Tax Havens Worldwide

Payment of taxes can be a pain in our savings and they are truly taxing, but not for these tax haven countries. If you want to be exempted from paying taxes for your luxury home, read more about these tax havens and how to acquire this privilege.

What is a Tax Haven?

A tax haven is a country that offers minimal to no tax liability to foreign individuals or foreign companies for their foreign deposits.

However, the term “tax haven” has no clear definition as there is no absolute measure to determine whether a country is a tax haven. To put things simply, any country can be a tax haven as long as the conditions are fit for a company or an individual. Companies and wealthy individuals resort to tax haven countries to store their money earned abroad while avoiding their taxes in the U.S. or other countries.

The tax havens in the world are based on the results of the Corporate Tax Haven Index (CTHI) created by the Tax Justice Network. The CTHI tracks the jurisdictions that it says are “most complicit” in helping multinational corporations evade taxes. As of 2021, the worst offenders were the British Virgin Islands, the Cayman Islands, and Bermuda.

Now that you have an idea what tax havens are, here is a list of tax haven countries in the world:

Bahamas

The Commonwealth of Bahamas, simply called the Bahamas, is an archipelago and country located on the northwestern edge of the West Indies. It was a former British colony but later became an independent country in 1973.

The Bahamas consists of 16 islands and has pleasant weather, that’s why it is considered every tourist’s dream destination during the summer. But what makes the Bahamas attractive to everyone is a tax haven – meaning, there’s no income tax, capital gains tax, or inheritance tax, though there is a value-added tax on goods and services.

To qualify for annual residency in this tax haven, home buyers must live or lease a property, whether a luxury real estate or luxury condominium, for at least 12 months. Permanent residency is granted to residents who buy a residential property of $750,000 (or P41.4 million) or more and those who make commercial investments.

According to George Damianos, chief executive of Damianos Sotheby’s International Realty, Bahamas has families who purchase a luxury home and establish residency as a means of saving on home-country taxes and preserving wealth for future generations.

Bermuda

Bermuda is a British Island territory located in the North Atlantic Ocean, and it is well-known for its pink sand beaches, like Horseshoe Bay and Elbow Beach. This beautiful island does not impose an income tax, dividends tax, or capital gains tax, and has a 0% tax rate. There is no limit on the accumulation of profit and distribution of dividends, which makes it better for offshore investors. Bermuda is also known for focusing on privacy for potential bankers.

British Virgin Islands

The British Virgin Islands (BVI) is one of the most attractive places in the world for establishing an offshore business. This group of islands has updated laws and regulations to attract foreign investors. Companies investing in BVI pay zero income tax, and there is no British Virgin Islands tax on capital gains tax, gift tax, inheritance tax, sales tax, or value-added tax.

Cayman Islands

The Cayman Islands is an island group and overseas territory of the United Kingdom in the Caribbean Sea, consisting of three islands: The Grand Cayman, Little Cayman, and Cayman Brac. These three Caribbean islands are also tax havens because there is no tax on income, capital gains, sales, or property, but there is a 7.5% stamp-tax duty levied on property transactions.

The amount of tax is determined by the purchase price or market price, whichever is higher. As an added incentive, the Global Citizens Programme gives individuals a minimum annual income of $100,000 or P5.5 million to live and work on the islands for two years. Global Citizens are required to live for a minimum of 90 days on the islands each year.

Hong Kong

While non-residents are charged a 15% buyers stamp tax on duty on sales of luxury real estate properties, Hong Kong is still considered a tax haven because there is no capital gains tax, dividend tax, inheritance tax, and income tax on money earned outside Hong Kong.

However, the duty is significant because Hong Kong is one of the world’s priciest property markets.

Isle of Man

The Isle of Man is located in the Irish Sea between Ireland and Great Britain. It is also a well-known tax haven because it is a low-tax country with no capital gains tax, stamp duty, inheritance tax, or wealth tax, and has a top rate of 20% income tax. This country is a self-governing territory of the British Crown enjoying separate autonomy and has well-established offshore financial centers.

Malta

If you are considering getting a house and lot for sale in Malta, you’re in luck. Non-European and European citizens and their families who obtained a special tax status through the Global Residence Program or Residence Program in Malta are taxed at a flat rate of 15% on remitted income.

Retirees of all nationalities who have applied for the Malta Retirement Program are taxed at 15% on their pensions. On the other hand, senior-level employees with companies licensed by the Malta Financial Services Authority, the Malta Gaming Authority, or the Authority for Transport in Malta are taxed at 15% up to €5 million or P294 million, and any excess income is exempt.

The Netherlands

The Netherlands is considered among the most consistently famous tax havens. While it is not openly tax-free as the rest of the tax havens on this list, it still has significantly lower tax rates compared to other countries in the EU.

St. Kitts and Nevis

St. Kitts and Nevis are Caribbean Islands that are tax havens as well! They don’t levy personal income tax, gift tax, death duties, estate tax, inheritance tax, or capital gains tax.

If you want to have a luxury living experience without paying real property taxes, St. Kitts and Nevis’s property taxes are just 0.002%. Lifetime full citizenship is conferred upon those who can make a contribution of $150,000 or who buy luxury real estate or any house and lot properties for sale of at least $200,000 and hold it for seven years, or $400,000, which you can resale after five years.

Singapore

Singapore has no capital gains tax on their world-class property, and for residential real estate, under free-trade agreements, nationals and permanent residents of Iceland, Liechtenstein, Norway, Switzerland, as well as national of the United States, pay the same rate as buyer’s stamp duty as citizens of Singapore.

Owner-occupied residential properties in Singapore have lower tax rates, and its personal income tax is the second lowest among Asian-Pacific countries with only 22%.

Switzerland

Switzerland is known for its Swiss cheese and delicious chocolate. But aside from these delicacies, this country is most popular for its robust financial institutions. Switzerland is also amenable to negotiating lower taxes for high-net-worth people.

High net-worth individuals can make a low payment on their money held in Swiss banks in lieu of taxes. The taxes foreigners pay are based on seven times their monthly rent. These policies encourage foreigners and residents alike to buy homes and take out mortgages to benefit from the tax deductions.

Enjoy Luxury Living with Brittany Corporation

Living in these tax haven countries may seem a good idea, but you don’t have to go anywhere to experience world-class living! Brittany Corporation has modern homes, with designs curated based on your liking. The best part is that all of our Brittany homes are great value for your money and we have different locations in Metro Manila! To know more, visit our official site and Youtube accounts.

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