Tax haven jurisdictions are often selected for their favourable tax regimes, financial privacy and legal benefits. Preferences are vary depended on individual or corporate needs. So, here are the most popular tax havens globally:
- Cayman Islands
Why Popular: Zero corporate and income tax, strong financial privacy laws.
Who Uses It: Hedge funds, investment firms, and multinational corporations.
- Bermuda
Why Popular: No income, capital gains, or corporate taxes.
Who Uses It: Insurance and reinsurance companies.
- Switzerland
Why Popular: Banking secrecy, low taxes for holding companies and political stability.
Who Uses It: High-net-worth individuals and multinational corporations.
- Luxembourg
Why Popular: Tax benefits for intellectual property (IP) holdings, low VAT rates and favorable corporate structures.
Who Uses It: Media, tech and pharmaceutical companies.
- Singapore
Why Popular: Low corporate tax rates, tax exemptions for certain incomes and a strong economy.
Who Uses It: Regional headquarters for Asian operations, startups, and tech firms.
- British Virgin Islands
Why Popular: No corporate or income tax, easy incorporation process.
Who Uses It: Offshore holding companies, real estate investments.
- Panama
Why Popular: Territorial tax system (foreign-sourced income not taxed), strong banking sector.
Who Uses It: Shipping companies and international businesses.
- Hong Kong
Why Popular: Territorial tax system, no VAT or sales tax, low corporate tax rates.
Who Uses It: Trade and financial services companies.
- Malta
Why Popular: Tax refunds for foreign shareholders, EU membership.
Who Uses It: Gaming and cryptocurrency companies.
- Seychelles
Why Popular: No tax on worldwide income, high level of financial privacy.
Who Uses It: Small and medium-sized enterprises.
Emerging Tax Havens
Some smaller jurisdictions, such as Dubai (UAE) and Mauritius, are gaining popularity for their low or zero-tax policies combined with strategic geographic locations.