tax haven means a country that offers foreign individuals and/or companies a minimum tax rate in a politically and economically stable environment, with little or no need to share all tax and financial information with tax authorities foreign.
Tax havens do not require individuals to reside there, nor companies to operate outside their country of origin in order to benefit from local tax policies. Thanks to the globalization of business, a growing number of U.S. companies, including Microsoft, Apple and Alphabet, are moving capital to offshore tax havens to minimize corporate taxes.
The tax haven status benefits the host country, as well as companies and individuals offering services related to accounting and legal departments. Tax havens benefit from capital flowing into its banks and financial institutions, which can provide a thriving base for the domestic financial sector. Individuals and companies instead benefit from a tax saving due to tax rates ranging from zero to very low compared to the relatively high taxes applied in the countries of origin.
Among the best-known financial havens we find Andorra, Bahamas, Belize, Bermuda, British Virgin Islands, Cayman Islands, Manche Islands, Cook Islands, Hong Kong, Isle of Man, Mauritius, Lichtenstein, Monaco, Panama and St. Kitts and Nevis.
