Offshore Wealth: The Top 10 Countries

Why Do People and Companies Send Money Abroad?

There are several reasons why individuals and corporations choose to send their money abroad. These can range from seeking more lucrative investment opportunities to reducing tax liabilities. Some even do it to safeguard their wealth in jurisdictions with low or no taxes.

Top Countries with the Most Offshore Wealth in 2022

A graphic created by Bruno Venditti from Visual Capitalist, using data from the Atlas of the Offshore World, reveals the top 10 countries that had the most offshore financial wealth in 2022.

China's Offshore Wealth

Businesses and individuals from mainland China have over $2 trillion stashed abroad. This amount is nearly equivalent to Mexico’s GDP. A popular destination for Chinese corporations and individuals looking to conduct offshore operations is Hong Kong.

US Offshore Wealth

For U.S. offshore operations, the Cayman Islands, Switzerland, and Singapore are frequently chosen destinations. Americans have almost $1.6 trillion stored abroad.

Offshore Wealth in the UK, France, and Germany

Combined, individuals and companies from the UK, France, and Germany have $2.1 trillion stored abroad.

What Constitutes a Tax Haven?

A tax haven is a jurisdiction that offers minimal or no tax liability to foreign businesses and individuals. These places also tend to have stable political and economic environments. Entities can legally use tax havens to keep money earned abroad, thereby avoiding higher taxes in the U.S. and other countries.

Shell Corporations and Offshore Wealth

For these types of operations, companies often set up shell corporations. These are corporations that don't have active business operations or significant assets in the country where they're located.

More on Offshore Wealth and Tax Havens

For more information on offshore wealth and tax havens, you can view a graphic that shows the top 10 countries hosting the most offshore financial wealth.

Bottom Line

Offshore wealth and tax havens are complex topics that intertwine with global finance and taxation. The practices of stashing wealth abroad can have significant impacts on economies and tax revenues. What are your thoughts on these practices? Do you think they are fair or do they need more regulation? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, available every day at 6pm.