According to Tax Havens of The World on Forbes.com, "Death may be certain, but taxes don't have to be." Apparently, there are many nations around the world that make tax haven status an integral part of their market. For example, the Bahamas offers no taxes on personal income, capital gains, inheritance or gifts. Tax havens have a history; they are the result of a late 19th century British system that granted independent economic governance to protectorates, which included: Gibraltar, Hong Kong, the Channel Island among others. Furthermore, other small islands like Monaco and Bermuda figured that the tax-free incentives of having individuals flock to islands like these for real estate transactions were well worth it. However, as with all good deals that seem too good to be true, there is a catch. Most countries assess taxes based on residency and not citizenship. And, when settling down abroad it seems residents are eased into moderate tax rates. But still, Americans are unable to escape the IRS, and for the first time, the IRS was able to dip into foreign retirement accounts.
Read the entire article Tax Havens Of The World on Forbes.com
In Pictures: Tax Haves of The World