TAX HAVEN

Country or jurisdiction that is stable politically and economically, hence offering little or no tax liability to entities. They are not obliged to give financial information to foreign tax authorities. For them to attract businesses, tax havens must have reputable banks and exist in regions with low tax rates. Individuals and businesses not residing in a tax haven can take advantage of its tax regimes to avoid paying taxes in their home country. An individual is not also obliged to reside in or run a business out of that nation to benefit from its tax policies.