Countries that have no or low nominal taxes are considered Tax Havens.
Though there are no definite categories or attributes for a country to be known as a tax haven, the following characteristics are eminent such as:
- no tax or low nominal taxes;
- foreign tax authorities can't get sufficient information because of lack of effective tax communication
- a tax haven's government is lenient in the matters of tax collection
- there is no substantial evidence as to the provision and imposition of tax and tax laws to its jurisdiction, and
- a tax haven's promotion as an offshore financial center.
Note: This information can be found on wikipedia.org - tax Havens.
Tax havens are also considered tax holiday resorts of many financially-endowed individuals. And many of them want to rescind their citizenships to their home-countries imposing tax burdens on them and register their residences on the soil of tax havens.
Tax havens can be found on Europe, Asia, Africa and the Americas and even on Oceania. These nations can range in size, from the little European territory of Andorra to the largest nation- Russia. However, my observation on most of these tax havens is that they belong to high income countries or their nominal GDP per capita is high, even the African tax haven nation, Seychelles has a high nominal GDP per capita despite its low ranking on Human Development Index.
Nevertheless, there are tax havens which are really popular that even by mentioning their names connote to their being tax holiday resorts.
Bur before going to the list, I have to make a disclaimer that this list is not based on any website. This is based on my research, observation and personal conclusion from my findings. You are free to comment if you feel strongly opposed to something about my list.
Now, without further ado, this is the Top 10 famous tax havens:
There you have it. The popular tax havens which are also popular offshore financial centers. They are on the list because of their:
Nevertheless, there are tax havens which are really popular that even by mentioning their names connote to their being tax holiday resorts.
Bur before going to the list, I have to make a disclaimer that this list is not based on any website. This is based on my research, observation and personal conclusion from my findings. You are free to comment if you feel strongly opposed to something about my list.
Now, without further ado, this is the Top 10 famous tax havens:
- Switzerland
- Bermuda
- British Virgin Islands
- The Bahamas
- Andorra
- Monaco
- Liechtenstein
- Kuwait
- Cayman Island
- Macau
Why Switzerland at 1st?
Switzerland is a very prosperous country. Just thinking about Switzerland being a neutral country and with excellent business climate (though not indicators of being a tax haven) are probably enough reasons for its government not to impose heavy taxes. But this doesn't mean that this country has no taxes at all. It is popular because of its being a developed country with one of the lowest tax rates in the world.
Bermuda - a North American island nation and a famous offshore financial centre. Many foreign companies want to register their businesses here because of low taxation.
British Virgin Islands- nearly 41% of the world' offshore companies have made this Caribbean paradise as its domicile based on the report of KPMG to the UK government.
The Bahamas - another Caribbean paradise on the list known for the Atlantis resort and no personal income and corporate tax. VAT is not present here and there is no inheritance tax. This is a good place to stay when you want to live on a paradise.
Andorra - I really like to live in this country. It is a small prosperous European country and it doesn't levy tax on personal income.
Monaco- this should be on the third or second on the list.But why it is on the 6th?
Monaco is a very popular tax haven for wealthy people. If you like hedonistic lifestyle and no personal income tax, then you should live here. But this small country is also among the ritziest to live in and I think this factor is probably the reason for making it on the 6th of the list.
Liechtenstein - a small prosperous country in Europe and a popular offshore banking center. Not really tax-free but it just levies low income tax on personal and business, thus attracting businesses. Its low tax rate on corporate and business income is probably the reason for making it among the few countries with more registered businesses than their citizens.
Kuwait- this Middle Eastern country is among the richest in the world. And its citizens here don't have to worry about taxes. The income on its oil reserve is probably sufficient to fund government spendings.
Cayman Island - a major offshore financial site in the Caribbean and the fourth Caribbean tax haven in the list. No income, corporate or capital gains tax. Its government relies on indirect taxation. Its beautiful beaches are among the reasons for making it on the list.
Macau - this is probably known as the "Monaco of the East". Just like Monaco, it is a tax haven and has lots of casinos. But unlike Monaco, this haven is part of China. It is a popular offshore financial center in Asia and has a free port.
There you have it. The popular tax havens which are also popular offshore financial centers. They are on the list because of their:
- Brands- Switzerland is a brand for a tax haven as well as Monaco.
- Being livable - Many of these tax havens are also regarded as paradise nations because of their resorts. However, the lifestyles of these tax havens are favored mostly by the rich.
- Economy - All of the tax havens in the list are prosperous with high GDP per capita and high Human Development Index.
