Tax havens are defined to be countries, usually small land areas, with a little tax system, which makes foreigners choose to store money in that country in order to avoid paying the large amounts of money in taxes .
The first tax haven in the world was in the Cayman Islands where it took place an episode where the King of England for the time, was rescued by the inhabitants of the island.This King of England was happy to be saved from the death, so he decided that the island would not pay the taxes to Britain.With this proclamation, it was born the first tax haven, a new way to make the small countries without much attraction to become in important centers of collection of the foreign money.
At the present time the tax havens are considered by many governments as the enemy of the public finances, while the large businesses and the citizens of these havens, see the tax policy as a way of life.
At the present time the first tax haven in the world, in the Cayman Islands remains a major center for raising money.The island has more than 40.000 registered companies, and a population that exceeds the 400 thousand people, so you could say that for every 10 (ten) people there is a company.But companies are not the only actor in the economy, many investment also funds a high-risk, considered by some as speculative money have stored in the 580 (fifty eight thousand) banks that has the island.
The vast majority of the companies that have offices on the island, comes from the countries in the Americas, especially the country of the United States of America, the country with the largest number of companies registered in tax havens.
Liechtenstein is another small country with a major draw for the investors looking to save money and hide it from the public treasury.This principality, unlike the vast majority of the islander’s tax havens, is in the middle of the European continent, in a mountainous region without connection to the sea.The country is mainly permissive on the banking system, and the thousands of mutual funds that have its headquarters in the country.
One of the oldest banks in the region is owned by the royal family that rules the principality, the bank is considered as an important elite organization, responsible for saving money for important European families with fortunes unknown to the public.
The Cayman Islands are a major center for the country of the United States of America for the investment holding, but are not capturing the leader of the American business.The favorite American entrepreneurs paradise, are the Bahamas, often considered as the bank of most of the country of the United States of America companies.
The island has more than 300 (three hundred) banks around the country, who work hard to store billions of dollars from around the world, and has more than 58.000 registered in the judicial system of the Caribbean island companies.Each year, it has an increasing number of American entrepreneurs and investors who hide their money in this island nation, and was cited as a major tourist center for this powerful class with very profitable bank accounts.
Aruba is one of the Caribbean islands, considered as an important center of withholding money from the businesses and the international investors.The small island has more than 100.000 inhabitants, and about 3.000 registered companies in their judicial system, in addition to 17 (seventeen) banks, working to hide money from the Latin American and the European entrepreneurs.Although the island is not a big tax haven as the above already mentioned, it is considered a good place to hide the money, especially for the connection that has the island with the continent of Europe via the country of the Netherlands, and the connection with the Latin America continent due to its geographical position in the Caribbean.
Cyprus is another island paradise of the prosecutor, who in the recent years has been an important center of debate by the European authorities, this because the island is a favorite of the Russian investors, who came to the island tax haven, a secure paradise, close and of warm tax, to spend the holidays in the harsh Russian winters.The nation was hit hard by the year of 2009 crisis, but thanks to the rapid maneuvers of the authorities, the country remains a major center for raising the money abroad.
Today the island has more than 34 (thirty four) banks around the island, and 41.000 international companies are registered in the capital of the nation.
Although most tax havens are in the small islands with little international relevance, there are some most striking countries like the country of Luxembourg and the country of Ireland, which are known around the world for its intervention in the political system of the European community.
Luxembourg is a mecca for the diversion of funds around the world.The small European country has more than 50 (fifty) domestic banks that hide billions of dollars per day, over a thousand mutual and pension funds, which mostly perform a high-risk investments that can generate millions of dollars in the profits.As if this were not enough, the country has more than 10.000 international holding companies that operate in almost all sectors of the international economy, and to be the country of the European Union, it is much easier for international companies to enter the European market without paying the imposing European tax.
The country of Ireland is another European tax haven of great importance, but does not have the popularity that pampers the Luxembourg country.The nation has thousands of bank accounts on behalf of the international companies which mostly have its market in the country of England and in the nearby European countries; although the nation is becoming more popular with the United States of America investors at the time they see a chance to escape from the fiscal island.All of this because of the unpopularity that the island has as a tax haven.
In total, it is estimated that around the world there are billions of dollars hidden in tax havens, which may amount to the GDP of many developing countries.