Many multinationals such as Marriott, Apple, and Amazon position themselves and operations well to be tax efficient.
Where Exactly Do These Big Multinationals Go Offshore?
Apple operates from Ireland. While it is denied as being a tax haven, it is alleged that it made it possible for Apple to book over $180 billion in foreign profits via international subsidiaries.
By doing so, Apple has managed to legally avoid paying about $59.2 billion in taxes back home in America.
Until recently, the headquarters of Amazon were based in Luxembourg to enjoy tax efficiency in the small nation’s business environment.
In the same way, Marriot operates a subsidiary in the Cayman Islands because this island has laws that allow corporations to be established there and retain their assets free of taxes.
Indeed, so successful a tax haven is the Cayman Islands such that the banking assets there are equivalent to about 15th of the global banking assets.
All of this is possible for big multinationals with clever financial experts to position arms of a business for greater tax efficiency strategically.
Is Strategic Relocation a Reality for Individuals?
Is taking a similar strategy in personal life really applicable? Is it possible to relocate and enjoy similar low tax living?
The answer is yes!
However, you will first need to carefully select the destination and make sure to review the country of origin because a tax burden might still be applicable for the assets you hold there.
To start on the right footing, it is important to get advice from an expert so that relocation and every plan you take is applicable, beneficial, and legal.
Therefore, where can you live and pay no tax?
There are countries where there is no levy income. A good example is Cayman Island and the Bahamas. The two countries have high standards of living in the enthralling environment.
Other countries with high employment and no income tax include the UAE and Bahrain.
Besides, you can utilize special programs in countries such as Malaysia and Belize that allow citizens to live without taxing their income.
How about scaling down personal tax burden?
If your goal is reducing the tax burden and not necessarily living tax free, consider Cyprus. In the country, retirees only pay a flat tax of 5% on pension income. Other countries with flat income tax rates include Trinidad and Tobago, Seychelles, Mauritius, and Anguilla.
However, the best solution is still to setup a tax strategy in Hong-Kong and open a bank account in Hong-Kong.
Whether you want to live abroad as a retiree or in active employment, there are nations you can choose to stay entirely tax free or keep the tax as low as possible.
Benefits of tax reduced living
The benefits of cutting personal taxes bill are rather obvious; greater disposable income and better capital for investment or growth. You also enjoy a free lifestyle without worrying that your tax returns will be late, lawsuits are on your way, or your cash will be frozen.
It is indeed possible to anchor your tax position and stay right ahead, from a financial point of view, faster compared to living at a high cost, high tax region such as most countries in the west.