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Tax Havens – Rating of Top Offshore Financial Hubs in 2023

Tax havens were considered to be an efficient tax planning instrument for UHNWIs 10 to 20 years ago. Jurisdictions like these often come with no taxes. Although not completely correct, calling them offshore zones is reasonable and acceptable. With living standards matching all needs of their target audience that heads for the best only, they are indeed unique and one-of-a-kinds.

Tax Havens

At present, offshore havens have become much more universal. With the benefits they offer, offshore havens are popular with not only HNWIs but also regular folks. Unlike several years ago, low or zero taxation is not the only selection criteria to pick the best tax haven any more. In tax havens, businesses and enterprises flourish, banks set up their branches, with the infrastructure constantly on the mend (for more information please follow the link below – Offshore Islands, Countries, Territories, and Lists 2023).

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Changes in international laws are to be discussed separately. Facing their target audience reduction due to multiple anti-offshore laws enacted, offshore havens try to avoid being placed on multiple gray and black lists. As a result, offshore jurisdictions move away from the zero taxation principle. This is 100% compensated by the improved security. The fact that FATF and FATCA requirements are met and multiple EU directives are followed, is also a welcome effect.

To select the right tax haven accounting for all the current market trends you should accept that zero taxes and opaque entities are no longer treated as something positive. The statement applies to both legal entities and individuals. NB: tax havens are an instrument to optimize taxes and not to completely avoid them.

Below, you will find the list of TOP-10 jurisdictions regarded as the world’s best tax havens. The International Wealth major experts used smartsearch data to draw up the above list to make the info as transparent as possible.

Beware that the article shouldn’t be treated as a guideline to follow. If in need of hands-on assistance with choosing the best offshore jurisdiction exactly matching your needs, go ahead and message the International Wealth experts to discuss all issues bothering you during an individual consultation.

Making up the list of top offshore tax havens in the world

Each rated jurisdiction was chosen according to several criteria. The purpose was not to pick up top offshore jurisdictions most suitable for business (including company incorporation, setting up corporate bank accounts, and ways to lawfully reduce a company’s taxable base). The focus was on living standards, infrastructure, personal safety, weather, and prices. The reason to choose this approach was it being impossible to account for all factor combinations in one article (for more information please follow the link below – Offshore jurisdictions in 2023).

To pick the right jurisdiction as far as taxation is concerned you should account for all the circumstances:

  • company type
  • business area
  • company’s ownership structure
  • confidentiality requirements for beneficiaries
  • place of company incorporation
  • priorities and objectives
  • available resources
  • plans to further develop and expand the company.

An article like this would be either too long or too superficial. At International Wealth, we see rolling the two into one as impossible, hence the choice for a general overview of particular tax havens.

The following factors were analyzed and accounted for:

  • Tax rating. The score describes how easy it is to store, protect, or diversify assets in a given jurisdiction. With the rating of 100, complete anonymity, lack of taxes, and extended tax optimization options are guaranteed. A modern tax haven with nominal taxes and sufficient confidentiality levels would boast the tax rating of 50-75.
  • Weighted average monthly rent. The tax haven of 2023 is considered to have everything necessary for HNWIs and successful offshore company owners to comfortably live in, which is not quite true. In reality, you can find a suitable apartment or house in your desired price range.  
  • Safety. Typical risks to human life and health like road conditions, crime levels, protection level for those setting up their companies, likelihood of weather-related calamities, etc. are taken into account here.
  • Broadband Internet speeds and stability. The factor is essential for both comfortable life and business operation (and is vital for online companies).
  • Weather conditions and beaches. A tax haven of 2023 comes with everything necessary to lead a wealthy and comfortable life. Weather conditions and distance to the beach and/or conditions thereon are the factors that potential immigrants are interested in the most, especially those of them focused on leisure and relaxation.
  • Bars, restaurants, and coffee houses. Such factors as catering industry level, menu variety, as well as the quality of food and drinks are taken into account.

Let us add something important about a business environment in a certain tax haven. The things to take note of are how easy it is to incorporate a company therein, how high confidentiality levels are, what business structures and/or organization forms are available to set up a legal entity, and how high expenses to run and manage a business are.

FYI: any tax info in this article is provided net of benefits and deductions.

Bermudas (Somers Isles) tax haven – 10th place

  • composite index – 68.5 / 100
  • taxes – 100 / 100
  • housing rent – 2550 GBP
  • country security index – 2.5 / 5
  • average Internet speed – 42.3 Mbit
  • weather conditions and beaches – 71 / 100
  • bars, restaurants, and coffee houses – 91 / 100
  • types of business structures you may incorporate – 8.

 Bermudas tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 0%
  • capital gains tax – 0%
  • personal income tax – 0%
  • withholding tax – 0%.

The Bermudas are equally appealing for those about to live comfortably therein or run their own business on the islands. With its superb beaches, crystal-clear water, and highly-developed bar, restaurant, and coffee house networks, the jurisdiction is highly appealing to both tourists, investors, and business people. The prices are relatively low, hence the low barriers to entry.

Due to low or no taxes, the Bermudas are a catch for HNWIs and international companies. With this in mind, the jurisdiction is perfect for those interested in optimizing their taxes in a legal and efficient way. Incorporation requirements are minimum for companies, yet certain restrictions do exist. Say, Bermuda-incorporated companies must have a legal address and are not allowed to issue bearer shares. The most common incorporation forms in the Bermudas are exempt companies and limited liability partnerships.

Generally boasting a mild climate, the Bermudas get hot and humid in summer. The fall and winter seasons therein are however very comfortable, and you can enjoy both cool and warm days at this time of the year. Bermuda guests and tourists benefit from a great variety of beaches to suit any taste that boast breathtaking sunsets.

Isle of Man (Mann) tax haven – 9th place

  • composite index – 68.5 / 100
  • taxes – 100 / 100
  • housing rent – 1880 GBP
  • country security index – 0 / 5
  • average Internet speed – 28 Mbit
  • weather conditions and beaches – 57 / 100
  • bars, restaurants, and coffee houses – 82 / 100
  • types of business structures you may incorporate – 5.

Isle of Man tax haven, current tax rates:

  • corporate income tax – depends on the company type, 0% to 20%
  • VAT – 0%
  • capital gains tax – 0%
  • personal income tax – varies from 10% to 20%
  • withholding tax – depending on the income type, 0% or 20%.

The Isle of Man is a traditional tax haven with next to 100% confidentiality. Due to its favorable geographic location in the Irish Sea and close to the United Kingdom, the Isle of Man is often the jurisdiction of choice for wealthy Europeans. They are equally interested in comfort, security, and extensive opportunities to protect and diversify their assets.

High security relatively similar to that in Switzerland or Singapore is an important feature of the jurisdiction. The only unpleasant moments you may experience if you move to the Isle of Man are weather-related. With its frequent weather changes, the Isle of Man boasts storm winds and sharp temperature drops. At the same time, you will forget all about the tax haven status of the jurisdiction during the warm season therein. Regardless of whether you are looking to do business or legally optimize taxes, you will always enjoy life in the Isle of Man.

Singapore tax haven – 8th place

  • composite index – 69 / 100
  • taxes – 85 / 100
  • housing rent – 850 GBP
  • country security index – 3 / 5
  • average Internet speed – 255.8 Mbit
  • weather conditions and beaches – 59 / 100
  • bars, restaurants, and coffee houses – 86 / 100
  • types of business structures you may incorporate – 5
  • International Wealth website section on Singapore.

Singapore tax haven, current tax rates:

  • corporate income tax – 17%
  • VAT – 7%
  • capital gains tax – 0%
  • personal income tax – 2% to 22%
  • withholding tax – 0%, 10%, or 15%.

Officially, Singapore is not a pure tax haven. It is rather a traditional midshore jurisdiction. In Singapore, taxes are imposed and paid. The jurisdiction maintains all international standards as to aggressive tax optimization, countering base erosion, and terrorism financing.

Yet, if a perfect combo of safety, highly developed infrastructure, favorable corporate laws, decent living standards, and friendly business environment is what you are looking for, Singapore is your gem. Although rather high, local prices are still affordable. The city boasts multiple historical monuments, museums, and places of interest. In Singapore, you will enjoy that unique international cuisine with no sharp Asian flavors.

Although not every tax haven comes with decent living standards and business environment, Singapore is the one that does. With low taxes and multiple tax optimization opportunities in the jurisdiction, you will have no issues with finding sources of additional funding in Singapore to finance a potentially profitable startup. Company incorporation is simplified to the max in Singapore, and foreigners face no legal restrictions in this sphere. A high Internet speed and super comfortable living conditions are an extra bonus Singapore offers to its guests and potential new residents.

Lebanon tax haven – 7th place

  • composite index – 69.9 / 100
  • taxes – 75 / 100
  • housing rent – 984 GBP
  • country security index – 3.2 / 5
  • average Internet speed – 16.3 Mbit
  • weather conditions and beaches – 89 / 100
  • bars, restaurants, and coffee houses – 94 / 100
  • types of business structures you may incorporate – 6.

Lebanon tax haven, current tax rates:

  • corporate income tax – the tax rates vary depending on the income type
  • VAT – 11%
  • capital gains tax – 15% or 17%
  • personal income tax – 2% to 25%
  • withholding tax – 2.25%, 7%, or 10%.

The times when Lebanon was a civil war battlefield have been long gone. Due to high confidentiality and a favorable tax climate, the country is a true Middle Eastern tax haven at present. Doing business in Lebanon currently comes with certain risks. Yet, if looking for a jurisdiction to live in that boasts extensive opportunities to protect and diversify assets, Lebanon fits the bill.

Prices in Lebanon are rather low. In Eastern Beirut, housing meets all European standards, The local infrastructure is highly developed, and crime is rather low. Outside of the Lebanon capital, the situation is much worse, yet expats, digital nomads, and business people often decide in favor of Beirut.

With its mild climate, the country is equally perfect for skiing and beach holidays. Both Internet speed and quality are rather low, yet it is by far not always a limitation. Coffee houses and restaurants in Beirut are good enough, and local beaches draw tourists from around the world.

Principality of Liechtenstein tax haven – 6th place

  • composite index – 70 / 100
  • taxes – 71 / 100
  • housing rent – 789 GBP
  • country security index – 2.5 / 5
  • average Internet speed – 211.2 Mbit
  • weather conditions and beaches – 64 / 100
  • bars, restaurants, and coffee houses – 93 / 100
  • types of business structures you may incorporate – 5
  • International Wealth website section on Liechtenstein.

Principality of Liechtenstein tax haven (Anstalt), current tax rates:

  • corporate income tax – 12.5%
  • VAT – 7.7%
  • capital gains tax – is included in the corporate tax
  • personal income tax – 0% to 22.4%
  • withholding tax – 0%.

Liechtenstein is among the most popular and famous European tax havens. HNWIs, major investors, winter sports fans, and successful business people often choose to live in Lichtenstein. The jurisdiction boasts a favorable business climate, where company incorporation is somewhat difficult yet possible, while local taxation is clear and transparent to the max.

Stable high-speed Internet, a well-developed bank network, and laws serving to diversify and protect assets are the obvious advantages of Liechtenstein. The country comes with everything necessary to do business remotely, thus, online company incorporation is especially profitable here.

British Virgin Islands (BVI) tax haven – 5th place

  • composite index – 72 / 100
  • taxes – 100 / 100
  • housing rent – 2120 GBP
  • country security index – 2.5 / 5
  • average Internet speed – 28.1 Mbit
  • weather conditions and beaches – 87 / 100
  • bars, restaurants, and coffee houses – 86 / 100
  • types of business structures you may incorporate – 10
  • International Wealth website section on BVI.

British Virgin Islands (BVI) tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 0%
  • capital gains tax – 0%
  • personal income tax – 0% (certain exceptions do exist)
  • withholding tax – 0%.

A traditional tax haven and one of the most popular and famous offshore jurisdictions, the British Virgin IslandsI have an economy focused on providing high-quality affordable services to business people. International businesses and efficient offshore companies flourish here. 

Although rather expensive, BVI real estate still attracts its target buyers. Many apartments boast direct beach access, thus turning the tax haven into a well-developed spa and resort. The Internet speed on the islands limits opportunities to do business remotely to a certain extent. This, however, is compensated by breathtaking landscapes, zero taxes, and excellent opportunities to diversify and protect assets.

Turks and Caicos Islands tax haven – 4th place

  • composite index – 72.5 / 100
  • taxes – 100 / 100
  • housing rent – 2260 GBP
  • country security index – 3 / 5
  • average Internet speed – 61.8 Mbit
  • weather conditions and beaches – 87 / 100
  • bars, restaurants, and coffee houses – 90 / 100
  • types of business structures you may incorporate – 8.

Turks and Caicos Islands tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 0%
  • capital gains tax – 0%
  • personal income tax – 0%
  • withholding tax – 0%.

A West Indies tax haven, the Turks and Caicos Islands are among the few offshore jurisdictions with zero taxes. Doing business here is as transparent as it may be, with 8 business formation types available. If in search of a jurisdiction to do international business, lawfully optimize your taxes, keep assets safe, and relax, the Turks and Caicos Islands are the place.

Internet on the islands is not the fastest but pretty stable nevertheless. This makes the Turks and Caicos Islands a perfect launch pad to incorporate international companies. If you are tired after a hard day’s work, superb local beaches are awaiting you. Diving, sunbathing, or visiting excellent bars and diners on the Turks and Caicos Islands are the options to enjoy.

Jersey tax haven – 3rd place

  • composite index – 77.5 / 100
  • taxes – 100 / 100
  • housing rent – 1380 GBP
  • country security index – 0 / 5
  • average Internet speed – 274.3 Mbit
  • weather conditions and beaches – 71 / 100
  • bars, restaurants, and coffee houses – 80 / 100
  • types of business structures you may incorporate – 8
  • International Wealth website section on Jersey.

Jersey tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 5%
  • capital gains tax – 0%
  • personal income tax – 20%
  • withholding tax – 0%.

Jersey tax haven used to be a classic offshore jurisdiction before, yet the situation has changed. At present, PIT makes 20% and VAT is 5%. This, however, never ruined the Jersey appeal for business people, HNWIs, and investors. As before, offshore company setup, asset storage and diversification, and all types of investments are profitable here.

Local prices are rather affordable. Housing rents are not too high for Jersey guests, while digital nomads and well-off individuals can choose from a variety of upmarket high-quality apartments. Famous for its top security, the jurisdiction boasts extremely high digital potential and setting up a digital company in Jersey is likely to be both profitable and enticing.

The Jersey climate is equable. Sudden weather changes are rare and they never affect the comfort of living. Jersey bars, coffee shops, and restaurants are one-of-a-kinds. They include facilities everyone can afford that offer home cuisine and luxury European-style restaurants.

Anguilla tax haven – 2nd place

  • composite index – 81.3 / 100
  • taxes – 100 / 100
  • housing rent – 1240 GBP
  • country security index – 2.5 / 5
  • average Internet speed – 18.1 Mbit
  • weather conditions and beaches – 88 / 100
  • bars, restaurants, and coffee houses – 90 / 100
  • types of business structures you may incorporate – 5
  • International Wealth website section on Anguilla

Anguilla tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 0%
  • capital gains tax – 0%
  • personal income tax – 0%
  • withholding tax – 0%.

A traditional offshore jurisdiction and a tax haven, Anguilla boasts well-developed corporate laws, decent living standards, top confidentiality possible in 2023, decent security levels, and superb beaches.

Offshore company incorporation in Anguilla is an excellent opportunity to seamlessly start an international business for those willing to do it. Average Internet speeds are by far not the highest in the jurisdiction, yet in most cases they are enough for companies to operate comfortably. The Anguilla business infrastructure is not highly developed, this is why it is most often the jurisdiction of choice for offshore trust incorporation.

As for your everyday life in Anguilla, you won’t experience any issues. Local beaches are magnificent, and both HNWIs and digital nomads consider them to be the best in the world. If you forget about the rainfall season, Anguilla weather is highly favorable. Anguilla coffee shops and restaurants boast a large variety of seafood, while local bars come with a wide range of cocktails.

Bahamas (Commonwealth of the Bahamas) tax haven – 1st place

  • composite index – 86.9 / 100
  • taxes – 100 / 100
  • housing rent – 1790 GBP
  • country security index – 3 / 5
  • average Internet speed – 27.2 Mbit
  • weather conditions and beaches – 80 / 100
  • bars, restaurants, and coffee houses – 80 / 100
  • types of business structures you may incorporate – 14
  • International Wealth website section on Bahamas.

Bahamas tax haven, current tax rates:

  • corporate income tax – 0%
  • VAT – 12%
  • capital gains tax – 0%
  • personal income tax – 0%
  • withholding tax – 0%.

For international businesses, the Bahamas are the best tax haven out there. For some companies with their unique characteristics and start conditions, more profitable alternatives are available. Yet, in terms of all-purposeness and multitasking, the Bahamas are the gold standard of offshore business and banking. The Bahamas CIP comes with an opportunity to obtain an alternative residence permit in the country on very favorable terms.

There are no taxes in the Bahamas. Businesses only pay VAT and have certain liabilities as far as social contributions and property taxes are concerned. In all other aspects, the Bahamas are a typical offshore haven.  This is the jurisdiction where company incorporation and doing business go hand in hand with high living standards, magnificent beaches, and simple procedures to obtain residency.

To a business person, the Bahamas offer a variety of options to buy and sell real estate, protect and diversify assets, and do business. The banking sector is well-developed. You will experience no issues with setting up either personal or corporate bank accounts. Company incorporation procedures are simplified, with a variety of incorporation forms available.

The Bahamas are by far not only a tax haven. The islands boast a next-to-perfect climate, velvet beaches, and a large selection of water activities. Local beach bars are no worse than those in Ibiza, while night clubs in the Bahamas boasting a variety of entertainment experiences take the upper hand over famous European and American entertainment venues.

The best tax haven to set up companies, run offshore businesses, optimize taxation, make investments, protect or diversify assets is not necessarily the ranking leader or the jurisdiction preferred by the most. To begin with, this is the country suitable for you that meets your particular requirements.

Simply said, in some cases low corporate taxes are better for businesses compared to zero tax rates. Alternatively, the already existing PIT may be fully compensated by favorable living conditions and low prices in the jurisdiction. In any case, choosing the best tax haven should be on a case-by-case basis. It is recommended to pick the one best for you after a consultation with the International Wealth industry experts.

Popular offshore company incorporation services offered by International Wealth are to be found below:

Don’t hesitate to contact the International Wealth consultants for any questions you may have on the subject. Our initial individual consultations are free of charge for potential customers. To contact us, please, send a message to [email protected]

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