Tax havens are countries or territories that offer favorable tax rates and regulations to individuals and businesses seeking to minimize their tax liability.

Tax havens typically have low or no income taxes, no or minimal capital gains taxes, and strict banking secrecy laws that protect the privacy of account holders.

Some tax havens also offer other advantages, such as a stable political and economic environment, a well-developed financial infrastructure, and access to international markets.

However, tax havens can also be associated with negative impacts, such as facilitating tax evasion and money laundering, and contributing to global inequality by enabling the wealthy to avoid paying their fair share of taxes.

Many countries and international organizations have taken steps to crack down on tax havens and improve tax transparency and compliance.