Shareholders of certain companies pay less than 5 per cent tax and dividend income where the company holds less than one per cent of equity is usually not taxed.

Malta's economy is dependent on foreign trade, manufacturing - especially electronics and pharmaceuticals - and tourism.

Saint Lucia

This island between the Caribbean Sea and North Atlantic Ocean lies to the north of Trinidad and Tobago.

The island nation has been able to attract foreign business and investment, especially in its offshore banking and tourism industries.

Vanuatu

This Oceania group of islands in the South Pacific Ocean lies about three-quarters of the way from Hawaii to Australia.

Its financial services commissioner announced in May 2008 that his country would reform its laws so as to cease being a tax haven.

Fishing, offshore financial services, and tourism are other mainstays of the economy.

Image: Newly sworn-in President George Abela of Malta inspects an Armed Forces of Malta guard of honour outside the Presidential Palace in Valletta. | Photograph: Darrin Zammit Lupi/Reuters

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