Countries without income taxation
It is not a secret that the immigrants, when planning to move to a new place, first of all, pay their attention to the fiscal policy of the state and give preference to the jurisdictions with zero income taxation. Unfortunately, the greater part of these jurisdictions is the islands, without the corresponding social infrastructure and conditions for a comfortable residence.
At the same time, in the international practice, there are well-developed and civilized countries, which offer the attractive conditions of taxation and a rather high standard of residence. There is a possibility for the optimization of the taxable base on the territory of these countries. As a rule, such jurisdictions provide a full range of the financial services and offer the effective tools for increasing gained profits by reducing the tax payments to the budget, including the income taxation. At the same time they provide all the opportunities for carrying on the business and a comfortable life.
The United Arab Emirates
The United Arab Emirates is a stable jurisdiction, which provides a range of the competitive advantages and opportunities for international business. The prosperity of the national economy has become possible owing to the export of the oil and gas products and diversification of the economy.
Among the main factors that attract entrepreneurs and investors from around the world to the Emirates, the international experts single out the following:
- Loyal fiscal policy of the state;
- Stable national currency;
- Full elimination of the corporate and personal income taxation;
- Possibility of the 100% foreign ownership of business;
- Perfect infrastructure;
- Import and export privileges;
- A high standard of living, education and health protection.
Besides, the taxation of the immovable property, taxes on the entertainment activities and accommodation do not exceed the 5% mark. Thanks to the reasonable policy of the ruling elite, the Emirates have achieved a relatively high national income and a rapid development of the economy.
The Bahamas, as a jurisdiction with a special economic status, attracts many people. Azure sea, white beaches and exotic fruits, the Bahamas is an international resort area. Foreign citizens are granted a status of the tax resident of the country on the conditions of the purchasing the real estate in island or paying the special fee. It should be noted that the more expensive the acquired property is – the more chances to obtain a residence permit you have.
The only disadvantage of this jurisdiction is the sphere of health protection. To get a qualified medical assistance, you have to visit the neighboring countries (e.g. the USA).
The Principality of Monaco
The Principality of Monaco has been long ago admitted as a state for wealthy people from all over the world. This approach is determined by the peculiarities of the local legislation. Thus, to obtain a residence visa and for the acquisition of the real estate into ownership, you have to be a dollar millionaire.
Although Monaco is recognized as an international gaming center, where casinos and gambling establishments are located, it is worth noting that the level of crime is minimal on the territory of the principality. The world's best yacht clubs and the entire corresponding infrastructure are available for the residents of the principality.
Today, the Principality of Monaco is the world's largest business, tourist and industrial center. Production of the medical products and cosmetics is well-organized on the territory of the state. The state budget is based on the international trade via the sea ports.
Bermuda is a classic jurisdiction which is applied for reducing the tax level. However it should be noted that the cost of living in Bermuda is much higher than in the other similar jurisdictions. First of all, such situation is caused by the territorial isolation. For example, the cost of rent for a very small apartment can range from a few thousand dollars for one month.
A zero rate of taxation, a well-developed urban infrastructure, an expanded range of services for business and the exquisite culinary traditions of Bermuda, attract more and more foreign tourists and businessmen. The insurance market is highly developed and there are unlimited opportunities for financial services in Bermuda. There is no country currency exchange regulation for persons who have the status of a tax resident.
The policy of attracting foreign investments by reducing the tax burden is practiced in Uruguay since the 70-ies of the last century. This approach is intended to ensure the development of such economic sectors as agriculture, industry and construction. Uruguay occupies a leading position in minimizing the existing risks for the business in its region.
The national economy of Uruguay is focused on the textile and food industries, and also on the cattle breeding. The country exports wool, leather and meat products to the international market. Speaking about the standard of living, it can be noted that more than 95% of the local population does not feel the need and are above the poverty line.
Andorra is a political system, where such concepts as receipts and income taxes and also import and export duties are fully excluded. The state has centuries-old established traditions in terms of tax planning. But the state puts into practice the most advanced international experience and adapts it for its own needs of the advanced technologies.
The state is in the incredible demand among the European tourists and travelers. Tourists and visitors are attracted by the opportunity to purchase the various products at the relatively low prices. For example, tobacco products, household appliances and electronics, clothing and much more are sold without VAT. In addition, almost everything is organized here for entertainment: from ski resorts and SPA to luxury restaurants and modern shopping centers.
The legislation of Andorra provides for a 20-year period of residence in the country for the naturalization of the foreign citizens.
The modern states, in the competitive activity for the foreign investments, more often adopt a policy of free economy and ensure a favorable investment climate. State support of the private business, freedom for carrying on the economic and commercial activities, elimination of the bureaucratic obstacles and barriers, all these ensures a high standard of living, and therefore helps to involve the potential investors from all over the world into the national economy. When comparing the above mentioned countries, the UAE is notable for the opportunity of living and carrying on business, what is problematic in the island countries, and also for a favorable system of taxation of both the residents of the country and the companies which are registered in the UAE. The cost of obtaining a residence permit in the UAE is also very attractive.