We all have seen the word tax haven in the news, books, and financial reports, but what is it really?
A tax haven is a location where there are little to no taxes. That’s it. It is not illegal; it is not prosecuted. It’s just a place or a country.
But how does it work?
Well, it depends on which country you choose, but the basic setup is to register a company in that country, and then simply carry out your business from there in a remote office, or invoice your local company for management fees, consultancy fees, etc. (Only invoice amounts that make sense, don’t go crazy with this).
“Ok, we got it. Now how do we access our funds?”
Well, glad you asked. That’s why it is important to choose a country that has Double Tax Treaties with the country where you live. That way you can take that money and declare taxes for it in the low-tax country.
Did you know that the United Arab Emirates has 90 double-tax treaties with major countries all over the world?
That’s why it is probably the best location to register your business.