In Switzerland, taxes are levied on three different levels, as follows:
1. Swiss federal tax – comprising:
- Direct federal tax levied on the income of individuals and the net profit of legal entities
- Federal withholding tax (at source) levied on capital yields
- Stamp duty (tax levied on issue of securities);
- Value-added tax (standard rate 7.6 %).
2. Cantonal tax – comprising:
- Cantonal tax on the income and net wealth of individuals and on profits and capital of legal entities
- Tax on inheritance and gift tax.
3. Communal tax – comprising:
- Municipal taxes as a surcharge on local cantonal tax;
- Taxes on gains on real-estate.
Many people these days have assets held in, and income received from more than one country. This is as true for those retiring to Switzerland as it is for those working in Switzerland – whether working independently, for multinationals or even the UN and its umbrella organisations. When added to the assets you will accrue whilst in Switzerland, before long the situation can become somewhat complicated, and although initially on arrival your taxes are settled ‘at source’, it is still important to ensure you are not wasting tax planning opportunities simply through ignorance of the rules. In addition, inheritance tax (particularly for UK expatriates) is an area of increasing interest, especially given the somewhat confusing rules on losing UK domicile, (as opposed to residency). For those who want advice – whether pro-active international or national tax-planning, completion of a tax return or dealing with a complex issue arriving from holding assts in more than one country, we will be happy to introduce you to tax experts who can advise on the widest range of situations.
The following links, whilst not exhaustive, may be helpful as a first step
Contact Blackden Financial for further information
