Are you familiar with tax havens? A tax haven is a location were there are certain taxes levied at low rates or not at all. These locations can be a country, state, city, or territory and along with the lower rate of certain taxes they offer due process, low corruptions, and respectable governance.

Many people and corporations will be enticed to move their operations to these locations that offer little to no taxes. Of course this fact leads to governments being forced into competing in taxes. The various locations are not all havens for the same types of taxes though. The types of taxes required will depend on the classifications of the people or corporation.

A tax haven has no real definition, but it does come down to these 5 things:

1. No or reduced rate in taxes
2. No exchange of tax information with foreign authorities.
3. No transparent operating in legal and/or administrative provisions.
4. No requirement for a local presence.
5. Allows for self-promoting as being an offshore financial center.

The first real tax haven according to many is Sweden.  The Swiss banks have been used by many people who were leaving social upheaval in Germany, Russia, South America, and other places.  Now tax haven areas are focusing more on enticing businesses and companies.