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The continent of Europe is one of the smallest continents on earth. and it has an estimated population of 731 million people. Some of the countries which make up the continent have become very high in the rankings of sought after tax havens of the world. Countries such as Liechtenstein, Gibraltar, Cyprus and Luxembourg are all tax havens. These countries cater to foreign investors.
The tax havens of the world are best known for their tax policies, strict privacy laws and offshore banking services. For many years Europe was the tax haven of choice for many wealthy individuals and families from countries around the world. The most famous and popular tax haven in Europe was Switzerland. Today many tax havens have emerged in Europe as the continent remains one of the safest places to invest offshore.
Cyprus a popular tourist destination in Europe is also considered to be a tax haven. Cyprus is a low tax haven for the simple fact that the country has a very low tax regime in place. In this European tax haven, Cyprus companies pay taxes at a rate of 10%. This is based on the annual profits of the Cyprus Corporation. Cyprus also offers offshore banking where no taxes are imposed on the interest earned by offshore bank account. The tax haven of Cyprus provides privacy for owners of corporations and offshore bank accounts. The names of owners of Cyprus Corporations do not appear as public records and it is an offense to disclose information in Cyprus offshore bank accounts.
One of the popular European tax havens is Gibraltar. Prior to January 2011, the nonresident offshore company incorporated in Gibraltar was a tax free company. As of January 2011, there is no longer any distinction between onshore and offshore companies. All companies incorporated in Gibraltar are subject to a low tax of 15% per annum. Gibraltar also offers offshore banking services which are not taxed. Gibraltar also provides banking secrecy for offshore bank account holders in the offshore tax haven.
Luxembourg is another tax haven in Europe which is used by investors from many European countries. Luxembourg offers offshore banking and company incorporation. Companies incorporated in Luxembourg can be structured in a way to take advantage of tax exemptions. Luxembourg has very strict banking secrecy laws in place to protect the operators of offshore bank accounts in the tax haven. Luxembourg has for many years been a choice tax haven for citizens of many European countries.
Tax havens Europe for many years have provided clients and investors with legal means of reducing tax liability and European tax havens are used as a means to protect assets. Europe is said to have some of the best tax havens available today. The stability of European tax havens and their respective legislations make them more attractive to offshore investors and clients.