Depending on who you believe (and how they define them), there are any number of “tax havens” in the world.

“Tax havens” are defined as financially attractive jurisdictions that impose low or no taxes. They also typically roll out the welcome mat for foreigners willing to invest, bank or do business there.

With all the pressure put on European tax havens such as Liechtenstein in recent years, , some folks seem to be looking for alternative havens - especially the ones you might call the “far-out tax havens.” Perhaps these adventuresome folks think they can run and hide, but my advice is to be very careful where you go.

For instance, in the last few months I’ve received several inquiries about the Republic of Vanuatu. My readers want to know if it could be a good place for their offshore banking, asset protection plans and estate planning.

I can hear you now — where in the world is Vanuatu? — assuming it is in this world.

Vanuatu is a tropical archipelago group of 80 islands (about 65 of them inhabited). These islands cover 12,200 sq km (slightly larger than Connecticut) in the South Pacific Ocean, about three-quarters of the way between Hawaii and Australia.

The capital city is Port-Vila (on the island of Efate). Some 215,446 people live there, split between English and French speakers.

The different languages reflect Vanuatu’s colonial heritage when it was known as The New Hebrides. Multiple waves of colonists migrated to the New Hebrides in the millennia preceding European exploration in the 18th century. The British and French, who settled there in the 19th century, agreed in 1906 to an Anglo-French Condominium, which administered the islands until independence in 1980. At that time, the new Republic of Vanuatu was born.

At its height, about 12,000 expatriates lived in the islands. But after Vanuatu declared its independence, only people of Vanuatu could own land there. Therefore the mainly French and British expat community shrank to less than 3000.

Today, the expat population is about 8000 and growing, with heavily taxed Australians and New Zealanders in particular finding the island’s lifestyle — and lack of taxes — to their liking.