If you’re looking for ways to avoid paying tax, you’re certainly not alone. These days, many people are stashing cash in offshore accounts and/or setting up companies offshore. Many offshore locations offer very appealing tax laws which make it possible to pay little or no tax on income. While the ethics of tax havens are definitely a bone of contention, they are now as popular as ever. Today, we’re going to talk about the top 5 tax havens in 2016…
People who want to avoid paying taxes typically do very well in the Bahamas, as this area features a range of incentives which encourage foreigners to come in and bring their money. Example of the benefits of choosing the Bahamas include zero inheritance tax, zero personal income tax, no gift tax and a lack of capital gains taxes.
Nevada is proof that you don’t need to leave the USA in order to access tax advantages. This freewheeling state offers a range of appealing tax laws. When you move your money to Nevada State, you’ll avoid capital gains tax and you won’t need to pay inheritance tax. As well, you’ll be free of personal income tax obligations and gift tax obligations.
If you want to pay very low taxes, despite a high income, you’ll benefit from considering Gibraltar. This locale is a great place to avoid taxes, as you’ll only be required to cough up for taxes on the first 90k of your annual income. If you make a lot more than this, you’ll find that this location allows you to save a lot of money.
This tax haven is renowned for its lack of corporate tax, as well as its lack of personal income tax. It’s definitely a popular offshore choice for those who want to minimise their tax-related expenses and maximise their profits.
If you want to access an array of complete or partial exemptions for taxes, this European country may be the right place to put your hard-earned money. How much you save on tax will really depend on which private financial institution you utilise. Switzerland is world-renowned for its private banks, which allow account holders to operate with a very high level of secrecy and freedom.
Who Uses Tax Havens?
Large corporations use tax havens and so do private citizens and smaller companies. Any person or company that wants to boost wealth by avoiding high tax bills may be interested in moving business and/or accounts to the top 5 tax havens in 2016. Now that you’ve learned where these tax havens are and what they offer, you’ll be ready to decide if using them is smart.
Bear in mind that using tax havens means that you’ll be putting less or no tax dollars into your home country. If everyone avoided tax via tax havens, there would be no money for schools, highway repair and construction and a welfare system. So, there is a lot to consider before making the choice to utilise these tax havens.