Most people look for a tax haven when they wish to open an offshore bank account. By definition, tax haven is a place that subject individuals and companies to no- or little- tax liability. Some of the world’s most reputed and famous tax havens are located in the Caribbean. These places are known for providing stunning financial benefits. Few impressive names in the list of finest offshore destinations for banking would be Cayman Islands, Bahamas and Panama. And, in this post you will read more about these best countries for open offshore bank account.
Most of these countries are known as pure tax havens. This is because you will not be subject to any taxes at all. Caribbean destinations were encouraged to turn into tax havens because they wanted to attract foreign investors, and build a stronger economy.
The talk about best countries for open offshore bank account in the Caribbean will be incomplete without Cayman Islands. This is one of the world’s largest offshore financial hubs. The island is famous for offering offshore trusts, banking opportunities and even building a strong platform for companies. Your offshore company in Cayman Islands will not be taxed. Anything that you earn in the Island is void of tax. In fact, Cayman Island doesn’t have any tax on inheritance, estate, corporate, or income. This makes the place a true tax haven.
But, Cayman Islands is famous for its strict banking policies. These policies are designed with care to protect, and offer extremely levels of banking privacy. When you open an offshore company in Cayman Islands, you will not be expected to submit any reports to the Cayman Government Authority. The entire process is streamlined and simplified.
Moving on, you need to consider Panama in the Caribbean Seas. This is one of the oldest offshore destinations in the world. An impressive quality of Panama would be the fact that offshore companies can execute operations within and outside the country. Owners and corporates of offshore banking accounts in Panama will not be subject to local taxes, corporate taxes or income taxes. And, any foreign nationality can open an account in Panama. The offshore destination has strict laws to protect every offshore foundation and trust in its land.
Just like Cayman Islands, Panama is famous for its high secrecy laws. All these laws are worded and improved to ensure on your privacy. Unlike many other offshore destinations, Panama doesn’t have any tax treaties with other countries. And, there are no laws on foreign exchange control.
Next in line would be the Bahamas! The Bahamas was declared as a tax haven during the 1990s. The legislation was passed to enable the arrival of offshore IBCs and corporations into the Bahamas. Even today, Bahamas is everyone’s much loved destination for offshore banking. It is extremely famous in the United States of America, and in many European Countries. Key features offered by the Bahamas would be offshore trust management, registration of ships, registration of companies and offshore banking.
Bahamas was one of the Caribbean’s first countries to build secrecy laws around banking systems. Till date, you will not be allowed to extract details about any customer from a bank. If you are looking for specific details, you need to receive an order from the Bahamian Supreme Court.
The British Virgin Islands
A less famous name in this list of best countries for open offshore bank account would be the British Virgin Islands. This is an ideal place if you want to holiday under the sun, and enjoy some offshore benefits. Just like Panama, the British Virgin Islands has not signed any treaty with other countries. Hence, the island is solely responsible for protecting the details of its offshore bank account holders.
Any company from a foreign land, with an offshore account in BVI will not be levied taxes. The only fee you should pay to the government of British Virgin Islands would be the annual business license charges.
A lot of people are confused about the Dominical Republic! Well, the Commonwealth of Dominica has supported the creation of offshore foundations, corporations and trusts. This country takes pride in offering privacy-protected and a tax-free environment for offshore banking.
Once again, Dominica is a pure tax haven. You will not incur any corporate, capital gain, income or foreign income taxes. When you open a trust or company in Dominica, you are expected to pay any stamp duty. The country has strict rules and regulations to protect the true identity of directors and owners of offshore companies located in Dominica.
St. Kitts and Nevis has combined to form the St. Kitts, and Nevis Foundation. This is a tax friendly collaboration that helps offshore limited liability companies, foundations and trusts with stunning insurance features and offshore banking services.
Just like Dominica, you cannot extract details about directors and owners, who have offshore companies in Nevis. In order to open an offshore company in Nevis, you need a single shareholder and a single director. Well, a single person can become the shareholder and director. Nevis Exempt Trust always exempts taxes from businesses that are held outside the country, but with accounts inside Nevis. The interest and dividends are absolutely tax free. Likewise, you are not expected to pay stamp duty for any transaction executed within Nevis.
If income earned from other jurisdictions are stored in your Nevis offshore bank account, you are not expected to pay local taxes. To be more precise, offshore account holders and companies are not expected to pay any capital gains taxes, withholding taxes or estate taxes.
Nevis has always refused to sign taxation treaties. This means, you have no exchange control regulations in the country.
Last but certainly not the least, you have Anguilla which belongs to the Britain Overseas Territory. This country follows a zero-taxation system for offshore investors. Once again, Anguilla is a pure tax haven. All entities that have accounts and companies in Anguilla are free from paying stamp duties. And, the Offshore Banking Act of 2005 stops agents and bankers from sharing details about account holders with anyone else.