.
So Turks and Caicos are quite appealing for illegal business.
The vigilant privacy protection is frowned upon by other countries.
Number one.
The Bahamas.
At the top of our list is the massive grouping of more than 700 islands that make up The
Bahamas.
Its offshore financial market has a long-standing reputation and is always a hub of activity.
There are more than 400 registered banks, and tens of thousands of corporations have
been established in the previous decades.
Think about this figure: the banking sector has over $200 billion in assets.
The country was forced to make some changes to its market but is still a highly desired
location for offshore companies.
While tourism makes up nearly two-thirds of the country's revenue, the offshore financial
industry accounts for almost one-third.
Only ten percent of the country's GDP comes from sources that are not tourism or offshore
finances.
Those looking to settle more than their shell companies should consider The Bahamas.
As a premier tourist destination, it offers many perks for those looking to relocate permanently.
We hope you enjoyed today's list!
What country do you wish was a tax haven that you could operate from?
And which from our list seems most picture-perfect to you?
Let us know in the comments below!
Remember to like this video and subscribe for more content, and we'll see you next time!