May 22, 2024

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Wealth: The new “paradise” for the world's richest people – the list

Wealth: The new “paradise” for the world's richest people – the list

It was announced last Wednesday in London that the favorable regime that allows people who live in the United Kingdom but have permanent residence abroad to avoid estate taxes for 15 years will be abolished.

The comprehensive overhaul of the system that gave preferential treatment to wealthy foreigners comes at a time when the widening wealth gap in many Western countries is prompting some countries to limit tax and political benefits for expatriates.

Portugal announced last October that it planned to abolish its non-resident program, a policy that allowed foreigners to pay lower income taxes and pensions than locals for 10 years.

So, where can expats from the UK and elsewhere turn to protect their assets? Here are five countries around the world that offer benefits to foreigners.

Antigua and Barbuda

Since 2016 when the new tax law came into effect, residents and non-residents are not subject to tax on income they earn in the country or on their assets abroad. This law constituted an important driving force for the country's economy, as it attracted wealthy investors and strengthened the real estate market. There are also no estate or inheritance taxes on these tropical islands.

Foreigners can also obtain citizenship that promises visa-free travel to Europe for as little as $100,000. Citizens of Antigua and Barbuda can travel to 154 countries without applying for a visa first. Note that the European Union is trying to crack down on the visa waiver policy and is pressuring it and other Caribbean countries to either close or tighten their citizenship-by-investment programs.

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The United Arab Emirates

Dubai and other emirates have in recent years attracted an influx of hedge fund managers and bankers from around the world, thanks to relaxed tax laws and facilities for the wealthy. The UAE does not impose taxes on personal income, capital gains, inheritance, donations or real estate. It has one of the lowest corporate tax rates in the world, at 9% for companies with annual profits of more than 375,000 dirhams ($102,000).

The country has also recently increased the number of people who can apply for long-stay visas, including businessmen and engineers. However, Dubai is becoming out of reach as its popularity is causing property prices to skyrocket. Waiting lists for international schools and private clubs are very long.

Italy

Italy's generous tax system for foreigners introduced in 2017 has been very effective in attracting expatriates. The number of people moving to Milan and benefiting from these tax breaks doubled in 2021, bringing their total to more than 1,300 people. New residents pay an annual fee of 100,000 euros ($109,000) and are exempt from paying taxes on income from abroad. They also cannot pay tax on 50% of their Italian income if they were not resident in the previous two tax years.

The recent rush in Milan has sent property prices soaring and contributed to the high cost of living in the city, fueling tensions among locals. However, with the UK and Portugal withdrawing incentives for foreigners, wealth advisers say Italy is expected to be one of the main beneficiaries of global expats – particularly from the Americas and the Middle East – looking to put their money in a low-tax European country. nation.

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Singapore

Singapore presents a mixed picture. While the Asian city-state has benefited from China's crackdown on Hong Kong, its move last year to raise the property tax to 60 percent on foreign buyers made it less attractive. The personal income tax rate for residents is low, at a maximum of 22%. Regular corporate tax is 17%.

However, to buy a $5 million home, a foreign buyer would have to pay 65% ​​tax in Singapore, including other fees, compared to about 4% in New York, 15% in London, and 30% in Hong Kong. Savills accounts.

Monaco

Millionaires continue to flock to Monaco to enjoy the city's casinos, glamorous lifestyle and low taxes. This small country is a playground for the European elite, and imposes no taxes on property, personal income or capital gains.

Rental properties are taxed at 1% of the annual rent. Monaco has eliminated taxes on dividends paid by local companies and does not impose a general corporate income tax.

Monaco has the most expensive real estate in the world, according to a recent report by wealth consultancy Knight Frank, with just $1 million buying 172 square meters of property. A residence permit in the country can be obtained by investing more than one million euros ($1.1 million).

Higher tax brackets

If you're interested in countries that tax more but also offer a good quality of life and public services, France, Belgium, Denmark and Japan have some of the highest tax measures in the world, Bloomberg reports.

Income tax in France is 45%, similar to Japan. France imposes an additional tax of 3% on income exceeding 250,000 euros (273,000 US dollars), while the capital gains tax is 19%.

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Income tax in Denmark is 52%. In Belgium, any income over €46,440 is taxed at 50%.

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