Avoid Local regulations
Sometimes local regulations come as a hurdle to our business model. So We can host the website were doing a particular business is not illegal.
Save Money
Sometimes people host their website in different countries where hosting services are cheaper. The country you reside may exercise more tax on hosting service so you may opt for other countries. This usually happens in developing countries where they do not tax more on hosting service, unlike a developed country.
Security
Typically in developed countries hosting services are more secure than a developing country.