A Tiny Offshore Powerhouse

Wednesday, March 30, 2005
The Principality of Liechtenstein

Dear International Living Reader,

Last year I made my first visit to the Principality of Liechtenstein, a little known nation that is one of the world's richest per capita (population: 34,000).

Driving from Zurich, Switzerland (less than an hour away), all I saw was a road sign indicating a turn into this tiny, 62-square-mile nation. There were no police, no customs officers, no armed guards, none of the officious obstacles one usually must suffer at an international border.

The very private people here want things low key. Yet foreigners "in the know" realize this is a financial powerhouse among nations; a constitutional monarchy that has graced the map of Europe since 1719 and that, in the last 60 years, has transformed itself into a world-class tax and asset protection haven. They prefer to keep it secret, but here's where the world's truly wealthy quietly do a lot of business.

And with good reason.

Liechtenstein boasts some of the world's strongest banking secrecy and financial privacy laws. Plus it offers world banking and investment direct access through its cooperative neighbor, Switzerland. The two have had a joint customs and monetary union since 1924.

Then there are those unique asset protection entities; Liechtenstein was a pioneer in adopting offshore asset protection laws way back in the 1920s. It created the family foundation, now being copied worldwide.

This tiny, powerful nation sets the pace for other havens, offering specialized trusts and corporate entities available only here.

A popular travel guide advises haughtily: "Nod off and you might miss Liechtenstein; it's more akin to a big ski run than a regular European country." But spend time in this delightful place, as I did, and you soon learn this is a proud nation, its people acutely aware and protective of their position. And it's home to billions of Swiss francs, U.S. dollars, euros, and any other national currency you may wish to bank discreetly.

In spite of enormous outside pressure, Liechtenstein has refused to dilute its financial privacy laws to appease demands for tax information exchange. That, and an established history of excellent asset protection and private banking, are major reasons why this tiny Alpine redoubt is one of our top choices for offshore finance and estate planning. (The Sovereign Society, IL's sister organization, has a private banking partner here for our members' use.)

Liechtenstein may be just what you have been looking for: an offshore tax haven that welcomes you--and keeps your confidences.

Bob Bauman
For International Living

Editor's Note: Bob Bauman is legal counsel for The Sovereign Society and editor of The Sovereign Society's Offshore A-Letter, a free daily e-letter service. In "Where to Stash Your Cash Legally: The Insider's Guide to the Best Offshore Havens of the World," Bob details why offshore investing is more than just a parking place for the wealth you've created. It's a powerful and prestigious tool that will allow you to sleep easier, knowing that your financial future is safe, sound, and absolutely secure.