The World’s Biggest Private Tax Havens
When the world’s ultra-wealthy look for tax havens to shield income and wealth from their domestic governments, where do they turn?
If you’re putting money in offshore bank accounts in order to save on taxes, there are two main criteria you’re looking for: secrecy and accessibility. Based on pop culture and media reports, you might imagine a secretive bank in Switzerland or a tiny island nation in the Caribbean.
And though there is some truth to that logic, the reality is that the world’s biggest tax havens are spread all over the world. Some of them are small nations as expected, but others are major economic powers that might be surprising.
Here are the world’s top 20 tax havens, as ranked by the 2020 Financial Secrecy Index (FSI) by the English NGO Tax Justice Network.
Which Countries are the Biggest Tax Havens?
The FSI ranks countries and territories from all over the world on two criteria: secrecy and scale.
- Secrecy Score: How well the jurisdiction’s banking system can hide money. This includes analysis of ownership registration, legal entity transparency, tax and financial regulations, and cooperation with international standards.
- Global Scale Weight: What is the jurisdiction’s share of the world’s total cross-border financial services? This metric is based primarily on the IMF’s Balance of Payments statistics.
By weighing a country’s ability to hide money by its relative share of offshore financial services, we see the tax havens with the biggest impact on the global economy.
|1||🇰🇾 Cayman Islands||Caribbean|
|2||🇺🇸 United States||North America|
|4||🇭🇰 Hong Kong||East Asia|
|5||🇸🇬 Singapore||Southeast Asia|
|7||🇯🇵 Japan||East Asia|
|9||🇻🇬 British Virgin Islands||Caribbean|
|10||🇦🇪 United Arab Emirates||Middle East|
|12||🇬🇧 United Kingdom||Europe|
|13||🇹🇼 Taiwan||East Asia|
|17||🇹🇭 Thailand||Southeast Asia|
|19||🇨🇦 Canada||North America|
|20||🇶🇦 Qatar||Middle East|
At a glance, the top 20 tax havens are spread out across regions. Just under half of the list is located in Europe, but the rest are spread out across the Americas and Asia.
And the jurisdictions are opposites in many ways. They include financial powerhouses like the U.S., Japan, and the UK as well as smaller nations and territories like the Cayman Islands, Hong Kong, and Luxembourg.
But one surprising thing many of them have in common is a link to England. In addition to the UK, four of the top 20 tax havens—Cayman Islands, British Virgin Islands, Guernsey, and Jersey—are British Overseas Territories or Crown Dependencies.
Also worth noting is the importance of scale in the rankings. The highest ranking jurisdictions by secrecy score were actually the Maldives, Angola and Algeria, but they represent less than 0.1% of total offshore financial services.
Best Place To Hide Private Vs. Corporate Tax
Some of the listed tax havens might be confusing to nationals of those countries, but that’s where relativity is important. The U.S. and Canada might not be tax havens for American or Canadian nationals, but the ultra-wealthy from East Asia and the Middle East are reported to utilize them due to holes in foreign tax laws. Likewise, the UAE has reportedly become a tax haven for Africa’s ultra-wealthy.
In addition, many of the countries used as tax havens for individual wealth are also utilized by corporations.
The Tax Justice Network’s 2021 assessment of corporate tax havens listed the British Virgin Islands, Cayman Islands, and Bermuda as the top three tax corporate tax havens.
While individuals might create shell companies in tax havens to hide their wealth, corporations are usually directly incorporated in the tax haven in order to defer taxes.
But the tax haven landscape might soon shift. The G7 struck a deal in June 2021 to start taxing multinational corporations based on the revenue generated in each country (instead of where the company is based), as well as setting a global minimum tax of 15%. In total, a group of 130 countries have agreed to the deal, including India, China, the UK, and the Cayman Islands.
As the campaign to bring back deferred taxes ramps up, the question becomes one of response. Will the ultra-wealthy individuals and corporations start to work in tandem with the new rules, or discover new workarounds and tax havens?
Ranked: America’s Best Universities
Evaluated on 19 different metrics, here’s the list of America’s best universities, led by 14 private schools.
Ranked: America’s Best Universities
The latest ranking of America’s best universities is here, perfectly timed for the approaching admissions season.
“Best” is of course subjective, and U.S. News and World Report has compiled 19 metrics on which they evaluated more than 400 national universities. Some of them include:
- Graduation rates & performance: A four-year rolling average of the proportion of each entering class earning a bachelor’s degree in six years or less. Performance is measured against predictions made by the publishers, and when beaten, the university gains a higher scoring.
- Peer assessment: A two-year weighted average of ratings from top academics—presidents, provosts and deans of admissions—on academic quality of peer institutions with which they are familiar.
- Financial resources: The average per student spend on instruction, research, student services and related educational expenditures in the 2021 fiscal year.
- Debt: A school’s average accumulated federal loan debt among borrowers only.
- Pell graduation rates & performance: the same calculation as stated above, but focused only on Pell Grant students, adjusted to give more credit to schools with larger Pell student proportions.
The website’s methodology section details how they sourced their data, the weights assigned to each metric, and their changes over the years.
From the hundreds assessed come the nearly 50 best universities that offer a variety of undergraduate majors, post-graduate programs, emphasize research, or award professional practice doctorates.
Which are the Best Universities in America?
At the top of the list, Princeton University is the best university in the country, known for its physics, economics, and international relations departments. Notably, it’s a rare Ivy league university that does not have a law, medical, or business school.
Here’s the full ranking of America’s best universities, along with annual tuition requirements.
|1||Princeton University||New Jersey||$59,710|
|7||Duke University||North Carolina||$66,172|
|9||Brown University||Rhode Island||$68,230|
|12||Columbia University||New York||$65,524|
|12||Cornell University||New York||$66,014|
|12||University of Chicago||Illinois||$65,619|
|18||Dartmouth College||New Hampshire||$65,511|
|20||University of Notre Dame||Indiana||$62,693|
Michigan, Ann Arbor
|22||Georgetown University||Washington, DC||$65,082|
|22||University of North|
Carolina at Chapel Hill
|North Carolina||$39,338 (out-state)
|24||Carnegie Mellon University||Pennsylvania||$63,829|
|24||University of Virginia||Virginia||$58,950 (out-state)
University, St. Louis
California, San Diego
|28||University of Florida||Florida||$28,658 (out-state)
|35||New York University||New York||$60,438|
|35||University of Illinois|
|New Jersey||$36,001 (out-state)
|40||University of Washington||Washington||$41,997 (out-state)
|43||The Ohio State University||Ohio||$36,722 (out-state)
|47||Texas A&M University||Texas||$40,607 (out-state)
|47||University of Georgia||Georgia||$30,220 (out-state)
|47||University of Rochester||New York||$64,384|
|47||Virginia Tech||Virginia||$36,090 (out-state)
|47||Wake Forest University||North Carolina||$64,758|
|53||Florida State University||Florida||$21,683 (out-state)
|53||William & Mary||Virginia||$48,841 (out-state)
MIT places second, and Harvard and Stanford tie for third. Yale rounds out the top five.
Private universities, including seven Ivy League colleges, dominate the top of the rankings. Meanwhile, the highest-ranked public schools are tied at 15th, both state schools in California.
For affordability, since the higher ranks are populated by private universities, there tends to be a broad correlation of better universities being more expensive. That said, the most expensive school in the top 50 ranks is actually the University of Southern California, tied at 28th, for $68,237/year.
As it happens, also tied at 28th, the University of Florida is the most affordable public school for in-state students ($6,381/year) and Florida State University tied at 53rd, is the most affordable for out-of-staters at $21,683/year.
However these costs are tuition-only, and don’t account for other necessary expenses: accommodation, food, and textbooks.
Best University versus Best “Fit”
Finding the best university for prospective students is more than just perusing a long ranking list.
Aside from the numerous schools present within each university—which can often be the best for specific majors—factors like location, proximity to family, campus culture, the non-academic pursuits (sports, extracurriculars, internships) are also taken into consideration.
In fact, research has found that just attaining a university degree improves future earnings potential and employability.
Furthermore, individual engagement at college (irrespective of the rank of the school in question) plays a far bigger role in learning and general well-being than simply attending a highly-ranked school.
However, for low income and minority students, attending a top-ranked school does improve future earnings considerably. For women, it also often results in delaying marriage and kids, which results in more work-hours and as a result, more pay.
Misc6 days ago
Ranked: America’s Best Universities
Technology2 weeks ago
Ranked: Largest Semiconductor Foundry Companies by Revenue
Misc1 week ago
Visualized: EV Market Share in the U.S.
Maps1 week ago
Interactive Map: The World as 1,000 People
Retail1 week ago
Ranked: Average Black Friday Discounts for Major Retailers
Brands1 week ago
Ranked: Fast Food Brands with the Most U.S. Locations
Economy1 week ago
Visualizing 30 Years of Imports from U.S. Trading Partners
Markets1 week ago
Ranked: The Biggest Retailers in the U.S. by Revenue