The Offshore market explained
There are currently approximately 32 recognised Offshore Financial Centres, also known as OFCs or ‘tax havens’. These jurisdictions commonly have low tax and are lightly regulated paving the way for offshore companies to benefit from prosperous infrastructures.
Many Offshore financial centres are current or former British Colonies or Crown Dependencies, and often refer to themselves as offshore jurisdictions.
There has been much debate into what makes a country an offshore financial jurisdiction. As such, the generally accepted characteristics include the following:
• The country has a number of financial businesses that predominantly do business with non-residents
• The business will have an infrastructure, external assets and liabilities which are out of proportion with the domestic economy
• Significantly lower corporation tax rates
• Lenient financial regulation
How does this translate for people looking to relocate? Lifestyle advantages are to be enjoyed making offshore jurisdictions more appealing to live and work in:
• High demand, and low supply of professionally qualified individuals
• Significantly lower personal tax rates
• Favourable climates, many tropical or sub-tropical
• Growing population of expatriates of different qualification
• High standard of living often including: low pollution, low crime, modern telecommunications, excellent local amenities and an end to long commutes
The following countries are generally held to be the mainstays of the offshore financial sector:
• Bermuda
• Cayman Islands
• British Virgin Islands
• Guernsey
• Jersey
• Isle of Man
Other notable jurisdictions that Michael Page Offshore recruits within include:
• Bahamas
• Barbados
• Cyprus
• Dominican Republic
• Gibraltar
• Malta
• Netherlands Antilles
• Seychelles
• St Vincent and Grenadines
• Turks and Caicos Islands
