Are you looking to escape higher taxes? Are you desperately trying to find a "safe haven" where you can "get away from it all? Or do you simply wish to "drop out" and escape? Then you may want to join a growing number of people who feel the same way you do. Here are some places to consider. But bear in mind, though, many are pretty exotic.

Number one on the escape list would be the South American republic of Paraguay. Paraguay was a notorious haven, of sorts, for political refugees in the past (i.e., high ranking Nazis’ and members of the SS.)

According to a well known fact book, Paraguay "has a market economy marked by a large informal sector". In fact, the economy is so informal that, at times, it is difficult to figure out whether it is growing or slowing. It appears to be organized like a gigantic sale from a car trunk.

Paraguay has taxes. However, fraud and corruption are rife. Needless to say, you might find a way around paying them.

A more alluring country would have to be the Cayman Islands in the Caribbean. The Cayman Islands is an English-speaking dependent territory of the UK with a population of approximately 30,000. There are no taxes in the Cayman Islands. Government revenue is generated from customs duties and annual fees on corporations.

However, opening a bank account can be tricky. Recently, an individual, who had filled out a detailed form at one of the banks located in the capital, George Town, was asked to pay a minimum deposit of $50,000.

The problem with relocating to the Cayman Islands is that the islands can be vulnerable to hurricanes that could blow away your biggest investment away.

An alternative would be the British Virgin Islands (population 22,000). There is no capital-gains tax, wealth tax or gift taxes. The government there plans to scrap the income tax this year and replace it with a 14 percent payroll tax, of which 8 per cent is payable by employers. However, like the Cayman Islands, the government chose to apply a withholding tax on savings paid to nationals of EU member states, which is not so good.

The Seychelles (population 80,000), located in the Indian Ocean, are a byword for tropical beauty. They comprise 115 islands that are located near the Equator and outside the cyclone belt. The Seychelles have no income tax to speak of, but social-security payments and taxes on locally sourced businesses can range up to 40 per cent.

High on any tax refugee’s list would be Vanuatu, a group of 80 mountainous tropical islands located just off the eastern seaboard of Australia. There is no income tax evasion on Vanuatu, because Vanuatu has no taxes. There is a stamp duty on property transactions that is capped at 1 per cent, and there are no state social-security contributions.

Vanuatu has a free-market economy. But there are regrettably some snags to this. Economic growth is slow due to the adverse climatic conditions, and most goods are imported and import duties are high.

Another thing to consider is that some of the islands have active volcanoes. The helpful Low Tax internet website does not specify what islands have them, which may add an explosive degree of risk to the most gilt-edged portfolio.

In Eastern Europe, Estonia (population 1.3 million, capital Tallinn) is the land of the flat tax. In the past ten years, the economy of Estonia has grown by 73 per cent and, yes, this is due to the flat tax, which is currently 26 per cent, and coming down to 20 per cent. However, national insurance payments average 33 per cent of income, giving an effective total tax rate of 44.4 per cent.

In the United States, the state of Wyoming would be an ideal place. Wyoming does not levy a personal or corporate income tax; there are no taxes on bank accounts, stocks or shares. The state does not assess any tax on retired income earned or received from another state.

Better still, a state website states, "Further," there is no legislative plan to implement any of these types of taxes."

In a "Just the Facts" web page shows that unemployment is just 3.9 per cent, the average university teacher salary is $62,000, there is 73 per cent home ownership and the average house price is $143,000.

What’s the catch? The state of Wyoming has great scenic beauty but, unfortunately, if you prefer night life and "fast living", this state sadly lacks in both.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.