(CNN) — For the international businessperson with the ability to choose where to live, work and invest, the words “tax haven” almost certainly come to mind.<\/P>
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From a laid-back lifestyle in the Caribbean, to the precision of Switzerland, if you have got money to spare, there are plenty of countries that are keen to attract it.<\/P>
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Monaco, the UK’s Channel Islands, Isle of Man, the Bahamas, the Cayman Islands, and the Virgin Islands all have low or in some cases zero income tax rates.<\/P>
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Even a number of South Pacific nations, including the Solomon Islands, are eager to get in on the act.<\/P>
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At all of the above destinations you can create an offshore account and reap the benefits, although there is one country where there is no escape from the taxman — the United States.<\/P>
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“If (a U.S.citizen) has really been out of the country for a long while and really has no particular connection there, they will probably still have to file a tax return,” John Whiting, tax partner of PricewaterhouseCoopers, told CNN.<\/P>
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“Chances are they will not have any particular tax liability there [the U.S.], but they still have to go through the hoops.”<\/P>
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Location, location, location
The problem for many international business people is that they have their wealth spread across a number of countries. This can end up creating a complex tax situation that is expensive to administer.<\/P>
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Guy Hamilton of HSBC International Banking believes it make things easier if you choose one destination and one bank to consolidate your money.<\/P>
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Although choosing this destination can be a daunting task, Michael Payton, banker and chairman of Bahamas Financial Services, says accessibility is a major factor.<\/P>
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“Invariably the businessman is going to want to visit his bankers, so I think location plays a part. You are also going to want to ensure it has a political and economic track record,” says Payton.<\/P>
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“Substantial financial institutions on the ground (is important). I would never recommend to a client a small bank that has no affiliation with a larger institution.”<\/P>
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Although offshore banks are keen to ensure your privacy, they are far more regulated than they used to be. High profile cases of tax evasion, as well as a crackdown on questionable funds have led to a greater degree of scrutiny and transparency.<\/P>
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“The misnomer or the misperception out there is that banking countries such as the Bahamas, the Cayman Islands and Jersey are black holes. It is just not true,” says Payton.<\/P>
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“You had better be prepared for a high degree of vetting and disclosure as to who you are and what your source of income is and your source of funds are.”<\/P>
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— CNN’s Leone Lakhani contributed to this report<\/P>
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