Top Tax Havens: Panama & Switzerland | Taxes

By JosephBreckenburger
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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.

Due to the high pressure from other countries, and tax treaties with certain countries, Switzerland has undergone changes in its banking policies and security laws. Panama however, does not have tax treaties with other countries and operates independently, so it is able to uphold the laws that it has in place.

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.

Though Panamanian banks do not have as long of a history as the Swiss, many people are so impressed with their level of bank secrecy laws and practices that they are willing to take a chance and invest their money in Panama instead. For those that are highly concerned about their tax information being exchanged with other agencies or authorities, Panama banks can provide the level of protection and anonymity that they are looking for.

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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