While it’s true many bankers had to change career after the BFM (Big Financial Meltdown – GFC is getting so boring), many bankers still manage to jingle when they walk. Following the bailouts and handouts from various governments that many argue didn’t do much to teach any lessons, it’s the big boys in the banks who are rubbing their hands together with glee, thanking us very much.
Few of the top dogs have suffered financial hardship from the crisis, which means they can continue to lead their luxurious lifestyles knowing that every time it goes t**s up, they’ll get bailed out. And because of the nature of their wheeling and dealing careers, banker boys know that a good way to have more money is to pay less in tax. Yes, it is true, the more money people have, the less tax they pay. It shouldn’t be so, but it is – the rich and loaded can afford wily accountants who know where all the lovely loop holes are hidden, the rest of us have to deal with the dreaded tax office direct, and generally get a bum deal.
But say, one day, we had just as much money as the fat cats, able to stash our cash in the tax havens of the world… where would you choose to live?
1. Andorra
Images: OnTheSnow, Villa de Ayora and Riding Gods
The tiny principality of Andorra lies tucked away in the tips of the Pyrenees, between France and Spain. It is well-known as a relaxed ski resort in the winter and picturesque mountain getaway in the summer. It’s also a long standing tax haven. Residents benefit from zero rated income tax and inheritance tax, and it was only recently that capital gains tax was introduced.
The country is currently on the Organisation for Economic Co-operation and Development’s (OECD) black list of uncooperative tax havens, which means it refuses to divulge information about clients accounts – great for the customer, not so good for the tax man. But since Andorra joined the EU, they now have to adhere to slightly tighter controls pertaining to potential tax fraud, notifying the relevant parties if they think they’re something shifty going on. Still, the non-existent personal tax rate accompanied with a high standard of living make Andorra a top choice for potential residents.
2. Bermuda
Images: James Jordan
Bermuda’s taxation system is one of the most attractive in the world. There are no withholding, capital gains, transfer, wealth, gift or income taxes for non-residents. The down side is that this generally relates to those who want to do business in the country, and in Bermuda any company has to be 60% owned by Bermudians. So if the isle in the North Atlantic appeals to you, just ensure you make good friends with the locals before you decide to move there. We hear they like a good Rum Swizzle.
3. Dubai
Images: jensimon7, Carlitos, deepchi1 and NASA
Dubai, in the United Arab Emirates, until very recently was the hottest place on the planet, in the boom sense of the word. The construction industry was throwing up buildings at lightening speed, businesses were moving their bases there; everyone wanted a slice of the pie. This was partially due to the fact that there is no personal tax and no corporation tax in the country, making the moderate city a very appealing place in which to live.
Now though, the pace of growth has slowed somewhat – many new builds have come to a stand still and less people are making the move to the city. But it’s not necessarily a bad thing; it means the city can expand at a steady pace, which is probably more attractive for those already living there, or thinking of moving there.
4. British Virgin Islands
Images: Island Time Villa, Property World, Winsome House and Shannon House
Although named by the ever-intrepid explorer, Christopher Columbus – who bestowed the title Santa Ursula y las Once Mil Vírgenes, or Saint Ursula and her 11,000 Virgins on the islands – the Virgin Islands (a thankfully shorter name) have been inhabited since 1500 BC. Now known as the rich kids playground, the group of tiny islands in the Caribbean have an impressive list of what’s taxed and what’s not… with heavy emphasis on the not side of things.
There is, wait for it: no capital gains tax, no gift tax, no sales tax, VAT, profit tax, corporation tax, inheritance tax or stamp duty on real estate. Ah, but there is income tax… which has been set to zero. If it wasn’t so extortionately expensive to live there, no doubt the population would see a slight increase on its 22,000 people.
5. Isle of Man
Images: Caley’s Picture Gallery, Global Log Homes, Battersbys and Jim Linwood
Lying in the middle of the Irish Sea, between Ireland and mainland UK, is the ancient island of Mann. Settled in around 6500 BC, the small self-governing island has a long and varied history. It was at the end of the 8th century, when the Vikings arrived and brought with them Norse law, that the current legislature of the island was put in place, the High Court of Tynwald.
The country’s parliament is thought to be the oldest continuous parliament in the world, so its no wonder residents are keen to keep change slow, especially in regards to catching up with the rest of the world on taxation. There is no general capital gains tax, turnover tax or capital transfer tax, and there are no stamp duties. Apart from VAT, the only significant tax is income tax, levied at a maximum rate of 18% on individuals. And the Isle of Man does not belong to the EU so is exempt from the forces of the OCED, making it a tax efficient home base.
6. Switzerland
Images: Gürkan Sengün, scalleja, Lugano Housing, Unusual Villa Rentals and Fr Antunes
Although Switzerland doesn’t like being described as a tax haven, there’s no getting away from the fact that the country is one of the top choices in the world to live for tax dodgers, erm, tax efficient people. The general low rate of taxation, along with various other tax exemptions or reductions for foreigners living in the country, and stable political climate make the little landlocked alpine country a very popular choice for those seeking a new life abroad.
Things may be set to change though as Switzerland was another target on the OCED black list until recently. The country has now agreed to better disclosure standards, but have yet to comply with them.
7. Panama
Images: Lingua Franca, mcescobar1 and Think Panama
More famous for its impressive canal than tax cuts, the Central American country of Panama sounds very appealing in a number of ways. Apart from the obvious attraction of year-round sunshine, you only pay tax on money earned in the country, so if you live there and work remotely you don’t have to pay a single cent in taxes – something to think about for all the internet workers of the world.
What’s more attractive is the price of real estate – a luxury apartment in the centre of Panama City could be anywhere from $30,000 to $150,000, and the Government regularly offer incentives on mortgage repayments to entice ex-pats to the country. It just keeps getting better.
Linda is a writer and editor who gave up life in London for a life Down Under, and more sunshine. She writes for Money Choices which does 
