how does a nation benefit from being a tax haven 
the tax havens benefit when their financial institutions bring in a vast amount of money that money is then invested for profit plus even the very low fees charged for offshore accounts add up nicely according to a study by the internal revenue service u s households hold about 4 trillion in overseas accounts about half of it in countries normally considered tax havens 13the bottom linetax havens are jurisdictions that attract foreign investors with comparatively low tax burdens or bank reporting requirements these countries and territories have become attractive destinations for foreign capital while they are not inherently illegal a person who banks or invests in a tax haven may be violating the laws of their home country 