Many offshore financial centers have been dependable jurisdictions for international financial investors as well as commercial and corporate entities. Within the industry, there are regions that have become the top go-to locations that offer generous benefits like financial privacy and tax liability. Some perfect examples are the islands in and near the Caribbean region: Cayman Islands, Bahamas, and Bermuda.
The Cayman Islands
Located in the western Caribbean Sea, this offshore financial center has been considered as one of the largest in the world. It primarily provides its Western clients services like offshore mutual funds and offshore banking. What makes the islands so attractive to investors and companies is the fact that it does not impose income tax, estate or inheritance tax, corporate tax, or capital gains tax, to name a few. Cayman’s highly strict banking laws protect banking privacy and they do not have any tax treaties with other countries.
Located just a few hundred kilometers away from mainland USA, the island-country of the Bahamas is one of the most prosperous and richest countries in the Caribbean region. Its government has been actively promoting programs to attract offshore businesses to its islands. Aside from the fact that the country is a popular tourist destination among European and American travelers, the nation’s well-designed tax laws as well as tax regulations particularly on asset protection, have been attractive characteristics for non-resident investors and commercial businesses. In addition, the Bahamas boasts of an open economy, with their currency, the Bahamian dollar, pegged to the U.S. dollar.
This wealthy Atlantic paradise has two main attractions: first, it is home to one of the world’s biggest reinsurance centers and second, it has made its name as one of the most dependable offshore centers on insurance-related securities and offshore mutual funds. Although geographically nearer to the Caribbean, Bermuda is actually a part of the British North America, located in the Sargasso Sea. One of the world’s most trusted offshore financial services firms, LOM Financial, is headquartered right at the heart of this British Overseas Territory (BOT) in Hamilton, with offices in the two aforementioned jurisdictions.
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