OECD's definition of Tax havens are in short
- Refusal to disclose information to foreign authorities
A country belonging to the so-called "Black List" is becoming increasingly troublesome, which now holds a total of 25 different countries.
Many great powers now put a serious effort to stop bank secrecy in the designated countries. In Europe, France and Britain are in charge to change the behavior of these banks in the 25 remaining countries, and the U.S. puts severe pressure to change.
The three well-known tax havens in Europe, Andorra, Liechtenstein and Monaco are all on their way to adapt to the OECD and the EU's rules and regulations.
However, there are many countries both within and outside the EU with different tax structures that have gained competitive advantage and increased its attractiveness for business start-ups. Tax structures that are accepted by different countries' tax authorities and thus are able to see a bright future.
Here are countries such as Cyprus, Malta, Russia, China, Latvia, USA and United Arab Emirates to name a few, and all constructed so-called free economic zones.
Here, you as an entrepreneur and an employee can receive long-term contracts often over many years with tax-levels down to zero percent, minimal bureaucracy and simplified regulatory framework for imports - exports.
The free economic zones have been proved to be very effective and a way to attract future jobs. Of course, it is also a way for many countries to cope with the increased global competition, because these structures improve the condition for business.
Even in Sweden, there are rumors of the introduction of free economic zones as a tool to stop companies from moving to low cost countries, especially for places that are dependent on manufacturing.
Tony Harken