High Finance in a Low Tax Haven: Report from the Global Summit in the Bahamas

More than 150 attendees gathered at the Atlantis Resort in the Bahamas for the Global Financial Summit. Our theme this year was “Market Solutions to World Problems,” as opposed to government solutions.

In this tax haven just off the U.S. borders, we gained some valuable advice.

Peter Schiff, president of EuroPacific Capital, was a popular speaker. He told us that he has moved his asset management firm and employees to Puerto Rico to take advantage of the low tax rates there (only 4% income tax). Hedge fund billionaire John Paulson did the same earlier.

And there were several experts who talked about the tax benefits of living in the Bahamas, where there is no income, capital gains or estate taxes. (Most of their revenue comes from a 40% import duty.) Mutual fund magnate John Templeton lived there for years and took full advantage of this tax-free lifestyle. (He said his investment performance improved when he lived there.)

I lived in Nassau with my family in the 1980s and saved enough in taxes (all legally) to buy a flat in London. I call my move to the Bahamas “life in living color.” Read my story, “Easy Living: My Two Years in the Bahamas.”

A Funny Line from a Money Manager

I spoke at the event in the Bahamas about how ordinary investors can get in on the ground floor with the ultra-rich and venture capitalists by investing in private equity firms that are publicly traded. Bain Capital, Mitt Romney’s firm, doesn’t trade on the stock exchanges, but KKR, Apollo Investments, and Main Street Capital do – and are beating the market while paying high dividends. (To do so likewise, subscribe to my monthly newsletter, Forecasts & Strategies).

Adrian Day showed me a tongue-in-cheek statement in his brochure for his Adrian Day Asset Management firm: “We do not accept as clients employees of the IRS, SEC, TSA, or NSA nor other known criminals (whose crimes involve serious violations of other individuals’ rights), nor illiberal dictators or their agents unless and until a public apology for their crimes is forthcoming.” Oh, the subtlety of British humor! Humor aside, Adrian Day is a libertarian money manager with a great track record in foreign stocks and mining companies. He will be one of our top speakers at this year’s FreedomFest.

Credit: Finance Townhall