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Posts Tagged ‘Domicile’

Countries with No US Extradition Treaty

August 15, 2014 Comments off

Flag map of Cuba

The best countries for Snowden, the following countries have extradition treaties but do not always comply with US requests: Bolivia, Ecuador, Iceland, Nicaragua, Switzerland, Venezuela, and Zimbabwe.

 

Afghanistan Ethiopia Nepal
Algeria Gabon Niger
Andorra Guinea North Korea
Angola Guinea-Bissau Oman
Armenia Indonesia Qatar
Bahrain Iran Russia
Bangladesh Kazakhstan Rwanda
Belarus Kosovo Samoa
Bhutan Kuwait São Tomé & Príncipe
Bosnia and Herzegovina Laos Saudi Arabia
Brunei Lebanon Senegal
Burkina Faso Libya Serbia
Burundi Macedonia Somalia
Cambodia Madagascar Sudan
Cameroon the Maldives Syria
Cape Verde Mali Taiwan
the Central African Republic the Marshall Islands Togo
Chad Mauritania Tunisia
China Micronesia Uganda
Comoros Moldova Ukraine
Dem. Republic of the Congo Mongolia United Arab Emirates
Cote d’ Ivoire Montenegro Uzbekistan
Cuba Morocco Vanuatu
Djibouti Mozambique the Vatican
Equatorial Guinea Myanmar Vietnam
Eritrea Namibia Yemen

 

Snowden could have taken the steps we recommend on our site and publications on the best countries to obtain a second passport, open an offshore account, and more. Internationalizing is a strategy for anyone who does not want to be under the total control of the whims of one particular government – especially one that is desperate and bankrupt.

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Cuba a Tax & Money Haven for Foreigners

July 16, 2014 Comments off

Havana, Cuba is well known for it’s great cigars, exotic  night life, beautiful women and old charm, but there are more….. Cuba has a territorial tax system for foreigners that are resident in the country. However, ordinary Cubans are taxed on their world wide income.

Faced with financial ruin, one of the last communist countries in the world is now undergoing a new revolution, Capitalism is coming back to Cuba…

The extremely low salaries and cost level adds to the attraction. The average salary for state employed Cuban’s is about USD 19 per month. An average pension is USD 5 per month.

Old Havana Cuba

The saying goes in Cuba:

“The government pretends to pay us and we pretend to work”.

To  motivate Cuban’s to work can be a challenge according to new business owners.

The salaries is not enough to survive, and food is rationed so the state provide basic food on quotas to favorable prices, and traditional health care is free. However, pharmaceuticals are in short supply, but foreigners are given preference before ordinary Cuban’s here as well because they have money and can pay. Many Cuban’s receive money almost monthly in support from their relatives abroad (mostly in the US) that escaped the revolution.

 

Street view of old Havana, Cuba.  Courtesy of Wiki Commons.

A large privatization program has been underway in Cuba for some time. The state has begin giving back the homes taken during the revolution to the people, and all types of small businesses have been / are being privatized.

However, there are still travelling restrictions for ordinary Cuban’s and the media and internet use are strictly controlled by the state. Dissidents are not tolerated.

As it was in Eastern Europe at the fall of communism most buildings and infrastructure incuding public transportation systems are “run down” and in need of extensive renovation.  The state is broke and the Cuban’s have no savings.

The key to future investments are in the hands of the more than a million displaced Cuban’s abroad, many living in the Miami area of the United States. They have the money and could come back to Cuba in the future.

Havana city faces a serious drinking water shortage due to gross neglect of the infrastructure for decades. In addition the United Nations Environmental Program (UNEP) warns that water pollution in Cuba is a serious concern. The standard practices throughout the revolutionary period of virtually non-existent pollution limits, and detrimental agricultural practices,  seem to have taken a significant toll on the Cuban environment.  Cuban bays are widely recognized as being polluted.

New luxury hotels are planned on Cuba to attract foreigners. This hotels will have their own clean water systems.

You can learn more about Cuba in Havana Times and in Havana-Guide,

taxmoneyhavens.com

Nicaragua for immigrants and tax free foreign income

April 9, 2013 Comments off

Nicaragua offers low cost of living, beautiful colonial cities, spectacular beaches and a vibrant culture. A territorial tax system makes in an interesting county for foreigners.

Managua_Nicaragua

 

Taxes in Nicaragua

Nicaragua taxes only income derived from Nicaraguan sources.

 

Picture of Managua, the capital of Nicaragua by gallohouse.com

 

 

Income tax

For individuals, income tax  is calculated on a progressive tax rate, up to a maximum of 30%. Taxable income is based on Nicaraguan source income. As a foreign retiree, you pay no taxes on out of country earnings.

Value added tax

This tax applies to the following acts performed in the national territory: sales of goods, providing of services, and importation of goods. It is calculated at a flat rate of 15% on the value of the goods or services. If you own a business the value added tax will be returned to you.

Transfer tax

Property transfers are subject to a 1%-3% pre-payment income tax on the purchase price. While most sellers ask the buyer to pay it, you should be aware that it is a pre-payment of income tax; therefore, it is legally payable by the seller.

Real estate tax

Annual property taxes are approximately 1% of the 80% of the municipal cadastral value of the property. The cadastral value of the land is calculated substantially lower than the market price of the land.

There are two other critical factors that have also played a considerable role in defining Nicaragua’s fate as a retirement destination: a comprehensive retiree benefit program and the many desirable locations scattered throughout the country.

Investing in Nicaragua

In the last decade, Nicaragua has privatized nearly all its old state-owned monopolies, save for the public utilities, and has thus dramatically reduced the amount of government red tape investors have to contend with when they do business here. In addition, it has opened up all sorts of new markets.

A foreign investment law ensures you can repatriate 100% of your profits and, after three years, the initial investment as well. Even if you don’t “register” your investment, banks will freely repatriate profits. You’ll find no legal grounds for discrimination against you when you invest. The law allows for 100% foreign ownership in every economic sector. And there are no restrictive visa or work permit requirements to inhibit investment.

Law 306 gives you an incentive and makes it easy for you to help jump-start the industry and make a profit while you’re at it. Many tourist activities fall under the law’s umbrella, and with an investment in any one of them, you benefit through tremendous tax savings.

Low crime rates compared to other countries

Nicaragua is the second safest country in all of Latin America behind Uruguay, and Nicaragua has a lower reported crime rate than France, Germany, and the United States, according to a United Nations/Interpol study.

Run Your Tourist Business Tax Free for up to 10 Years

Nicaragua’s Law 306 enacted in September 1999 is the most attractive and aggressive–tourism incentive law in Latin America. If you’ve ever thought about opening your own B&B, running a tour business, or having a little arts and crafts shop, Nicaragua is the place to do it.

This law is sweeping in scope and offers benefits for investors who take advantage of the program. If your business qualifies, you pay no income or real estate taxes for up to 10 years, and bring in (or buy locally) all the supplies you need, from furniture and boats to linens and cash registers all tax free.

The application and approval process is fast. INTUR, Nicaragua’s institute of tourism, has outlined very clearly what you need to do. The law allows the agency just 60 days to approve your applications. What’s more, depending on the type of project, an investment of only $30,000 can qualify you for benefits.

In general, Law 306 offers investors the following benefits:

  • Pay no income taxes for up to 10 years
  • Pay no real estate taxes for up to 10 years
  • Import into the country all the supplies you need to facilitate your investment tax free.

Nicaragua’s Retiree Benefit Program Makes a Retirement in Nicaragua Easy

The country’s “retiree” program is much like the Costa Rican program was in the 1980s, attracting thousands of expatriates to Nicaragua. To be eligible, you need only be over 45 years old and have a monthly income of at least $600. The Nicaraguan government provides significant tax incentives for foreigners, and encourage investment in the country.

The benefits come mostly in the form of tax incentives. As a foreign retiree, you:

  • Pay no taxes on any foreign earnings.
  • Can bring up to $20,000 of household goods, for your own home, into Nicaragua duty free.
  • Can import or purchase one automobile for personal or general use duty- and tariff free up to $25,000, and sell it, tax-free, after five years.
  • Can import an additional vehicle every five years under the same duty exemptions.

Where Are the Foreigners Retiring in Nicaragua Locating?

The hottest Nicaraguan retirement destinations are the colonial cities of Granada and Leon, the capital of Managua, and most notably the southwestern corner of the Pacific coast around San Juan del Sur, where beach front property options abound.

Nicaragua offers the lowest cost of living in Central America (lower than Panama) with prices 20% to 60% lower than the United States. It also offers an opportunity to purchase stunning beachfront, lake, or colonial real estate at great prices with low property taxes.

Nicaragua is an exotic land where the sun shines all day long with tropical rivers, colonial cities, friendly and lively people, and the largest body of fresh water south of the Great Lakes  with the world’s only freshwater sharks.

Affordable Health Care in Nicaragua

Affordable health care is available in Nicaragua. There are several first class hospitals in or around the greater Managua area, with the Vivian Pellas Metropolitan Hospital being the most specialized. Throughout the remainder of the country there are ample amounts of quality clinics, hospitals, and doctors who are available for basic medical attention.

HTH Worldwide is also able to provide you with a comprehensive health care policy that will cover you not only in Nicaragua, but also in the United States, at 100% cost reimbursement. This plan provides a nice sense of comfort as you live in Nicaragua. It is recommended that when it comes time to move to Nicaragua you obtain Med Evac insurance (which can cost as low as $250 per year). This is a precautionary measure in case highly specialized equipment is not available in Managua.

Residency

Nicaragua’s laws resemble the old pensionado rules that were in place in Costa Rica in the 1980s, attracting thousands of expatriates to that country: They provide significant tax incentives for foreigners, and they encourage investment in the country.

Resident expatriates say it is as much the friendliness of the people that attracts them to Nicaragua as any other factor, such as the tropical climate, low price level, or attractive government incentives. But the government program is often a key deciding factor: It’s fairly easy to qualify for retiree status, the paperwork is minimal, and the benefits compare favorably with those in other, neighboring countries.

Law of Resident Pensioners and Retirees (Decree 628): Nicaragua passed legislation to encourage retirees and pensioners to move to the country. The Law of Resident Pensioners and Retirees gives benefits mostly in the form of tax incentives.  To qualify, you’ll need to prove to the Nicaraguan government that you’re actually a citizen of the country where you claim your nationality, that you’re in good physical and mental health, that you’re in good standing with the local police, and that you have an income equivalent to at least $600 a month. Add an additional $100 for each dependent family member living with you in Nicaragua. The minimum age for eligibility is 45, but this can be waived if the applicant proves stable income.

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Why’s Puerto Rico’s Attractive as a Tax Haven

March 19, 2013 Comments off

Puerto Rico (Spanish for “rich port”) is turning into the next Singapore. Wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or US federal taxes on capital gains.”

Why you should move your US business to Puerto Rico. See the video interview with Barry Breeman on Bloomberg:

Source: Bloomberg

The Commonwealth of Puerto Rico is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin islands.

Due to the 1952 Commenwealth of Perto Rico creation by the US congress, Puerto Rican’s residents do not pay US federal income taxes. US Citizens who moves to Perto Rico pay 4% tax on earned income, no taxes on distribution and dividends, but only on Perto Rico source based income.

Citizens of Puerto Rico are bilingual and speak both English and Spanish fluently. Official languages of the island are Spanish and English, with Spanish being the primary language.

4 millions US citizens lives in Puerto Rico. Many US hedge funds and US private equity funds have already relocated. The islands also offers well educated work force, easy communication to New York and Miami, pleasant weather as well as great cafes and restaurants.

See the video above to learn more.

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Hong Kong Again Ranked As World’s Freest Economy

March 12, 2013 Comments off

For the 19th consecutive year, Hong Kong maintained its position as the world’s freest economy, according to the 2013 Index of Economic Freedom, published annually by The Heritage Foundation.

Launched in 1995, the Index evaluates countries over 10 economic freedom factors – from property rights to entrepreneurship – grouped into four broad areas of economic freedom: rule of law; regulatory efficiency; limited government; and open markets. Based on its aggregate score, each of the 177 ranked countries was classified either as: “free” (i.e. combined scores of 80 or higher); “mostly free” (70-79.9); “moderately free” (60-69.9); “mostly unfree” (50-59.9); or “repressed” (under 50).

Hong_Kong_Image-Jacub-Halun

The World’s Freest Economy. Picture of Hong Kong by Jakub Halun

The top four in the index were unchanged. Hong Kong scored 89.3 on the 1-100 scale, which, although 0.6% lower than last year, still topped the 88 of Singapore, which, although 0.5% higher than 2012, ranked second, as it has for all 19 years. Australia and New Zealand ranked third and fourth, at 82.6 and 81.4 respectively, enabling the Asia-Pacific region to account for the four highest-ranked countries.

Switzerland took fifth place in the ranking (and continued to be the only “free” economy in the European region), with Canada finishing sixth, despite slipping a half point, and Chile seventh, moving more than half a point toward greater economic freedom. Mauritius, the only sub-Saharan country to rank among the top 10, was eighth with an overall score of 76.9. Denmark finished ninth, just ahead of the United States, which remains in tenth.

The US, with an economic freedom score of 76, lost ground again in the 2013 Index. Its score was 0.3 points lower than last year, with declines in monetary freedom, business freedom, labor freedom and fiscal freedom.

The world average score of 59.6 was only one-tenth of a point above the 2012 average. Since reaching a global peak in 2008, the Foundation noted that economic freedom has continued to stagnate. The overall trend for last year, however, was positive: Among the 177 countries ranked in the 2013 Index, scores improved for 91 countries and declined for 78.

“On the plus side, average government spending scores improved,” it added. “Unfortunately, this was matched by a decline in regulatory efficiency, as a number of countries hiked minimum wages and tightened control of labor markets.”

Hong Kong’s score was lower than 2012 due to increased government spending relative to gross domestic product and an increase in inflation. Among the 10 economic freedom factors assessed, Hong Kong maintained its top position in trade and financial freedom, remained second in investment freedom and property rights, and rose from third to second in business freedom.

Hong Kong’s Acting Financial Secretary Professor KC Chan welcomed Hong Kong’s highest ranking, noting that The Heritage Foundation complimented Hong Kong’s highly competitive regulatory regime “which, coupled with an efficient and transparent legal framework, sustains vibrant engagement in global trade and investment.”

As Hong Kong’s economic interaction with mainland China has got closer, and trade and financial linkages with the Mainland have grown significantly, The Heritage Foundation further complimented Hong Kong for continuing to demonstrate a high degree of economic resilience and remaining one of the world’s most competitive financial and business centers.

Chan confirmed the government is determined to uphold economic freedom in Hong Kong. “The government will continue to provide a business-friendly environment for firms to flourish, while establishing an appropriate regulatory regime to ensure the integrity and smooth functioning of the free market. We also strive to remove impediments to industries tapping into new markets,” he added.

taxmoneyhavens.com

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