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 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 is not to mean that Switzerland is no longer a tax haven because it still is one of the best. Having an offshore destination in a country in Europe with the stability that it offers as well as a long and storied reputation is quite a draw for many people. Most Swiss banks have been around for a long time and are well established and knowledgeable about what they do. They are a "safe" tax haven choice. The security that a Swiss bank can offer is hard to duplicate anywhere else in the world currently.

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!

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.