Bermuda has failed to make a top ten list of low-tax countries — but experts said that reflected Bermuda’s tough financial regulations.

The survey, by London-based Bradley Hackford, — a specialist in expatriate status and tax domiciles — ranked the Bahamas as number one.

The Caymans, Monaco, Guernsey and Switzerland all rate a ranking in the Bradley Hackford survey based on quality of life, legal and physical security and quality of economic investment.

The survey also included factors like location accessibility and recreational opportunities.

But Finance Minister Bob Richards said: “It’s because we have a high degree of transparency and cooperate with other official, legitimate government requests for information.”

And Mr Richards added that the foreign account tax compliance agreements signed with both the UK and US helped establish the Island’s reputation as a clean jurisdiction to do business in.

“We are not a good place to ‘stash money’ — I’ve been saying this ever since I took office,” he said.

Economics expert Peter Everson, the former head of the Bermuda Chamber of Commerce’ economics committee, added that it was difficult for foreigners to establish residency on the Island.

“There are only four banks and they are all zealous in implementing strict anti-money laundering procedures and go to great lengths to find out the ultimate source of funds,” he said. “As such, they are not friendly to people who want to shield money from their tax authorities.”

Mr Everson said the small size of Bermuda banking operations meant it was harder to hide staff corruption than it would in larger countries.

He added that other EU countries were expected to follow the UK and US and sign tax information sharing agreements with Bermuda.

He said: “Bermuda is not a tax haven, however much that is an inconvenient fact to many politicians and social campaigners.”

The top ten includes five European countries — although only one, Bulgaria, is a member of the European Union.

Dubai in the Middle East, Mauritius in the Indian Ocean and Panama in Central America also feature.

The Bahamas is described in an English report on the survey as offering “an excellent standard of living as well as zero percent tax on personal earnings.”

It added that residency is given to people who make an investment of at least $500,000 in local real estate — although those prepared to spend around $1.7 million can speed up the application process.

Tiny Andorra, a principality that borders France and Spain, gives citizenship to those who invest around $450,000 and is popular with French, Spanish and Russian nationals.

Monaco attracts Italian, Russian and Swiss expatriates — but obtaining residence requires “significant wealth.”

Panama taxes only locally-earned income and requires a low level of investment from many foreigners applying for residency.

Dubai allows 100 percent foreign owned companies to operate in its several free zones, while there is no corporation tax or residents’ income tax.

EU citizens do not require an investment to qualify for residency in Bulgaria, which has the lowest personal tax rates at ten percent, but non-Europeans must buy around $470,000 in government bonds.

The full rankings were:

1 — Bahamas

2 — Andorra

3 — Monaco

4 — Bulgaria

5 — Panama

6 — Mauritius

7 — United Arab Emirates — Dubai

8 — Guernsey

9 — Cayman Islands

10 — Switzerland