According to the latest Sovereign report, offshore tax havens in Europe are competing to win and retain ever more business - and as the competition heats up, so the attraction of the various European offshore jurisdictions is increasing.
For consumers and clients this is excellent news particularly for those involved in international business who require registration or banking services in a reputable location to achieve and maintain their own clients’ confidence. In this article we’ll take a look at the improving tax haven landscape in Europe.
We’ve often come down heavily in favour of the Isle of Man at Shelter Offshore simply because the jurisdiction is so well regulated for investors and those who choose to carry out all their offshore banking activities on the island. The government of the location is one of the most active in Europe in terms of seeking out areas in which it can improve regulations – and in addition, the investor protection schemes in place in the Isle of Man provide even greater confidence in the offshore centre...but the Isle of Man is certainly not the only offshore tax haven in Europe!
Located within reach are Jersey and Guernsey for example, and both are also relatively synonymous with security of investment activity and also for providing superior and discrete services to international business corporations. Both island locations are seeking to improve their competitiveness in light of increased competition from nations and locations such as Cyprus and Gibraltar.
For example, Guernsey is introducing a zero-10 tax system on the first of January 2008 and Jersey is set to follow suit a year later. Under the zero-10 system all offshore companies incorporated qualify for a zero tax rate except financial services companies which pay a flat 10% tax...going slightly against the grain is Gibraltar.
Gib wants to be different! It wants to attract wealthy residents with various improvements and tweaks to its tax and residency requirement treatment of Category 2 Individuals, (i.e., those who establish a residential address and live in the jurisdiction for a minimum of 30 days annually), and it wants to introduce a flat corporate tax rate for companies by 2010.
Between now and 2010 it is taking down corporate tax in increments from 35% to either 10 or 12% so that the jurisdiction can compete with the likes of other offshore tax havens in Europe such as Cyprus and Malta.
It could be said that the flurry of positive activity in the European tax havens is as a result of loss of investment and banking business suffered following the EU Savings Tax Directive implementation a couple of years ago – but who cares what’s driving the positive changes as long – as long as the jurisdictions’ competitiveness continues to rise, all the better for offshore consumers!
Further Offshore Tax Havens Articles
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