Hello all,

I have a question that I hope does not offend anybody.
I work for a large multinational in Dublin and have recently been asked if I would be interested in a role in Zug.
I am on a salary of €90k in Dublin what would that equate to in Zug, I am aware that I would have to allow for commutes and a small apartment. My wife and 3 girls would stay in Dublin and so I would have to factor that in to the equation. Although my salary in Dub may sound high when the 56% of taxes and relatively high cost of living are allowed for, we do not have a high disposable income.

Any thoughts would be greatly appreciated.

Thanks
Rg

You should search before you ask all the old questions again

Salaries in Switzerland - These and other questions answered before you ask!

General Info / Cost of living / Consequences of Unpaid Bills / EF Library

Thanks, but I did search and while there is info in your links I was looking for help with the specific questions asked

Doing a rough calculation based on what my company pays here versus in Ireland, your €90k would be around CHF170k. There are other factors that would need to be taken into account - location (Zug is an expensive location so should pay more than others) the industry, your role etc

Instead of Drive by Groaning, maybe Kay Cee would like to add something that has not already been discussed on the Forum?

Have you considered the tax situation? Some countries tax the world wide income, and perhaps your big salary here would attract a big taxation in Dublin.

One you are no longer resident in Ireland for tax purposes there is no Irish tax payable on income earned outside Ireland. When calculating your Zug tax liability don't
forget to include all deductions ( equivalent of PRSI etc) which add around 12% to the "tax".

Have considered this, Ireland being part of EU has a double taxation agreement with CH for income tax purposes.
Hope I don't come across as a kn&b because I haven't a clue what salary I will be offered, it may be lower than IE. I just want to have an idea as to how much I should expect to be offered in CH.

Thank you for all replies

Rg

For how long are you willing to be without your family? Is it a short term position, where you will learn new skills and go back home with a promotion, or is it a long term situation?
With your family back home, you will have high costs. Double residence, travel costs, multiple insurances. Would u consider taking your family? Especially if ur company wil cover some or all costs, it can be a great experience for all.

I'd be a bit wary about accepting this offer, may not make financial sense, especially if company in Zug is not helping with travel back and forth to Ireland and accommodation costs (could be >1000CHF per month for one bedroomed place). You may end up paying about 25 -30% of your Swiss salary in pension, and tax contributions. Another question is health insurance approx. 250CHF per month. and then not to be dismissed is the emotional toll, if it is a temporary position then not too bad, but having 4 years ago decided to do something similar we are trying to change our situation now and it’s not easy...Living away from your spouse during the week can lead to a build-up of stress and over time expectations of each other’s roles can change, it’s not sudden, just creeps up on you, not to mention you will get tired of all the travel back and forth.

Thanks Orla and Lilith,

At the moment the the idea is to commute, but I am not 100%.
I really appreciate the feedback.
@ Orla. Do your your partner commute each week ?

Unless he is staying resident, which he will be as his family, house, car, dog etc all reside in Ireland, as will he every weekend.

Zug costs around 30- 20% more than Dublin in my experience, more obviously if you come with family. I think alone you would need over 100k to live comfortably given the commuting costs.

Tax residency hinges on time actually spent in the juridiction, residency of other family members is not relevant in Ireland. Actually, if you spend so much time in Ireland that you end up remaining resident and liable for Irish tax while having to pay living costs in Switzerland, you would need extra compensation. The main advantage of living in Zug is lower tax.

He will be ordinarily resident in Ireland, at least for some time.
http://www.revenue.ie/en/tax/it/leaflets/res1.html

In the UK, the day you leave/arrive is also counted as residency.
So if you arrive on a Friday evening, you are resident for Friday, don't know about Ireland.

In any case, the OP needs a bit of professional advice on this.

Return Guide, you should check the cost of flights out on a Friday night and Monday morning.

Don't fall into the trap of thinking a low tax rate means less expense in the long run. If you are resident in Zug there are loads of "hidden"" costs attached to everything from tv, health/ house/ car/xxx etc. insurance, a little tax on this, a contract you can't get out of for that, a fine here, another there.
At least as you are you know all your tax deductables, allowances etc.
Splitting your life and family in two will cost you a lot of research, reading small print, headaches, costly little mistakes and accountant's fees.
Now if you got a really huge salary or were a millionaire it would probably be worth it!
If not I'd study and listen really hard to (nearly )everybody on here!

Thank you all, some really useful pointers.
I have yet to finalise the terms of the role in Zug but it will have to cover house in Dub, apartment in Zug, health insurance for family in Dub & me in Zug, transport in both countries and day to day living expenses for family and myself.
Is there anything else I am missing because I am starting to think that it will be a massive undertaking.
Anybody in the same boat at the moment?

I don't understand what you have written here.
Are you on an ex-pat deal in Ireland currently?

Sorry, I am Irish working in Dub but considering a role in Zug with my company.
I have meeting there early next month.I think HR will dazzle me with figures at the meeting so I am tring to get as much info as posssible beforehand.

if you're going to commute weekends then you shouldn't move to zug for anything less than 200k per annum