Tax Haven
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A jurisdiction that offers very low or zero tax rates and financial secrecy to attract foreign individuals and businesses seeking to minimize their tax obligations.
## Tax Haven
A tax haven is a jurisdiction with extremely low or zero tax rates, minimal financial reporting requirements, and legal frameworks that attract foreign capital.
### Commonly Cited Tax Havens
| Jurisdiction | Personal Tax | Corporate Tax | Notes |
|-------------|-------------|---------------|-------|
| Cayman Islands | 0% | 0% | No direct taxes |
| British Virgin Islands | 0% | 0% | Popular for holding companies |
| Bermuda | 0% | 0% | Insurance industry hub |
| Monaco | 0% | 33.3% (on non-Monégasque income) | No personal income tax |
| UAE | 0% | 9% (above AED 375K) | Recent corporate tax introduction |
| Singapore | 0–22% | 17% | Low rates with incentives |
### OECD Response
The OECD's Base Erosion and Profit Shifting (BEPS) framework and the 15% global minimum tax (Pillar Two) aim to reduce the effectiveness of tax havens for large multinationals.
### Legal vs. Illegal
Using a tax haven for legitimate tax planning is legal (tax avoidance). Hiding income or assets to evade tax obligations is illegal (tax evasion).