Offshore Tax Havens: Panama vs Switzerland
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by: JosephBreckenburger
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Word Count: 484
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.
Panama and Switzerland are both great at gaurding your personal and financial data since the reputations they have built are literally worth billions of dollars to uphold. Since Switzerland has tightened it's restrictions and now requires a larger investment Panama has picked up the slack from the mid sized and smaller businesses since they do not have the capital requirements that Switzerland does.
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.
Panamanian banks do provide a higher level of asset protection, if only for the fact that they operate without any tax treaties from other countries and will not release an individuals information. The only case of bank secrecy being lifted in Panama is in the case of a severe criminal investigation, and even then the agency looking to lift the secrecy will have to make a strong case and go through the proper channels.
There are many tax havens in the world you can choose to utilize the best available in the world today both in reputation and through enforcement of their rules is Panama. This author still likes Switzerland as well due to it's long standing in the tax haven business as well as it's relative security as a major player in Europe. In any event both of these places offer the legitimate investor numerous ways to mitigate their tax burden.
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Learn information about the tax haven of Switzerland or protecting your assets offshore at the author's website.
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