Switzerland is famous for being the original offshore tax haven. Aside from being technically landlocked, it is STILL an official tax haven and that’s the problem. Here’s five secrets the Swiss would prefer you didn’t know.
1. A Swiss bank account is not secret anymore. Executives from Swiss giant UBS operating out of their lakeside headquarters have been indicted by the US government for helping 17,000 high net worth US clients avoid taxes. It is also alleged that the US treasury has been secretly tracking transactions between Swiss financial institutions. Using tools designed to combat terrorism, they have apparently tapped into ‘remotegate’, a system used for international transaction clearances.
2. Switzerland is part of the EU Savings Tax Directive. What does this mean? It means if you are an EU citizen with a Swiss offshore bank account, the Swiss government will impose a 35% tax on interest or hand over account details to the home government.
3.Swiss banks, despite their good reputation, have frighteningly low cash reserves - much lower for example than most US banks. The US financial crisis was managed with a bailout. Due to the size of the banking industry relative to its economy, the Swiss government could not hope to finance such a bailout if a similar set of circumstances were to occur.
4. A Swiss bank account is expensive. Private banking starts upwards of 500,000 USD and the charges don’t make sense for anyone investing less than 1,000,000 USD. Wire transfers, stock purchases, currency trading, precious metals and other investments are all obtained at a premium in this notoriously expensive country.
5. Numbered bank accounts exist, but you have to turn up and identify yourself in Switzerland in person. The bank still has your name and details, and will turn them over if the authorities come after you.
Smart investors are fleeing Swiss banks in droves, and putting their money in cheaper, more confidential banks and countries. In a country that is tearing up all the rules by which it spent almost a century swearing, is this a surprise?
Fortunately, it is still possible to open a tax-neutral offshore bank account offshore bank account that will protect your privacy. It’s always a good idea to do you research before making a decision. To find out more about opening an offshore account, how it works, and if it’s the right option for you, visit http://www.capitalconservator.com
0 Comments:
Subscribe to:
Post Comments (Atom)
