A tax haven is a country or region that offers low or no tax rates, making it attractive for individuals and businesses to relocate their financial assets. These jurisdictions often have strict privacy laws, allowing entities to keep their financial information confidential. This can lead to significant tax savings for those who take advantage of these favorable conditions. Many multinational corporations and wealthy individuals use tax havens to minimize their tax liabilities. Common examples of tax havens include places like Bermuda, Cayman Islands, and Luxembourg. While legal, the use of tax havens can raise ethical concerns and contribute to global tax avoidance issues.