Tax havens are geographical areas that belong to a State in which the tax regime imposes lower tax burdens compared to other States in the world. In tax havens, more economic activities are usually carried out since the impuestos that exist there are smaller than in other places.
This has caused many people and companies to transfer their tax domicile there, because they will pay less taxes for those activities they do, losing less money.
As for the tax haven tax regime, we must mention that it is based mainly on not having to pay as many taxes as it usually happens in other countries in the world. This means that those people who have a lot of money or companies that bill a lot, do not have to pay so many taxes. In this way, people can save more money, and companies should not pay as much tax (so they have more benefits).
Instead, this type of tax regime helps both people and the country itself, as it attracts large fortunes and thus revives the economy. In addition, there is no strong transparency in the exchange of information, which is why criminal behavior may occur in terms of some financial practices that are managed there.
What tax havens exist?
Before mentioning some tax havens, we have to mention that in these countries there are laws that make currency exchange easier, due in part to their financial system (since they have legal impunity that protects foreign laws).
As for some of the best known tax havens, and according to IMF data, we find:
- Islas Caimán
- Bahamas Islands
- San Marino
- Madeira Island
- Among many others