Best Tax Haven Countries in 2025

The age of secrecy is over.

The advance of global transparency initiatives like the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) means the vast majority of financial centres are now interconnected.

That interconnectivity means there’s no such thing as hiding cash any more – a practice that Nomad Capitalist has long advocated against.

The idea of stashing cash in some anonymous offshore vault is not only illegal – it’s outdated.

Yet the term ‘tax haven’ still lingers in the public imagination, often clouded by associations with crime and corruption.

In reality, today’s tax havens are unlike those of the past – they’re no longer about hiding wealth, instead becoming a bona fide strategy in strategic, legal tax optimisation.

Modern tax-friendly jurisdictions aren’t just billionaire’s playgrounds. They’re smart tools for savvy entrepreneurs, investors and global citizens who want to reduce their tax burden, diversify their assets and increase their personal and financial freedom – all within the bounds of the law.

In 2025, the best tax havens offer more than low rates. They combine business-friendly policies, second residency options, world-class banking and, often, a much better lifestyle than the one being left behind.

The right jurisdiction could save you a fortune and open doors you didn’t know existed. Still, the question remains: where do you go to be treated best?

What Do We Mean by Tax Havens?

Tax havens are countries or territories that offer attractive tax benefits, often to foreigners, by imposing little to no taxes on income, capital gains or wealth. 

These jurisdictions attract individuals and corporations looking to reduce their tax burden while benefiting from political stability, privacy and strong financial infrastructure. 

Importantly, to make use of a tax haven, you need to be a tax resident there. 

You can’t just take your assets offshore by holding a passport to a tax-friendly country. Instead, you need to have an actual presence in these jurisdictions, making them your tax residence.

If you’re still a tax resident somewhere else, having a connection to a tax haven won’t offer many benefits.

How Do Tax Havens Earn Money?

Despite having low or no taxes, tax havens still need revenue. 

They’ll rely on fees such as corporate registration and renewal charges, import duties and even departure taxes. 

These countries also capitalise on their status as business hubs, with banks and firms paying substantial fees for the privilege of operating in low-tax environments. 

For tax havens in the Caribbean, some of the biggest revenue drivers are tourism and even citizenship-by-investment programs.

Domestic, International and Offshore Tax Havens

Tax havens come in various forms.

Domestic havens are places where you can lower your tax burden without leaving your country of residence. Certain US states, for example, have no state income tax. 

International havens are countries with low or no taxes and include places like Switzerland, where foreign money flows in and is legally shielded. 

Meanwhile, offshore tax havens, like the Cayman Islands, offer the full suite of tax benefits for both corporations and individuals to capitalise on lighter regulations and strong privacy laws.

Advantages of Tax Havens

Setting yourself up in the right tax haven can have some major benefits, such as: 

• Legal tax reduction: Tax havens are designed for tax minimisation. 
• Zero taxes: No taxes on personal income, corporate profits and capital gains. 
• Privacy and confidentiality: Your financial activities are typically more private. 
• Convenience: Setting up businesses or opening bank accounts in tax havens should be quick and easy. 
• Asset protection: Tax havens generally come with robust asset protection. 
• Legal protection: places like the Cook Islands make it difficult for creditors to access your offshore assets.

Disadvantages of Tax Havens

But if setting up yourself in a tax haven can provide benefits, you need to make sure you do it properly, or you might run into some challenges:

• Increased scrutiny: Tax havens often face scrutiny from international tax authorities and regulators. Using them could invite unwanted attention from your home country’s tax agencies, which could potentially lead to audits or investigations. This doesn’t mean you’re doing anything illegal, but it can be an added headache.
• Negative perception: Some partners or investors may see operating in a tax haven as a red flag. They (unnecessarily) associate it with secrecy or tax avoidance, which could complicate relationships.
• Banking difficulties: Opening corporate bank accounts in tax havens can also be challenging. Many reputable banks see tax haven companies as high-risk clients, meaning more due diligence and a lower chance of acceptance for accounts.

Best Tax Havens in 2025

So, which havens come with all of the benefits and none of the disadvantages?

If only it were that simple. The truth is that different tax havens have their own rules and tax systems, so there’s no universal ‘best’ option.

The most suitable option comes down to an individual’s personal situation and how their assets and business are structured. That said, the countries below are offering some of the biggest tax incentives.

Cayman Islands

The Cayman Islands is a classic tax haven. 

There’s no income tax, no capital gains tax and no inheritance tax, which means you can legally reduce your taxes to nearly zero. While there are some fees and duties, the tax rules of the territory allow you to legally structure your finances to keep them at a minimum. 

The territory offers high-quality legal services, healthcare and education, along with stunning beaches and a luxurious lifestyle.

Bermuda

Bermuda has a mix of no personal income tax, no capital gains tax and no inheritance tax. It’s popular with individuals and corporations looking to minimise their tax exposure while enjoying a sophisticated, stable environment. 

While there’s a 15% corporate tax for businesses with over €750 million in revenue, most smaller enterprises remain exempt. 

And with no VAT or sales tax, Bermuda’s tax system is as appealing as its pink sandy beaches. 

Isle of Man

The Isle of Man is a less heralded gem for tax optimisation. 

With a 0% corporate tax rate on most businesses and no capital gains tax, inheritance tax or stamp duty, there are good reasons to consider this strategically located British Crown Dependency. 

You can easily set up a business or trust structure here, benefiting from favourable tax laws while living in an English-speaking, stable jurisdiction. 

Panama

Panama offers a territorial tax system that only taxes income earned within its borders. So, if you earn income abroad, it’s not subject to tax in Panama. 

There’s no capital gains tax on the sale of foreign assets, and dividends from foreign companies are tax-free. The absence of wealth tax, exit tax or Controlled Foreign Corporation (CFC) rules makes Panama an ideal base for international entrepreneurs and investors. 

If you can structure your income properly, you can live in Panama without paying any tax on foreign earnings, all while enjoying the latin lifestyle in a business-friendly environment. 

It’s also a pretty easy place for US expats to move to.

St Kitts and Nevis

The Caribbean nation is a popular offshore jurisdiction for banking and offshore trusts. It also has notable tax benefits.

St Kitts and Nevis has no personal income tax, no capital gains tax and no inheritance tax. 

Moreover, its taxes are structured to entice entrepreneurs looking to broaden their global business interests. 

However, there is a 33% corporate tax rate, with a worldwide system where companies considered tax residents are taxable on a global basis.

Antigua and Barbuda

If you’re looking to relocate or structure your business offshore, Antigua and Barbuda should be on your list. 

With no personal income tax, capital gains tax, inheritance tax or wealth tax, it’s an appealing option for high-net-worth individuals. 

You can enjoy these benefits by becoming a tax resident with just 30 days of physical presence per year or applying for permanent residence with a flat US$20,000 tax fee. 

The lack of Controlled Foreign Corporation rules makes it easy to set up an offshore company, while the relaxed residency requirements make it a convenient, tax-friendly base for a global lifestyle.

Jersey

Jersey strikes a good balance between being a modern financial centre and a low-tax environment for the wealthy. 

As a resident, you’ll pay 20% personal income tax on your worldwide income, but if you qualify for the High-Value Resident program, your income above £1.25 million is taxed at just 1%. 

Capital gains, inheritance taxes and wealth taxes are non-existent, making it an ideal destination to preserve your wealth. 

If you’re not ordinarily resident here, you only pay tax on Jersey-source income, leaving the rest of your global income untouched. 

United Arab Emirates (UAE)

There’s no personal income tax, no capital gains tax and no wealth tax here. 

You can set up shop in one of the UAE’s Free Zones and still qualify for a 0% corporate tax rate, provided your income meets specific criteria. However, there is a 9% corporate tax rate for most companies. 

The UAE has no exit tax and no dividend tax either. 

Switzerland

When it comes to protecting and preserving wealth, Switzerland has been a sought-after destination for a long time. 

While the days of anonymous Swiss vaults are gone, Switzerland still offers a unique blend of low taxes and a respected, ultra-stable environment. 

In Switzerland, there’s no capital gains tax on private wealth, no inheritance tax and a maximum federal tax rate of 11.5%. 

Wealthy individuals can take advantage of Switzerland’s lump-sum taxation system, which allows you to be taxed on your lifestyle and assets rather than income. 

Oman

Oman is a rising star among tax havens, offering a solid range of benefits.

There’s no personal income tax. Capital gains and dividends are also not taxed, allowing you to keep more of your earnings. 

While Oman does have a corporate income tax of 15%, there are no exit taxes or wealth taxes to worry about. 

Countries That are Tax Havens: FAQs

Planning to Lower Your Taxes?

The world of tax havens is in constant flux.

Whether it’s the cost of citizenship-by-investment programs, the efforts of Western governments to enforce global tax harmony or increasing regulation, the offshore world seldom stands still.  

Whether you’re looking to reduce your taxes legally, protect your assets, or gain a second residency, using the right tax haven can be a game-changer, but it will take planning.   

That’s where Nomad Capitalist can help. We’ve already assisted more than 2,000 high-net-worth individuals to ‘go where they’re treated best’, whether that’s by moving their business offshore, relocating to a tax-friendly country or even pursuing a second citizenship. 

Our clients are paired with experts in tax, investment strategy, asset protection and immigration to create and execute a holistic plan as unique as their goals. To learn more about how we can help you get in touch today.