What Is an Offshore Tax Haven?
An offshore tax haven is location that has tax laws that are more favorable than the location in which a person or company currently resides. These locations typically have some combination of an anonymous banking system, low or non-existent income tax and avoidance of large international trade agreements. In order to utilize these locations, a person or business will occasionally need to move official residence to that location. The actual location of the person or business often doesn’t need to change, just the location on paper.
An offshore tax haven is location that has tax laws that are more favorable than the location in which a person or company currently resides. These locations typically have some combination of an anonymous banking system, low or non-existent income tax and avoidance of large international trade agreements. In order to utilize these locations, a person or business will occasionally need to move official residence to that location. The actual location of the person or business often doesn’t need to change, just the location on paper. Exactly what constitutes and offshore tax haven is a tricky subject. By its strict definition, offshore is any location outside a home country. In most cases, this isn’t what offshore means in this context. In this case, offshore refers only to those places where international policy and agreement don’t have much power. These locations are large enough to have a stable government and banking system, but small enough that they are overlooked in matters of int
