There are nearly 80 countries in the world considered tax havens - places where the super-rich are taxed very little or even exempted.
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Billionaires and millionaires are flocking to these places to exploit tax loopholes to open bank accounts and set up shell companies. This way, they only have to pay a much lower tax rate than in their home country without having to give up their old citizenship. Recently, the US Internal Revenue Service (IRS) announced that it will monitor US citizens with offshore accounts. However, this decision cannot stop the super-rich from continuing to evade taxes through tax havens. On the other hand, opening a bank account abroad is completely legal. According to Business Insider, below are the most popular locations for the super-rich. |
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1. Belize Famous for its Great Barrier Reef and scuba diving, Belize is a tropical paradise in the Caribbean and a place for those who like to do what they want. While English is the official language, Spanish is also widely spoken. There are two ways to become a citizen of Belize: permanent residency and the Qualified Retiree Program (QRP). To become a permanent resident in Belize, you need to be employed and have an income. Alternatively, you can join the QRP if you meet the Belize Government's minimum annual pension requirement. And then all you have to do is spend four weeks in Belize each year. Under the QRP, you won't be taxed on foreign income, capital gains, or inheritance. |
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2. British Virgin Islands The British Virgin Islands (BVI) is also an oasis in the Caribbean and is famous for its banking secrecy. Income tax in the BVI is 0%, which means you will not have to pay any taxes, including corporate tax, capital gains tax, gift tax, sales tax or inheritance tax. Real estate owners or real estate investors can become part-time residents in the BVI. In other words, the BVI allows them to live here for 6 months of the year. The only tax is a nominal property tax - equivalent to 1.5% of the total estimated annual value of the property. |
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3. Cayman Islands For decades, the Cayman Islands has been a popular tax haven for many multinational corporations in the US, including big tech giants like Apple and IBM. The Cayman government does not tax businesses, income, investment profits, commercial profits, or assets. |
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4. Costa Rica Costa Rica attracted 2.52 million tourists in 2015. This Central American country is famous for its rainforests, pristine beaches and majestic waterfalls. In Costa Rica, businesses do not pay income tax on foreign profits, interest, capital gains and dividends. |
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5. Monaco Monaco is famous for the Monte Carlo Casino and the Formula 1 Monaco Grand Prix. Therefore, it is considered a playground for the super-rich around the world. The Monaco government does not tax income, investment profits and inheritance. |
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6. Seychelles Seychelles consists of 115 islands off the west coast of Africa. This area is famous for its coral reefs, pristine white sand beaches, luxury resorts and local culture. The Seychelles government does not tax income, capital gains, gifts and property. To become a permanent resident of Seychelles, you only need to reside in this country for at least 5 days a year and transfer at least 10,000 USD a year into a bank account registered here. |
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7. Panama Panama is one of the fastest growing economies in Central America. Panama does not have the same tax laws as other countries and is not required to share financial information with any authorities. As a result, Panama has one of the most secretive banking systems in the world. The government does not tax income, dividends, or capital gains. |
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8. Puerto Rico Puerto Rico is a US territory but has its own tax laws. In 2012, the Puerto Rican government enacted a law that made it a tax haven for US citizens who live on the island 183 days a year. Accordingly, US citizens here will be exempt from taxes on interest, dividends and capital gains without having to renounce their previous citizenship. |
According to VNE