Did you know that the people of Caribbean are, these days, enjoying the financial privacy and very low tax liability?For sure, being the tax heaven is one of the most fascinating things about the Caribbean. Currently, the word tax heaven is actually defined as the country offering businesses or individuals either little or no tax liability. Though the entire Caribbean may not be obsessed with the same practice but many of the spots are still known for being the pure tax heaves as they impose no taxes at all.
The Caribbean nations have been motivated to become tax havens only because they could maintain their own economies and reduce dependency on foreign countries. Nations like Panama, Dominica and St Kitts and Nevis have gone really popular because of being tax free nations. In fact, some of the tourists have also applied for the St Kitts and Nevis passport just because they could enjoy the holiday like lifestyle alongside settling and working at the tax free place. Let’s dig in to discover more about the tax havens of Caribbean;
Since the Panama is a pure tax haven, the offshore jurisdiction law of this country allows companies to operate within and outside of the offshore jurisdiction. Having said, the Offshore Panamanian company owners are not liable to corporate taxes, income taxes, or even the local taxes. Ironically, Panama strictly and appreciably protects the privacy of offshore trusts and foundations by law.
If you didn’t know this, Panama is very strict about banking secrecy laws that are mainly designed to protect the privacy of all the reputable account holders. And this tax heaven has no tax treaties with any other country alongside no exchange control laws.
St Kitts and Nevis
Together with St. Kitts, this beautiful island is known as the St. Kitts and Nevis Federation. This nation particularly provides the tax-friendly formation of the offshore limited liability companies, offshore banking & insurance services and foundation.
Though Nevis offers the financial privacy but it doesn’t make public any confidential data and information regarding the multinational companies and their board of directors. Nevis only required one director and one shareholder that can be the same person, only then the incorporation would be allowed in the Nevis. There are no stamp duties on transactions and the Nevis exempt trust is also exempted from the tax on any income earned from outside of Nevis.
For the people having St. Kitts and Nevis passport, the nations doesn’t impose any local taxes on income earned outside of the jurisdiction.
Undoubtedly, the Nevis offers pretty amazing flexibilities for the businesses and that’s what encourages many companies to do business here as well. Perhaps that’s what attracts the tourist apply for the St. Kitts and Nevis passport to be the permanent citizens of this nation.
The Cayman Islands
Being amongst the five largest offshore global financial centers, the Cayman Islands provide services like offshore trusts, offshore banking and the incorporation of offshore companies. These companies are not taxed on income earned abroad, there is no taxation of Cayman international business companies as well. Ironically, this nations has no corporate tax, no income tax, no estate tax, and no capital gains tax, perhaps that’s the reason as to why this place is known as the pure tax haven.
In order to protect the Banking Privacy, the Cayman has very strict banking laws that have been designed by the experienced professionals along with the legal authorities. Moreover, the Cayman doesn’t have any kind of tax treaties with other nations, which helps in guarding the finances of its offshore banking clients from the tax authorities of other countries.