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Cayman Islands

Well known as an offshore financial center, the Cayman Islands are a big draw for the wealthy with their zero personal income and capital gains taxes and because they have no mandatory social security contributions.

Employers, however, are required to provide a pension plan for all workers, including expatriates who have been working for a continuous nine months in the islands. While there is no value added tax or government sales tax, the country does have some indirect taxes such as import duties, which can range up to 25 percent.

In August, the British territory ditched plans to tax foreign worker's income just about two weeks after proposing it in a last-ditch attempt to overcome budget woes. The government backtracked on the plans after several industry associations opposed the tax, saying it would lead to a flight of investors. Foreign workers make up about 50 percent of the islands' workforce.

Pictured: Aerial view of downtown Georgetown, Cayman Islands.

Photo: Noel Hendrickson | Getty Images