Switzerland Remains Top Tax Haven

by Ulrika Lomas, Tax-News.com, Brussels

24 January 2002

According to the publication Tax Havens and their Uses 2002, Switzerland remains the top tax haven for rich individuals. Just over one third of the US$3trillion of individual wealth estimated to have been held in tax havens in 2000 was looked after by Swiss-based wealth managers. The UK was the second most important centre for private offshore asset management, with 15 per cent of the total, while Caribbean havens jointly accounted for 10 per cent.

Tax havens have been under pressure on many fronts over the last year or two, accused of money laundering and endangering world financial stability. But Caroline Doggart, author of Tax Havens and the Uses, says tax havens responded by tightening banking and financial supervision and now have exemplary regulatory systems. "Tax havens are likely to see renewed growth in their share of the global investment industry," she says.

Wealth management was a go-go growth area for tax havens a couple of years ago when stock markets were booming, says the publication. Specialist units for family and individual asset management were all the rage among international banks, but many disappeared again by mid-2001 with the stock market downturn.

The publication reports rising prices for seaside property in such locations, from Macau to Mustique, and looks at the quality of life in tax havens that welcome individuals. Tax Havens and their Uses is published by the Economist Intelligence Unit and can be ordered from its online store, price GBP95.

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