Tax Havens Don't Have Taxes. So How Do They Make Money? | Economics Explained

The video discusses the role of tax havens like the Cayman Islands and Panama, which attract shell corporations by offering no traditional taxes. Despite the lack of income, corporation, inheritance, capital gains, or gift taxes, these regions generate revenue through registration fees and work permits, leading to budget surpluses. The video highlights the economic significance of these alternative revenue sources for small economies.

What reputation do regions like the Cayman Islands and Panama have regarding taxation?

What impact do shell corporations have on the economies of tax havens?

What are some of the costs that companies incur when setting up in tax havens?

Why might a company find it worthwhile to pay fees in tax havens?

How do places like the Cayman Islands generate revenue despite having no traditional taxes?