| Tax Havens Are Not
All Created Equal |
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| Tax Havens - Where & What? |
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| We are so used to hearing about
Caribbean tax havens that many of us assume that all the tax havens of
the world are either in the Caribbean or on a sheep infested rock off the
coast of the UK. It is true that we do know of some pretty exotic tax haven
hide-a-ways in the Caribbean basin and it is equally true that more and
more Americans are leaving America for such destinations, but it isn’t
true that the Caribbean and the UK contain the only tax-havens. We have
a list of numerous destinations that qualify as tax havens to one degree
or another, any one of which would make a good destination for the American
or Brit expatriate looking afield for a good place to live and work or
stash their assets. The growing proliferation of Free
Trade Zones in many places allows a defacto form of tax haven,
in that we can earn a tax-free living in such places and still take advantage
of the bargain real estate along with a higher income. Tax havens come
in all shapes and sizes and most of them seem exotic, but they actually
make good places to live. Some are affordable and some are exclusive enclaves
of the wealthy. It’s good to hear about them and it’s good to know how
to get to them if we decide to go. |
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| However I'm going to tell you about
a different kind of tax haven. A very special city, village actually, in
the heart of Europe... it's what I would call a pure haven; I know of only
one other place like it and that is the special tax status haven of Andorra
in the Pyrenees - |
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| Campione D’Italia |
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| The first pure haven I remember
reading about was Campione D’Italia, a village sized city on the shores
of Lake Lugano in Switzerland and the first person I ever heard write or
talk about Campione was Harry Schultz, publisher of the Harry
Schultz International Newsletter. Harry Schultz was the only one around
at that time who was using the then uncommon word, 'international' when
he spoke, and he was also the only one who was writing for an American
audience who seemed to know all of the offshore secrets, and he knew scores
of them. He was years ahead of almost everyone else in writing about
asset protection and he was the first to write about offshore investing.
Harry has been publishing his newsletter for 41 years and it still very
much garners the respect of most of the current lineup of hotshot investment
guru's. |
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| An Anomoly — As Cities Go |
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| I very much recall being fascinated
with the anomalous nature of Campione D’Italia; perhaps even somewhat amazed
that such a place could actually exist. |
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| When we take the time to look at
a map
of Lake Lugano, a lake which is located partly in Italy, between lakes
Maggiore and Como, and partly in the canton of Ticino, we will see that
the Swiss city of Lugano is located on the shores of Lake Lugano some distance
away from the Italian border. Yet, directly across the lake from the city
of Lugano is an Italian city. That city is Campione D’Italia and it is
entirely inside the borders of Switzerland, surrounded on all sides by
Switzerland and even at its closest point almost twenty miles away from
Italy itself.
Yet, Campione is part of Italy. |
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| How Did Campione Become Part
Of Italy |
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| Some 13 centuries ago in the year
787 CE, that area of Lake Lugano was ruled by a man who so appreciated
the craftsmanship of the Milanese designers, that he ceded the site of
Campione to the church of San Ambrogio in Milan. Since that date, Switzerland
has complied with this unique grant.* Which means that today, happily situated
within the country of Switzerland is an Italian city that is subject to
Italian law—with some rather interesting exceptions. |
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| Italy... except... |
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| Campione's unique status creates
some very unique opportunities. Switzerland does not as a rule grant residency
to anyone who is not Swiss. Additionally, Swiss taxes are relatively high.
In Campione, foreigners have no problem gaining residency. Campione, although
part of Italy, has no personal income or municipal taxes. Nor is Campione
subject to any of Switzerland’s agreements with the United States and Canada
regarding income tax. |
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| Swiss Franc Better Than The EURO |
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 Campione
has the best of both worlds. While it is Italian, it uses Swiss banks,
Swiss post offices and mailing systems, Swiss telephone companies, telephone
numbers and telephone systems, as well as Swiss telegraph.** Car plates
are not Italian, but Swiss. ..and did we mention that the Swiss Franc is
better than the EURO as an investment medium? Be informed that it
is. Everything that is good about Switzerland and everything that is good
about Italy live inside the city of Campione without any of the concomitant
negatives. There are no borders, no border guards, yet when we enter the
city of Campione, we enter Italy. |
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| Campione The Virtual City |
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| When we form a company in Campione,
we have all the advantages of being 'virtually' located in Switzerland.
Switzerland appears on our letterhead, our telephone number is a Swiss
number, we can walk into a Swiss bank and perform any normal business function;
yet our company is formed with a minimum of capitalization in Milan. There
is nothing complex about our corporation, it is not exotic, however by
nature of the fact that our residence is in Campione, we can operate tax
free, unless we are doing business inside of Italy rather than globally.
If we did choose to include Italy within the scope of our business dealings,
we would then simply use a Swiss or Liechtenstein corporation as an intermediary
for those parts of our global interactions that were Italian and thereby
avoid Italian taxation. |
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| Real Estate In Campione |
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| Foreigners can purchase real estate
without restriction in Campione. Residency is a simple matter, especially
when compared to Switzerland. Unfortunately, for most of us, Campione is
the most expensive tax haven in the world. Real estate in Campione is almost
on a par with Tokyo. It is a prosperous place filled with prosperous people,
(as befits a lovely lakefront City that does not endure the heavy hand
of government intervention into its business affairs.) Unless we are extremely
wealthy we probably shouldn’t bother to consider Campione as a potential
residence. If we feel we are wealthy enough, then we might consider visiting
Campione and spending some time there. |
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| Campione is 15 minutes from Lugano
airport by car, 60 minutes from Milan Malpensa airport, and 90 minutes
from Milan Linate airport. There is one road for vehicles entering the
village and one road out for vehicles leaving Campione, either/or. There
are many footpaths in and out of Campione, it's a walkers paradise, and
also many mooring points for boats on the lake shore. The Swiss ferry service
on Lake Lugano stops at Campione and there is a bus service that links
Campione and the two neighbouring Swiss villages, Bissone and Melide, with
Lugano. |
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| Language & Culture Of Campione |
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| ...and the Casinò
di Campione |
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 The
language in Campione and Lugano is predominantly Italian. Most Swiss speak
more than one language, often several languages, so it is usually relativity
easy to find someone who can answer our questions; however to live there
as a full time resident would probably necessitate our learning Italian.
Children of Campione residents go to Swiss schools, and they live in a
crime free environment. Anyone can find numerous sporting activities in
proximity to Campione; golf, tennis, fishing, skiing, hiking, sailing,
and if we are so inclined, sporting nights at the Casino. Add to that;
we are only an hour away by freeway from Milan. My Campione telephone directory
lists numerous fine restaurants, stores and other services just minutes
away by boat in the City of Lugano, the third most important financial
centre in Switzerland, so even though Campione is only a small village
with a small population it’s not isolated. Within Campione is the Casinò
di Campione, which is run by the municipality of Campione itself. This
lakefront Casino has great restaurants and world class entertainment. The
revenue raised by the Casinò di Campione are what provides the citizens
of Campione with their municipal services; that is why they have no taxes. |
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| Climate & Local Color |
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| Another one of the secrets of Campione
is the freak Mediterranean type climate found on the shores of Lake Lugano.
Lake Lugano is 985' (300m) above sea level. Campione’s white sand beach
with the small grove of tropical palm trees is open from early May until
somewhere in October. During this period the numerous swimming pools in
and around Campione are also in operation. The mountain and lake scenery
is breathtaking. The sub-Alpine climate and year round temperature is second
to none. In fact, the surrounding area is a Swiss health resort region.
The local weather is not nearly as cold as the rest of Switzerland. Seasonal
changes are mild and winds light to moderate. Visitors find the wild mountain
flowers of spring and summer, the spectacular splash of colour of autumn,
and the ambience of winter quite charming in Campione. It is also a fact
that many people find the city of Lugano to be the most pleasant city in
all Switzerland, which is good, because it's right across the water from
the most pleasant Italian city in Switzerland. |
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| Doesn’t it feel good to hear of
such a place? A village free of the common constraints imposed by governments.
Perhaps someday we will all deserve to be without governments. Perhaps
someday all the world will know the joyfulness of living in a village like
Campione D’Italia. We are hopeful. In the meantime, we have Campione
if we are rich enough to afford it; and if we are, we should be on the
next plane to Milan or Lugano. |
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| * It has also been stated that the
status of Campione d' Italia came about when Ticino chose to become part
of the Swiss Confederation in 1798, and Campione's people chose to remain
part of Lombardy, which subsequently became part of Italy in 1859. But
we believe this event is much after the fact. One might contact the church
of San Ambrogio in Milan for clarification. |
| **Campione actually has a Swiss
postal code and an Italian postal code, but most residents rarely use the
Italian code as post is then routed through the Italian system and the
Swiss system is more efficient. |
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