Turquoise waters, bountiful lobsters and unspoiled countryside—this is what the island of Sark is known for. Within sight of the French coast of Normandy, it’s popular with French and English tourists alike. Some 60,000 visitors come every year, either as day-trippers or to stay in one of the island’s historic hotels.

But what few people realize is that Sark is also one of Europe’s most attractive tax havens.

Despite having a permanent population of just 600, the island has its own parliament and governs virtually all its own affairs. Residents only pay a yearly property tax. Except for that, there is no requirement to disclose income or to even keep accounts.

It’s been like that since 1565, making this as politically stable a haven as they come. There is a strong lobby for sticking to tradition. For example, there is a ban on automobiles, as residents feel it’s healthier to walk or take a bicycle.

If you want to benefit from this gem of a tax haven, there is only one way in—buying property or getting a long-term leasehold; that is, buying the right to live in a property for a set period of time. This gets you on the land register, which in turn is the legal basis for claiming residency. Leaseholds can be sold and are the most common form of ownership for properties in Great Britain and its associated territories (such as the Channel Islands).

With just 220 properties, opportunities to become an actual resident are naturally in short supply. What’s even scarcer to find are historic properties that have been upgraded to modern standards.

I’ve been a resident of Sark since 2006 and know virtually every house on the island. If you’re interested in becoming a Sark resident, there is currently a rare opening to purchase one of the island’s most beautiful historic cottages. It’s the Clos de Jaon cottage (every property on the island has a name, usually in French), located near the island’s school and a few minutes’ walk from the small shopping street. It comes with a well-kept garden and a shed that doubles as potential guest wing.

As the new leaseholder of the cottage, you would have the opportunity to open a local bank account and become a tax resident. Once registered as resident, you can even run a business from Sark. The price for the cottage will depend on the length of the desired leasehold, but it should be somewhere around $400,000 for a 20-year lease (a 50-year leasehold is also available). It’s not just a property investment, but also a ticket to a life outside government coercion and taxes. What would that be worth?

For anyone considering France or England, Sark is a little-known option worth taking a second look at. Culturally, it’s a mixture of both countries. Tax-wise, it beats both of them hands down. Prices are on a par with London, but unlike the U.K.’s capital, there is an inbuilt scarcity factor that comes with these properties. As long as taxes keep rising in Europe, prices of real estate on Sark have much further to go—not least because this place is as good as Monaco but comes at a fraction of the price. In Monaco, free-standing houses are practically unavailable. On Sark you have a large garden and are surrounded by rolling fields.

The island is only reachable by boat, but a helicopter connection to the airport in Guernsey, the neighboring bigger island, is under discussion. There are also plans for a golf course.

Sark has one lawyer, who also specializes in immigration. Anyone wanting to find out more about the property can e-mail my neighbor, Stefan Gomoll.

For everyone else, do consider visiting Sark. The best time to come is in September; the crowds have left and the clear sea is at its warmest.

******************************************
IL Currency Corner

By Mary Anne and Pamela Aden

Last year was a rough one for the U.S. dollar. It hit an all time record low against some currencies. Anticipation of more easing by the Federal Reserve was the main reason why. That’s because everyone knows this will produce more dollars, further eroding the dollar’s value and it’s become a big worry.

But it’s important to recognize that no market goes straight up or straight down, and the U.S. dollar is not an exception. Even though it’s been on a downhill slope for decades, the dollar has dropped too far, too fast and it’s poised for an ongoing rebound rise.

In other words, it may come as a surprise to many investors that the U.S. dollar’s likely IL’s Currency Corner By Mary Anne and Pamela Aden headed even higher in the period ahead, despite all the negative fundamentals surrounding the dollar. That is, the major currencies will temporarily decline further.

If you haven’t yet ventured into these markets, this is providing a great opportunity to buy some of the stronger currencies at a better price. It’s a good time to get started by diversifying somewhat, rather than keeping all of your assets in U.S. dollars.

Mary Anne and Pamela Aden are well-known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. See here for more information.

Editor’s Note: This article was taken from a past issue of International Living’s monthly magazine. To get full access to all past and future articles and to receive the magazine in the mail or online each month, you can subscribe here.

Read more articles from our sample issue here.