Zones with preferential taxation for foreign countries, which include the whole territory of a country or its part, can be found all over the world. Such zones vary in terms of respectability, reliability, reputation, as well as taxation and registration specifics. Choosing the best offshore zones for a certain business requires broad knowledge of legislation of a country, under which jurisdiction a zone is in order to compare it with goals of an offshore company.
The criteria for selection of the best offshore zones
Every businessman pursues his own goals for opening an offshore company, which means there are different criteria for evaluation and selection of a suitable offshore:
- Zero or low taxes;
- Confidentiality of company’s prime beneficiary;
- No financial or accounting records required.
The top five best offshore zones with zero taxation, prompt and simple registration are:
- The UAE;
- Cayman Islands;
- Seychelles;
- Belize;
- Virgin Islands.
The best offshores with low taxes are:
- The UK, with preferential taxation and simple registration;
- Hong Kong, which has low tax rates, but publicity is mandatory;
- Malta;
- Singapore, with the world’s simplest tax payment system;
- Isle of Man, which offers zero taxation, but has a small custom duty.
Rating of offshore zones
The most reliable rating of offshore zone is provided by an independent organization Tax Justice Network. According to the recent information published by this well-known and respected network, the top ten offshore zones are as follows:
- Switzerland, as the most respectable zone and a home to the most reliable banks.
- Hong Kong, where there is no division into residents and non-residents, but all companies are exempt from taxation upon the condition they did not conduct any business in the country.
- Delaware, the USA, with tax preferences and anonymity.
- Singapore, a major financial center.
- Cayman Islands – home to 100000 companies.
- Luxembourg with a choice of 200 banks.
- Lebanon, which boasts a confidential and trusty banking sector.
- Germany, with the strongest economic potential.
- Bahrein, with an obligatory accounting record, but no income tax.
- The United Arab Emirates.
Among the ten offshore zones listed above, the UAE is the most preferred option: unlike the other nine countries and territories, it combines all the benefits of an offshore. The UAE has a tax-free system, stable economic and political life, complete security and guaranteed capital protection, as well as simple and confidential company registration procedure.
