Could the United States be the Next Global Tax Haven?
Jack Brister
Founder, International Wealth Tax Advisors
Jack Brister, Founder of International Wealth Tax Advisors, is a noted international tax expert, with over 25 years of experience. Jack specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset protection structures. Jack is a frequent featured speaker at numerous international financial conferences and has been named a Citywealth Top 100 U.S. Wealth Advisor.
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Could the United States be the Next Global Tax Haven?
When one thinks of tax havens, Bermuda, the Cayman Islands, and Switzerland will often come to mind. These countries are some of the most well-known examples of tax havens—countries or independent areas where taxes are levied at zero or a very low rate. But are recent proposals to lower taxes and decrease transparency turning the United States into the next global tax haven? In the past several years, the United States has increased the level of financial privacy and extended tax advantages that are typical hallmarks of attracting foreign wealth.The Tax Cuts and Jobs Act of 2017
The legislation, which is set to expire at the end of 2025, included cuts to the qualified business income deduction, the corporate tax rate, the top marginal individual income tax rate, as well as lowering estate and gift tax exemptions. President Trump and many Republicans are trying to make these tax cuts, which disproportionately benefit the wealthy, permanent.States with Zero State Income Tax
States with low to zero taxes on certain types of income appear to be beacons for the wealthy. See our article reprinted by Hawaii News on state income tax changes and U.S. population migration based on state income tax levels.Overturning the IRS DeFi Crypto Broker Rule
In April 2025, the DeFi Broker rule, which sought to expose crypto users by requiring some cryptocurrency brokers to provide information to the Internal Revenue Service, was repealed.Is the USA in the Midst of a Taxation Policy About Face?
Countries favored as tax havens offer more than just lower taxes—they also have strict laws protecting the confidentiality of account holders and beneficial owners. Recent moves and decisions made by the second Trump administration may serve to motivate international entities in search of more privacy protection and less mandated reporting. For example:- Rescinding of OECD Pillar 2
- The globally-negotiated tax deal sought to establish a global minimum corporate tax rate of 15% in every jurisdiction in which a company operates. In one of his first moves following his inauguration, President Trump pulled the U.S. out of the corporate tax deal that was signed by 140 countries, and declared that it “has no force or effect” in America.
Additionally, the U.S. withdrew from the UN Framework Convention on International Tax Cooperation. - Refusal to enforce the Foreign Corrupt Practices Act.
- This US law requires public companies to keep accurate accounting records and maintain internal controls to prevent corruption.
- Narrowing the Scope of the Corporate Transparency Act (CTA).
- In March, the Treasury Department announced that it would not enforce penalties or fines related to beneficial ownership information reporting.
- Failure Of the US to Disclose Foreign Accounts to Other Jurisdictions.
- The Foreign Account Tax Compliance Act (FATCA), implemented in 2010 to address tax evasion by U.S. citizens, has unintentionally transformed the U.S. into a tax haven for non-residents. The legislation mandates foreign financial institutions to disclose accounts owned by U.S. citizens, yet the U.S. doesn’t reciprocate this information sharing with other countries.
- States Providing Privacy Protections For Offshore LLCs.
- Certain states offer a high degree of financial privacy for offshore LLCs, including Delaware, Nevada, South Dakota, and Wyoming. In these states, the names of the beneficial owners of an LLC are not available in any public records, and laws are designed to protect the identities of offshore LLC owners.
See our overview here on state and local tax for more information.
As the US diverges from global efforts to encourage tax transparency and equality and steps back from international agreements like Pillar Two, its standing as a destination for foreign wealth is gaining favor. Whether this trend will continue, and how it will impact both the global tax landscape and the US economy remains to be seen. We’ll closely watch the next developments, so continue to check this space for breaking U.S. and international tax news.
Jack Brister and his capable team know U.S. and international tax statutes inside and out. We’re here for a consultation, an evaluation and to serve as a trusted advisor and accounting partner. Whether you call Detroit, Dublin or Dubai your home, if you have investments, business, family or residences in the USA, we can help.
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