Caribbean's Leading Secrecy Jurisdictions for Hidden Financial Economies

Tax Havens in the Caribbean: A Comprehensive Guide

The Caribbean, known for its sunny beaches and crystal-clear waters, is also home to several tax havens. These jurisdictions offer unique financial benefits that make them attractive for financial planning and wealth protection.

No Income or Capital Gains Tax

One of the most appealing aspects of these tax havens is the lack of personal income tax, capital gains tax, and inheritance tax. Notable examples include the Cayman Islands, Bermuda, Antigua and Barbuda, Grenada, and the British Virgin Islands.

Territorial Tax Systems

Several Caribbean islands, such as St Lucia, follow a territorial tax system. This means that individuals and businesses are only taxed on income generated within the island.

Citizenship-by-Investment Programs

Many Caribbean tax havens offer citizenship-by-investment programs. These programs allow individuals to gain citizenship in exchange for a significant investment in the country. Antigua and Barbuda, St Kitts and Nevis, Dominica, and St Lucia are among those offering such programs.

Residency Requirements

To become a tax resident in St Lucia, you need to stay on the island for 183 days per year. Other islands, like Anguilla, offer residency through significant upfront payments or investment in local real estate.

Taxes and Charges

While these jurisdictions do not charge annual property taxes, other charges, such as stamp duty or licence fees, often apply. Businesses in Bermuda, for instance, will have to pay payroll tax, customs and import duties, and a corporate services tax.

Political Stability and Favorable Legal Systems

The Caribbean tax havens are known for their political stability and favorable legal systems, making them an attractive option for individuals and businesses seeking to protect their wealth.

Notable Tax Havens in the Caribbean

The British Virgin Islands, Cayman Islands, the Bahamas, Barbados, St Kitts and Nevis, Anguilla, Dominica, St Lucia, Grenada, Antigua and Barbuda, and Turks and Caicos are among the best tax havens and tax-free Caribbean islands.

The Term 'Tax Haven'

The term 'tax haven' refers to jurisdictions where foreigners pay little to no tax on their income or assets. These havens provide a unique opportunity for financial planning and wealth protection.