Tax Haven

Description of Tax Haven. Explanation.

Definition Tax Haven. Description.

A corporate Tax Haven is a country or region that has a friendly tax regime or even imposes no tax at all. The Cayman Islands, Bermuda, Luxembourg and Switzerland are well known examples.

On top of their low tax burden, these countries usually also offer less regulation and lots of privacy. Companies often form one or more special legal entities such as a trust, an offshore company, or a foundation in the tax avoidance process.

Compare with: Special Purpose Vehicle

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End of description Tax Haven. An explanation.