📈 U.S. Direct Investment in Tax Havens: $1.24 Trillion Funneled to Caribbean and Luxembourg

By 2023, 19% of total U.S. direct investment abroad was concentrated in Caribbean tax havens and Luxembourg, growing at an annual rate of 11.6% since the 1990s to reach $1.24 trillion. Of this, $711 billion was allocated to Caribbean tax havens and $532 billion to Luxembourg. Within the Caribbean, the largest recipients were the United Kingdom Caribbean islands ($399 billion) and Bermuda ($220 billion), followed by the Bahamas ($46 billion) and Barbados ($45 billion).

These jurisdictions offer secrecy laws, low or zero corporate tax rates, and regulatory loopholes that allow corporations to shift profits, avoid U.S. taxes, and obscure financial activities.