How you Can Relocate to Paradise and Never Pay Tax Again
The Caribbean is renowned for its beautiful beaches and sunny climate. But that isn’t the only reason to think about moving to the Caribbean. It’s located near the US. There are plenty of citizenship and residency programs to choose from. It’s surprising that more people don’t choose to move to this region.
Do you have a location-independent job? Are you looking for a change of scenery? Well, here’s a list of 11 tax havens in the Caribbean where you’re guaranteed a warm welcome and zero income taxes.
The Cayman Islands
The Cayman Islands is one of the best-known tax havens in the Caribbean. It has no income taxes, capital gains taxes or property taxes. It’s got a long tradition of not imposing taxes on its residents. That’s unlikely to change. The Cayman Islands also has the best banking options of all the tax havens in the region. Hundreds of billions are stashed in the banks of the Cayman Islands.
There are many residency options. If you buy a property on the islands, you can get residency. There’s also a short-term residency scheme to attract nomads to the islands.
Like The Cayman Islands, Anguilla doesn’t impose income taxes or capital gains taxes on its residents. There are no estate taxes either which helps to make it one of the best tax havens in the Caribbean.
Anguilla has a Citizenship by investment program. By investing $150,000 in the program, you’ll get an Anguillan passport. You can live on the island for as long as you want.
The Citizenship programs are called citizenship by investment. But don’t expect to see your money again. Look at it as the price you pay to live in a sunny Caribbean tax haven and travel on a decent passport.
US citizens, who have to renounce US citizenship to take advantage of tax havens, may need this option.
There are no personal income taxes, capital gains taxes or inheritance taxes in The Bahamas.
In my view, The Bahamas and the Cayman Islands are the most liveable tax havens in the Caribbean. As havens for the super-rich, every service you’re likely to need is available. If you need more excitement, you’re only a short flight from Miami.
There are three different types of residency available if you want to move to the Bahamas. There is Permanent Residency, a Home Owner’s Residence Permit and the Annual Residence Permit. The Annual Residence Permit is the easiest to obtain on payment of a small government fee.
Belize isn’t a pure tax haven like some of the others countries. But, it’s easy to arrange your affairs in Belize. You can make sure you have no tax liability if your income comes from outside Belize.
Belize is the only English-speaking country in Central America. It used to be a British colony, known as British Honduras.
It’s easy to get a residence permit in Belize. You can then take advantage of the beautiful, Caribbean beaches and its laid-back way of life.
British Virgin Islands
More offshore companies are registered in the British Virgin Islands than anywhere else. I’ve written about this here. British Virgin Island companies are useless for anybody looking for privacy and asset protection.
The British Virgin Islands are, though, a wonderful place to become a resident. There are no income taxes, inheritance tax or capital gains taxes. As a British protectorate, its laws are based on the British legal system.
If you can prove that you’re financially independent, you’ll be able to get a residence permit. This will let you stay permanently in this sunny Caribbean tax haven.
Panama is the leading financial centre in Central America. It’s long been known for its secret corporations and private banking. Its less well known as one of the best Caribbean tax havens.
Panama is located between the Caribbean Sea and the Pacific Ocean. The Panama Canal links the two and still provides significant income for Panama.
Panama is a territorial tax country which means that any money earned outside Panama is tax free. In 2021 Panama ended its very favourable friendly nations visa scheme. But there are still many possibilities to become a resident of the Central American country.
Costa Rica is located north of Panama and is also located between the Caribbean and the Pacific. Like Panama, Costa Rica is not thought of as a Caribbean tax haven, but it definitely is.
The Caribbean beaches of Costa Rica are much less developed. You can find a whole Caribbean beach to yourself there.
Costa Rica is a territorial tax country, so anything earned outside Costa Rica is not taxed. After between 5 and 7 years in Costa Rica you can get citizenship. Costa Rica has a very good passport. It offers visa-free access to the EU, the UK, and Russia.
There are several good options to get residency in Costa Rica. They have categories for pensioners and investors. They recently introduced a nomad visa. This makes it even easier to get residency in this Central American country.
Dominica is a Commonwealth country located in the Eastern Caribbean. Not to be confused with the Dominican Republic, Dominica is an English-speaking country with a population of under 72,000.
Residency is easy to obtain. You can apply for a resident’s permit after you arrive in Dominica.
Dominica has a Citizenship by Investment Program. You can buy citizenship for Dominica for around $100,000.
Saint Kitts and Nevis
Saint Kitts and Nevis is located between the Caribbean Sea and the Atlantic Ocean. There are two Islands that have a combined population of 53,192.
Companies incorporated in Nevis enjoy strong asset protection benefits. They are amongst the best of any offshore jurisdiction.
Saint Kitts and Nevis also have a Citizenship by Investment program. You can effectively buy a Saint Kitts and Nevis passport for $100,000. That will allow you to live permanently in one of the tax havens of the Caribbean.
Puerto Rico is a US territory with a population of 3.2m. As Puerto Rico is not a US state it’s able to offer unique tax incentives to US citizens. If you are a US citizen you’re taxed on your worldwide income no matter where you live. Even if you live in a tax haven, you’ll have to pay US taxes on your worldwide income.
Puerto Rico, however, offers a solution to this for US citizens. Bonafide residents of Puerto Rico can start a business there and export services to the US. They will pay a corporate tax rate of only 4%. Dividends are tax-free for Puerto Rican residents. There are no capital gains taxes.
Non-US citizens can also take advantage of Puerto Rico’s tax incentives. But you’d first have to apply for US residency.
For US citizens looking at tax havens in the Caribbean, this could be your best option.
Turks and Caicos
The Turks and Caicos is an archipelago of 40 islands located north of the Caribbean. It has a population of 39,476. The Turks and Caicos are surrounded by beautiful white-sand beaches.
The Turks and Caicos is a British protectorate with the Queen as head of state.
There are no taxes on the Turks and Caicos. No income tax, no capital gains tax, no inheritance tax, or corporation tax. The government is funded by an import tax of 37.5% on most imported goods.
An annual residents permit is easy to obtain for most people. This helps make the Turks and Caicos one of our secret tax havens in the Caribbean.
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