A tenth of the world’s total wealth is held in offshore tax havens, but the ratio rises to 15% for Europe and up to 60% for Gulf countries and Latin American countries, according to a new study published by Bloomberg.
When it comes to fortunes held offshore in terms of GDP, the United Arab Emirates, Venezuela, Saudi Arabia, Russia and Argentina occupy the top positions, while Germany, Britain, and France only have average holdings.
Meanwhile, world power US is slightly below average.
Offshore wealth increases inequality when it is included in tax data because it mostly belongs to the richest households.
In the UK, Spain, and France, about 30% to 40% of the wealth of these rich families 0.01% of households is held abroad.
Russia’s wealthiest elite holds 60% of its fortunes abroad.
Interviews conducted with more than 12 tycoons, fund managers, lawyers and current and former officials suggest that the largest part of Russia’s national wealth is currently in the possession of a new semi-exiled oligarchy class, which preferred to keep their headquarters in Russia but avoids paying taxes by staying less than 183 days per year in the country.
Two other Forbes members of the richest 100 Russians said they have given up to their right of residence in Russia in order to “fence” this law.
Two others refused to confirm if they resorted to this method although everyone knows the truth.