REVEALED: The top ten tax-free destinations where expats and non-doms don't hand a single penny to the exchequer
While UK taxpayers dutifully hand over considerable swathes of their income to the exchequer, there are some parts of the world where residents don’t pay a penny.
Many lure expats from around the world with a promise of a zero or negligible tax burden, a good quality of life and investment opportunities.
Wealthy UK citizens who spend much of the year in Britain can often become domiciled in these countries by making an investment, buying property or paying a fee to these countries.
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What's not to love? Stunning scenery, 0 per cent tax on your earnings and an exceptionally high standard of living... The Bahamas, Andorra and Monaco top Bradley Hackford's list of 2014's least-taxed destinations
Bradley Hackford, a firm specialising in international expatriation, has ranked the top ten countries with low tax burdens on criteria including quality of life, legal and physical security, quality of economic investment, and location accessibility and recreational opportunities.
Top of the list is the Bahamas, a stones throw from the USA and benefiting from glorious surroundings as well as political stability.
TOP TEN LOW TAX DESTINATIONS
1. Bahamas
2. Andorra
3. Monaco
4. Bulgaria
5. Panama
6. Mauritius
7. United Arab Emirates - Dubai
8. Guernsey
9. The Cayman Islands
10. Switzerland
(Source: Bradley Hackford)
The country - which consists of more than 700 tiny islands - offers an excellent standard of living as well as 0 per cent tax on personal earnings.
Residency is given to those who make an investment of at least £300,000 in local real estate – although those with £1million burning a hole in their pockets can speed up the application process.
Coming in at two and three respectively on the list are the tiny principalities of Andorra and Monaco.
Both destinations are popular with Europeans looking for a tax-efficient bolt-hole.
Andorran citizenship is given to those who invest £270,000 and attracts French and Spanish border residents as well a non-European foreigners, particularly Russians, who appreciate the country’s location and high level of security, according to Bradley Hackford.
Monaco is particularly attractive to residents from Italy, Russia and Switzerland.
Obtaining residence requires being able to demonstrate significant financial wealth.
Residents of Monaco do not pay any income tax at all, except people of French nationality who continue to pay their taxes in France.
Bulgaria is ranked four on the list, with the lowest tax rates in the whole of Europe, at ten per cent on personal income.
Europeans do not have to make an investment to be eligible for residency residency, but non-Europeans must be prepared to invest a hefty £400,000 in state bonds.
Worth a fanfare: According to international expatriate firm Bradley Hackford, The Bahamas is the most desirable country if you're after the good life... oh, and 0 per cent tax on your personal earnings. A minimum £300,000 property investment should secure residency
Panama in Central America is the fifth most attractive destination, according to Bradley Hackford.
Only locally-sourced income is taxed, so the country proves attractive to retirees and people with international operations.
Locally-sourced income is taxed at 15 to 25 per cent and the country requires a low level of investment from people of many nationalities applying for residency.
Head for the hills: Panama in Central America is blessed with abundant natural beauty. Its simple, quick and inexpensive residency requirements make it an attractive prospect for expatriates and only locally-sourced earning are taxed
Outside of the top five, Mauritius, Dubai, Guernsey, The Cayman Islands and Switzerland remain popular and tax-efficient destinations for expatriates.
Dubai has many free zones, where companies established can be 100 per cent foreign-owned and corporation tax is zero per cent.
Residents are also not subject to any income tax.
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