Living in a tax haven can have some serious benefits for taxpayers. Not only do you save on taxes but generally tax havens are in awesome places! But in all seriousness, living in a tax haven has it’s advantages and disadvantages. Most individuals or corporations move to tax havens in order to avoid paying taxes on the profits they’ve made while doing business overseas. Generally, depending on your country of residence, you will pay taxes at that given rate but tax havens allow you to pay little or no taxes on your profits.
A tax haven is a state or country where little to no taxes are levied. In fact, competition among governments has created a tax haven environment in which certain places may be better for certain types of businesses or activities. All of this competition benefits the taxpayer or corporation. The main reason to move to a tax haven is to legally avoid paying taxes. You can work with international bank accounts or find a local company in a tax haven to help you establish your corporation.
Follow The Pros
Every year around tax time, I hear stories of how mega-corporations like GE and Walmart are able to avoid millions of dollars in taxes. It’s estimated that a fortune of $21 trillion is stashed away in offshore accounts. This is all legal because these companies and individuals have established bank accounts and corporations in these tax havens. Setting up a bank account or corporation in a tax haven is surprisingly easy to do. All I did was type: offshore account into google and within minutes, I was on the phone with someone who was willing to open an offshore account in my name for just $600 US.
Now the reason tax havens can be so lucrative is that you will never have to pay taxes as long as you keep the money outside of the US. Mega corporations have already done the research for us and everything they do is legal, so why not follow their lead? There’s no reason for you not to take advantage of tax havens when everyone else is doing it legally.
Although there are certain physical limitations to where you may be able to set up a tax haven, it’s surprisingly easier than you think. As always, it’s important to thoroughly research any subject you are unfamiliar with. Please see a tax advisor as this article is solely my opinion and may not be fact.