Governments at the moment, are just handing out presents to their electorate to compensate for high energy bills. People keep pampering and appeasing the electorate, but who will pay the bill? Precisely! That same tired, taunted taxpayer, preferably those earning a good living through hard work and ambition. No wonder creative entrepreneurs and the wealthy in general continuously look for places with an acceptable tax burden and where the quality of life is sometimes even better, a warmer climate, more security, etc. That’s why we want to inform you more about Monaco, Switzerland or Andorra as a tax haven.
Old realities…
Many still think they will find tax happiness in, e.g., Monaco, Andorra, Liechtenstein, Gibraltar… or Switzerland. Nothing could be further from the truth. The world has changed.
Take Monaco, for example.
The principality is so small that you can barely live there, and you don’t want to go through life tax-free but have to live on 100m2 and pay EUR 15 000 rent per month. Furthermore, the place is filled with movie stars who bagged their last role when the Americans first landed on the moon. And, by the way, corporate tax there is over 30%.
Take Andorra.
Choose Andorra as a tax haven if you like seclusion, snow-capped peaks, and mountain goats. Meanwhile, you usually pay 10% tax here as well. Furthermore, you must comply with many rules and make certain investments. And your physical presence is strictly controlled; you cannot live there only ‘ on paper’.
Liechtenstein.
This principality is just a fantasy; you just can’t live here. It is ridiculously small, and only a limited number of people are granted a residence permit every year. If you are wealthy or think you are going to be, and you want to put the unrealistic tax burden of the West behind you, you have to do things differently
Monaco, Andorra, Gibraltar … and Switzerland are no longer the best places to be. …
Everyone’s story is unique and requires a different solution. For instance, someone who makes money from a web shop may need a different solution than someone who works as an IT -consultant, and someone who owns a shoe factory requires yet another solution.
So it may be that not one change brings the best solution, but you may have to try to combine several things. We’ll give an example. Suppose you have an IT – company and ten programmers are working for you and your company is based in Italy, and you pay excessively high taxes. What could you do? Go and live in Monaco, and then everything will be solved? No.., instead, set up a company in Bulgaria. You have low wages and 10% taxes here. Then go live in Portugal and receive tax-free dividends for the first ten years, and park your money safely in Switzerland. This is just one example.
Conclusion…
Don’t blindly follow the so-called tax havens. Seek professional advice, before you assume that Andorra is a tax haven. After reviewing your specific situation, we will provide tailor-made advice that will effectively give you more tax- breathing space and allow you to get back to doing what you love, i.e., doing business and creating wealth, which is what it’s all about. Don’t hesitate an contact us now!
