Hi All,

I have had some confusing responses to this question from 2 different accountants. I do not own any property in Switzerland. I do own a house in Canada. Do I have to declare my house in Canada, when I file my taxes in Zurich?



Cheers

You should do, and you will be taxed on the wealth. Then you can claim tax relief on the interest on the mortgage, and the maintenance of the house.

You could also save everyone a lot of work and not declare it.

Yes, you have to declare it -- it will form part of the value used to determine your wealth tax. In calculating the value, they will deduct the outstanding balance on the mortgage (and your mortgage interest is deductible, too).

Thank you for your quick responses. Not really the answer I was hoping for.

I wouldn't worry too much. Everyone seems incredibly concerned about wealth tax, but the burden (against the backdrop of overall taxation) isn't that large.

Here’s a presentation that gives a reasonable overview of Swiss taxes, in English. Note that slide 11, is quoted permille (‰), not percent (%).

Even if your house in Canada is worth CHF 1million and is fully paid off, the wealth tax would only amount to CHF2'000 a year.

Good to know, thank you for the link to the P.P. Presentation, good info there.

Nice to have the facts before you get into the paperwork.

That statement is rather missleading as it depends on where you live, in Geneva it's 5270 CHF & in Wollerau 910 CHF, the 2000 figure is close to the rate in Zurich of 2060 CHF Thats also assuming your other assets have a value of Zero.
Best FMF

A boy from way back.. one of the clever old timers..

Richard said this a few years ago:

How to do your tax return Kt ZH

Yes, you should declate it. You don't want to get caught out by the tax man. In addition to the wealth tax you will also be taxed on the rental income of your overseas property, regardless if it's actually rented out or not. The calculated, or actual, rental amount is added to your annual income, to be taxed accordingly.

OP is from Zurich, according to her profile, which is why i used those rates. Made a few assumptions, but the point is that many people fret ovet wealth tax when, in the grand scheme of things, it's not a major factor.

Are you sure thats true for non Swiss properties? Where does the assumed rental value come from?
Thanks FMF

I believe they derive it from the purchase/insured value. Yes, it's true. On the other hand you can write off all mortgage interest payments and related costs.

Since insurance is totally optional & it's to do with the cost of rebuilding, which has nothing to do with the cost of purchase which could be far more or in many cases less than the cost of replacement.
The purchase cost again has no connection with current value, if it was bought 30 years ago or in many cases 4 years ago.

It's the first time I have heard of this for foreign property, which is why I am asking the question.

Thanks FMF

hi all,
recently moved here..
what if i do not file my taxes for 2011?

do you

• have a c permit
• earn over 120,000chf
• own property in switzerland

if you answer yes to any of the above then file,
if all are no then dont file.

Thanks..answered my question.

the other option is: sell your house. problem solved.