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At the moment, there are more than 40 locations in the world which offer considerable benefits for offshore companies as tax havens. Traditional tax havens are usually located on archipelagos (e.g. the British Virgin Islands), in island republics (e.g. the Republic of Nauru), or in small countries (e.g. Panama). The independent legislation of these countries and territories encourages foreign investors to establish companies on the given territory. In most serious offshore zones the operation of the companies, the security of foreign investment and the protection of secrets are guaranteed by a code of laws. (For instance, the legislature of the British Virgin Islands passed such a code of laws under the name of the International Business Companies Ordinance in 1984.) When encountering this topic for the first time it appears extremely difficult to differentiate between the advantages and disadvantages offered by the many small and possibly unknown countries. There are, however, a few factors which may help you find orientation.

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