We've seen in the movies how The Bahamas or the Caiman Islands are tax havens with very little (or no) income taxes. But here are other countries where this also happens that you may not know that well.
Many countries, all over the world, offer their citizens the benefit of very low-income taxes. For some Americans, it may sound tempting to pack a suitcase and move overseas, but they must bear in mind that U.S. taxation is based on citizenship and not residency. This means, that no matter where Americans live, they must inform the U.S.goverment of any income they make overseas and will be taxed accordingly.
However, there are some ways to reduce your taxes if you put up accounts in these tax havens, so you might want to check out this list of possible destinations:
United Arab Emirates
The United Arab Emirates (UAE) is an alliance of seven individual regions, each with their own absolute monarchy, is one of the Middle East's most wealthy economic hubs. The country enjoys a reputation for luxury shopping, seven-star hotels, fine dining, and extravagant nightlife options. The best-known state is Dubai.
The lack of income tax, in addition to high wages and good job opportunities, make this place very attractive for foreigners. In fact, there are over three times as many ex-pats living in the UAE as there are citizens.
In spite of its tiny size, this sovereign nation lodged into the southeast corner of France that overlooks the Mediterranean Sea is one of the most popular tourist destinations on the French Riviera. The monarchy and the Casinos are a great attraction.
To become a resident of Monaco, you need to get a temporary residence card, which allows you to live in Monaco for 12 months. But you only need to live there for three months to maintain your residency.
Switzerland is a mountainous Central European country, home to numerous lakes, villages and the high peaks of the Alps. It remains high up on the list of preferred tax havens due to its low taxation of foreign corporations and individuals. Although Switzerland is no longer a place to "hide" money due to pressure from the United States and the European Union (EU), it still offers the wealthy some benefits for living and keeping their money there.
The British Virgin Islands
In the Caribbean, the British Virgin Islands are made up of four main islands and around 50 smaller cays and islands that include some of the most exclusive in the region.
There are virtually no taxes levied on the British Virgin Islands, meaning there is zero capital gains tax, inheritance tax, estate duty, and corporation tax. Though there is technically an income tax, rates are set at zero, effectively making it null.
Obtaining citizenship is not an easy matter for requires 20 years living in the área and you must live their almost all year round.