BERMUDA
Language -
English
Currency - Bermuda Dollar (although USD
widely accepted)
Status -
Self-governing British Dependency
Population
- 66,163 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| N/A
|
Employee
pays $21.34 per week, increased by 4.75% in 2005.
Self-employed pay twice this |
N/A
|
22%
payable by foreigners on purchase of real estate |
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| Duty
on Bermudan assets on grant of probate: 5% on
value between $20,000 and $100,000 and 10% thereafter |
Payroll
taxes: Employer pays up to 13.5% |
Possession
of work permit |
No
direct taxes |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Work
permit allows residence while valid |
N/A
|
Yes
|
Minister
of Labour and Home Affairs |
BERMUDA
Early on
in Bermuda's development as an offshore financial centre,
the decision was made to exclude foreign banks, but
this does not seem to have harmed the jurisdiction's
reputation as an international business location. Classical
banking services in Bermuda were therefore provided
primarily by the three established Bermudian banks,
until the biggest of them, Bank of Bermuda, was taken
over by HSBC in March, 2004, but these banks have adequate
international correspondent networks with some overseas
branches, and are equipped to provide the range of financial
services necessary to conduct business offshore.
There are
also a number of foreign firms now authorised to provide
financial services (with the exception of deposit taking)
internationally, although they cannot as yet participate
on a local level unless 60% local ownership can be established.
The banking sector is regulated by the Bermuda Monetary
Authority, and is generally regarded as strictly regulated.
The jurisdiction
is also well regarded in the following areas:
- Investment
funds
- Trusts
and trust management
- Insurance,
including captive insurance
Exchange
controls do not apply to non-residents or offshore entities,
but do affect Bermudian citizens and local companies.
There are no direct taxes levied, but payroll taxes,
and annual fees by businesses are payable.
Obtaining
residence and employment in Bermuda can be somewhat
problematic (although it is, theoretically at least,
possible), and affirmative labour legislation is being
introduced which could affect the ability of local employers
to take on expatriates. In order to preserve the limited
resources of the islands, and maintain the standard
of living of existing residents, Bermuda has, in effect,
closed the door to long term residence applications,
so while you may be allowed to reside there temporarily
for work purposes, and it may be an ideal location for
your assets while you are young and healthy, you may
as well abandon those dreams of sunning yourself on
a Bermuda beach after retirement!
In order
to obtain a work permit, the prospective employer must
apply to the Minister of Labour and Home Affairs on
your behalf, having first proven that there was no suitably
qualified Bermudian available to fill the position,
and that no citizen of Bermuda will be disadvantaged
by you taking the job. Work permits are usually issued
for a year at a time (with the exception of work permits
for senior executives which can be issued for longer
periods), and the cost is met by the prospective employer.
Foreigners
are more or less unable to buy land or property, other
than houses with an Annual Rental Value (ARV) in excess
of $43,800. equivalent to a sale price of say $500,000.
A fee of 22% of the value of the property is payable
on purchase.
The official
business language of the jurisdiction is English, and
there are several English language newspapers available.
There are a variety of leisure pursuits and pastimes,
including golf, water sports and tennis, and the climate
is mild and humid. The majority of the population are
Christian.
As previously
stated, long term residence is exceptionally difficult
to obtain, so unless you are very wealthy, retiring
to Bermuda is probably not a viable alternative.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
DUBAILanguage -
Arabic, but English widely spoken
Currency -
UAE Dirham
Status -
Member of the United Arab Emirates
Population
- In the region of 1.4 million |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| N/A
|
N/A
|
N/A
|
5%
residential tax on rental value (10% for businesses) |
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| N/A
|
N/A
|
N/A
|
No
taxes other than import tax, residential tax,
and tax on hotel services |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Residence
Visa stamp in passport |
N/A
|
Yes |
Ministry
of the Interior (Naturalisation and Immigration
Department) |
DUBAI
There is
a fairly clear distinction drawn between onshore financial
services and offshore in Dubai, and the vast majority
of offshore activity takes place in the Jebel Ali Free
Zone, Dubai Internet City, and the newly-established
Dubai International Financial Centre (DIFC). These zones
have been created since 1985 for the purposes of facilitating
investment, and all activity which takes place there
is effectively seen legally as taking place outside
the United Arab Emirates.
The jurisdiction
has a highly developed banking industry, and with government
initiatives to encourage e-commerce well underway, the
various institutions are rushing to deliver more and
more technologically advanced solutions. The banking
sector is regulated by the Central Bank, and there are
approximately 47 commercial banks operating (with a
total of around 350 branches) of which 28 are foreign
banks (with a combined total of more than 200 branches).
The Jebel
Ali Free Zone and its fellows are advantageous areas
in which to establish and administer an offshore company.
Taxation
in Dubai is generally low (with the exception of the
oil industry and domestic banking, where the rates are
slightly higher), and there are no income or capital
taxes, low import duties, and no withholding taxes.
There are also no foreign exchange controls.
The Dubai
Naturalization & Residency Department (DNRD) issues
different types of visas which are listed below.
1)
96 hour visa:
- Issued
upon arrival at the airport
- Airline
sponsored only
- Applicants
should have onward booking
- Should
have a minimum of 8 hour transit break
2)
Visit visa:
2.1 In case of Personal sponsorship:
- Fees:
Dhs 100
- Entry
permit application form with completed typed data
- Original
Marriage certificate and copy of it, in case of wife
sponsorship
- Salary
Certificate; The monthly salary should not be less
than Dhs. 4000 in case of wife sponsorship, and Dhs.
6000 in case of first relatives sponsorship.
- Copy of
the Sponsor passport
- Copy of
the Sponsored passport.
2.2 In case
of Establishments sponsorship:
- Fees:
Dhs 100
- Entry
permit application form with completed typed data
- Establishment
card and copy thereof
- Copy of
the Sponsored passport.
2.3 Renewal:
- Fees:
Dhs 100
- Original
Entry Permit.
2.4 Extension:
- Fees:
Dhs. 500
- Original
Entry permit
- Extension
application form
- Original
sponsored passport.
3
- Transit visa
- Fees:
Dhs. 120
- Establishment
card
- Entry
Permit Application form
- Copy of
Sponsored passport.
4
- Tourist visa
- Fees:
Dhs. 100
- Establishment
card
- Statement
of tourists data
A Multiple
Visit Visa can be granted after a normal visa has been
issued and used, and is an option for business visitors
who are frequent visitors to the UAE and who have a
relationship with a reputable company in the UAE. Valid
for six months from date of issue, each visit must not
exceed 30 days in total. This visa costs Dh1000. The
visitor must enter the UAE on a visit visa and obtain
the multiple entry visa while in the country.
A Residence
Visa stamped on a passport proves the legal residence
of an expatriate in the country. This visa is given
to workers who have obtained work permits or for relatives
living with them permanently, and additional documentation
is required.
Although
Arabic is the official language in Dubai, English is
spoken almost as widely, and there are three English
language newspapers currently published there. The majority
of the population is Muslim, with Sunni and Shiite accounting
for 84% and 16% of people respectively. The climate
is hot - the coolest part of the year is between October
and May, and water sports and golf are the favoured
pursuits of both locals and expatriates.
There are
no real provisions for residence in Dubai on anything
other than a relatively short term basis, and then only
for the purposes of employment, so while Dubai may have
advantages as on offshore base for assets, it may be
difficult to obtain permission to retire there.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
HONG KONG
Language -
English and Chinese
Currency -
Hong Kong Dollar
Status -
SAR of China
Population
- 6,980,412 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| Progressive
rom 2% to 20% |
Those
earning more than HK$4000 per month must pay 5%
of salary up to maximum of HK$20,000 per month
|
N/A |
16%
of assessed annual rental income, plus annual
rates tax of 4.5% of annual value of premises
|
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| Sliding
scale : To maximum rate of 3.75% on property over
US$800,000 |
Estate
Duty : Levied at progressive rate |
N/A
|
Territorial
Basis |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Employment
Visa (Different types-see summary) |
N/A
|
Employment
Visa required |
HKSAR
Immigration Department (Director of Immigration)
|
HONG
KONG
In terms
of both range and quality of financial and business
services provided, Hong Kong is one of the world's leading
jurisdictions. It is not an 'offshore' location as such,
but the non-discriminatory low tax regime is run according
to territorial principles, which means that only Hong
Kong source income is liable for taxation, and there
are a number of other incentives which have successfully
attracted a great amount of foreign investment.
The jurisdiction
is the world's third largest financial centre, and the
financial and advisory infrastructure is of a very high
standard generally. Hong Kong is a particularly advantageous
location for the following sectors:
- Banking.
Hong Kong has the one of the largest colonies of international
banks in the world, with more than 70 of the top 100
banking establishments having a presence there. In
December, 2007, there were 142 licensed banks, 29
restricted licence banks and 29 deposit-taking companies
in business. In addition, there are 79 local representative
offices of overseas banks in Hong Kong.
- Investment
fund establishment and management. The jurisdiction
is widely recognised as the leading fund management
centre in Asia.
- Investment
and holding companies. These are a particularly attractive
proposition in Hong Kong due to the benign tax regime
and investment incentives offered.
There is
no capital gains tax, withholding tax, sales tax, VAT,
or annual wealth tax, and no one, resident or otherwise,
pays tax on investment income or capital gains. There
are no exchange controls, and the financial sector,
which is regulated under the Banking Ordinance, is secure
and well managed. A note of caution, however - Hong
Kong is a relatively expensive jurisdiction in which
to establish an offshore structure, so be warned that
charges for services may be more than you would pay
elsewhere.
There are
several types of visa which will allow you entry to
Hong Kong, and some are easier to obtain than others.
Briefly, the categories of permit are:
- Employment
Visas. In order to obtain entry for the purposes of
working in Hong Kong, you must first have an employer
willing to take you on if your application is successful.
You must also be providing a skill which is not available
locally, and which is of benefit to the Hong Kong
economy. This type of visa will generally be needed
by :
- Inter-company
transferees who are being relocated to work in the
Hong Kong branch of their parent company. These are
generally quite readily issued.
- Locally
recruited expatriates, who have been offered a position
whilst staying in Hong Kong. This type of visa is
quite difficult to obtain, as the immigration department
needs proof that there is no-one resident in the SAR
already that could adequately fill the position
- Specially
recruited expatriates who have been headhunted from
abroad to do a specific job in Hong Kong. Again, these
visas are sometimes difficult to obtain due to the
need to convince the SAR that no one locally could
fill the position.
- Dependent
Visas (for spouses and children of expats).
- Investment-based
Employment Visas. Once easy to obtain, the criteria
which must be fulfilled in order to be eligible for
this type of visa have become much more rigorous of
recent times. It must be proved that the business
is well capitalised, and can set up a local office
and employ resident staff almost immediately. The
enterprise must have the support of a well-established
local or international business, and must demonstrate
that it will be of benefit to the local economy.
In October,
2007, Hong Kong leader Donald Tsang announced new plans
designed to ensure that Hong Kong's position as a leading
global finance hub is consolidated and strengthened.
He observed that China's rapid development and the opening
up of its financial sector have presented unprecedented
opportunities for Hong Kong's financial-services sector.
Tsang
added that with these large-scale development projects,
Hong Kong will need to expand its pool of skilled workers,
and will "require talented people from everywhere".
Consequently, to help attract more qualified people,
the Quality Migrant Admission Scheme's requirements
will be relaxed and widely promoted.
Although
residence for taxation purposes is not really an issue,
residents will have to pay salaries tax, social insurance,
stamp duty, gifts tax, and property tax. However, compared
to most onshore jurisdictions, the rates of taxation
are low. Hong Kong does not offer any residential concessions
based on property ownership due to overcrowding.
The majority
of the population is Buddhist or Taoist, although the
Christian community accounts for approximately 10% of
the people. The principal languages are Chinese (usually
Cantonese) and English, with the majority of official
documents printed in both. There are several English
language daily newspapers. The cost of living is reasonably
high, with accommodation being the main expense, and
the tropical climate means that leisure pursuits such
as horse racing, golf, water sports, and contact sports
are popular.
In terms
of retirement, if you can gain admission and permission
to reside (sometimes no mean feat!), and can cope with
the relatively high cost of living, then Hong Kong is
ideal, as income from retirement schemes is not taxed
(even for residents), so it is a suitable jurisdiction
in which to base a retirement fund, whether you plan
to live there or not.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
ISLE OF MAN
Language -
English
Currency -
UK Pound
Status -
UK Crown Dependency
Population
- 75,831 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| 10%
on first £10,500, and 18% on the balance |
Employee
pays 6.3%, Self-employed pay 11.6% |
N/A
|
N/A
|
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| N/A
|
N/A
|
Present
for 6 months in tax year, or 3 months each year
for 4 consecutive years |
World-wide
income |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Legislation
similar to UK |
N/A
|
Yes
|
DTI
(Employment Division) |
ISLE
OF MAN
The Isle
of Man is respected as a developing and well-regulated
International Offshore Financial Centre.
There are
no capital or exchange controls, and the jurisdiction
has a particularly good reputation in the following
areas:
- Banking.
There are approximately 54 banks established in the
Isle of Man at present, regulated by the Financial
Supervision Commission, including branches and subsidiaries
of the main UK clearing banks. The majority of these
are engaged in providing private banking services
to UK expats and foreign nationals, and as such the
range of services available is extensive, including
not just deposit taking, but also formation and management
of trusts, companies, and their underlying assets.
- Investment
Fund establishment and administration.
- Captive
insurance.
- Trust
formation and management.
The Isle
of Man is extremely stable politically; the Tynwald
or Manx parliament was established by the Vikings! The
taxation regime is moderate, with taxes of between 10
and 18% on resident individuals and on the Manx sourced
income of non-residents.
The immigration
procedure for the Isle of Man is very similar to that
of the UK, and an Irish or UK resident will not need
to contact the immigration department before arrival.
Due to the recent expansion of the island's offshore
sector, skilled expatriates are being encouraged to
relocate there, and to buy property. The Isle of Man
has a relatively low population density, and plenty
of development land, so for the moment at least, it
is better placed than smaller offshore centres (for
example Jersey and Guernsey) in terms of population
and economic growth.
However,
better placed or not, there has been some discussion
in parliament of the need to impose some kind of immigration
controls on non-Manx individuals, in order to avoid
disadvantaging the indigenous population in terms of
employment and rising property prices.
Tax residence
is assumed when an individual is present for more than
six months in any tax year, or for an average of three
months per year over four or more years. However, there
is a concession for property owners which allows them
to be resident for up to four months in two consecutive
years without becoming liable for Manx income tax.
The original
language of the Isle of Man is Manx Gaelic, but this
has been marginalised now by English, which is most
commonly used in business and day to day transactions.
There are several English language newspapers, and the
temperate climate means that outdoor pursuits such as
motor racing, sailing, golf, and walking are popular
with expats and locals alike. The island is predominantly
Christian.
In terms
of retiring to this jurisdiction, despite the many advantages
it offers in terms of investing, banking, and professional
financial services provided, it is worth remembering
that although there are tax breaks available for non-resident
individuals, local taxes will apply to your world-wide
income as a resident.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
LIECHTENSTEINLanguage -
German, but French and English also spoken
Currency -
Swiss Franc
Status -
Constitutional Monarchy
Population
- 34,247 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| Depends
on level of taxable income and commune of residence
(up to a maximum of 18%) |
Employees
pay 4.3% of gross pay |
Sliding
scale, reaching maximum 0.9% |
N/A
|
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| N/A
|
Gift
and Estate Tax |
Maintaining
residence with the intention of staying, or performing
activity for monetary gain |
World-wide
income and wealth |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Residence
Permit |
N/A
|
Yes
: but EEA country nationals have greater freedom |
|
LIECHTENSTEIN
Liechtenstein's
economic union with Switzerland (established in 1922,
and reinforced in 1980), propelled it into rapid financial
development. The jurisdiction is most noted for its
private banking facilities, but it is also a particularly
advantageous location for establishing tax-exempt holding
and domiciliary companies, and trusts. Although Liechtenstein
is a civil law jurisdiction, there is a trust regime
based on common law principles.
Legislation
is being discussed to aid the development of the captive
insurance and collective investment sectors, but as
yet, these have made little impact on the world arena.
This jurisdiction,
like many others, has come under international pressure
to legislate against money laundering practices, and
measures have been taken to ensure greater transparency.
The financial
sector is regulated under the Law on Banks and Finance
Companies (1993), and the 'Know Your Customer' system
is now legally compulsory. There are no exchange controls
in Liechtenstein.
Liechtenstein's
immigration regulations bear a great deal of resemblance
to the Swiss regulations, and a residence permit (obtained
from the Aliens Registration Office) is necessary for
any non-EEA (European Economic Area) citizen to stay
for longer than three months. Work permits are also
necessary, although again, EEA citizens will be allowed
greater freedom of movement and employment privileges.
There are restrictions on foreigners wishing to purchase
real estate in Liechtenstein, and tax residence is assumed
if:
- An individual
maintains a place of residence with the clear intention
that it should be used
- An
individual resides in Liechtenstein and performs any
kind of activity for monetary gain.
The jurisdiction
is a relatively expensive one in which to conduct offshore
business, but resident taxation is moderate, and non-resident
and offshore taxation even lower.
The official
language of the principality is German, although English
and French are also widely spoken. The majority of the
newspapers on offer are published in German. The population
is predominantly Roman Catholic, and the temperate Alpine
climate means that winter sports and cycling are popular.
The tax
treatment of retired expatriates resident in Liechtenstein
is neither punitive nor particularly appealing, so the
draw here will probably be lifestyle-driven as opposed
to financial.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
LUXEMBOURG
Language -
Letzeburgesch is the official language, but French,
German and English also widely spoken
Currency - Luxembourg Franc
Status - Constitutional Monarchy
Population
- 480,222 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| Progressive
rates up to 38% |
Unemployment
contributions of 3.5%, plus sickness, pension
and accident insurance |
N/A
|
N/A
|
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| N/A
|
'Fortune'
tax was 0.5% of final net asset value, but was
abolished in 2005 |
Present
for more than 6 months in any tax year |
World-wide
income and wealth |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Provisional
Residence Permit |
N/A
|
Yes
: For non-EU nationals, Spanish, and Portuguese
citizens |
Ministry
of Labour |
LUXEMBOURG
Luxembourg
has a strong private banking sector, due to the absence
of withholding tax on interest payments, and strict
banking secrecy.
At the
end of February 2006, 156 banks were registered in Luxembourg,
with total assets of EUR797.5 billion. The regulatory
regime is reasonably relaxed, there are no exchange
controls, and banking secrecy actually has a statutory
basis in this jurisdiction; it is a criminal offence
for bank staff to break these codes unless there is
very clear evidence that tax fraud or money laundering
activities have taken place.
Other (related)
jurisdictional specialities include:
- Collective
investment funds. The Luxembourg stock exchange specialises
in these, and many Luxembourg-registered funds are
also listed there.
- Holding
Companies. These are tax exempt vehicles, and are
suitable for holding international investment, although
are not eligible to trade themselves.
Luxembourg
is politically stable, but as a member of the EU, it
is in a difficult position, as pressure from the OECD/FATF
recommendations conflicts with its reliance on the 'offshore'
sector for revenue. Along with the UK and (at times)
Austria, Luxembourg resisted the proposed EU withholding
tax during 1999 and 2000.
When the
EU agreed the Savings Tax Directive in 2003, Luxembourg
decided to apply a withholding tax, initially at 15%,
on the returns on savings of EU nationals.
In general,
for resident individuals, taxes are fairly high, and
in addition to income tax (rising progressively after
a certain income threshold to a maximum marginal rate
of around 38%), there is also a wealth tax to be contended
with, levied on both resident and non-resident individuals.
EU residents
(with the exception of Spanish and Portuguese citizens)
will not need a work permit, but all other expatriates
will need to apply (in advance) to the Ministry of Justice
for a Provisional Residence Permit, and to the Ministry
of Labour for a work permit. If an individual is present
in Luxembourg for more than six months, then he/she
is assumed to be tax resident, and as such, is liable
to tax on world-wide income at the rates mentioned above.
The official
language is Letzeburgesch, but French and German are
usually used for business and administrative purposes,
and English is also spoken. There is one English language
newspaper published weekly (although there are German
dailies), and 91% of the population are Roman Catholic.
The weather
is generally favourable from May to September, with
snow likely in the winter months, and the northern (Ardennes)
region is usually wetter and colder than the south.
Popular pursuits include hiking, water sports, golf,
cycling, and wine-tasting.
Due to
Luxembourg's high taxation of residents and their wealth,
however, this jurisdiction may not be ideal for long
term residence during retirement, unless you have been
swayed by the idea of wine-tasting, and are really determined
that this is where you want to spend your latter years!
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
MAURITIUS
Language -
English, but French and Hindi also spoken
Currency -
Mauritian Rupee
Status -
Independent Commonwealth State
Population
- 1,250,882 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX |
PROPERTY
TAX |
| Progressive
to 30% |
Pension
deductions : Employee pays 3% of earnings |
Between
20 and 30% depending on dates of purchase and
sale |
See
stamp duty |
| STAMP
DUTY |
OTHER
TAXES |
TAX
RESIDENCE QUALIFICATION |
BASIS
OF RESIDENT TAXATION |
| MR15
per sheet on documents connected with property
and mortgage transactions; New National Residential
Property Tax introduced in 2006 |
N/A
|
Present
for more than 183 days in any tax year, or 270
days in total over 3 years |
World-wide
income (although foreign income only if remitted
to Mauritius) |
| LEGAL
BASIS OF RESIDENCE |
COST
OF RESIDENCE DOCUMENT |
WORK
PERMIT REQUIRED? |
WORK
PERMIT AUTHORITY |
| Residence
Permit |
N/A
|
Yes
: Issued for 6 months to 3 years |
Prime
Minister's Office (In association with other authorities) |
MAURITIUS
The financial
services sector in Mauritius is a fairly recent development,
and as such does not offer the range of services to
be found in some other IOFCs. There have, in the recent
past, been social tensions in Mauritius, which led to
violent demonstrations, but there have been no further
incidents of this sort since May 1999. However, the
jurisdiction is well placed (between offshore India
and Africa) to continue developing further, and the
government has shown enthusiasm for e-commerce development,
which can only be a good thing.
For individuals,
Mauritius specialises at present in offshore trust and
company formation, and there are a range of company
structures available, including:
- Offshore
Company (now GBC Category 1)
- International
Company (now GBC Category 2)
- Limited
Life Offshore Company
- General
Partnership
- Limited
Partnership.
The domestic
and offshore sectors of the Mauritian economy are quite
firmly separated, and domestic taxation is quite high.
However, Mauritius was one of six offshore jurisdictions
which signed 'commitment' letters to the OECD in 2000.
Partly as a result of this commitment, the Government
passed a range of replacement legislation in 2001 including
the Financial Services Development Act 2001, which set
up a Financial Services Commission to replace MOBAA.
Most existing offshore legislation was 'grandfathered'
into the new regime.
There
are no longer any exchange controls (they were finally
abolished completely in 1994), but investors are still
required to demonstrate the source of funds to be repatriated,
and must make sure that they are completely up to date
with local taxes.
In terms
of banking, the Mauritian authorities have been very
cautious about offshore banking development, and as
a result, there are only ten Offshore Banking Units
(OBU) established. The licensing process is rigorous,
and the regulatory regime quite strict.
Nationals
of OECD member countries do not require a visa to enter
Mauritius, and are initially allowed to stay up to six
months. All other foreign nationals will need a visa,
which is free, but can take up to a month to process.
The Mauritius
Financial Services Commission makes recommendations
for non-Mauritian citizens seeking employment, and also
deals with the issuance of residence permits (although
both are actually granted by the Prime Minister's Office,
in association with the Ministry of Human Resource Development).
The two permits can usually be processed concurrently
by the FSC, and with the minimum level of disruption
to the expatriate, who just needs to provide them with
the application forms, and relevant documentation (including
a letter of sponsorship from the prospective employer).
Tax residence
is assumed if an individual is present for more than
183 days in any one tax year, or 270 days in total over
3 years, and if this is the case, then they will be
taxed on their world-wide income, although only if the
foreign income is received in Mauritius. There are some
tax breaks available for employees of offshore operations,
but overall, not a great deal of distinction is made.
Non-Mauritian citizens are required to seek permission
from the Prime Minister's Office before they can purchase
property locally.
The official
language of Mauritius is English, although French and
Hindi are also widely spoken, and there are several
daily newspapers in circulation, the majority of which
are published in French. The population is predominantly
Hindu (51%), and there are also Christian and Muslim
communities established, accounting for 31% and 17%
of the population respectively. There is very little
seasonal variation in Mauritius, with the weather generally
warm all year round, and water sports and golf are the
most popular pursuits.
Although
Mauritius might be considered eminently suitable for
the establishment of an offshore company or trust, whether
for the purposes of streamlined financial management
or asset protection, its suitability as a retirement
destination must be questioned. High domestic taxation
for residents, and the very rigid distinction between
offshore and onshore in this jurisdiction could mean
that any advantages gained by basing your assets here
originally may be lost by residing here during your
retirement years.
For a more
detailed treatment of the tax and legal regimes in this
and 35 other offshore jurisdictions, please visit the
Lowtax
Jurisdictions Guide.
MONACO
Language -
French, Monegasque, Italian, and English
Currency -
French Franc
Status - Constitutional Monarchy
Population
-32,671 |
INCOME
TAX |
SOCIAL
TAXES |
CAPITAL
GAINS TAX< | |
