Editor’s Note: This story originally appeared on Live and Invest Overseas.
I would never advise someone to choose a place to live or retire based solely on the jurisdiction’s approach to taxation. Living somewhere you’re not happy just to save on your tax bill isn’t worth it in the long run.
Before choosing where to live, invest, or do business abroad, you should analyze all aspects of the “where” you’re considering. A country’s approach to taxation is an important consideration, but only one of many you should undertake.
Here are overseas havens offering the chance to both lower your tax bill and upgrade your lifestyle.
Panama
Panama continues to be one of the best options for going offshore. As a resident of Panama, you pay no tax on foreign-earned income, nor on bank interest, certificates of deposit, wealth, inheritance, or U.S. Social Security.
Property taxes are reasonable, with new properties exempt for up to 20 years, depending on their value.
Panama’s pensionado program grants retirees a one-time exemption on the importation of household goods and a $20,000 exemption from import duty for a new car.
Income earned in Panama is taxed in Panama (at a progressive rate from 15% to 25%).
Uruguay
