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We all hate paying tax but sadly it
is a fact of life that the majority
of countries including the USA and
the UK have heavily invested in
getting the most tax from its
citizens dead or alive. The United
States is unlike most other
countries in that its citizens are
subject to U.S. tax on their
worldwide income no matter where in
the world they reside. U.S. citizens
therefore cannot avoid U.S. taxes
either by emigrating or by
transferring assets abroad. Forbes
magazine suggest that some US
nationals choose to give up their
United States citizenship rather
than be subject to the U.S. tax
system. In the UK property investors
who make a profit on their property
portfolios are taxed quite heavily
on the resulting profits with a
Capital Gains Tax. Investors would
rush to buy overseas property in
their droves if it were simply a
case of moving abroad. The UK
government will still hold you
liable even if you now have an
address in the Bahamas. UK residents
need to live abroad for 3 years
before the tax man will class you as
a non resident and therefore not
hold you liable for UK taxation. The
system allows those no longer
classed as residents to visit
Britain for under 90 days per year
before their status changes back to
that of a resident. Becoming a tax
exile in a country where taxes on
your personal income are appreciably
lower or even nil has its morale
implications. Some may see this as
simply good business others may say
that avoiding taxes others have had
to pay is simply not fair. This is
an area for each individual or
corporation to decide. It is a fact
government’s do not like tax havens
and some say that the very term has
fallen into disrepute. Earning a tax
free salary is a dream comes true
for many, just think what would your
income be without paying a penny of
tax. What would you buy with that
extra income? There are many
locations worldwide that personal
taxation is not part of the
government structure. Overseas
property buyers with future taxation
issues may want to look at the
following tax havens.
It is clear those property investors
seeking a destination to live to
escape the clutches of the tax man
need to plan their escapes.
Countries offering low or no
taxation want your money and want
your business. Some countries offer
a lower tax rate to large
corporations, in exchange for the
companies locating a division of the
company in the host country and
employing some of the local
population. Overseas property
investors will recognize that this
all makes for desirable property
investment conditions. This
translates into the likelihood that
property bought in a tax haven is
set to have high demand from buyers
which should produce good capital
returns. In all overseas property
investors may win on all counts when
buying property and living in a tax
haven.
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