Discussions and conversations about tax saving are more or less inevitably linked to the topic of “tax havens”. At this point, the spirits often differ, because while one side views tax havens as a legitimate means of tax design, the other considers them morally reprehensible, sees tax evasion or a lack of connection to their own homeland. We look at what tax havens actually are, what practical advantages they offer and how the German legislature is trying to neutralize the latter again with the Tax Havens Defense Act (StAbwG).
1. What is a tax haven?
If you look at different countries and regions worldwide, you quickly realize that only a few of them have actually written the term “tax haven” on the flag. However, some countries advertise discreetly with tax advantages for certain professional groups and people. In recent years, digital nomads have benefited from a temporary tax exemption in Thailand, among others.
Individual benefits do not yet make up a real tax haven. Rather, it is usually several attributes that apply together to a territory and thus lead to the location becoming particularly attractive for tax purposes:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.