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FAQ · SearchOffshore

What Jurisdictions Have No Capital Gains Tax?

All major offshore financial centres — BVI, Cayman Islands, Jersey, Guernsey, Isle of Man, Bahamas, Bermuda, and others — impose no capital gains tax at the jurisdiction level. Several onshore jurisdictions also have no CGT on qualifying gains: Singapore, UAE, Hong Kong and New Zealand. The absence of CGT in the holding jurisdiction does not eliminate CGT exposure in the beneficial owner's country of residence.

The Full Answer

No-CGT Jurisdictions — What It Means in Practice

Capital gains tax is a tax on the profit made on the disposal of a capital asset — shares, property, financial instruments and other investments. Many jurisdictions impose no CGT, either as a deliberate policy choice to attract investment and holding structures, or because their broader tax framework taxes gains as income.

Offshore jurisdictions with no CGT (at the jurisdiction level):

  • BVI — no CGT, no corporate income tax
  • Cayman Islands — no CGT, no corporate income tax
  • Jersey — no CGT; 0% standard corporate rate
  • Guernsey — no CGT; 0% standard corporate rate
  • Isle of Man — no CGT; 0% standard corporate rate
  • Bahamas — no CGT, no income tax
  • Bermuda — no CGT, no income tax
  • Turks and Caicos — no CGT, no income tax
  • Panama — no CGT on foreign-source income
  • Seychelles — no CGT for offshore entities

Onshore jurisdictions with no CGT (or no effective CGT on qualifying gains):

  • Singapore — no CGT; gains on disposal of shares and investments are generally not taxable
  • UAE — no CGT under the corporate tax framework; personal gains not taxed
  • Hong Kong — no CGT; gains are not taxed unless they constitute trading income
  • New Zealand — no general CGT (though some gains are taxed as income)
  • Switzerland — no CGT on private capital gains for individuals (though gains from professional trading may be taxed)
The absence of CGT in a holding jurisdiction does not mean a beneficial owner resident in a CGT-imposing country escapes CGT. The UK, US, Germany, Australia and most developed countries impose CGT on their tax residents on gains arising worldwide — including gains on disposals made through offshore holding companies, subject to applicable CFC rules and anti-avoidance provisions. Any decision to use a no-CGT jurisdiction as a holding location requires qualified tax advice from advisors in both the holding jurisdiction and the beneficial owner's country of residence.

Related Questions

Capital Gains Tax — Further Questions

Simply incorporating a holding company in a no-CGT jurisdiction does not eliminate CGT liability for a UK, US or other CGT-imposing country resident. Most developed countries have CFC rules and anti-avoidance provisions that attribute gains made by offshore companies controlled by their residents to those residents for tax purposes — or impose exit taxes when assets are transferred offshore. What can legitimately be achieved — in appropriate circumstances, with full legal and tax advice, and with genuine commercial substance — includes deferral of CGT on certain reinvested gains, structuring the holding to align with applicable participation exemption rules, or establishing genuine tax residency in a no-CGT jurisdiction. These are complex areas requiring specialist advice; this guide is informational only.
Becoming non-UK resident can eliminate UK CGT on future gains arising after departure from assets that are not UK situs assets (UK property and certain interests in UK property-rich entities remain subject to UK CGT regardless of residence). However, the UK has a temporary non-residence rule — broadly, UK residents who leave the UK and return within 5 years may be subject to UK CGT on gains realised during the period of non-residence. For UK domiciliaries, the rules are complex. UK non-domiciliaries have different considerations. This is a highly specialist area of UK tax law requiring advice from a qualified UK tax advisor before any action is taken.
Yes — Singapore does not impose CGT on companies or individuals. Gains on disposal of shares and investments are generally not subject to Singapore income tax provided they do not constitute trading gains (i.e. gains from transactions in the ordinary course of a trade). The line between capital gains and trading gains can be fact-specific — a Singapore company that frequently buys and sells shares may have its gains characterised as trading income subject to Singapore's 17% corporate tax rate. For a Singapore holding company making infrequent disposals of qualifying investments, the absence of CGT combined with Singapore's 90+ double tax treaty network makes it a highly efficient holding jurisdiction for Asia-Pacific structures.
JurisdictionSingapore JurisdictionUAE JurisdictionCayman Islands GlossaryTax Residency GlossaryCFC Rules

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