Best tax-efficient countries revealed in indices

By Matthew Vincent

Published: Financial Times, December 3 2010 16:59

Wealthy investors seeking to minimise tax should relocate their businesses to Saudi Arabia, Russia or Mexico, and later retire to Dubai, Monaco or Austria - according to two new tax indices launched in recent weeks.

BKR International, an association of worldwide accountancy firms, has calculated how much income big shareholders and high earners in private businesses are left with after tax in 19 different countries.

Meanwhile, ABN Amro Private Bank has rated 13 tax regimes for individuals who want to retire to another country, live off investment income and then pass assets on to their heirs.

In both indices, Gulf states score the most highly on tax factors alone - and the UK and popular European destinations such as France and Spain are among the least advantageous for corporate and retirement taxes.