The phrase “tax haven” usually conjures up rum-soaked images of palm trees and marlin fishing. But what if you hate hot weather and sand in your shorts?

Suppose, instead, you long for the smoldering charm of cafe life, cobblestone streets and high-speed trains: Europe. You may be surprised at what tax havens you can find in the Old World.

To be sure, Europe can be a hornets’ nest of outrageous taxes and high overhead. There’s no arguing with the high cost of living in London, for example. The British pound costs $2, up from $1.75 just a year ago. So two round-trip bus tickets cost $8 and two movie tickets $36. A reasonably nice two-bedroom “flat,” even in a second-tier neighborhood, will run you $4,300 a month or more. (Count on spending twice that if you want to live in a luxury apartment in a premier neighborhood like Mayfair or Kensington.) And worst of all, if you import income of $200,000 to the U.K., taxes may eat up $90,000 of it. The high taxes and pricey cost of living are a killer combination.

The good news: In many other spots around Europe, the environment is far more welcoming. We’ve compiled a list of 12 European locations that really are havens of low taxes and reasonable prices. Even the U.K. has its advantages if you know how to play it.

Think about Vienna, Austria. Christiane Delessert, whose Boston financial advisory firm helps wealthy clients deal with cross-border tax issues, has. Delessert says Austria gives foreign retirees a tax status that’s near zero. And the cost of living is pretty low.
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In the recent years, entrepreneurs have tried many different ways in which to improve their businesses. They have looked into different ideas and novel strategies. With the ever increasing changes in the social, political, and economic landscape in one’s home country, it is but natural to expect these entrepreneurs to start looking outside of their geographical boundaries for solutions and opportunities.

It is thus of no surprise that more and more people – both individuals and business owners – are engaging in offshore activities. In certain circles, the word offshore brings about a negative connotation. Those who are better informed know however, that offshore activities, when used properly can be very powerful and effective means of carrying out asset protection plans.

One popular offshore activity is to create an offshore corporation. In this activity, an individual or group of individuals can start a company from scratch and incorporate it in an offshore location. Another option would be to purchase a shell offshore company, which is simply an offshore company that has been in existence and has papers ready for the individual or group who is going to purchase it. Either way, the end result is a company based in a jurisdiction outside of one’s own country.
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Offshore investments are a growing trend in the financial market today. This is due to a number of reasons, one of which is the continuous changes in economic and financial policies in many countries all over the world. Though offshore activities have had its share of bad rap over the years, this strategy is still one of the most effective alternatives for many. The important thing is to know exactly what you need and what you are doing to meet that need.

It is true that going offshore presents a lot of possibilities which are beneficial to the individual or group that is engaging in various offshore activities. However, there are certain laws and restrictions that you must know about – both in your home country and the offshore jurisdiction that you want to invest in. You have to know about the relevant laws. Otherwise, you just might find yourself in legal trouble for tax evasion and similar charges.

So what is the advisable course to take if you are considering going offshore? It is recommended that you first do your homework. At least have a basic knowledge of what direction you want to take and have a vague idea of how you are going to go about it. If you are not an expert in this subject matter, it is suggested that you seek the services of professional offshore consultants.
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