Anguilla financial legislation strictly protects the privacy of offshore bank accounts and business entities. The Offshore Banking Act of 2005 prohibits all bank employees or agents from disclosing any financial information without the express consent of the account holders. There are no exchange controls regarding monetary or asset transfers. Costa Rica Costa Rica, bordered by Nicaragua and Panama, is not considered a pure tax haven, but it is recognized as tax-friendly enough to have been referred to as the Switzerland of Central America. Through a number of tax incentives, the country has been extremely successful in attracting some of the world's largest corporations.
The Cayman Islands has no income tax, no corporate tax, no estate or inheritance tax, and no gift tax or capital gains tax, making it a pure tax haven. The Caymans have very strict banking laws designed to protect banking privacy. Offshore corporations in the Caymans are not required to submit financial reports to any Caymans government authority. Incorporation in the Caymans is a very simple, streamlined process. There are no exchange controls in the Caymans restricting money transfers in any way.
Nevis doesn't impose any local taxes on income earned outside of the jurisdiction. Offshore companies and their owners do not have to pay withholding taxes, capital gains taxes, or estate taxes, and they are not subject to corporate taxes or local taxes on income generated outside of Nevis. There are no exchange controls in Nevis, and the country has steadfastly refused to sign any taxation treaties with other countries. Anguilla Anguilla is a part of the Britain Overseas Territory, and it has become a respected tax haven.
Panama strictly protects the privacy of offshore trusts and foundations by law. As a provider of offshore banking services, Panama has strict banking secrecy laws designed to protect the privacy of account holders. Panama has no tax treaties with any other country and no exchange control laws. The Bahamas The Bahamas became widely popular as a tax haven in the 1990s after passing legislation that enabled the incorporation of offshore corporations and IBCs. It remains one of the preferred tax havens for residents of the United States and European countries. The Bahamas provides offshore banking, registration of offshore companies, registration of ships, and offshore trust management. The Bahamas was the first Caribbean nation to adopt strict banking secrecy laws.
Among the most used Caribbean tax havens are the Bahamas, Panama, and the Cayman Islands. Key Takeaways Most of the Caribbean nations boast tax security for business owners and individuals due mainly to their financial privacy laws and low tax implications. The only cost for most of these countries is an annual business license fee, with a 0% tax rate. It is advisable to work with a seasoned tax professional before setting up an offshore account or business.
The offshore jurisdiction of Anguilla levies zero-taxation on all income generated outside of the jurisdiction by offshore companies. Anguilla is a pure tax haven that does not impose income taxes, estate taxes, or capital gains taxes on individuals or corporations. All offshore entities incorporated in Anguilla are exempt from paying stamp duty.
Offshore businesses are not required to pay stamp duty on asset transfers. Panama The Republic of Panama is considered a very secure pure tax haven. One noteworthy characteristic of Panama offshore jurisdiction law is that offshore companies are allowed to conduct business operations within and outside of the offshore jurisdiction. Offshore Panamanian companies and their owners are not subject to income taxes, corporate taxes, or local taxes, and people of any nationality may incorporate within Panama.