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Why offshore banking is here to stay


What does it mean when the FTSE 100 is down 34% on last year and you have money to invest? Perhaps it’s time you had a Gold Conversation. When you bank offshore with Citi International Personal Bank in Jersey, you will be assigned your own dedicated Relationship Manager. Specialising in international wealth management, your Relationship Manager is a fully qualified investment expert who can help you take advantage of opportunities in the offshore market. Carefully selected to match your requirements, you can rely on advice on a wide range of offshore investment products. Tap into our foreign exchange and brokerage services today, and be prepared for a new world of opportunity that can help you reach your financial goals. Call +44 (0)20 7500 1992 today.

© 2009 Citibank, N.A. Citibank and Arc Design is a service mark of Citibank, N.A. or Citigroup. Citibank, Citibank Online and Citi International Personal Bank (Citi) are registered service marks of Citibank, N.A. or Citigroup. Citi is a business division of Citibank, N.A. Citibank, N.A. Jersey Branch, PO Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB, is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 for the conduct of investment business and under the Banking Business (Jersey) Law 1991 for the conduct of deposit taking business. Citibank, N.A. is incorporated with limited liability in the USA. Head office: 399 Park Avenue, New York, NY 10043, U.S.A. 1104A 0709


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EDITOR’S WORD

GUIDE

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EDITOR Mark Hedley ART EDITOR Matthew Hasteley DIRECTORY EDITOR Jon Hawkins ASSOCIATE EDITOR Eugene Costello CONTRIBUTORS Jamel Akib, Tom Burroughes, Bernadette Costello, Scott Fleming, Peter Lane, Nicola Roberts INTERNS Kamalpreet Badasha, Matt Gregory PRINTING Colourfast Europe

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SO, BARACK WANTS to swat offshore banking centres like a fly in a CNBC interview. Fortunately, most of Congress and the US Chamber of Commerce don’t share his opinion. And until he becomes President of the World (don’t even joke), there’s only so much he can do. Sarkozy, too, hopes to bid them au revoir: “We want to put a stop to tax havens – we want results on this.” But then, this is the same man who once said, “I am showing solidarity while being different. Or if you prefer, I am being different while being in solidarity” – so he makes about as much sense as garlic-flavoured breath mints. But are these offshore centres as bad as our neighbours make them out to be? Tom Burroughes, editor of wealthbriefing.com, certainly doesn’t seem to think so, pointing out that some of the worst examples of bank secrecy, money laundering and fraud happened not in Caribbean islands or Alpine principalities, but in the world’s largest economies (see p8). In fact, the award for best financial goody-twoshoesary must go to Jersey: the golden boy of offshore banking and investment. It’s a jurisdiction that prides itself on cooperation and shuns the stigma of secrecy. I decided to fly over there to see if the island is as attractive as its financial benefits (see p10). If – like me – you need some help digesting said benefits, we also speak to experts from Citi International Personal Bank (p5), Deloitte (p6) and PwC (p12) to get their inside track. As for Barack? Roundtable president John Castellani said it best: Obama is pushing “the wrong idea at the wrong time for the wrong reasons”.

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Scott Fleming from Citi International Personal Bank on the merits of banking and investing offshore

6 CLIMATE CHANGE The experts from Deloitte deliver an incisive guide to international tax in 2009-2010

8 CRYSTAL CLEAR Tom Burroughes polishes his crystal ball, and predicts increased transparency will pave the way for international tax regimes

10 CHANNELLING LUXURY The not-so-rough guide to Jersey

16 THE SWISS BARD Jon Hawkins waxes lyrical about Switzerland’s finest five-star hideaway

20 PROPERTY Bernadette Costello has picked pads for you in Monaco, Switzerland and the Bahamas

Our extensive listings of the top international banking centres

32 BACK CHAT

Mark Hedley, Editor mark@squareupmedia.com

Grant Carson – business manager for Citi International Personal Bank – on the rise of the globally-mobilised wealthy individual

FRONT COVER

Illustration by Jamel Akib To see more of Jamel’s work, visit his website: jamelakib.com

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5 OFFSHORE BUT ON MESSAGE

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© Square Up Media Limited 2009. All rights reserved. No part of this magazine may be reproduced without the written permission of the publisher. All information contained in this magazine is, as far as we are aware, correct at the time of going to press. Square Up Media cannot accept responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant Square Up Media a licence to publish your submission in whole or in part in all editions of the magazine. All material is sent at your own risk and although every care is taken, neither Square Up Media nor its employees, agents or subcontractors shall be held liable resulting for loss or damage. Square Up Media endeavours to respect the intellectual property of the owners of copyrighted material reproduced herein. If you identify yourself as the copyright holder of material we have wrongly attributed, please contact the office.

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OFFSHORE BANKING

GUIDE

IN THE PRESENT economic climate, it’s more important than ever to make sure you are maximising your opportunities when it comes to making your money go further, and choosing how to arrange your finances is an important element to consider. Having made sure that your domestic banking arrangements are working as efficiently as possible – shopping around for deals, paying by direct debit, etc – you should also make sure your protection cover matches your needs and that you have taken advantage of any tax-efficient opportunities to help your money grow efficiently. Particularly for expatriates living and working in the UK, there can also be potential advantages to holding or keeping money outside of the UK. As with any choices that you make about your finances, solutions have to match your needs and aspirations, so opting for the right products and services is only the start. Where you choose to hold your money and with whom are equally important. So, is offshore banking the answer for you? As an expatriate living in the UK, there may be considerable tax advantages to be gained by placing your finances offshore. Tax – and the rules and regulations surrounding taxation on income and savings – is a complex field, yet effective tax planning can be an important way to make the most of your money while working in the UK. The complexities expand further if you are someone who moves countries regularly on secondments or projects, but then so do the opportunities to maximise the earnings you make as you go. It’s worth remembering that banks do not provide tax advice so you should obtain more detailed information about your status and implications for taxation by talking to a tax advisor. When it comes to depositing your money, the most important considerations should be safety and security. Locations that have a heritage of providing offshore financial services are

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A SHORE THING from Citi gives us the inside track on offshore banking

SCOTT FLEMING

a good start and it is important to ensure there are strict regulations governing the financial services industry that give protection to the consumer. Of equal importance is choosing a location that not only meets these requirements but provides you with access to the broadest range of financial products to make the most of diversifying your portfolio. The most popular offshore banking centres to the UK meet all of these needs, and are in the Channel Islands (Jersey and Guernsey) and the Isle of Man. There are certain facilities you should look for in an offshore bank. First, the bank should offer a broad range of multi-currency cash accounts that include bill payment and standing order functionality. This provides an easy way

to manage your finances between the UK and your home country. You’ll also want to make sure the bank offers fee-free transfers between your accounts in different countries to keep down the costs on transferring money. And also ensure that there’s easy access to (and management of) your money via ATMs, online banking facilities and, of course, the telephone. You’ll also want a dedicated relationship manager, who can offer a single point of contact for all your banking and investment requirements. Offshore banking is usually more accessible to those on higher incomes because of the costs of establishing and maintaining offshore accounts. But to ensure your money is working to its full potential, it’s worth considering global investment opportunities as the way to grow your portfolio in the longer term. Ensure the bank has a wide range of multi-currency investment products, so you can choose what is most suitable for you and your circumstances. This also helps to minimise exchange-rate costs when moving your money from deposit to investment products. In-depth market and investment expertise is essential. Investment qualified relationship managers can provide unbiased advice and help in developing a tailored investment strategy balanced against your attitude to risk. Also, being able to leverage a broad collective expertise of international investment and market experts is of paramount importance when helping you decide where to place your money. Finally, it is important to choose a financial provider that you trust and feel comfortable with. Look for one that can provide you with all the tools and resources to help you meet your financial goals, but also with the experience, attitude and desire to serve – and match – your expectations. ■ For more on offshore banking and investments, contact Citi International Personal Bank; 020 7500 1992; www.ipb.citi.com

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OFFSHORE TAXATION

GUIDE

UK TAXATION OF OFFSHORE BANK ACCOUNTS For most UK residents, offshore interest is taxed in the same way as UK bank interest at the individual’s marginal rate. However, there is usually no tax withheld at source (unlike the 20 per cent withheld from UK accounts) so there is a cash flow advantage to be gained. The income tax due on the interest is instead payable in two instalments via the self-assessment tax return rather than when interest is received. In addition, the funds held on the account will continue to be included in the individual’s estate for the purposes of inheritance tax (“IHT”). However, for a non-UK domiciliary (‘non-dom’: broadly speaking a person who is not of British origin and intends to return to their country of origin) the position is different. A UK resident non-dom can choose to be assessed on their non-UK income and capital gains on the remittance basis, ie taxed when they bring the funds to, or enjoy them in, the UK. To be on the remittance basis eligible individuals must opt for it and, for those resident in the UK for seven out of the last nine tax years, pay a £30,000 charge. Therefore, UK tax can be avoided on such income until (if at all) the interest is remitted to the UK. If a non-dom has been UK resident for less than 17 years, funds in offshore accounts are excluded from their estate for inheritance tax purposes.

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NICOLA ROBERTS and PETER LANE

of the Private Client Services team at Deloitte on offshore banking shifts the Channel Islands and Isle of Man should be proficient in operating structured bank accounts for non-dom clients. Many also have operations in the UK, which means a UK relationship manager can be available, even though accounts are held outside the UK.

TRANSPARENCY AND THE EU SAVINGS DIRECTIVE The EU Savings Directive (EUSD) was introduced on 1 July 2005. The aim of the Directive is to ensure individuals resident in the EU are taxed on their savings income in the form of interest

●● A lot of the bad publicity around offshore is owing to tax evasion

Nicola Roberts, 020 7007 3763, nicolaroberts@ deloitte.co.uk; Peter Lane, 01534 824 389, pelane@deloitte.co.uk

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ILLUSTRATION by Jamel Akib

OTHER OPPORTUNITIES FOR NONDOMS ARISING FROM THE USE OF OFFSHORE BANK ACCOUNTS The new remittance rules introduced in April 2008 have placed a greater focus on non-doms segregating various types of income and capital in order to maximise the opportunities of the remittance basis. For example, ensuring that bank interest (taxable at income tax rates) is credited to a separate account to capital gains (taxable at 18 per cent). Established banks with operations in

CLIMATE CHANGE

payments in accordance with domestic law. Member States must take necessary measures to implement the Directive. The EUSD means that entities within the EU, (and the Crown Dependencies and Switzerland who have voluntarily adopted the Directive), either withhold tax at source on the interest – now at 20 per cent, rising to 35 per cent in 2011 – or provide details of the EU resident individuals which they pay interest to, to their country of residence. Certain EU jurisdictions – Luxembourg, Belgium and Austria – together with the Crown Dependencies and Switzerland preferred to withhold tax on the interest as the default option with the account holder able to elect to go down the information exchange route instead. A lot of the bad publicity that has surrounded offshore banking has centred on inferences that individuals using them are evading tax. The EUSD has sought to mitigate this possibility and encourage the exchange of information between tax authorities. HM Revenue & Customs (HMRC) is issuing notices to hundreds of financial institutions giving instructions requiring them to disclose all UK residents with bank accounts or assets held offshore. The Government has announced that there will also be another offshore disclosure initiative later this year for individuals who have undisclosed non-UK income to disclose it voluntarily by March 2010 and benefit from a reduced penalty regime. Many jurisdictions are under international pressure to avoid being seen as havens for tax evaders. Belgium, the Isle of Man and Jersey have recently agreed to exchange information as their default EUSD approach in July 2011. This is a move away from withholding tax on the interest at source, which avoided the need to disclose the names of the individual account holders. ■


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GUIDE

ANYONE WHO IMAGINES that

on why rumours of the death of offshore centres are greatly exaggerated

TOM BURROUGHES

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ILLUSTRATIONS by Jamel Akib

THE SHOW WILL GO ON

offshore centres, one of the whipping boys of the financial world, are about to fade into obscurity is sorely mistaken. Figures in wealth management say that while some of the traditional secrecy in places such as Switzerland is eroding, these jurisdictions still have plenty of financial attractions. There is more to tax havens than tax. Recent headlines must certainly give cause for concern, of course. In April, the OECD vowed to crack down on so-called tax havens, drawing up a ‘blacklist’ of nations it says do not co-operate in exposing tax cheats and saying that sanctions – as yet undefined – may be used against transgressors, namely Costa Rica, Malaysia, the Philippines and Uruguay. The OECD has also compiled a larger list of states that have, or are just starting to, co-operate with countries battling tax evasion, such as Switzerland, the Cayman Islands and Monaco. But whatever happens, it is premature to pronounce the end of offshore financial centres. There are strong reasons why they will thrive even if some of the shadier practices once tolerated in these places are erased. Offshore locations are increasingly transparent and professional in how they handle financial affairs; they are also highly convenient for a more mobile global workforce to use as their single point of banking rather than constantly changing their banks as they move about the world, points out John Whiting, tax partner at PricewaterhouseCoopers. He says tax havens will also thrive because unless there is eventually a world government with a single tax code – arguably a nightmare scenario – countries will set their own tax rates and seek to attract inward investment and inflows of wealthy people by lowering their tax rates. It has certainly worked for the Irish. The Cato Institute, a US think tank, predicts these locations will continue


OFFSHORE FUTURE

to thrive because people will want to escape what it calls ‘bad tax policy’ – in other words, flee from high-tax regimes. Daniel Mitchell, senior fellow at the Washington-based organisation, says tax havens create beneficial, not harmful, competition by putting governments under pressure to cut taxes, thereby boosting economic growth. For example, low corporate taxes in countries such as Ireland – ironically, not classed a tax haven by the OECD – have encouraged other European nations to cut taxes to stem an exodus of business, he argues. “The offshore world will continue, largely because high-tax nations will continue with bad tax policy. But the politicians from those nations will make it more difficult and risky for taxpayers to benefit from low-tax jurisdictions. In effect, the OECD and politicians from high-tax nations are trying to impose fiscal protectionism,” says Mitchell. Asked how tax havens might reinvent themselves, Mitchell continued: “This is a fight-or-die situation. In the long run, the politicians from high-tax nations will never be satisfied. Demands today for information in specific cases will be replaced by demands for automatic information tomorrow. Then the campaign will shift to more explicit forms of tax harmonisation.” Mitchell reckons the tax havens most likely to prevail are “big and powerful nations” with independent sources of wealth, such as oil, giving them the ability to ignore OECD pressure. One driver of offshore centres’ success, which has nothing to do with tax, is how they provide a convenient hub in which expatriate workers and businesspeople can base their financial affairs as they move around the world, said PwC’s Whiting. Although exact figures are hard to pin down, there are millions of such expatriates. In the UK alone, it estimated that there are hundreds of thousands of expatriate US citizens.

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●● Some of the worst abuses happened in G20 economies A report by Mercer, the consultants, said many firms are increasing expat recruitment, often working on relatively short-term contracts. It is therefore highly convenient for such workers to bank offshore than have to constantly change their banking arrangements with each move, said PwC’s Mr Whiting. “This is a trend I have noted over the last ten years in terms of international employees and entrepreneurs. They need their business somewhere, and somewhere like, say, Jersey is sensible because it is neutral,” he said. Even so, that offshore centres might have cause to be worried is not surprising. Even before the G20 summit, jurisdictions such as Switzerland, Liechtenstein and the Cayman Islands had been under relentless rhetorical and legal assault. The centuries-old tradition of bank secrecy in Switzerland – a key driver of that country’s banking industry prowess – is under particularly fierce attack. UBS, the world’s largest wealth manager, recently paid a $780m fine to settle criminal charges of helping US citizens evade tax; UBS no longer provides offshore banking in the US. The stakes for Switzerland in defending its bank secrecy traditions are high: Swiss banks account for about 12 to 13 per cent of that nation’s gross domestic product. Switzerland accounts for about a third of the total of all offshore assets, according to various estimates. If existing centres feel the pinch from any OECD pressure, then there are countries in Asia and the former Soviet

Union, for example, that might pick up the slack, Whiting says. “It is getting more difficult [to be an offshore centre] but there will be territories springing up and deciding that they want to have a go,” he said. Commentators such as Whiting argue that such locations have mostly worked hard to raise their reputations for openness in recent years, which will help protect them against hostile pressure from other nations. Some of the worst examples of bank secrecy, money laundering and fraud happened not in Caribbean Islands or Alpine principalities, but in the world’s largest economies. Although G20 leaders may find it awkward to say so, the current financial crisis did not originate in tax havens but on their home turf. When Bernard Madoff, for example, ripped off investors in the biggest fraud of its kind in history, it all originated right under the nose of the US’s Securities and Exchange Commission and not in some obscure, James Bond-villain island in the Pacific. The credit crunch started in the subprime mortgage market of the Good old US of A. Offshore centres will not be shy of pointing that out. ■ Tom Burroughes is the editor of WealthBriefing.com, an online news and information publication for the wealth management industry, and is based in London. He was previously wealth management editor of The Business and was also a correspondent for Reuters.

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FANTAsy IsLAND FANTAsy grits his teeth and heads off to Jersey in the name of selfless journalistic research MaRK HedleY

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jErsEy

stay A multi-million pound refurb; central destination and world-class cuisine: it’s not difficult to see why the Grand Jersey is the island’s top hotel. If you’re lucky enough to have sunshine, then the beachside bar (overlooking St Aubins Bay) hosts a BBQ with a thumping DJ bringing a Balearic beat to the relatively sleepy coastline. Neat touches in the bedrooms include music and TV on-demand services; flatscreens in the bedroom and living room; and stylish art deco touches throughout. If you have to work, the conferencing area includes a separate entrance, full concierge service and its own reception area. But for real entertainment, the hotel’s 36-seat private cinema takes the proverbial biscuit (or should that be popcorn?). Grand Jersey, Esplanade, St Helier, JE2, 01534 722 301; grandjersey.com

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rElax Back to the Grand Jersey, for a spectacular spa experience. Voted Best UK Residential Spa of the Year in the Professional Beauty Awards, the two-floor, 8,000 sq ft Elemis spa includes six state-of-the-art treatment rooms, high-tech gym, Jacuzzi, steam room, sauna and indoor pool. Having frequented a few spas in my time, it can be difficult to tell them apart. But The Grand’s elevates itself not just through quality and size, but through its showers. The heavenly ‘experience’ showers – created in partnership with Elemis – offer a surreal but refreshing experience: settings such as ‘Caribbean storm’ and ‘Brazilian rainforest’ make sure you get sprayed in a away you’ve never been sprayed before (unless you’ve been to the Caribbean or Brazil, presumably). grandjersey.com

DriVE Jersey’s Hertz outpost has a selection of sportscars to ensure that you turn up to your hotel in style. Ahead of its Mercedes SLK and Mazda MX-5, it’s the Porsche Boxster that sits in pole position. Given that a ‘bad’ traffic jam in Jersey consists of two tractors and a cow, the island is a petrolhead’s heaven. The island is so small that you can do a circuit in two hours, but if you really put the Porsche through its paces, you can easily beat that time (or so I hear, guv’nor). While we were there, the Credit Suisse Festival of Motoring was in full swing, where the island’s wealthy bring their prize drives to the main drag for a concours that Pebble Beach would be proud of. 01534 636 666; hertz-jersey.co.uk

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Eat Jersey’s standards of cuisine are exceptionally high, benefiting from its proximity to France and the sea. For lunch, The Oyster Box has fantastic views of St Brelade’s Bay, and crabs so fresh that they could have walked onto your plate from the neighbouring beach. And strangely enough, the oysters aren’t bad, either. For afternoon tea, the Hungry Man kiosk on Rozel harbour produces the best homemade scones in the British Isles (although most of Devon might disagree with me). For the only Michelin star on the island, head to Bohemia, where cocktails are stunning, food is stylish and service is, well, sleepy, but so are most things on the island. The best meal, though, is at the new fine dining restaurant, Tassili. It produces world-class fare to standards of which a top London restaurant would be envious. With Albert Roux at the executive helm, that’s hardly surprising. The Michelin men must surely be donning their napkins, and polishing up their 2010 stars. 01534 722 301; grandjersey.com/dining

Flights It took us three hours door to door from the City – so about half the time it takes to get to Cornwall in a car. As Jersey’s airport is so small, and the plane pulls up just outside the entrance, the wait for bags is negligible. You’re so close to the baggage handlers that you can actually shout encouragement if they look like they’re dawdling. Of course, if you have a private jet, you won’t need to bother with that. Flybe flies to Jersey from Birmingham, Bristol, Edinburgh, Exeter, London Gatwick, Manchester, Norwich and Southampton. Fares start at £30.99 one-way including taxes and charges. For information and bookings, visit flybe.com.

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jErsEy

FINANCE

By garry BEll, tax DirEctor, Pwc, channEl islanDs

Being placed on the ‘white list’ following the G20 summit was very significant for Jersey. The OECD has clearly recognised and endorsed the efforts the island has gone to in terms of cooperation, transparency and complying with the highest international regulatory standards. The island has deliberately positioned itself in the top tier of international offshore financial centres. This approach gives confidence to institutions and individuals considering Jersey for their investment, banking, wealth management and financial planning needs. Work continues to be done in this area, with Jersey’s government and the industry working together to continue to drive for greater global transparency. At the same time, while Jersey does not have banking secrecy, it does respect the rights of legitimate privacy. The safeguards built into the tax information exchange agreements that have been entered into reflect this. The stability of Jersey’s finance industry is founded on its diversity and tax neutrality with regulation that promotes conservative and prudent business. Supported by a pro-business government and a respected regulator, Jersey continues to innovate in terms of products and regulation. It has recently become the first British Crown

●● The stability of Jersey’s finance industry is founded on its diversity squaremileclub.com

Dependency to approve a foundations law. Further enhancements to trust regulation are also planned. With a value of more than £200bn, the funds sector is also showing resilience and further legislative enhancements are expected later this year that will create new limited partnership structures. These reforms will build on existing limited partnership structures and provide further choice for investors. Jersey’s relationships with key international markets remain very strong. As well as acting as a conduit for the substantial flow of global capital to London, Jersey continues to strengthen relationships with other key markets such as China, India, the Middle East and Eastern Europe. Considerable progress has also been made in obtaining approval from the Hong Kong Stock Exchange for Jersey companies to be admitted on to the Exchange, a significant development that adds to the appeal of the island to international investors. Jersey is host to a mature and welldeveloped financial infrastructure of over 400 finance-related businesses, including almost 50 of the world’s top banking brands. The leading accountancy firms all have a significant presence on the island and there are some 200 trust companies and more than 100 investment managers, custodians and fund administrators. In addition, there are a number of firms working across insurance, law, company administration and other specialist areas. For High Net Worth individuals considering relocating to Jersey, the island also offers an attractive proposition. There are no capital taxes and income tax can effectively be capped at £100k. Applying for residency is not onerous. In addition, the Island offers a superb lifestyle with excellent transport links to both the UK and Europe, a first-rate education system and low levels of crime. ■

WilDliFE London Zoo might be larger than some towns and cram in more animals than the Masai Mara, but frankly – like most things in central London – it’s over-crowded and over-priced. The Gerald Durrell Wildlife Park, on the other hand, is a far more sophisticated affair. Here, you’ll find 1,400 endangered species in 32 acres of glorious parkland. It’s immaculately kept and so quiet, that you’ll feel like Hugh Hefner – in the sense that you own a private zoo (not that you walk around in a dressing gown and sleep with pneumatic women a third of your age. Sadly). Plus, there are more rare animals here than in any other zoo the world over. The Durrell Wildlife Conservation Trust is dedicated to saving species from extinction. It has single-handedly saved 15 species of bird from extinction, and helped hundreds more avoid a premature demise. 01534 860 000; durrell.org

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View from the top

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perspectiVe

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PHotoGraPH by swiss-image.ch/Christof Sonderegger

Cool water: a stunning aspect of lake Palpuogna at the albula pass in Graubuenden. Non-Swiss make up 21% of Switzerland’s population, and this includes high-profile residents such as Formula 1 world champ lewis Hamilton and pop star David Bowie. tina turner lives there too... well, we never said it was perfect.


guide

Scouting for a taxefficient Swiss hideaway? Treat yourself to a spa visit to die for, says JON HAWKINS

SWITZERLAND HAS LONG been a mecca for British expats, for reasons that it’s safe to assume have absolutely nothing to do with the country’s luxury spa facilities. Think Switzerland, and words like ‘tax avoidance’, ‘gold’ and ‘skiing’ are far more likely to pop into your head than ‘facial’ or ‘full-body aromatherapy massage’. Bad Ragaz, however – located a convenient hour’s drive from Zurich in a region of Switzerland amusingly

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called Heidiland (no, really, I saw the sign) – is a town whose past, present and future is inextricably bound to its spa facilities. All stressed-up and ready to go, I’ve booked in for a weekend of being pampered to within an inch of my life at the recently refreshed Grand Resort, the town’s biggest and swankiest hotel and spa. The origins of Bad Ragaz go right back to the 11th century, when a pair of monks from the small town of Pfäfers accidentally discovered hot

springs emanating from a narrow gorge. After initial concerns that they’d stumbled upon a gateway to hell, the monks were soon excavating bathtubs into the walls of the gorge and marketing the water’s healing properties to the elderly and ailing. I tried to spare a thought for those poor bastards being perilously lowered 40ft into the rocky gorge by small bald men, high on faith, as I was mid-massage in the resort’s starkly modern treatment rooms.

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SWITZERLAND

Today Bad Ragaz is small, fastidiously clean and dominated by the surrounding mountains, but the focal point of the town is undeniably the Grand Resort. Expansive grounds house three hotel complexes, the Swiss Olympic medical centre, an 18-hole PGA golf course, two spas, a casino and – when I visited, at least – the largest outdoor art exhibition in Europe. If the town itself is low key, the Grand Resort certainly isn’t. The entrance to the complex is also

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that of the Grand Hotel Quellenhof and it’s certainly impressive, albeit in a slightly chintzy way that betrays its status as a magnet for wealthy European pensioners. Take a few turns through the maze of corridors, however, and you soon arrive at the lobby of the newly built Spa Tower; sparsely decorated, with high ceilings and tall windows, it’s a world away from the Quellenhof. Located on the eighth floor of the tower – the ninth is the penthouse

(see box, overleaf) – my suite is light, airy, palatial and, crucially, has no angle from which I can’t see one of the three huge Bang & Olufsen flatscreens. I jest, of course, because the real star of the suite is the view; from my ample terrace (and the bedroom and the bathroom) I have a mountain vista so perfect it may as well have been painted on. But I’ve come here for the serious business of being fluffed-up in the resort’s facilities, which include ▶

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SWITZERLAND

guide

Penthouse suite

▶ two spas and the Swiss Olympic medical centre. The latter caters mostly for those with less serious professions than you or me (like downhill skiers or the Liverpool football team, who are occasional visitors), though it does offer a ‘Businessman Checkup’, in which someone infinitely more qualified than your wife will reveal the extent of the damage visited upon your body by a decadent City lifestyle (and deeply uncomfortable office chair). Presumably as some form of punishment for past sins, I’m placed in a machine designed to replicate the sensation of downhill skiing, which feels something like using a cross trainer on top of a moving train. So it’s fortunate that I’m scheduled in for the spa’s flagship Sequoia massage later that day. Using a herbal compress dipped in hot oil rather than bare hands, the massage is refreshingly

●● The steak was so tender you could cut it with a stare 18 Squaremile

THe HIlls ARe AlIVe: (top) the penthouse terrace; (above) our man’s ‘modest’ suite

different to any I’ve had before, leaving my muscles unknotted and my body relaxed and ready to take on the resort’s restaurants. There are seven in total, from Asian fusion to contemporary Swiss, and the best of them is the gourmet eatery Äbtestube. A fillet steak so tender you could cut it with a menacing stare and sea bass seared with aplomb were the pick of a varied and expertly executed menu. Returning to the important matter of restoring me to as-new condition, next up is the ‘Niance Man Facial’, which uses products designed purely for men in a purpose-built and suitably masculine treatment room. My skin is scrubbed, steamed, massaged and generally tinkered with until it is virtually levitating off my face, and I leave feeling disconcertingly euphoric,

The lavishly appointed penthouse has absolutely everything you would want, and quite a few things you wouldn’t even have thought of, like a self-playing grand piano and a kitchen for your personal chef. The décor is Roberto Cavalli throughout; mercifully sober, and used sparingly enough to avoid turning the suite into a palace of kitsch. Bang & Olufsen TVs are in just about every room, including one that revolves out of the wood panelling above the bed, and there’s a gym, sauna, whirlpool bath and steam room too. A breathtaking view is afforded from the terrace, with its own seating area and a cavernous hot tub open to the sky, from which you can quaff champagne while looking out across lush green mountains. If Heidi got all grown up and sophisticated – and married a hedgie rather than a goatherd – this is where she’d put up (and put out).

with the sort of grin etched across my face that is usually the preserve of evangelical Christians. It is, I ponder, something the monks who founded Bad Ragaz would have identified with, even if their techniques were somewhat different. Three cheers for progress. ■ +41(0)81 303 30 30; resortragaz.ch SWISS operates daily flights from London City to Zürich. Fares start from £69 return, including all airport taxes. For reservations call 0845 601 0956 or visit swiss.com/uk

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Stable outlook despite turbulent times!

SWI TZERLAND

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Stable outlook despite turbulent times!

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SWI TZERLAND Stable outlook despite turbulent times! SWI TZERLAND Stable outlook despite turbulent times!

Exclusive residential and commercial property for the smart investor throughout Switzerland including Verbier, Geneva, Crans Montana, Wengen, Muerren, Grindelwald, Zermatt, Saas Fee, Villars, Chateau d’Oex, Montreux and around Lake Geneva Exclusive residential and commercial property for the smart investor throughout Switzerland including Verbier, Geneva, Crans Montana, Wengen, Muerren, Grindelwald, Zermatt, Saas Fee, Villars, Chateau d’Oex, For more information call +44 (0) 597 795Geneva and ask for Beat Hartmann Montreux and1845 around Lake Exclusive residential and commercial property for the smart investor throughout Switzerland including Verbier, Geneva, Crans Montana, Wengen, Muerren, Exclusive residential and commercial property Grindelwald, Zermatt, Saas Fee, Villars, Chateau d’Oex, for the smart investor throughout Switzerland including Montreux and around Lake Geneva For more information call +44 (0) 597 795 and ask for Beat Hartmann Verbier, Geneva, Crans1845 Montana, Wengen, Muerren, Grindelwald, Zermatt, Saas Fee, Villars, Chateau d’Oex, www.hartmannsingleton.com Montreux and around Lake Geneva


guide

With the UK’s 50 per cent income tax rate looming, a quarter of high net worths are looking to relocate. Will you stay or will you go? By BERNADETTE COSTELLO

tHe GreAt eSC

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SINCE THE GOVERNMENT told high earners they will have to pay 50 per cent income tax next year, up to 1,000 luxury houses have been sold in London and a quarter of high net worths are now looking for better tax treatment offshore. New research by London top-end

agents Knight Frank also found that seven per cent of non-domicile residents and two per cent of high net worths have already relocated to low-tax jurisdictions. Switzerland and Monaco top the list, followed by the Channel Islands, the Caribbean and the US. â–ś

CApe

THE LIVING’S EASY EASY: Minthis Hills in Pafos, Cyprus, is the last word in luxury

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property

guide

▲ Minthis hills tsada village, Pafos, cyPrus (Image also on PrevIous Page)

▶ Global law firm Hogan and Hartson says the UK’s non-dom rule changes and the forthcoming 50 per cent tax rate may well have “undermined the UK’s reputation as where the world’s wealthy would want to live and work”. Cindy Griffith, managing director of City-based search agents Cavendish Brooke International [cavendishbrookeinternational.com], also confirms that the trend is to relocate. “We were inundated with property enquiries for Switzerland and Monaco after the Budget because our clients said they’d had enough.” However, she says, for some clients it amounts to nothing more than a “kneejerk” reaction. “When they find out what’s involved – restructuring their taxes, setting up an official residence and finding new schools for their kids – sometimes the novelty wears off,” she says. “That’s why we give clients quite a grilling about their motivations for relocating. The reality is that many high net worths also lose money after ▶

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▲ Monaco Monaco charges neither income tax nor capital gains tax to non-French residents. It is also in discussion with the EU to incorporate full OECD tax standards in future. Jonathan Gray from Cannesbased Beauchamp Estates says prices haven’t decreased but price negotiations are on the rise, adding: “Monaco remains a special place in the property world. The crisis certainly won’t break this market.” Monaco’s iconic views are seen from every room in this luxury apartment in Fontvieille, west Monaco [pictured], and from its 72 sq m terrace. On the market through Cannes-based John Taylor, it also comes with 139 sq m of living space, including a large living room, master bedroom (en suite) plus second bedroom, cellar and parking. ContaCt: John Taylor w: john-taylor.com t: +37 793 503 070 e: monaco@john-taylor.com

Some 60,000 Brits have bought homes in Cyprus where the cost of living is around two-thirds of the average in the EU. Over 30 airlines fly here from the UK and Europe, and an upgraded terminal at Pafos airport is supported by a new fourlane road for quicker access. Less than half an hour away is Minthis Hills in Tsada village – a five million sq m private retreat that will be developed into 650 luxury villas designed by Woods Bagot architects. Tipped to be Cyprus’ most luxurious place to live, developer Pafilia has kept its properties away from the hilltops to preserve the beauty of the views. Materials used will be traditional stone and wood, with open fires and natural terraces. Pafilia has joined the UN’s ‘Billion Tree Campaign’ and will plant 30,000 trees and 100,000 plants in total. An existing championship golf course will be supplemented by a five-star concierge service. Pafilia, the largest private developer in Cyprus, will have the first phase built by the end of 2010 but can assist clients with temporary rentals if you want to relocate before. PriCes: 1,867 sq m plot with threebed villa and pool €1.035m; 2,140 sq m plot with ‘super villa” [four-bed and guest-house] €2.18m ContaCt: Pafilia Property t: +357 99 381 684 w: pafilia.com

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property

guide

▶ switzerland hartMann singleton

Currency specialist Caxton FX saw a 30 per cent increase in clients repatriating funds offshore when they heard about the 50 per cent income tax rate looming in the UK. The most popular destination is Switzerland – indeed, non-Swiss make up 21 per cent of Switzerland’s population. The Swiss real estate market is not totally immune to the current financial turmoil, but the effects so far have not caused any price slumps such as those that have occurred in neighbouring countries. Properties situated where the economy is strong, taxes are low and the countryside is stunning will always attract investors. Investors outside Switzerland might have paid too much for taking on too much risk without looking at the real economy and fundamentals. If it is quality of life you’re looking for, the Swiss certainly enjoy the best of both worlds: skiing in the winter; golf and water sports on the many lakes in the summer. Hartmann Singleton offers an individually, tailor-made and specialist service for the purchase of land and property in Switzerland. Hartmann Singleton prides itself on finding the property that meets all your requirements. ContaCt: Hartmann Singleton t: 01845 597 795 w: hartmannsingleton.com

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▼ thalassa beach bafra, north cyPrus

The Thalassa Beach Resort, in North Cyprus’s investor hotspot of Bafra, is a five-star beachfront hideaway situated just metres from the clear blue waters of the Mediterranean Sea. The luxurious facilities include a spa, gym, restaurant, private swimming pools, Turkish baths, and a beach bar, with construction already in the final stages and due for completion in mid-2010. Property in the resort is also guaranteed by its developers to be free of the disputed ownership issues that have historically blighted property purchases in North Cyrpus. The old-fashioned north of the island has been the beneficiary of $200m of government investment designed to improve its infrastructure, and is now considered by many investors to possess more potential for growth than anywhere else in the Mediterranean. PriCe: From £39,950 ContaCt: Sam Perry at Kensington Development Group t: 0800 088 79 66 e: sperry@thalassabeach.com

▶ being forced back to the UK from abroad when a family member falls ill, or if they miss their regular lifestyle – a pint with friends in the village pub or social trips to Ascot or Wimbledon.” As global trends move rapidly towards financial transparency, fed-up Brits are acting fast to escape higher tax bills next year. Some high net worths, such as billionaire retail tycoon Sir Philip Green, have benefited from Monaco’s zero income tax for several years – reports suggest he also keeps most of his assets in his wife’s name. Without doubt you will need professional advice if your tax bills will be escalating in 2010. And if you’re told to move offshore, then there are some great hideaways that could make the stress of relocating worth the hassle. ■

●● Brits are acting fast to escape higher tax bills next year squaremileclub.com


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guide

Directory

It has been suggested that the 50 per cent tax on high earners, along with stifling EU legislation on hedge funds, will force some of our finest individuals and institutions out of the Square Mile. As the City’s magazine de choix, we’d rather you didn’t take your custom elsewhere, but that’s not to say we won’t present you with an enticing selection of alternatives. The square mile Offshore Directory is an extensive guide to the world’s offshore financial destinations, with an overview of the policies that define each country’s status as a low-tax jurisdiction. And, since the Organisation for Economic Cooperation and Development (OECD) has done such a good job of ensuring that each jurisdiction is adhering to the internationally agreed standard for tax transparency, we felt it apt to mention their progress. Those appearing on the OECD white list (at the time of writing, using the best available information) have substantially implemented the tax standard, while those on the grey list have committed to the standard without substantially implementing it. The blacklist, you’ll be happy to hear, is empty. We’ve left no corner of the globe untouched: from our own City of London, frequently described as the world’s biggest tax haven (See United Kingdom box-out on p27); via a single building, home to two thirds of the companies in the Fortune 500 (Delaware, USA, p28); to the endlessly appealing – providing that you can stomach the world’s highest cost of living – white sandy beaches of Bermuda (p27). A word of warning, though: you won’t be able to keep receiving your subscription to square mile in the Caribbean... – Jon Hawkins

Details • OECD List (White, Grey or Black) $

26 Squaremile

Population GDP Per Capita (USD)

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Directory

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PHOTOGRAPHS: Discover Dominica Authority; Bahamas Tourist Office; Anguilla Tourist Board; CTO – The British Virgin Islands Tourist Board; The Bermuda Department of Tourism ILLUSTRATION: Jamel Akib

CRYSTAL CLEAR: (Clockwise from top left) A local fisherman in Dominica; scuba diving in the Cayman islands; tropical paradise of Bermuda; hanging low in the BVIs; cool pools of Anguilla; historical architecture of Cyprus; fishing in the azure waters of the Bahamas

andorra • Grey 83,888 $ 42,500 No personal income tax, inheritance tax or capital transfer tax. Capital gains tax was introduced in 2007.

anGuilla • Grey 14,436 $ 8,800 A British Overseas Territory and offshore banking hub. No income, capital gains, estate, profit or other form of direct taxation applies to either individuals or corporations, whether resident in Anguilla or not.

baHaMas, tHe • Grey 309,156 $ 28,600 In the Bahamas there is no income tax, capital gains tax, purchase or sales tax, VAT or capital transfer tax. Employees pay national insurance contributions; there is stamp duty on property and mortgage transactions, and a tax on real property; customs duties are high on most imported goods.

baHrain • Grey 727,785 $ 37,200 Bahrain has the lowest cost of living and tax rates in the Gulf, and is a wellestablished business hub. No capital gains, personal income or corporate tax.

berMuda • White 67,837 $ 69,900 Bermuda has the highest cost of living in the world:

united KinGdoM • White 61,113,205 $ 36,600 Some consider the City of London to be the biggest tax haven in the world, in part because it is so well serviced by an array of offshore centres around the globe, but also for the tax concessions offered to high-earning foreign workers not domiciled in the UK. While not traditionally thought of as a tax haven (and, equally, not traditionally thought of as being ‘offshore’), in 2007 the IMF branded the UK an offshore financial centre. Foreign non-doms who have lived in the UK for more than seven years but do not pay UK tax on income and gains are levied a £30,000 charge on their non-UK income.

around 200 per cent higher than that in the UK. There is, however, no tax on profits, dividends or income, and there is no capital gains, withholding or sales tax. Payroll tax is paid by both Bermudan and foreignowned companies.

britisH VirGin islands • Grey 24,491 $ 38,500 No capital gains tax, capital transfer tax, inheritance tax, sales tax or VAT. Withholding tax (initially of 15 per cent) to the returns on savings paid to nationals of EU Member States. Payroll tax of 14 per cent (eight per cent is paid by the employer).

CyPrus • White 796,740 $ 28,600 Cyprus is in the unusual position of being a low tax jurisdiction that is within the EU, and its popularity is anticipated to rise. Corporate tax is ten per cent, with income tax 20-30 (30 per cent where salary is over €36,301), and 20 per cent capital gains tax.

doMiniCa • Grey 72,660 $ 9,900 All locally formed offshore companies are exempt from tax, though the formation of an offshore company in Dominica does incur a fee.

CayMan islands • Grey 49,035 $ 43,800 No taxes levied on income, capital gains, sales of property or inheritance. The government gets income primarily through stamp and customs duties, business licences and fees. Business fees are determined based on a company’s share value.

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guide

united states • White 307,212,123 $ 47,000 According to the New York Times, a single address in Wilmington, Delaware houses two thirds of the companies listed on the Fortune 500. The state, which offers a variety of tax incentives for businesses incorporated there, is the registered address for around 50 per cent of US PLCs. Both Nevada and Wyoming (and, to a degree, Florida) also have tax regimes advantageous to businesses, and Nevada also levies no personal income, capital gains or inheritance tax.

Gibraltar • Grey 28,034 $ 38,200 There is no withholding tax on dividends paid to non-residents or on interest payments where the loan is provided outside Gibraltar. Gibraltar does not apply any capital gains tax, sales tax or VAT. There is no wealth tax or inheritance tax, nor is there capital duty on share transfers. Has introduced a ten per cent corporate tax for both domestic and non-domestic companies.

HonG KonG (CHina) • Grey*

• OECD List $

Population GDP Per Capita (USD)

* China is graded ‘white’ by the OECD, its Special Administrative Regions, Hong Kong and Macau are graded ‘grey’.

isle of Man • White

HAVEN SENT: (clockwise from top left) beach party on Jersey; the imposing Rock of Gibraltar; Monaco’s Casino Square; the heather fields of the Isle of Man; waterways of Luxembourg; Hong Kong’s muggy harbour

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76,512 $ 35,000 The Isle of Man does not

Jersey • White 91,626 $ 57,000 No corporation tax, nor individual tax on foreign income and capital gains. Non-doms are not taxed on local income. Local taxation is fixed at 20 per cent.

luxeMbourG • Grey 491,775 $ 81,100 Income tax applies to non-doms on local income, residents on their global income, and rates are progressive depending upon personal situation. Capital gains on property are tax exempt, as are gains on shares held for longer than six months (providing not a major shareholding). Corporation tax 30 per cent.

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ISLE OF MAN PHOTOGRAPH: Jaems Taylor

Details

7,055,071 $ 43,800 The world’s largest corporate tax haven. No capital gains tax, sales tax or VAT and income tax is progressive between two and 20 per cent, dependent upon salary. Corporate tax is 17.5 per cent.

charge corporation tax, capital gains tax, inheritance tax or wealth tax. Personal income tax is levied at ten to 18 per cent on the worldwide income of Isle of Man residents, up to a maximum tax liability of £100,000. Banking income tax is levied on the profits of Isle of Man based banks at ten per cent and income from the rent of Isle of Man property is levied at the same rate.


Whether you are looking for a world-class spa escape, state of the art meeting room, spectacular suite or a delectable dinner to remember, the new Grand Jersey has it all • Home to the new Park Suites, featuring the only private screening room and cinema in Jersey available for private hire • Wide selection of meeting & boardrooms • Lashings of natural light and bespoke artwork throughout • Separate entrance with a private meet and greet area • Multiple break-out areas • Day delegate rates from just £55pp

Critically acclaimed, fine gourmet restaurant Tassili • Recent recipient of 3 Rosettes • Open Thursday to Saturday • Enjoy a sumptuous 3-course finedining experience for just £47pp • Or go all out with our ‘Seductive Indulgence’ package including one night b&b, champagne on arrival, 3-course dinner in Tassili for £125pp • Residential indulgence packages with dinner in Victorias available at £95pp • Christmas and New Year packages from just £99 per room

Grand Spa is officially the UK’s Residential Spa of the Year, according to the 2009 Professional Beauty Awards. A world-class destination spa, this 2-floor, 8,000 square foot space sensation, features 6 state of the art treatment rooms, high tech gymnasium, spa bath, steam room, sauna, experience showers, heated indoor swimming pool and a heavenly relaxation room. Spray Tanning Rituals by BeauBronz • Elemis treatments for him and her • Revolutionary anti-ageing programmes by Galvanic Spa • Day spa packages

C H A M PA G N E L O U N G E

Grand Jersey, The Esplanade, St. Helier, Jersey, JE4 8WD Telephone: +44 (0)1534 722301 Email: enquiries@grandjersey.com Web: www.grandjersey.com


Directory

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Details • OECD List $

Population GDP Per Capita (USD)

PanaMa • Grey 3,360,474 $ 11,600 Tax in Panama is only levied on income that is generated in Panama.

sinGaPore MaCau (CHina) • Grey* 559,846 $ 30,000 Top corporate and income taxes are levied at 12 per cent, while gaming taxes from the gambling industry accounted for over 75 per cent of government revenue in 2008. * China is graded ‘white’ by the OECD, its Special Administrative

PHOTOS: swiss-image.ch/Christof Sonderegger; US Virgin Islands Department of Tourism

Regions, Hong Kong and Macau are graded ‘grey’.

MaCedonia • N/A 2,066,718 $ 9,000 Tax reforms in Macedonia have created one of Europe’s most attractive tax regimes for foreign investors. The nation levies both corporate and personal income tax at a flat rate of 10 per cent, with further incentives for companies operating in designated “technologicalindustrial” zones.

MonaCo

• Grey 4,657,542 $ 52,000 No capital gains tax. Corporation tax concessions for foreign companies of a certain type.

sWitZerland • Grey 7,604,467 $ 40,900 Foreign residents can negotiate a lump sum subject to taxation. This is usually assumed to be quintuple the accommodation rental paid. The tax levied is variable from one canton to another.

united arab eMirates • White 4,798,491 $ 40,000 The Jebel Ali Free Zone (Jafza) in Dubai offers a number of tax incentives. Full foreign ownership is allowed, and there are no corporation taxes (for a renewable period of 50 years) and zero personal income tax.

• Grey

ILLUSTRATION: Jamel Akib

32,965 $ 30,000 Personal income tax is levied only on French nationals in Monaco.

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us VirGin islands • White 109,825 $ 14,500 Qualifying foreign residents or citizens of the United States or US Virgin Islands can set up a tax-exempt company for assets other than those invested in the US or US Virgin Islands.

BLUE SKY THINKING: (top) picturesque views at Lake Lugano in Switzerland; (bottom) the azure coast of the US Virgin Islands

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INTERNATIONAL BANKING

GUIDE

What defines a good or responsible low tax jurisdiction? It depends on where you’re looking at it from. If you’re looking at it from the perspective of the governments, I think these jurisdictions offer a variety of things: disclosure, compliance, anti-money laundering procedures, processes and policies. From the customer’s point of view, it is about value, opportunity and diversification. Unfortunately Jersey, and to a lesser extent the City of London, seems to get bracketed in with other, less respectable, jurisdictions. How much of a problem does that present? I think there is a little of the ‘guilt by association’ syndrome here. But as long as you are clear about what is it you’re doing, and how you communicate that message to your customers, you can very quickly dispel rumours and innuendo. To some extent, the OECD helped do that when they introduced the white, grey and black lists. Both of our booking centres are obviously on the white list, while the grey list is getting smaller and smaller. You would expect that if customers were banking offshore for the expressed purpose of tax avoidance, when this type of scrutiny came about you would see a mass exodus of customers, but we’ve not seen that at all – in fact, our customer numbers are growing. But with many of the world’s leaders pushing an anti tax-evasion agenda at the moment, surely investors will become increasingly wary of offshore banking centres? I wonder if that’s true, because for some time, even before this increased focus, there were distinctions in the world of offshore banking centres. Switzerland is a good example of this – if you mention the term ‘offshore banking’ to anyone, they immediately think of Switzerland because that’s the reputation that it has. But I think it

32 SQUAREMILE

for our business; it’s not how we style ourselves to our customers. For our Jersey customers there clearly is a tax benefit, but it’s well described and enshrined in the law and we disclose to the tax authorities; I think on that basis it’s not such a bad thing.

UPWARDLY

MOBILE

Citi’s GRANT CARSON on the challenges facing low-tax jurisdictions in a changing world has a very different reputation to that of many of the other centres, where people would say, ‘wow, why is that an offshore banking centre?’ I think what has actually happened is that the message that’s being put across by governments has served to clarify jurisdictions’ positions. And I think it’s incumbent on offshore banking jurisdictions not only to be seen to be doing the right thing but to be doing the right thing. Tax is not an equation

●● The idea of the globally mobile individual will gather pace

What does the future hold for low tax jurisdictions? It’s very clear that governments the world over are saying: ‘we’re not going to turn a blind eye to what we perceive to be wrongdoing in certain jurisdictions.’ I’m certain they will see that message through; they’ve put their flag up, and there’s no way that they’re going to back down. So for these jurisdictions it becomes a question of either moving forward or trying to fight it, and I don’t think you can fight this – there is no moral or economic reason to do so. Then they have to consider whether can they afford to do all the things required of them – and I believe those that can will, and those that can’t won’t. I don’t foresee there ever not being a need for offshore banking – in fact, I see that demand increasing as the world continues to get smaller and smaller. This is really what we’re trying to offer our customers, and to quote our CEO, Vikram Pandit: ‘We bring our customers to the world and the world to our customers.’ So have one relationship with us, but whatever you want to do globally as far as your wealth management is concerned, let us facilitate that for you. I really do believe that the concept of the ‘globally mobile’ individual is going to gather more and more pace. There are 200 million people worldwide who fit into that category, and I don’t think there are many banks out there that fully meet their needs; that are able to support individuals with a globally diverse and globally mobile lifestyle. The banks that figure this out quickly – and I’d like to count us in that group – are going to benefit hugely. ■

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What if you are one of the 290,000 who has moved to the UK this year to work and you want to make the most of your money? Perhaps it’s time you had a Gold Conversation. When you invest offshore with Citi International Personal Bank, and you are an expatriate living in the UK, you could enjoy potential tax advantages. You could also have a safe and secure single location for your wealth, wherever you travel. Join us and we will give you access to a range of offshore banking and wealth management solutions – from multi-currency Cash Accounts to a diverse range of international investment products – by offering you advice on a financial plan that suits your lifestyle. Your money will be invested in Jersey, an OECD white-listed offshore centre endorsed at the G20 summit in April. Our minimum balance requirement is $100,000 (or currency equivalent) and in return, our global Citi franchise will offer personal service and the breadth of experience you can rely on, anywhere in the world. Call +44 (0)20 7500 1992 to open your personal account today.

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Square Mile Guides - Offshore - 2009  

Square Mile Magazine, The Best of the City, Offshore Guide, 2009 (Issue 41)

Square Mile Guides - Offshore - 2009  

Square Mile Magazine, The Best of the City, Offshore Guide, 2009 (Issue 41)