At the close of 2019, British journalist Oliver Bullough introduced his latest book, Moneyland, in Spain, prompting a discussion rarely front and center in mainstream news. The book argues that tax havens let a small segment of the world manipulate the financial rules of entire nations, quietly thriving while the rest of the world watches. This is not merely a tale of secrecy; it is a critique of how wealth can be parked and hidden beyond the reach of ordinary oversight.
In his examination, Bullough lays out a broad and often sobering view of cases tied to the fragility of whole economies. His goal is explicit: to answer why thieves and swindlers wield influence across global finance and how ordinary people end up bearing the cost. The message is a call to understand the mechanisms that shield illicit gains from scrutiny and accountability.
Daniel Vaccaro, a tax expert and professor at EAE Business School, notes that there is no single, clean list of tax havens. Some jurisdictions like Luxembourg or Ireland may be viewed differently depending on the lens of international bodies. He stresses the importance of distinguishing between uses that serve crime and money laundering and those that function as practical channels for commercial profits. The two uses are not the same, he insists. (Vaccaro, EAE Business School)
Tax havens are often imagined as isolated islands where criminals stash assets. In reality, the concept covers a broader landscape, including nations closer to the everyday imagination. Carmen Cámara, a professor of Fiscal and Tax Law at UDIMA, reminds us that traditional ideas of havens focus on minimal or zero taxation. Yet there are more nuanced examples, such as the Netherlands, Luxembourg, or Ireland, which offer preferential regimes or reduced rates that can attract corporate relocation. International bodies like the OECD and the European Union describe tax havens in terms of transparency and information sharing, making a lack of financial privacy a red flag for scrutiny. (Cámara, UDIMA)
Benja Anglès, a professor of Legal Studies at the Universitat Oberta de Catalunya (UOC), explains that tax havens also often feature little or no bank secrecy and favorable taxation, which can attract capital that wishes to stay outside public oversight. Such conditions make these locations attractive to those seeking to protect wealth beyond legitimate control. (Anglès, UOC)
Octavi Serra, a professor in the Economics department at the University of Girona, stresses the central role of multinational corporations in today’s global economy. In a world with financial freedom, he notes, headquarters are frequently located in countries with favorable tax regimes, whether or not those regimes are officially classified as havens. Decisions by these firms hinge not only on tax rates but also on legal certainty, economic outlooks, political stability, exchange rate fluctuations, and inflation expectations. (Serra, University of Girona)
The practice of channeling profits through havens has tangible effects on national economies. Cámara points out that many European companies, including a significant number of Spanish firms, operate subsidiaries in tax havens. This can erode the tax base and shift profits to territories with little or no taxation, reducing the resources available for public services and infrastructure. While some argue these moves are justified by business needs, Anglès cautions that the national costs—both in terms of revenue and competitive fairness—are real. (Cámara, Anglès)
As Serra observes, tax havens can create unfair competition, allowing a subset of firms to lower costs at the expense of others that operate under stricter regimes. The overall effect is a hollowing out of public coffers and distortions in the market. This tension underscores why many scholars see tax havens as a form of economic leverage that undermines broader social goals. (Serra)
Policy makers and international organizations have signaled a determination to curb these practices, yet progress often lags behind ambition. The UDIMA perspective notes that updating national lists of havens is essential to reflect current realities and ensure consistent enforcement. This ongoing evolution requires a mix of legislative changes and practical enforcement measures. (Cámara, UDIMA)
Legal experts like Anglès advocate for a multi-pronged approach, including judicial remedies against illicit activities such as tax fraud and money laundering, reinforced tax authority checks, and routine inspections. He also suggests encouraging repatriation of funds through reasonable amnesty programs that allow previously undisclosed capital to be taxed moving forward. While controversial in some circles, these ideas gain traction as potential tools to restore fiscal integrity. (Anglès)
Vaccaro argues for a balanced, comprehensive strategy, blending several criteria to trigger action. He cautions that some nations resist change, while others push for reform. What is needed, he concludes, is political courage and effective sanctions to ensure compliance. He notes that Spain still has work to do to align with the European Money Laundering Directive, highlighting the importance of timely transposition and implementation. (Vaccaro)