Around the world, there are many places more renowned for the number of offshore companies registered there than their natural and cultural delights. These obscure outposts are far more valued for their creative accountancy potential than their tourist delights. But when those unfortunate filthy rich types have to venture out to check up on their not exactly overstaffed head offices, what can they get up to? Well — these tax havens aren't all about the paperwork it seems.
The British Virgin Islands
According to a report written by KPMG in 2000, the British Virgin Islands is by far the biggest offshore financial centre in terms of companies incorporated there. The report reckoned that 41 percent of the world's offshore companies are based in the British Virgin Islands, and much of the British territory's income comes from licence fees. However, a large amount also pours in through tourism. The archipelago boasts plenty of top drawer white sand beaches, and there's some excellent diving to be had. There are also numerous luxury resorts here — some of which, such as Richard Branson's Necker Island, have quite extraordinary price tags.
The BVIs are best known as a sailor's paradise, however. The relationship between the number of offshore companies and number of superyachts probably isn't coincidental.
More information: www.bvitourism.com
The Cayman Islands
The Caribbean's other notorious offshore jurisdiction has no income tax, no capital gains tax and no corporation tax, making it a handy place to squirrel away funds for multi-millionaires. Over 250 banks are based in the Cayman Islands — which is somewhat suspicious given a population of only 60,000.
The islands do get a fair number of tourists, however. Cruise ships drop into Grand Cayman regularly, and largely disgorge their passengers either into the sales tax-free shopping malls or on to Seven Mile Beach.
The Cayman Islands put the emphasis firmly on luxury (hardly surprising, really), but it's a surprisingly child-friendly destination, too. Activities include horse riding and a trip to Stingray City, where you can go and swim with surprisingly friendly rays.
More information: www.caymanislands.co.uk
Monaco
Monaco doesn't charge any personal income tax, which is great news for the likes of self-employed businessmen and world class tennis players. Even though they earn most of their money outside of Monaco, they use Monaco as a well-connected base to avoid paying tax on it. And don't think all of those Formula One drivers live here just because they love the course so much.
For the casual visitor, of course, the temptation to take a rental car around the world's most famous Grand Prix circuit is often too great. But Monaco has other attractions, too — it looks spectacular built onto the hillside, and drooling over the yachts in the marinas can easily kill a summer's afternoon.
In the evening, of course, there's the famous Monte Carlo Casino. And while you probably can't afford to be one of the high rollers yourself, you can always watch them in action.
More information: www.visitmonaco.com
Switzerland
Tax in Switzerland depends on which canton you're living in — with the Vaud canton often proving the most generous. The attraction is that you're allowed to pay tax in an upfront lump sum — usually calculated at five times the rental value of your house — rather than based upon what you earn. This works rather nicely for the superrich, as do the ultra-secretive Swiss banks.
But it's hardly a bad place to live either — stunning Alpine scenery, gorgeous lakes and cities with high quality bars and restaurants make Switzerland one of the most appealing places in the world to visit. It has arguably the most efficient public transport network in the world, with low crime and top skiing thrown into the mix too. If only everything didn't cost so much whilst there.
More information: www.myswitzerland.com
Bermuda
Being based in Bermuda is far more advantageous to companies than it is to individuals. Many big international names — particularly insurance companies — are registered in Bermuda in a bid to enjoy favourable tax rates. No tax is applicable to foreign earnings and, of course, most of these companies barely earn a cent in Bermuda itself.
Tourism is the second biggest earner here, however, and that money most certainly isn't coming from the unwashed masses. It's mostly about luxury accommodation, top golf courses and cocktails on the unusual pink sand beaches.
However, there is also some excellent diving due to a combination of numerous ship and plane wrecks and some thoroughly impressive underground caves.
More information: www.bermudatourism.com
Jersey
This small speck in the English Channel is a major offshore finance centre, with a number of banks and financial services operators at least nominally based here. Individuals and corporations don't pay tax on foreign earnings in Jersey. The Channel Island is also popular with internet stores — the lack of Value Added Tax means that goods exported to the UK or France from Jersey can be considerably cheaper than those bought in these countries.
In terms of tourism, Jersey has a long-standing reputation for old school wholesomeness. Think cliff walks, afternoon teas, families cycling together and castle visits. However, in recent years, the island's restaurant scene has exploded, with a number of high quality foodie haunts opening up.
More information: www.jersey.com
