What are tax havens?
are countries which have favourable legislation in a bid to attract foreign investment and business.
A tax haven doesn’t necessarily impose no taxes at all. Tax rates may be at a low rate in comparison to other countries.
One element that may attract investors to a particular tax haven is privacy. If a country has privacy laws, individuals and companies may be more inclined to invest and do business there.
Tax havens are essentially for everyone, but they tend to attract high net worth individuals and companies that are trying to reduce their tax burden.
Which countries are tax havens?
There are a number of countries that fall into the tax haven category. Examples include the Channel Islands, Bermuda, Monaco and Panama.
Take Panama. Foreigners don’t pay tax in the country. This has helped Panama become one of the most attractive tax havens to individuals and companies alike.
Another example is Mauritius. Several companies listed on the Johannesburg Stock Exchange have their businesses running from Mauritius to take advantage of its tax benefits.
Picking a tax haven
If you’re considering a tax haven to hold your investments in or run a business from, there are a number of things you need to look at. It all comes down to your requirements and whether you want to use it for individual or business.
The key to picking the right one for you is research. And you want to ensure the country is solid and economically stable.
So there you have it. Delving into tax havens.
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