1 / 11Days after he acquired the citizenship of Vanuatu, fugitive businessman Lalit Modi’s passport was cancelled by the island nation. Vanuatu Prime Minister Jotham Napat asked his country’s Citizenship Commission to act after he was made aware that Interpol rejected Indian authorities’ requests to issue an alert notice on Lalit Modi due to the lack of evidence. (Image: Reuters)
2 / 11The rejection of Lalit Modi’s passport has brought tax havens into the spotlight. These countries attract foreign investment because they levy low taxes on income, capital gains, and other revenues. They have been known to significantly lower or entirely wipe out taxes. They offer financial privacy, which makes it tricky to pinpoint the recipients and revenue streams. Research shows that US taxpayers own around $4 trillion in foreign accounts, with roughly half of that amount located in nations that are typically regarded as tax havens.
3 / 11Cayman Islands | A well-known tax haven, the Cayman Islands benefits both businesses and individuals. With zero corporate tax, it’s an ideal location for any offshore company. The country, home to innumerable hedge funds, banks, and insurance companies, doesn’t levy personal income taxes or taxes on capital gains, according to a PwC report. (Image: Reuters)
4 / 11Hong Kong | Hong Kong has established itself as a financial hub, offering a competitive tax environment as well as a strategic location. Benefits include a territorial tax system, low corporate tax rate and no capital gains tax. With no sales, interest, or dividend tax and duty-free imports, Hong Kong attracts international businesses and remains a significant financial centre, according to a report on Investopedia.
5 / 11Isle of Man | The Isle of Man, a Crown Dependency of the United Kingdom, is renowned for its low tax rates, political stability and well-regulated financial sector. It has no corporation tax and inheritance tax, capital gains tax, inheritance tax or stamp duty, a KPMG report said. (Image: Shutterstock)
6 / 11Luxembourg | In February 2025, Luxembourg reduced its corporate income tax rate from 17% to 16%. It decreased the aggregate tax rate in Luxembourg City from 24.94% to 23.87%, ensuring it remains an attractive destination for multinational enterprises, according to a report in BloombergTax. Luxembourg simplified its tax system to make relocation more attractive for highly skilled workers.
7 / 11Switzerland | Switzerland’s low taxation and secretive banking system make it one of the favourite tax havens among many Europeans and clients from other countries. The federal corporate income tax (CIT) is 8.5% on profit after tax and 7.83% on profit before tax, according to a PwC report. The federal income tax for individuals is 11.5%. (Image: Shutterstock)
8 / 11Vanuatu | The Republic of Vanuatu is a tax-free nation in the South Pacific with no financial obligations. Vanuatu’s tax system allows both individuals and legal companies to increase their wealth, according to Offshore Protection. Vanuatu International Companies are free from any local taxation for a minimum of 20 years. This covers all taxes, including but not restricted to corporate tax, stamp duty, dividends tax, VAT, inheritance tax and estate tax. (Image: Reuters)
9 / 11Bermuda | Zero corporate and personal income taxes, coupled with no capital gains tax and a favourable regulatory environment, make Bermuda a popular tax haven. It’s a go-to place for multinational corporations and wealthy individuals looking for tax efficiency. The island specialises in offshore insurance and reinsurance markets, a report in Offshore Protection said. (Image: Shutterstock)
10 / 11British Virgin Islands | Said to be one of the “traditional” tax havens, the British Virgin Islands, quite incredibly, have more companies than its population, according to a report in Offshore Protection. They have zero taxes for individuals as well as corporations. Their simple incorporation process makes them the ideal location for anyone looking to save money in taxes. (Image: Shutterstock)
11 / 11Jersey | Jersey, a British Crown Dependency, is an appealing destination for people and businesses looking to keep more of their profits. It has low personal and corporate tax rates. This small island in the English Channel operates its own fiscal system. It does not impose taxes on capital gains, wealth or inheritance, according to Offshore Protection. (Image: Shutterstock)
