How and Where do High Net Worth Individuals hide their Assets?

Samuel Oskys22/09/20192min
Offshore accounts, shell companies and other methods to hide their assets are commonly used by high net worth individuals in order to avoid paying taxes.

It is estimated that the U.S. alone loses around $70-100 billion in tax revenue every year from large corporate companies and wealthy individuals who move their profits behind shell companies based in popular offshore havens.

Offshore schemes exposed

Documents such as Swiss Leaks, Paradise Papers and what is considered as the world’s biggest data leak in history, Panama Papers, have brought to light millions of confidential documents exposing tax avoidance schemes such as:

  • Foreign trusts
  • Foreign corporations
  • Foreign (offshore) partnerships, LLCs and LLPs
  • International Business Companies (IBCs)
  • Offshore private annuities
  • Private banking
  • Personal investment companies
  • Captive insurance companies
  • Offshore bank accounts and credit cards
  • Related-party loans

In these schemes, the world’s elite exploits secrecy laws of offshore jurisdictions in order to hide assets subject to taxation.

Popular tax havens offer reduced or zero income tax rates and easily accessible bank accounts. These bank accounts are usually combined with shell company formations to insure anonymity. These territories implement tough laws that will not reveal the beneficial owner.

Popular tax havens

Businesses and high net worth individuals have plenty of choices since several countries promote themselves as tax havens however, the most popular ones are in the Caribbean and Europe regions.

Some of Europe’s top tax havens include Luxembourg, Netherlands, Ireland, Switzerland and Germany.

Asia’s tax-friendly countries are Hong Kong and Singapore.

Tropical paradises such as Bermuda, Bahamas, British Virgin Island, Puerto Rico and the Cayman Islands are also included in the top of the tax havens list.

Despite governments’ efforts to avoid tax evasion and give incentives to stop the transfer of profits, an estimated 10% of the world’s GDP is held in offshore banks.

Samuel Oskys

Sam Oskys is a British born technology enthusiast, automotive lover, artist, author and editor. His inspiration has been his life experiences; his evolution and adaptation in society and life itself and as a result, translated these emotions into art and words within his work in this duration. Writing about trendy, technology, automotive and lifestyle-related material is what he mainly focuses on and he’s currently one of the authors for High Worth Citizen. Contact Sam at +357-22029786 ext: 6115 or by email at [email protected] for editorial related questions.

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High Worth Citizen is all about delivering the latest business news on finance, investment, real estate and wealth. Our readers are the rich and powerful, their associates and business partners, the global High Net Worth Individuals.