Thanks to the fact that British income tax has been increased to 50% for those earning over £150,000 and that tax relief on high earners’ pensions has been cut as well, it’s absolutely no surprise that many wealthy British residents are planning to vote with their feet and leave the UK wallowing in the debt that the government created.
But where are the best places to shelter offshore away from these British tax increases and why? Where some might think typical tax havens such as Switzerland are best, what about the fact that you don’t even need to leave British waters to actually escape the taxation net that Alistair Darling is wildly casting about in an attempt to salvage the British economy that he and Gordon Brown have ruined?
In this report we’ll take a look at where Britons can escape to with their income, their assets and even their business intact. And this article is not just for the super wealthy either – because all Britons are affected by the current government’s tax plans and things are unlikely to improve in the UK for many decades to come.
The first thing we want to highlight in this report is that we’re not being elitist – whilst it’s the higher earners who will suffer the 50% tax rate on personal income, every single other resident of the UK will suffer from the government’s plans to tax heavily. When one wealthy Briton leaves, so this weakens Alistair Darling’s plans of reaping all that he can from the rich – meaning that he will soon begin taxing the rest of us even more heavily too. And even if the conservatives win at the next election, a change of government is not going to change the economy over night!
So, whether you are super wealthy or just super sensitive to the fact that the government in the UK has got us into a situation, economically speaking, that most experts say we can’t get out of for multiple decades, then this report is for you. It shows you where in the world you can move to and take your whole life with you. It shows you where there is already interest from escaping Britons, and also where property prices and the cost of living are realistic for the rest of us who are not super rich too!
Offshore Havens Suitable for the Super Rich
Having started this article referring to the higher earning element of the UK’s population, let’s turn our attentions to where the super rich are apparently heading to escape the wealth tax in Britain. Apparently the likes of Monaco are doing particularly well out of the Great British exodus – where property prices in the south of France may have fallen by as much as 30%, so prices in Monaco have risen by as much in the past couple of years according to leading real estate agents in Monte Carlo.
There is now 100% broadband coverage in the sovereign country too, meaning that you can not only relocate yourself and your family, you can take your business with you as well. However, in a location where population density is already extreme, property prices really can only go one way when demand for real estate is still so intense – and that is up and up and up. So where you might save yourself significant taxation, you will face massive property prices! That said, if you buy a property in Monte Carlo then at least you know your home will be a true investment in Monaco where demand is so intense.
Geneva might be a slightly more affordable, less populated alternative for the super rich – and according to local reports, the rental real estate vacancy rates are at significant lows, with property prices stable and not falling. This shows that demand for property in Geneva remains strong, and the influx of wealthy Britons is likely fuelling this status. Of course Geneva is in the tax haven of Switzerland, which is well known as a confidential and attractive place to bank and do business. It’s no wonder that it’s appealing to those being taxed to the max in their home country then is it?
Offshore Havens Suitable for the Rest of Us!
The UK Channel Islands and the Isle of Man offer a slightly more affordable alternative to Monaco if you’re not super wealthy…and you won’t have even left British waters to take advantage of more advantageous personal and corporate taxation rates either.
Property prices at the higher end of the market in Jersey, Guernsey and the Isle of Man have witnessed increases over the last year or so according to local based estate agents – therefore bucking the British trend. Of course all destinations benefit from their taxation advantages, but they also have very high levels of critical infrastructure in place that allow relocating individuals to simply manage the transition of home life and business life easily.
Overseas Destinations More Tax Attractive Than the UK
If you don’t fancy living life in a tax haven however, but you’d simply like to live somewhere where the government understands that tax competitiveness isn’t a bad thing and where the cost of living/quality of life balance is spot on then you could do a lot worse than Cyprus!
This stunning Mediterranean island is a true paradise – as long as you move away from the over developed beach strip that runs from right to left and leaves almost no beach untouched. Away from the maddening summer tourism crowds Cyprus is a delight. What’s more, personal income and corporate tax rates in the European Union nation are affordable and competitive. The way of life is laid back, yet the infrastructure available – from transportation to shopping, from internet coverage to medical facilities – is first world.
If you do want to escape the negative spiral of spend, tax, spend in the UK, there are options and alternatives for you whether you’re super wealthy or just super determined to get out before it gets worse!
