What comes to mind when you think of a Caribbean island? Sand, surf, and tens of thousands of post office boxes filled with shell companies. Some tax havens, such as the Cayman Islands and Bermuda, fall into this category. Others, however, do not. The taxes, not the tan, are the secret to a tax haven. A tax haven is any location that allows a taxpayer – whether an individual or a corporation – to pay less tax abroad than they would at home. As a result, many nations, including the United States, turn out to be tax havens depending on the taxpayer’s jurisdiction and business. Which tax havens are even better? They can be found in the Caribbean!
Panama
Panama has many advantages as an offshore tax haven. It is one of the world’s most popular tax havens, having a robust financial infrastructure that allows non-residents to open offshore bank accounts and form offshore companies. Panama is a great destination to live, work, and invest in real estate, as well as an ideal destination for foreign investors and businesspeople to operate their offshore corporations, banking, investing, financing, and all other aspects of international trade.
Anguilla
Anguilla is at the top of the list if you’re looking for a tax-free environment for your offshore assets. Any income made outside of the country by offshore corporations is considered tax-free. There are no stamp charges if the offshore firm is incorporated within the country.
The British Virgin Islands
The British Virgin Islands (BVI) is one of the most popular tax havens in the world, attracting legal businesses, celebrities, and multimillionaires. The island provides inexpensive and simple shell corporations that enable their owners to avoid publicly registering their names. Most people are unaware that the British Virgin Islands provide more advantages for offshore accounts and tax reduction than they think. On the balances found in offshore accounts opened within the country, no taxes are charged.
Costa Rica
Costa Rica is an excellent place to buy real estate since it has everything you would expect from a tropical country. There are major benefits to purchasing a vacation house or retirement home in Costa Rica as a foreign resident. Also, there are no limitations on where Costa Rican corporations can transact. They are free to sell goods and services both within and outside the country. There are no taxes imposed in jurisdictions where the corporation does not operate. Many exemptions are available for a period of up to eight years. Even firms that do pay taxes have lower rates than consumers.
Barbados
Barbados has a strong financial sector that provides services in offshore banking and the establishment of offshore corporations. It has a very low tax environment for offshore businesses who incorporate in its jurisdiction. Barbados is also a fantastic choice for business owners because to the lack of import charges. There are no import tariffs on business equipment or manufacturing gear imported into the country.
The Cayman Islands
The Cayman Islands is one of the world’s top five offshore financial centers, offering services such as offshore banking, offshore trusts, and offshore company formation. The Cayman Islands is home to some of the world’s largest worldwide banks and has a flourishing offshore company industry, with slightly under 100,000 multinational firms registered offshore. The Cayman Islands has strong offshore banking rules that protect people’s privacy, but they’ve had to change its offshore banking practices since 2010 due to the UK’s desire to make the business more visible.
Belize
Bezile is a true tax haven. It is not difficult to establish offshore banking and offshore organizations in Belize, as well as trusts and foundations. Furthermore, revenue produced outside of Belize is not taxed by offshore enterprises formed in Belize. Earnings income and capital gains are not taxed in offshore bank accounts and trusts. Besides that, banking legislation ensures strict anonymity, with account holders’ names only being revealed by a court order in criminal investigations.
Dominica
Dominica (different than Dominican Republic), is maybe the greatest tax haven of this list. It is a tax haven that imposes no income tax, corporate tax, or tax on income or capital gains generated outside its borders. There are no withholding taxes, gift taxes, or estate or inheritance taxes in place. It also has legislation that makes it easier to set up offshore accounts, trusts, foundations, and companies, as well as protects the privacy of its offshore financial services. Interest made on offshore bank accounts is not taxed, and information on account holders is not shared with tax authorities in other countries.