9. Singapore
- Overall score: 7.85
- Personal income taxes: 22%
- Social security taxes: 17%
- Capital gains taxes: 0
- Property taxes: 20%
- Average monthly salary: $6,076
- Cost of living, excluding rent, for one person: $955
GoBankingRates notes that Singapore is considered by many one of the best countries for taxes, with a 17% corporate income tax — not including incentives — and no tax dividends. And according to Investopia, under Singapore law, private and financial institutions are not required to provide access to personal data about individuals, though the country allows exceptions to banking confidentiality agreements upon request by foreign authorities in cases where accounts were used to shield criminal activity.
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8. Jersey
- Overall score: 7.93
- Personal income taxes: 20%
- Social security taxes: 12.5%
- Capital gains taxes: 0
- Property taxes: 0
- Average monthly salary: $6,861
- Cost of living, excluding rent, for one person: $1,134
Jersey, the largest of the Channel Islands, is home to many international banks, trust companies and fund managers. Its offshore trusts are believed to control some $1.2 trillion in assets, according to Newsweek. Banking secrecy procedures and general secrecy in matters of government and justice are the order of the day. Foreign and domestic companies that have been permanently established on the island pay no corporate taxes, Investopedia notes, nor do they pay taxes on dividends or capital gains.
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7. Hong Kong
- Overall score: 8.08
- Personal income taxes: 17%
- Social security taxes: 5%
- Capital gains taxes: 0
- Property taxes: 15%
- Average monthly salary: $4,551
- Cost of living, excluding rent, for one person: $1,052
Hong Kong's appeal stems from its reluctance to sign up to transparency standards and its promise to uphold the principle of "keeping intervention into the way in which the market operates to a minimum," according to Newsweek. The island does not tax income earned beyond its borders. Investopedia estimates that those who earn salaries in Hong Kong pay an income tax between 2% and 17%, and corporations pay a tax of 8.25% or 16.5%, depending on profit levels generated in Hong Kong. The government does not charge tax on capital gains, interest or dividends.
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6. Panama
- Overall score: 8.09
- Personal income taxes: 25%
- Social security taxes: 9.75%
- Capital gains taxes: 10%
- Property taxes: 0.9%
- Average monthly salary: $2,046
- Cost of living, excluding rent, for one person: $501
Panama is considered a highly secure pure tax haven. Investopedia highlights the country's offshore jurisdiction law, which allows offshore companies to conduct business operations within and outside the jurisdiction. Offshore Panamanian companies and their owners are not subject to income, corporate or local taxes, and people of any nationality may incorporate within the country. Privacy of offshore trusts and foundations are strictly protected by law. The Panama Papers leak in 2016 confirmed that the country was a primary location for money laundering, according to Newsweek.
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5. United Arab Emirates
- Overall score: 8.67
- Personal income taxes: 0
- Social security taxes: 15%
- Capital gains taxes: 0
- Property taxes: 5%
- Average monthly salary: $5,158
- Cost of living, excluding rent, for one person: $813
The United Arab Emirates is extremely secretive. Its secrecy jurisdiction is based in Dubai, and comprises a network of offshore facilities that include free-trade zones, a low-tax environment and numerous secrecy facilities. According to Newsweek, some have accused it of operating an ask-no-questions approach to financial crimes and regulation. Dubai charges no tax on corporate income and profits, and offers double tax treaties to UAE-incorporated entities.
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4. The Bahamas
- Overall score: 8.79
- Personal income taxes: 0
- Social security taxes: 3.9%
- Capital gains taxes: 0
- Property taxes: 1%
- Average monthly salary: $3,762
- Cost of living, excluding rent, for one person: $1,068
The Bahamas is a popular tax haven for residents of the U.S. and European countries. As SmartSearch notes, the government does not enforce income, sales, gifts, estate or capital gains taxes. It provides offshore banking, registration of offshore companies, registration of ships and offshore trust management. Because of its strict banking secrecy laws, information on offshore bank account holders can be disclosed only by the specific order of the Supreme Court of the Bahamas, according to Investopedia.
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3. British Virgin Islands
- Overall score: 9.02
- Personal income taxes: 0
- Social security taxes: 4%
- Capital gains taxes: 0
- Property taxes: 1.5%
- Average monthly salary: $1,769
- Cost of living, excluding rent, for one person: $829
For anyone wanting to set up an offshore bank account, the BVI is the perfect spot, as it does not impose tax on offshore accounts and it has no tax treaties with other countries, thus protecting the financial privacy of bank account holders. In addition, Investopedia notes that there are no taxes on offshore companies, and BVI international business companies pay no taxes on profits or capital gains generated from outside of the BVI. As well, there are no exchange controls for offshore banking customers and offshore companies incorporated in the BVI, making it easier to transfer funds from one place to another for trading and investment purposes while protecting financial privacy.
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2. The Cayman Islands
- Overall score: 9.10
- Personal income taxes: 0
- Social security taxes: 0
- Capital gains taxes: 0
- Property taxes: 0
- Average monthly salary: $3,753
- Cost of living, excluding rent, for one person: $1,456
Considered highly secretive, Newsweek notes that the Cayman Islands account for nearly 5% of the global market for offshore financial services. In fact, according to Investopedia, it's among the top five largest offshore financial centers, with some of the biggest banks, hedge funds and corporations bringing their business to the low-tax territory. Offshore companies are not taxed on income earned abroad, and there is no taxation of Cayman international business companies. The Caymans have no income, corporate, estate or inheritance tax, and no gift tax or capital gains tax. Offshore corporations in the U.K. territory are not required to submit financial reports to any local government authority. There are also no exchange controls in the Caymans restricting money transfers in any way, according to Deloitte.
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1. Qatar
- Overall score: 9.16
- Personal income taxes: 10%
- Social security taxes: 0
- Capital gains taxes: 10%
- Property taxes: 0
- Average monthly salary: $4,167
- Cost of living, excluding rent, for one person: $849
Qatar has a 0% personal tax rate, according to Newsweek, and income generated outside the Arab country is not liable to corporate taxation. It is considered extremely secretive, and is currently on an EU tax haven watchlist.
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