tax haven

American  

noun

1. a foreign country or corporation used to avoid or reduce income taxes, especially by investors from another country.

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tax haven British  

noun

1. a country or state having a lower rate of taxation than elsewhere

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tax haven Cultural  

1. A place that levies very low taxes or none at all on foreigners.

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Monaco and various small Caribbean island nations are famous as tax havens.

Example Sentences

The term describes businesses that have their main operations and management based in China but are incorporated in another country, typically an offshore tax haven like the Caymans.

From The Wall Street Journal • Mar. 27, 2026

It is located on the Mediterranean coast, bordered on three sides by France, and is known for its casinos -- and as a tax haven boasting some of the world's most expensive real estate.

From Barron's • Feb. 10, 2026

It is not a tax haven for gringos, nor is it a “floating island of garbage”; it’s a gem that needs to be nurtured for generations to come.

From Los Angeles Times • Feb. 9, 2026

It’s not the Cayman Islands or Switzerland—a pure tax haven or hub of utmost bank secrecy—but simply a reliable place to do business.

From Slate • Feb. 5, 2025

The banking sector, with its partial "tax haven" status, also contributes substantially to the economy.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency