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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.

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.

Panama does not have any tax treaties with other governments except for the the United States which is only enforced in extreme cases. Since Panama has bearer share corporations without necessarily the true owner’s identity attached to the corporate documents proving a tax offense can be costly and difficult. Switzerland recently amended their tax treaties and with certain countries under foreign pressure to do so.

This should not deter you from choosing to bank in Switzerland though. Compared to the other offshore jurisdictions that you have to choose from, both Panama and Switzerland are still the best offshore companies for tax breaks. Most Swiss banks are long standing, well established facilities that provide a measure of protection for investors if for no other reason than the fact that they have a long business history of providing safe banking. With so many offshore scams popping up and stealing money from investors, the many people feel secure using Swiss banks because of the long history they provide.

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.

There are of course many other countries and jurisdictions available for you to establish an offshore banking account or an offshore incorporation. While many of these countries are also viewed as tax havens and top choices for investment, if you are looking for the best you should consider placing your investment into a facility that is located in a Switzerland or Panamanian jurisdiction. That way, you can rest assured that your money is in an established facility that will offer you the protection that your assets need.

Tags: Business Taxes