Islands Where You Can Live Tax Free
Island tax havens are where we can dream of living without the stress and hassles of modern life. For those who choose not to live as tax slaves it’s essential to find places in the world where we can live with complete freedom. It’s not possible to be free whilst living in a country that takes a large percentage of your income by force. Known as taxation. The island tax havens listed below are a combination of pure tax havens and places where you can easily structure your affairs to be tax free such as the territorial tax countries. Or places that have special tax breaks for new residents
The Cayman Islands
King of the island tax havens is The Cayman Islands. The Caymans have no income tax, inheritance tax or capital gains tax. In fact The Cayman Islands are one of the few countries in the world that doesn’t have a property tax. The Cayman Islands are an expensive place to live but if you’re looking for an island tax haven this could be a top choice.
The British Virgin Islands
The British Virgin Islands are another of the Caribbean island tax havens. The British territory has no income tax, inheritance tax or capital gains tax. The British Virgin Islands may not work as well as people think as a corporate tax haven, it can work extremely well as a personal tax haven for those willing to make the move.
Phuket, Thailand
Thailand may not immediately spring to mind when thinking of island tax havens. However with the Thai Elite Visa program all of Thailand is a tax haven. This is provided your income comes from outside Thailand. The Thai elite visa provides residency in Thailand for at least 5 years. Other VIP benefits are available too. But it’s the tax benefits that matter most. You can live on a paradise island year round without worrying about paying income tax.
Madeira, Portugal
Madeira is a self-governing island of Portugal. This subtropical island is known for its lava pools and hiking trails. As it’s part of Portugal, Madeira’s less well known for being a tax friendly jurisdiction. However with Portugal’s non-habitual resident’s scheme you can structure your affairs so that you have no tax liability in Portugal. Some planning is needed on this one bit given the advantages of Portugal and the solid EU citizenship it offers many will find it worth the effort.
Saint Barthelemy (St. Barts)
The billionaire hang out of St Barts is one of our favourite places for a winter break. While the British islands in the Caribbean are well known as island tax havens the French islands are better known for their beautiful beaches and amazing French food. What’s less well known is that the French islands are tax havens too. You’re also able to work towards European citizenship by living in St Barts for 5 years.
Anguilla
Not only is Anguilla known for its amazing, undiscovered beaches, it’s also a zero tax haven. On this Caribbean island there are no income taxes, inheritance tax or capital gains tax. Another advantage of Anguilla is it’s not as expensive as The Caymans or The Bahamas.
St Vincent and the Grenadines
St Vincent and the Grenadines is the home of pristine white sand beaches and upscale resorts. Its not the pure tax haven that many imagine it to be. But if you want to spend your time on this Caribbean paradise you can structure your affairs to make it your personal island tax haven. Only money earned on St Vincent or remitted there is taxed. Therefore if your income is earned outside the island you can easily arrange your life to pay no tax there.
Singapore
Singapore is a vibrant and exciting Asian city state. Once part of the British empire, it’s now a hub for banking and innovation. You can live a tax free life on this island provided your income is not earned in Singapore. This could be challenging as there are so many opportunities there. However if you want to live in this Asian financial hub you can do so tax free by earning your money overseas. Facebook co-founder Eduardo Saverin renounced his US citizenship to relocate to Singapore from where he continues his investing activities.
Sark
Sark is perhaps the best and least famous of the island tax havens located in Europe. As part of the Channel Islands, Sark is a protectorate of the United Kingdom. It does however have its own sovereignty. Sark has no income taxes, capital gains taxes or inheritance taxes. You must be prepared for a quiet life on Sark. There are no cars permitted on the island and the population is only around 600.
Bermuda
Bermuda is a small but wealthy island located in the Atlantic ocean, about 1,000 miles from Florida. There are no income taxes or capital gains taxes for residents of Bermuda. Bermuda was the first British colony in 1609, so benefits from the British legal system. Bermuda is home to almost 500 of the world’s largest companies because of this. There are no corporate taxes in Bermuda either. Bermuda is a great place to live for tax exiles. It has amazing beaches and all the services you’d expect to cater for wealthy residents.
The Bahamas
The Bahamas are a group of Caribbean islands with beautiful beaches and turquoise waters. The Bahamas rivals the Cayman Islands as one of the top island tax havens in the world. The Bahamas has no income tax, capital gain tax or estate taxes. That’s why it’s been home over the years to many rich and famous residents such as James bond star Sean Connery. The Bahamas also has an easy residence program for residents who’d like to live in this tax free paradise.
Conclusion
The diversity of the tax free islands offers opportunities for everyone to live life in freedom in a location that suits them well. Our island tax havens include dynamic and bustling city states like Singapore to paradise islands in the Caribbean and billionaires hang outs like St Barts. In many of these place you can work towards a second citizenship. You can run online businesses in any of the destinations too. As more and more people figure out that they don’t have to stay in authoritarian, expensive high tax countries these destinations will become more popular and more expensive. Those interested in making a move should start on their back up plan today.
FAQs
Which Caribbean island is a tax haven?
There are numerous Caribbean tax havens. The best tax havens in the Caribbean are The Cayman Islands and The Bahamas.
What islands have no taxes?
Bermuda is a popular offshore tax haven in the Atlantic. There are too many island tax havens to mention.
Where is the best tax haven country?
That depends on individual preferences but The Bahamas and The Cayman Islands are amongst the best for individuals. Monaco and Sark are amongst the most interesting tax havens in Europe.
Is Turks and Caicos a tax haven?
Yes. The Turks and Caicos has no income tax, capital gains tax or inheritance tax.
What is a tax haven?
A tax haven is a jurisdiction where individuals and corporations can locate and legally pay no income tax or corporation tax.
How do companies benefit from tax havens?
Companies can ensure that certain types of profits are booked in countries with lower or no corporate taxes. Multi-national companies have multiple subsidiaries in tax friendly countries and save billions in taxes every year by utilising tax havens.
