Canada, he said, is a tax haven compared to the United States because it doesn’t have a gift or estate tax—which the U.S. does. “So, if somebody leaves the U.S. tax system, which happens to require them to renounce their U.S. citizenship, and becomes a tax resident of Canada, they end up having a lower tax obligation,” he said.
Ditto for the U.S. and France. The U.S. doesn’t have a wealth tax, which France does, making the U.S. a tax haven for the French citizens who want to avoid it. The Cayman Islands not only has no estate tax, gift tax, or wealth tax, but also no capital-gains tax or income tax—which explains why it’s such a popular destination for offshore accounts. In other words, places like Canada, the U.S., and the U.K. have rules in place that make them attractive tax destinations for wealthy foreigners.
“What it comes down to,”