Tax Free Countries: In India, many taxes have to be paid, such as income tax, goods and services tax (GST), capital gains tax, and inheritance tax, which are directly borne by both businesses and the general public. Every year, citizens of the country struggle to file their income tax returns (ITR). What if they didn’t have to pay taxes?
There are some countries in the world that don’t impose any taxes; these countries are called tax havens. This means that these countries either don’t pay any taxes, or they charge very little. Due to which rich people of India are turning towards these countries.
What is a tax haven?
Tax havens are countries or territories that either don’t pay any taxes or impose very low taxes. These countries are politically and economically strong, which is why they don’t impose any taxes.
Tax Free Countries in the World
Lists of tax free countries in the world promise a straightforward. Check out which countries offer full exemption from income tax and what you need to do to live there legally.
The Bahamas
This country in the West Indies is renowned for its tax-free status. There’s no income tax, capital gains tax, inheritance tax, or gift tax. Life here is relatively affordable, although accessing medical care can be challenging. Permanent residency in the country requires a minimum stay of 90 days and the purchase of property valued at over $750,000 BSD. If you consider the lifestyle in the Bahamas, it is relatively less expensive.
Bermuda
Bermuda is a tax-free country, where there is neither income tax, nor corporate tax or capital gains tax. Although there are fees for payroll tax, stamp duty, and customs duty, it is still considered a tax-friendly jurisdiction. Many people from India are seeking citizenship in this country.
Panama
Panama, located in Central America, is considered a tax haven. Income tax, corporate tax, and capital gains tax are not payable here. Its tax policies and banking secrecy make it a preferred destination for investors and businesses. If a company trades with foreign countries, it must pay taxes, but if it does not trade within the country, no taxes are levied.
Dominica
Dominica is also included in the tax free countries, here income tax, gift tax, inheritance tax, offshore income tax is not payable. The country provides exemptions for the formation of offshore foundations, trusts, and companies, and strictly respects the privacy of its owners. However, the country is striving to improve tax transparency internationally.
Cayman Islands
This country, located in the Caribbean, is also known for its tax-free status. There’s no income tax, capital gains tax, corporate tax, or payroll tax. Because of this, this country has become a favorite destination for multinational companies. However, obtaining citizenship here requires a significant investment.
Tax havens are also widely criticized, with some believing they lead to tax evasion, money laundering, and economic inequality. People also believe that while the rich people of the country benefit from this, the tax burden on the common people increases.
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