Tax havens are countries where taxes are levied at lower rates compared to the home country. Most rich people transfer their money to tax havens to conceal their actual incomes while saving heavily on taxes. There are close to 80 countries that have incredibly low to almost no taxes. American billionaires go to these countries in order to open offshore bank accounts and shell corporations. By opening bank accounts and acquiring properties in these tax havens, people with extremely high incomes can save thousands in taxes without giving up their American citizenship.

The IRS has strict rules for US citizens holding accounts in foreign countries but these rules have not stopped the extremely well-off from offshoring their funds because if done correctly, offshore banking is completely legal.

The following is a list of eight tax havens that are much preferred by Americans

• Belize: Belize is a tropical island country in the Caribbean Sea. Belize offers two types of citizenships; permanent residence and Qualified Retired Person (QRP). QRP citizens have to just spend four weeks of a year in Belize and have a minimum retirement income. For QRPs, foreign income is tax exempted, and there is no tax on inheritances and capital gains.
• The British Virgin Islands: The British Virgin Islands is well known for its banking secrecy. The income tax rate of this place is 0% plus there is no tax on the corporation, gift, sales, inheritance, and capital gains. Property owners and investors can become part-time residents of the country.
• Cayman Islands: All the big US companies have offshore assets in the Cayman Islands. This country has no corporate tax and levies no taxes on profits, estates, capital gains, and income.
• Costa Rica: Costa Rica is not just a world-famous tourist destination, but it is also a world-famous tax haven used by the big shots from everywhere. American billionaires go to Costa Rica because there is no income tax on corporations that are based outside the country’s jurisdictions.
• Monaco: Monaco is a very old tax haven for rich Americans. Most Americans return from Monaco with a few extra zeros added to their assets. This country does not impose an income tax, inheritance tax, and tax on capital gains.
• Seychelles: Seychelles is a country of 115 islands off the western coast of Africa. The area is a famous tourist destination because of its white beaches and pristine clear water. This country levies no tax on income, gift, property, and capital gains.
• Panama: The economy of Panama is one of the fastest growing economies in Central America. Panama does not share tax details with other countries. This country is considered one of the most secretive tax havens across the globe. Panama has no income tax and no taxes on dividend and capital gains.
• Puerto Rico: Puerto Rico has a commonwealth government and has its own tax laws. It is a tax haven for US citizens who can live on the island for 183 days per year. Some rules on the island let US citizens avoid taxes on dividends, interest, and capital gains.