What is a tax haven?

Generally, a tax haven is an offshore country that holds foreign business or individuals liable to little or no taxes in an economically and politically stable environment. Typically, business presence or residence in a tax haven is not necessary to benefit from their tax policies. These countries also disclose limited or no financial information to the foreign tax authorities.

The most popular tax haven countries include Andorra, Bahamas, Belize, Bermuda, British Virgin Islands, Cayman Islands, Channel Islands, Cook Islands, Hong Kong, Island of Jersey, Isle of Man, Lichtenstein, Mauritius, Monaco, Panama, St. Kitts and Nevis.