Switzerland probably is the world’s most famous financial haven, and now holds about a third of the world’s wealth. But there’s a very unusual residential tax haven that’s right nearby, that could be even more useful to you depending on your personal situation. It’s a little lakeside enclave geographically surrounded by Switzerland — and it’s under Italian jurisdiction!

“Commune di Campione,” as the Italians call it, is located on the shores of beautiful Lake Lugano. This unique little haven is a little plot of Italian soil, completely surrounded by Swiss territory. There are no border controls and complete freedom of travel.

Home to about 3,000 people (including a thousand foreigners), Campione d’Italia is about 16 miles north of the Italian border. It’s also five miles by road from Lugano, Switzerland, and makes a beautiful scenic drive around the lake. I’m sure you’ll enjoy it as much as I have.

With no Campione border controls, there is complete freedom of transit. The village uses Swiss banks, currency, postal service, and telephone system. Even automobile license plates are Swiss. Strangely enough, because of ancient history and treaties, the enclave legally is part of the Republic of Italy territory.

Campione is a pleasant place to live. It’s located in the heart of one of the best Swiss and nearby Italian tourist areas. The region boasts lakes, winter sports and the cultural activities of Milan, Italy, only an hour away by car.

If you want to become an official resident, you just need to rent or buy property there, although formal registration is required. Unlike in Switzerland, foreigners can buy real estate there without restrictions. But real estate prices are well above those in surrounding Ticino. A small townhouse may cost US$750,000 or more. Condominiums range from US$5,500 to $6,500 per square meter, and broker fees add a 3% commission. The same apartment across the lake in Switzerland can easily cost half of what it costs in Campione.

Be careful buying there as a foreigner. This small real estate market is served by a few local real estate agents — and some of them operate without a license. If you’re interested in a residence in Campione and purchasing real estate, you should be represented by a competent lawyer from the beginning.

BOB BAUMAN, Legal Counsel

P.S. Interested in this tiny Italian haven? I have a full chapter all about Campione d’Italia in my new book, just published, Swiss Money Secrets. Click here to get the full details.