Merchant Machine, a payment processor in the U.K., recently analyzed 20 territories that are known as tax havens or present similar characteristics to tax havens to determine which places have the best tax regimes for individuals.
Researchers selected the top 12 countries and territories from the Corporate Tax Haven Index 2021 and added eight more places that are famous for being considered individual tax havens. They ranked all 20 countries across nine categories, then found the average across all the categories to create an overall score.
What Makes a Country or Territory a Tax Haven?
These countries and territories are characterized by a high degree of secrecy, even when that has been pared back, as in the case of Switzerland. Low corporate and personal income taxes make them attractive to investors and wealthy individuals.
It’s important to note that U.S. citizens or resident aliens living or traveling outside the U.S. generally are required to file income tax returns, estate tax returns and gift tax returns and to pay estimated tax in the same way as those residing in the U.S., according to the Internal Revenue Service.
List of Top Tax Haven Countries and Territories
Here are 15 tax haven countries and territories where individuals who wish to pay less in taxes may want to relocate: