Tax havens are countries in which tax advantages are offered, usually to foreigners or non-residents through the creation of offshore companies or other entities.
The US is the world’s largest tax haven! Non-US persons earn US bank and insurance interest tax free and pay no tax on capital gains from securities. Tens of thousands of foreigners use Delaware LLCs as tax-free foreign companies.
Some countries, such as Panamá or Uruguay, are also considered tax havens simply because they only levy tax on a territorial basis. This means that any income generated outside their country is tax free even for their own citizens.
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