Article Advise

submitted: Apr 11th 2008 | by: JosephBreckenburger | Total views: 2 | Word Count: 525 | |

In today's world the burden of taxes for those who have accumulated great wealth can be overwhelming causing them to seek out relief through offshore tax havens. The most famous tax haven and still one of the best for investors is Switzerland with Panama gaining a lot of ground in recent years.

Both countries offer a high level of security for both your financial and personal information, though in recent years, Panama has come to offer a higher level of security and anonymity. When opening a bank account in Switzerland, one must now provide such information as a social security number, whereas in Panama this information is not required.

Panama does not have MLAT treaties with other countries, except the United States in a limited capacity, and hence has a well deserved reputation for privacy in it's banking system. A tax offense may be serious business in other countries but Panama treats it as a minor offense. Switzerland, under enormous foreign pressure, has bowed down on tax investigations in recent times soiling their reputation slightly.

This is not to take away from Switzerland's mystique as a tax haven of choice. It is located in Europe, it was the first tax haven formed, it has a stable economy and government with neutral politics. In short it is the most secure place in the world to keep your money so long as you qualify to meet their requirements. With so many scams popping up in the Carribbean knowing your money is safe in a bank in Europe may be worth it even if their rules are more strict.

Most people really underestimate Panama thinking it is a third world country in Central America as such should not be trusted as a tax haven. Many first time visitors to Panama City are surprised to see the 50 and 60 floor banking buildings that are located there. They are quite a site to behold and there are a lot of them. What you won't find is Panama mentioned at the heart of a tax investigation as a place that gives up people's names. I challenge any reader to find a story where a Panama bank official has turned over lists of people using their bank like has happened in so many other jurisdictions.

Panama's rock solid banking secrecy laws are enforced under penalty of a prison term for offenders. They take their rule enforcement very seriously since they stand to lose billions in investment if they don't. The only case where banking secrecy is lifted in Panama is when it can be shown that a serious crime like drug dealing or money laundering has happened through their banking system. It is up to the reporting agency to file court action in Panama to get this information released.

For anyone who is looking to invest their money for legitimate reasons and want to reduce their tax burden both Panama and Switzerland are tested and true tax havens with many benefits on offer. Choose the tax haven that you are most comfortable with but remember, it's much less expensive to set up in Panama than Switzerland.

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