• Share:

Which are the ‘Tax Haven’ Countries?

When it comes to business incorporation in an international ground, one of the significant concerns turns out to be tax procedures and compliance with the legal proceedings. Tax havens turn out to be the respective favourable business grounds that offers a range of facilities to the business owners 

In simple terms, tax haven jurisdictions are regarded as those global nations who stand to be liberal in various grounds and provide numerous tax benefits to the business investors and owners. High-net-worth-individuals, multinational companies widely prefer to go forward and incorporate an offshore company in any of the popular offshore jurisdictions.

Breaking Down Tax Haven

As stated above, the tax havens are also identified as Offshore Financial Centres (OFCs); these jurisdictions are often secured and provide numerous tax advantages and flexible business setup options and liberal environment. Offshoderstand the relevant process at ease.

Best Offshore tax havens get a benefit from the capital their nations draw into the economy.

Funds can flow in from individuals and industries with offshore banks, investment vehicles, and financial institutions. Persons and corporations can potentially benefit from low or no taxes charged on income in foreign countries where loopholes, credits, and other special tax considerations may be allowed.

Why Must You Consider Tax Haven?

The apparent reason that most people are drawn to tax havens, is simple, the lower or possibly non-existent tax laws that exist in the tax haven are better than the ones in your own country. Company formation in these popular offshore jurisdictions provides numerous benefit that involves:

●High-end confidentiality

●Secure asset protection

●Legal protection

●Flexibility to open offshore bank accounts

●Flexibility to choose the suitable business entity

●Acts as a gateway to enter International Forex Trading

Although you are aware of the core reasons that provoke the business investors to set up an offshore company in the tax-haven jurisdiction, being a business owner, it is also essential for you to to understand the complete mechanism that goes behind. Here’s a guide on How Does An Offshore Company Work, which will help you to une Tax Havens

Today, the government of various nations have accepted the concept, and thus, have converted the onshore jurisdictions to offshore investment destinations.

[Read more: The difference between onshore and offshore jurisdictions]

Some of the best offshore jurisdictions widely preferred by global investors include the following:

  1. The British Virgin Islands - The world’s top tax haven, the British Virgin Islands, holds more than 5,000 times the value of what its economy should keep. No personal tax on worldwide income, including profits and dividends from share or property sales, and no inheritance tax or tax on gifts. Foreign investors must pay a stamp duty of 12% if buying or selling property on the island.
  2. Switzerland - Switzerland is almost as equal for its favourable financial atmosphere as it is for its cheese and chocolate. People have been placing their money in Swiss money accounts since the end of the Second World War. Switzerland, who was unbiased during the war, had much lower tax rates compared to other countries.
  3. Seychelles: Widely chosen by the business investors, Seychelles holds a systematic legal framework suiting the offshore business investors to come forward and establish an offshore business entity.
  4. The Bahamas - No income tax, inheritance tax, or capital gains tax, making the Caribbean island particularly attractive to older expats. Companies are not subject to direct corporation taxes and are not required to file accounts. The standard rate of VAT is 12 per cent.
  5. Hong Kong - The most widespread tax haven amongst the popular choices, Hong Kong, offers easy offshore business incorporation at ease. Located in the South-East coast of China, Hong Kong holds the British system and turns out to be a strategic location to carry out the offshore business transactions.
  6. Singapore – The low or no taxation is one of the attracting features that help business investors to go ahead with Singapore. Also, you can easily set up an offshore bank account in Singapore to carry out foreign transactions.

Navigating foreign tax waters can be too tricky, and it is easy to fall foul of the law if you don’t know the intricacies of international tax laws. Thus, before you consider putting down new roots in one of these foreign tax havens, it is essential to speak to an expert who can help you find a tax haven best suited for your company.

Taking expert guidance not only helps you to clear the process at one go but also help you to save time accordingly. To know more, have a look at the Core Reasons for Hiring an Offshore Business Consultant.

Business Setup Worldwide is a platform to help you set up an offshore company. Our advisors are well-versed with the legal formalities and can make the process hassle-free. To know more about our offshore services, contact us today.