Offshore Banking Tax Havens - Guides, Tips, and Advice
So you’ve heard about the benefits of retiring to the Caribbean, South America, or Central America but don’t know all the facts? This page is your source for free advice and answers to all the most frequently asked questions about offshore tax havens, AND we will even answer all further inquiries via email. So sit back and enjoy and if you need any information that we didn’t cover, just fill out the form at the top of the page.
There are several legitimate reasons why investors seek out tax havens. The main incentive is to minimize tax rates in the investor's home country. The use of tax havens to avoid, defer, or minimize tax is perfectly legal, but the use of such havens to evade paying taxes is not. Since there is such a thin line between legitimate tax avoidance and illegal tax evasion, professional tax advice should always be sought before deciding to place any capital offshore.
If you need more information on tax haven countries, please fill out the form below or call us (312)546-4911 to speak directly at to an agent.
- Financial institutions and Banking systems
- Residency laws
- Languages
- Low tax rates for non-residents
- Currency restrictions
- Political stability
- Tax treaties
- Ease of company formation
- Corporate filing requirements
- Tax legislation
- Foreign exchange laws
- Location and proximity
- Communication infrastructure
- Secrecy laws
- Legal system
Most countries impose high taxes on income earned within that country regardless of the person or company’s country of residence. Most countries also tax their residents on all their income, whether it is earned in that country or not.
A person can take advantage of tax havens and offshore accounts by becoming a resident (for tax purposes) in an appropriate country with lenient tax laws. An individual or a company can also profit from a tax haven by establishing an offshore company or subsidiary company there. Assets can then be transferred to the new offshore company or trust so that gains may be realized within this company rather than earned by the beneficial owner.
Thirty years ago, there were much fewer offshore options and they were veiled in mystique. There were only a handful of professionals specializing in this unique offshore practice and they typically used only one or two jurisdictions and only worked with large accounts. However, over the last few decades, startling advances in technology and the telecommunications revolution have made it easier for the public to access offshore banking facilities. Today's offshore industry has developed into a multi-trillion dollar global business, spanning from large industrialized countries in the west to the smaller counties in the east.
Because laws are always changing and new laws are being passed in many South and Central American countries, it’s hard to pick the country with “the best” laws. For more information on the latest tax haven laws, contact us via email and we can get a report to you with the newest laws.
There are several factors fueling the offshore baking revolution, but the three biggest reasons are:
1. People want to save money and will employ any means legal to do so.
2. Advances in technology are making it easier for everyone to get information on the offshore banking process.
3. Many Caribbean and South American countries are offering these lenient tax policies as incentives to help boost their national economies.
Of course, there are many complex reasons why so many foreigners are sticking their money in these exotic Central American countries, but these three are at the top of the list.
This is very a personal decision that you will have to make. Every country has its own unique customs and styles and each appeals to a different type of person. We recommend that you research several countries before deciding on one.
As more and more countries embrace the idea of offshore banking, it’s hard to keep a full list. However, here is a pretty thorough list of countries that are known for their tax haven laws.
- Albania
- Andorra
- Anguilla
- Antigua and Barbuda
- Aruba
- Bahamas
- Bahrain
- Barbados
- Belize
- Bermuda
- British Virgin Islands
- Canary Islands
- Cayman Islands
- Cook Islands
- Costa Rica
- Cyprus
- Dominica
- Dominican Republic
- Gibraltar
- Grenada
- Guernsey
- Isle of Man
- Jersey
- Liberia
- Liechtenstein
- Luxembourg
- Maldives
- Malta
- Marshall Islands
- Mauritius
- Monaco
- Montserrat
- Nauru
- Netherland Antilles
- Niue
- Panama
- Samoa (Or Western Samoa)
- San Marino
- Seychelles
- St Lucia
- St Kitts and Nevis
- St Vincent and the Grenadines
- Switzerland
- Tonga
- Turks and Caicos
- UK
- US Virgin Islands
- Vanuatu
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