          
          
          
          CAMPIONE: LITTLE KNOWN TAX-FREE BACKDOOR TO SWITZERLAND
          
          
               Campione, on the shores of Lake Lugano, is
          distinguished by its very uniqueness.  It is a little
          piece of Italian soil, completely surrounded by
          Switzerland.  There are no border controls so there is
          complete freedom to pass in and out of Campione.  It is
          located in the Swiss Canton of Ticino, about 16 miles
          from the Italian border, and 5 miles from Lugano by
          road.  It has about 2000 inhabitants.
               Campione belongs economically to Switzerland, and
          uses Swiss banks and governmental facilities such as
          post office, telephone, telegraph, and traffic laws. 
          Cars registered in Campione bear Swiss license plates.
               Unlike Switzerland, there is no problem for
          foreigners in obtaining residence rights in Campione,
          so the enclave is enjoying a sudden popularity with
          people looking for a way to obtain Swiss residence. 
          Having a house or apartment in Campione is all that is
          necessary to obtain a residence permit in Campione,
          although the local authorities do require that
          registered residents spend at least some time in
          Campione.
               The lack of border controls gives Campione
          residents totally unrestricted access to all of
          Switzerland and Liechtenstein, so it can be a most
          valuable European executive base.
               Besides its residence attraction, the enclave is
          also gaining in popularity because it has a unique tax
          haven status.  Although part of Italy and subject to
          Italian law, there are special tax requirements for
          Campione.  There is no personal income tax and no
          municipal tax as all of Campione's income is raised
          from the operation of a municipal casino.  Campione
          residents are not subject to Switzerland's many double
          taxation agreements with such countries as Canada, the
          U.S. and most of western Europe.
               Companies formed in Campione have many advantages
          over Swiss companies, as they are able to use Swiss
          banking facilities, have a mailing address that appears
          Swiss, but not be subject to Switzerland's relatively
          high income and withholding taxes.  Company law is the
          same as in Italy, and a corporation can be formed with
          a minimum capitalization of about $1000.  Company
          formation takes longer than in Switzerland, but unlike
          Switzerland, a Campione company can be entirely owned
          and directed by foreigners.  The formation work is
          usually handled by Italian lawyers in Milan, and the
          fees are modest, since this is not a special or complex
          matter.  The personal and company tax exemptions do not
          apply if the resident is doing business with Italy, but
          business with Italy can readily be done through a Swiss
          or Liechtenstein corporation as an intermediary.
               Foreigners may buy real estate in Campione without
          restrictions, unlike Switzerland, so acquisition of a
          site in Campione for a European regional headquarters
          is readily carried out with minimal red tape.  Demand
          for real estate in Campione has pushed prices well
          above the level or surrounding Ticino.  As a part of
          Italy, the European Community regulations apply to
          businesses, and this includes such things as the right
          to establish a business and residence by any citizen of
          another EC country.
               The official language is of course Italian, and
          the enclave is in the Italian speaking portion of
          Switzerland.  Many international schools are located in
          Switzerland, so school arrangements for children of
          transferred executives can be easily made.
               The recent referendum in which Swiss voters
          rejected an affiliation with the European Community
          means that Campione will continue to have its special
          value for sometime to come.  Without the free access to
          Switzerland that EC affiliation would have provided,
          the backdoor route via Campione will continue.  
               There are many recreation facilities in the
          immediate area, including golf, ski resorts, and water
          sports.  Milan, and all of its cultural attractions, is
          only an hour away.
               Campione's unique status has its origins in the
          Thirteenth Century when the village and its territory
          were presented by the Lord of Campione to the Church of
          St. Ambrosius of Milan.  This feudal property survived
          European upheavals and remained secure to the end of
          the 18th Century, and then joined the new Cisalpine
          Republic.  Afterwards Campione fell into Austria's
          hands for a short period and was finally incorporated
          into the new Kingdom of Italy.
               It is one of the world's most unique, and least-
          known, tax havens, and a most attractive base for
          companies looking for a regional headquarters in
          Europe.  It is also one of the most expensive tax
          havens for real estate, because there is so little of
          it.  Apartments will range from $2500 to $3500 per
          square yard, and you usually pay the broker a 3% buying
          commission on top of that (the seller also pays 3%).
               Getting started in Campione is much more difficult
          than in other tax havens, because the enclave is not
          promoting itself, and there is no central office of
          information to which one can turn for instant
          literature.  You are not unwelcome, but nobody is going
          to go out of their way to let you in on this secret
          haven.  So there are no promoters or agents that you
          can write to in advance to send you packets of nice
          brochures.
               The only effective way to establish in Campione is
          to make a personal visit and spend time talking to
          people.  Even the real estate brokers are not
          particularly interested in whether or not they get your
          business, and may not answer your letters.  At the
          Campione end they may not think you are serious until
          you arrive.
               Campione is such an interesting place that a
          European publisher has devoted a whole book to it.  The
          Campione Report is available from Scope International
          Ltd., Box AS125. Forestside House, Forestside, Rowlands
          Castle, Hants., PO9 6EE, Great Britain.  The price by
          air courier is $125 (be sure to give a street address
          for delivery) or by book rate surface mail it is $100. 
          If you'd like more information first, ask Scope for
          their free catalog of international reports.
          
          
          
          
          
