How do the governments of tax havens make money?

Question

If individuals and companies don’t have to pay any tax how does the government make money for general upkeep of the national infrastructure and to pay government salaries?

In: Economics

Answer 1

Each country has its own tax code, so it is hard to generalize. One example country is the Bahamas. They have no income tax, or capital gains tax, but they do have property tax, import taxes, and VAT.