Every year Australians pay nearly half of their salaries towards income tax. If that’s not enough, various other taxes like general sales tax (GST), capital gains tax, Medicare levies, and fuel tax adds to this burden. Some individuals paying more than 50% of their income in taxes.
Many companies use so-called tax havens to lighten the load of their tax liability. Some companies pay nearly no tax at all, saving them millions. But it’s not just businesses that can benefit from taking their tax offshore. There are many tax havens that individuals can take advantage of to lower their taxes.
In this article, we list some of the best tax havens for aussies who want to escape the suffocating grip of the ATO.
What is a tax haven?
Dating back to Ancient Greece, tax havens are countries or places that charge very little tax to its individuals and businesses. Each country or area has its own laws concerning tax rates and what is required for an individual or company to qualify for the lower rate. For instance, a company must have a registered office and do a certain amount of business in the country. Tax havens also offer a level of financial secrecy.
Here’s a look at a number of the best tax havens for individuals.
Switzerland is almost as synonymous for its favourable financial environment as it is for its chocolate and cheese. People have been putting their money in Swiss bank accounts since the end of the second world war. Switzerland, who was neutral during the war, had much lower tax rates compared to other countries. Other European countries had to hike taxes to pay for reconstruction after the war.
Many individuals favor Hong Kong because there is no capital gains tax or tax on interest and dividends. What’s more, foreigners with money in Hong Kong pay no additional taxes like public benefit taxes. For companies, Hong Kong has an incredibly low tax rate of just 17% on profits made within. Plus, there's no tax for money made outside its borders.
Isle of Man
Situated just off the coast of the UK, the Isle of Man is famous for its motorcycle races. It’s also considered one of the best tax havens in the world. It has so much to offer individuals looking for a bit of a break from the tax man! It offers incredible investor protection, guarding individuals against failing financial institutions. It also has no capital gains, turnover, or capital transfer taxes. The island also manages to toe the delicate line between providing tax respite and eradicating things like money laundering.
The Bahamas is a favourite among aussies seeking relief from high taxes. The lack of capital gains tax, inheritance tax, and income tax fuels the popularity of these islands as tax havens. The overwhelming majority of income is generated via tourism. The zero tax rate extends to any income earned in other countries.
Where to go from here
These are only a few of the offshore tax reduction options. Each offers different advantages and is suited to different types of individuals. Navigating the tax haven waters can be very tricky, and done wrong you risk of being at odds with the law.
If you’re interested in lowering your tax rates by looking overseas, it is highly recommended to speak to an expert who will provide guidance as to which haven will be best suited to your needs. WealthSafe has years of experience helping individuals and businesses lower their income tax significantly by going offshore. We take care of all the legal requirements and ensure that you are compliant with the ATO.
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After a thorough analysis of your data and unique circumstances we advise you of all oppotunities. We guide you towards the best path and take control of implementation. Through every stage, we ensure full tax compliance and ongoing support.
It's a no-obligation risk-free assessment with a full money back guarantee (conditions apply).
Financially modelling your situation. We present your options and outline the possible tax savings.
We provide a written report with options to minimise your tax along with our recommendations.
WWe have a follow up meeting and create a strategic tax plan based on your choices.
We outline the process, costs and tax savings, and what you need to do from your side.
We fully implement your tax plan to ensure you meet all local and international legal requirements.
For those moving overseas to flee the Australian tax robbers, we help in the whole process from beginning to end.
Our service continues after we've implemented everything for you. We provide ongoing training to update you on changes as well as providing options to work with us on an ongoing basis.
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Living overseas, with no structures or assets in Australia anymore, it simply didn't make sense to keep paying into their tax system. Thanks to Warren and his team, they guided me through the process of setting up stable business structures, and making sure all the lawyers agreements and professional advise was documented. This ensured I met the obligations of the ATO and was 100% legally compliant with my obligations. I researched my options, and felt secure that WealthSafe took all precautions to ensure I was doing the right thing, and benefitting financially at the same time
After getting so much conflicting advice from other sources, we were completely confused. Being global business owners, we needed both Australian and international advice, so we reached out to War ren to help us understand exactly how we could structure our businesses to ensure we were well protected. It was vital to us that our future growth and decisions were taken into account. Not only did Warren give us the highest quality advice, and go above and beyond in ensuring we understood the full spectrum of what we were putting in place, but he has always been available for follow up questions, is always happy to get us on the phone for clarification, and he has shared the expertise in his team with us. At first, we have to be honest, we were really concerned about spending money on a consultation. The outcome is although not cheap, it is the best money we have ever spent. We can see significant savings, know we are structured well, have a fully dedicated and professional team behind us and have expert advice available when we need it. We can’t recommend Warren and the Wealth Safe team enough. Thank you
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He is very professional, knowledgeable and creative with his tax planning strategies, and very attentive in answering your questions and working with you to find the best set up for your individual situation. I feel confident working with him and his team, and his level of expertise is outstanding. I wouldn't trust any other company, and would highly recommend Warren Black and Wealth Safe to protect your assets
Although I thought the result I had figured out with my accountant were the most tax effective way I could setup myself up. I was in a position where I would have to pay 31k in tax. Warren found something in how I was setup, which turned my situation around to getting $15k returned to me. It's a $46k turn around.
Warren was able to set me up, and help me look forward to further tax reductions for the future. Also for improved asset protection. Warren also did bloodline wills for me and my wife. Full Review Here
I'm in the mining industry and run a small trading business. I had a tricky situation I had to get out of. I had default on my credit files. I got Warren on the job, he loves that sort of challenge. He didn't even charge me full price, he was excited at the challenge of helping me out. He succeeded and got rid of my default! I get Warren to do all my work now. I would recommend him to anyone
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I run a small business. I was concerned about safeguarding my assets, myself and my family, and the amount of tax I was paying, but I also wanted to be legal and not get into trouble. Warren was able to provide me with a structure that protected me and my family and my assets and also helped to significantly and legally reduce the tax that I had to pay. Sure I had to pay and they aren’t the cheapest nor the most expensive, however it was well worth the fees paid. I certainly feel more comfortable and secure now
They were able to walk me through the whole process, even a tax dummy like myself.... I was very very impressed with the level of service. It was really end to end. They were always there to answer questions, help me complete paperwork and connected me with all the right people. I can't recommend Warren and Wealthsafe highly enough Full Review Here
Virna, Warren and the Wealth safe team have provided us with a professional and efficient experience helping us to identify and create a customised financial structure to suit our needs. They clearly have a great deal of knowledge regarding taxation in Australia. Also Warren's seminars have been of great help. We absolutely would recommend their services and are forever grateful for help and advise provided
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I worked with Warren Black to open a Hong Kong corporation during the summer of 2018. Warren came highly recommended from my business contacts, who said that he was honest, trustworthy, and very knowledgable. I have to agree. My experience working with Warren was very good. Warren was extremely attentive to my questions, replying with solid answers in less than a day. He also took the time to explain options and rules in detail. When faced with some unique challenges that most businesses don't face, Warren was quick to roll up his sleeves, take action, and even put me in touch with his team so the process could move forward rapidly. This was above and beyond what I expected. To top it off, I found him very personable and really a pleasure to work with. If anyone is looking at a business entity in Hong Kong or Malta, I highly recommend Warren Black.
Warren, Virna and the team at Wealth Safe were fantastic in helping me set up multiple business structures overseas. They were always willing to have a chat on the phone whenever I felt like I needed extra help and they always replied quickly to my emails. The advice and structure set up was tailored to what I wanted to achieve and the whole process was easy and straight forward. I would 100% recommend utilizing their knowledge and expertise in setting up overseas and creating the life that you want to live :) I can't thank them enough.
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