With more wealth in the world today than any time in man’s history that means there are many people with crippling tax burdens who seek out the relief that can be found through the use of offshore tax havens. The best jurisdictions for investors today are Switzerland and Panama due to their rock solid banking secrecy laws and advantageous tax laws that encourage foreign investment.

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 will not lift their strict banking secrecy laws for just anyone who comes asking. It is up to the authorities to prove that a serious crime has been committed and hence the information must be released to stop this criminal activity. Serious offenses such as drug dealing or money laundering are not tolerated in Panama but tax offenses are not treated as serious. In any event the authorities must get a court order to have this information released, they cannot simply ask the bank to release it. They won’t!

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.