Want A Tax Rate Of 0%? Read This

Want A Tax Rate Of 0%? Read This.
Galapagos by Julian Cohen. Why?

One of the best ways to make your SIPP go further is to have a personal tax rate of zero

As Some Of The World’s Most Beautiful Countries Have A Tax Rate That’s Low Or Non-Existent, It’s A Case Of Heads You Win, Tails You Don’t Lose

You Can Have A Zero Tax Rate Now

A recently published report by international expatriation specialist firm Bradley Hackford reveals ten of the countries with a low or zero personal tax rate. The report looks at countries where you can establish both a physical and a tax residence.  The rankings are based on the following criteria:

  • Tax rate for individuals living in the country
  • Quality of life
  • Legal and physical security of the country
  • Government support for immigration to the country
  • Location, accessibility and recreational opportunities

Bahamas - Personal Income Tax Rate: 0 per cent

Boasting an excellent quality of life and political stability, becoming a resident requires investing in local real estate with a minimum value of $500,000 US.  If you’re desperate to live the tax-free life, a $1,500,000 US property investment will fast-track your application.

Andorra - Personal Income Tax Rate: 0 per cent to 10 per cent

It’s especially popular with neighbouring French and Spanish nationals, as well as Russians, due to its high security levels.  Residence is dependent on a minimum investment of 350,000 Euros and a deposit of 50,000 Euros.

Monaco - Personal Income Tax Rate: 0 per cent

Dripping in glitz and glamour, its total absence of income tax makes it popular with many European nationals, and recently, people from Russia.  Residency is dependent on demonstrating significant financial wealth.

Bulgaria - Personal Income Tax Rate: 10 per cent

With one of the lowest tax rates in Europe, it’s a popular destination.  As a member of the European Union, there are no investment requirements needed for relocation.

Panama - Personal Income Tax Rate: 0 per cent

All foreign earnings are free of tax, though locally sourced income has a tax rate of up to 25 per cent. The residency process has been simplified and coupled with a low investment requirement, it’s an attractive place to live when you retire.

Mauritius - Personal Income Tax Rate: 15 per cent

Both French and English are spoken here.  The residency process is simple, requiring an investment in local real estate with a minimum value of $500,000 US.

Dubai - Personal Income Tax Rate: 0 per cent

Its many free zones with residency options attract large numbers of expatriates.  Not only are individuals subject to no tax, foreign owned companies also pay no tax too.

Guernsey - Personal Income Tax Rate: 20 per cent

Whilst tax is charged at 20 per cent, it’s subject to a ceiling of £110,000 to £220,000 depending on the type of income.  Companies located here pay no tax.  Jersey is similarly as attractive.

Cayman Islands - Personal Income Tax Rate: 0 per cent

A well-known destination for individuals and companies as no tax is charged.  Residency is reasonably easy to obtain, by forming a local company.

Switzerland - Personal Income Tax Rate: Flat Rate

Its Lump Sum Taxation scheme provides a predictable tax liability, without you having to disclose your annual income.  Currently, this figure is between 150,000 and 200,000 Swiss Francs.

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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets

That's our opinion.  Not just because AJ Bell was the first company to offer an online SIPP.  Nor that it's received many prestigious awards.  And not even because the wife of SIPPclub's Founder has an AJ Bell SIPP.  It's because it's one of the most competitive stockmarket SIPPs on the market. 

Over time, charges can wipe out a huge part of your fund.  We like AJ Bell because there are no set-up costs.  If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund.  And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment).  However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.

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