Tax havens are attractive destinations because you can live and make money while paying little or no taxes. However some tax havens are more attractive because they also offer an appealing lifestyle at low cost.

Here are some of the world’s tax havens and a little information about their regulations and lifestyle.

Andorra

This gorgeous country nestled in the Pyrenees Mountains between France and Spain is one of Europe’s premier tax havens. The country imposes no taxes, it has a safe and unregulated banking system, free health care for everyone, a stable government and a huge expatriate population. This dazzling paradise is a thriving tax haven which also offers superb recreational activities.

Enjoy skiing at the world famous Pyrenees Alps which are just a hop, step and a jump from Andorra, or take a short drive to swim in the crystal clear waters of the French Riviera or the beaches of Barcelona.

Do you like to smoke and drink? Find these products in Andorra cheaper than anywhere else in Europe and enjoy no sales taxes.

Anguilla

Anguilla is a tiny country which is part of the Caribbean Islands. While this country is appealing to some as English is spoken, it differs from other tax havens as its regulatory bodies can share information with their overseas counterparts.

This therefore makes the country less appealing than other Caribbean tax havens as confidentiality isn’t high priority. Lifestyle in Anguilla is also not as exciting as in other destinations, however if Lobster fishing tickles your fancy, this is one of the only things to do in this country.

Antigua and Barbuda

Antigua and Barbuda are a business person’s paradise. They have an excellent reputation for tax haven banking and are located in a convenient time zone which make it an extremely attractive international business haven.

Antigua and Barbuda boast first rate services including legal and financial services and excellent banking facilities. Tax haven companies benefit from minimal bank fees, as little as 3% on gross income and they can also be exempt from taxes in regard to international trade, investment or commercial activity.

Residents enjoy paying no personal income tax or tax on capital gains. Confidentiality is of key importance in Antigua and Barbuda and severe penalties are imposed for institutions leaking information, however criminals are by no means protected. The laws in Antigua and Barbuda make it secure tax havens of international repute.

If this doesn’t sound as appealing as you would like, Antigua and Barbuda recreational facilities make them a one spot haven. Located just 17km from the equator means this is one of the sunniest spots in the Caribbean. This is a paradise for those who love water activities. Or if you are looking for something other than water activities the internet gaming business is thriving.

Antilles

The Netherlands Antilles is located in the Caribbean Islands. While it is under Netherlands’ rule, it has an autonomous and highly stable government with strong international business. Of its 70 banks, 50 of them are internationally owned.

This tax haven imposes different tax rates and regulations depending on your business. In 1999 policy changed in Antilles resulting in there being no difference between onshore and tax haven companies.

The best way to relax in Antilles is to take a boat and explore the beautiful coral reefs which are home to Antilles. To do your bit for the environment and take part in the campaign for the protection of these natural wonders.

Aruba

Aruba is considered a dormant tax haven haven compared to other tax havens. Once a thriving haven, today not as much activity takes place on this island in the Caribbean, with only 4000 tax haven companies located in Aruba.

However the tax haven companies located in Aruba are exempt from tax as long as both their business and their shareholders are tax haven. It might not attract as much international business as other islands, however the tax laws are attractive and international banking is welcomed.Aruba offers a peaceful lifestyle with high quality of living.

Belize

Investing in Belize can be seen as a much easier process than other tax havens. In 1990 The International Business Companies (IBC) Act was created and allowed foreigners to invest in Belize with attractive benefits.

Some of these benefits include being exempt from all income taxes and stamp duties. As part of the IBC some of the regulations meant that foreign investors are not allowed to start a banking institution, nor are they allowed own real estate in Belize.

Despite the restrictions, the rules are still considered some of the easiest to follow with good tax benefits.

Belize is not only an attractive tax haven for general investors; it is also an appealing retirement haven. What adds to its appeal as a haven is English is the official language. This is appealing to older people who are looking to retire somewhere and they are at a stage in their life when learning a second language isn’t high on their list of priorities.

Belize also offers the best scuba diving in the world as it is home to the Barrier Reef off the east coast of Belize in the Caribbean Sea. The Belize Barrier Reef is the longest of its kind in the northern hemisphere and second in the world and therefore the diving is superb.

Bermuda

Bermuda is one of the more expensive tax havens in the Caribbean. The annual government fee of $1680 can act as a deterrent, even though there are no double tax treaties. While it is a more expensive island if you are looking at relocating or retiring, the tax benefits are still attractive.

Some of the benefits include paying no capital duty, and no restriction imposed on where business meetings can take place.

Bermuda has a vast array of activities to partake in. If you want an excuse to visit your invested money in Bermuda, you can also relax on the beach, have a hit of golf, enjoy bird watching, horse riding and of course sail on the Caribbean.

British Virgin Islands

The British Virgin Islands have a lower annual tax of $300, however the cost of living is still high compared to other tax havens. Registration for an account in the British Virgin Islands is relatively straight forward and can be issued quickly, thanks to the International Business Act of 1984. This act made it more enticing for foreign investors to include themselves in the British Virgin Islands.

Diving, yachting and cruising in the crystal clear waters of the Caribbean are extremely popular in the British Virgin Islands. The turquoise water with sandy beaches and the tropical climate make the Virgin Islands an attractive spot for investing.

The German Chancellor, Angela Merkel, was voted the most powerful woman in the world, by Forbes Magazine. She is now hell bent on a crusade to rid the world of tax havens, through the governments of the world uniting in a Tax Cartel. Bureaucratic opponents to tax havens, from across the  world, are conceitedly confident their cause is virtuous and are demanding a hard fisted crackdown in what could be called a ‘Holy Tax War’.

Tax havens develop because of the need to attract foreign investment to an economy. In particular, third world countries who are willing to vary their tax laws. Countries which able to benefit from the universal requirement for opportunities to engage in avoidance of punitive tax laws and regulations of other jurisdictions.

If you are residing in a developed country, your taxes are most likely lower than they were 30 years ago. In 1980 OECD quoted personal income tax as averaging 67%. Top personal taxes now average only 40%. Corporate taxes have gone from 50% in 1980 to a mere 27%. This is thanks partly to the existence of tax havens. They help pressure high-taxed countries to cut down their tax rates. It is this tax competition which drives tax policy in the right direction, creating a liberalizing process.

Wealthy people are threatened by oppressive governments. Personal freedom can often only be sustained when personal information is secreted from the government, particularly when it comes to persecution of an ethnic, racial, political, or religious nature. These potential sufferers have an escape route because of the existence of tax havens.

Tax havens have been with us since the Vatican City evaded tax in 756. Ancient Greece, around 1100 BC, used some of the Greek islands to avoid a 2% tax imposed by the city-state of Athens. Since the early 1700′s American colonies traded from Latin America, so as to avoid paying English taxes.

Taxes rose harshly at the end of World War I, in order to reconstruct the war damaged countries. Switzerland, having remained neutral, didn’t face the same infrastructure rebuilding problems. The twentieth century screamed for new markets, cheap labour and low tax, as the majority of the world’s colonies gained independence. Developing their own tax and trade regimes, they produced universal economic disparities. Between World War 1 and World War 11, tax havens were mainly used to get around personal taxation. From the 1950′s onward, there was a phenomenal growth in the use of tax havens, as corporate giants attempted to reduce their global tax burden.

While many claim that tax havens are an open avenue for money laundering, the extensive international regulations in tax havens actually makes money laundering virtually impossible. The surprise is that America could be considered as one of the largest tax havens, in that there is no tax on interest and capital gains for foreigners who invest in America. It is estimated that there is more than $12 trillion of foreign investment in the United States alone.

Vanuatu, a tropical island archipelago in the South Pacific, has long been seen as a safe economical and political tax haven. However, the financial status has been a controversial subject during the recent general elections. Many claimed that the high handed tactics of Australia violated the sovereignty of Vanuatu, during the raids on legitimate companies, banks and private homes. Mail boxes were broken into and private letters opened. Well known identities were arrested, claiming they were masterminds of massive tax evasion schemes.

All this in the name of a classic movie type sting, in an attempt to catch unsuspecting Vanuatu citizens and residents. People who were law abiding in the framework of Vanuatu, but according to the Australian Tax Office, they were breaking Australian law.

Does the constitutional law of the land take precedence in a country, or should a country bow to the laws of a neighbouring country? Finally, when all opposition or completion is demolished, an unhealthy situation arises. There are no checks and balances.

Kapoor: We may see long term depressed growth of the economy or even a more radical depression

Sony Kapoor on the rise of Goldman Sachs and the need to democratize the economy

Politicians who like higher taxes would like to shut down so-called tax havens so they can set up an “OPEC for politicians” and implement higher tax rates. Yet since all the evidence shows that low-tax jurisdictions are very beneficial for the global economy, the politicians often resort to dishonest demagoguery. This educational video from the Center for Freedom and Prosperity debunks President Obama’s two most common smears against tax havens. www.freedomandprosperity.org…

Sony Kapoor on the rise of Goldman Sachs and the need to democratize the economy

Every so often we read that governments are going to crack down on tax havens and offshore bank accounts. The latest threats to do this have come in the wake of the financial crisis and economic recession that began in 2008.

However, attacking offshore tax havens is not new. And it would appear that such attacks by various politicians rarely amount to more than window dressing to placate the masses and an attempt to divert blame for any economic woes from themselves.

Before answering the second question posed in the title of this article, it would be a good idea to clarify exactly what a tax haven is.

A tax haven is a country which has little or no income tax. Some tax havens have zero income taxes, while others may have very low taxes – or only tax local income not worldwide income.

To give a few examples: If you live in Hong Kong you will be taxed at a flat rate of 17% on your income. On the other hand, if you live in New Zealand you will be taxed on a sliding scale all the way up to 38%. Obviously if you lived and worked in Hong Kong, then you?d be keeping a lot more of your own money.

Another issue is whether a country taxes domestic income only or worldwide income. Most countries tax worldwide income, which means if you live in the USA but earn income in the UK, then the UK income is also taxable and is to be considered part of your total income for tax purposes.

But if you lived in Singapore and made money outside that country, then you wouldn?t be liable for income tax on the overseas income, only your local income. So while Singapore is not considered a tax haven in the usual way, it is in fact a tax haven for those who live there and earn money outside Singapore.

The attraction of tax havens is obvious. If you live there, or do business there, you could end up keeping a lot more of your own money. For it never pays to forget that income tax is a tax on your very life. Your labour is part of your life. If someone were to claim 80% of your labour without pay, and only give you food and shelter in return, then you?d have a good working definition of slavery. And the rates of tax prevalent today are akin to slavery in every way – with most developed countries raking off 50% or more of their resident?s money with income and other forms of tax.

So a tax haven is exactly that – a safe haven, if you will, from predatory taxes.

Trouble is, high-taxing countries hate this. They don?t like having to compete with other countries in the matter of tax. And if truth be told, most governments of the developed world would very much like it if such tax competition was abolished, by getting rid of tax havens.

But it?s not as simple as it appears. The tax code of any particular country is a matter for that country to decide. If Hong Kong levies an income tax of 17% on its residents and New Zealand levies up to 38% – who?s to say that Hong Kong shouldn?t be allowed to do it?

And that?s the problem. The very notion of abolishing tax havens implies abolishing each country?s sovereignty. It means that someone, somewhere, is going to dictate to every country what its income tax rate will be – and that in order to eliminate tax competition the rates for all countries must be the same.

Of course, this will not happen – not without a one world government and a one world tax system.

The truth is tax competition, like any competition, is healthy. The very existence of low tax or no tax jurisdictions keeps other countries on their toes, and draws a line in the sand as to how high they can push their own tax rates – without causing an exodus of their best and most productive people.

But there are other reasons why tax havens and offshore bank accounts will not be abolished any time soon. Human nature. And in particular the nature of many politicians. You see, if there were no tax havens, no places to ?hide? money – then what would the corrupt politicians of this world do with their ill-gotten gains?

No, the powers that be, at the very top echelons, require places where they can stash their cash. All their threats about abolishing or doing away with tax havens are but hot air – and hypocritical to boot. Because at the end of the day the people who benefit most from the existence of different tax rates around the world are the people with money – the same people who pull all the strings. To abolish tax havens would be akin to cutting their own throats.

So don?t expect tax havens and offshore banking to disappear any time soon!

Statist politicians and international bureaucracies such as the OECD and UN routinely attack tax havens, claiming that they lead to “harmful tax competition.” Yet at no point do critics bother to provide any evidence for this claim. This mini-documentary from the Center for Freedom and Prosperity looks at the empirical data and scholarly research and reports that tax havens actually have a very positive impact on the global economy.

The Center for Freedom and Prosperity Foundation has produced videos showing the economic and moral benefits of so-called tax havens. This final video in the three-part series addresses some of the most common myths put forth by politicians from high-tax nations. Using academic research and data from international organizations, the video shows that the most common attacks made against low-tax jurisdictions are empty demagoguery.