What is a Tax haven? Tax havens are places that offer secrecy and where certain taxes are levied at a low rate or not at all.
Private Individuals and/or firms can find it attractive to move themselves to areas with lower tax rates and which offer secrecy. This creates a situation of tax competition among governments. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.
Different definitions of tax havens exist. According to one definition, the central feature of a haven is that its laws and other measures can be used to evade or avoid the tax laws or regulations of other jurisdictions.