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  #81  
Old 14.05.2015, 17:59
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Re: Low cost Investment Funds in Switzerland

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That is what I recommend and I've seen it recommended several times in the forum (or maybe I'm imagining it) simply because US brokers are just that much better (cheaper, more choice etc.).

In order to keep it legal, you probably just need to declare either the dividends and/or the capital gains that you realize in order to pay any taxes due in Switzerland. Do note that having U.S. equities, even as a foreign resident, you have to pay U.S. tax on the dividends (which is collected at source by the broker). At least if I remember.
Thank you for the answer.
I guess you need to declare your total wealth to the swiss authorities, since you pay the wealth tax. Yet, if I have only stocks/etf that do not distribute any dividend, do I have to declare anything?
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  #82  
Old 20.05.2015, 15:39
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Re: Low cost Investment Funds in Switzerland

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Thank you for the answer.
I guess you need to declare your total wealth to the swiss authorities, since you pay the wealth tax. Yet, if I have only stocks/etf that do not distribute any dividend, do I have to declare anything?
you should still declare which stocks you have and their cumulative value at year end if you want to be fully compliant. I guess you could put an entry with the name of the broker and the total value of the stocks but that might raise some questions and you may then have to show that none of the stocks spit out any dividends
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  #83  
Old 20.05.2015, 16:34
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Re: Low cost Investment Funds in Switzerland

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you should still declare which stocks you have and their cumulative value at year end if you want to be fully compliant. I guess you could put an entry with the name of the broker and the total value of the stocks but that might raise some questions and you may then have to show that none of the stocks spit out any dividends
Okay thank you.
I'm about to transfer to Geneva (from Italy) and in the middle of a process to understand if it's more convenient transfer to investments to a Swiss broker, keep them with my current one or other alternatives..
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  #84  
Old 20.05.2015, 19:20
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Re: Low cost Investment Funds in Switzerland

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Okay thank you.
I'm about to transfer to Geneva (from Italy) and in the middle of a process to understand if it's more convenient transfer to investments to a Swiss broker, keep them with my current one or other alternatives..
Why would you want to move the investments? Can't you access via the Internet?
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  #85  
Old 20.05.2015, 19:56
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Re: Low cost Investment Funds in Switzerland

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Why would you want to move the investments? Can't you access via the Internet?
Actually my preference would be to keep the current account, the problem is that every Italian account has to pay a wealth tax of 0.2%, which would be on top of the swiss wealth tax.

Yet, I believe it would cost me more to transfer money than to pay the Italian wealth tax. It's not a big deal since in italy we have 26%tax on the capital gain and the move to Switzerland will save me a substantial amount
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  #86  
Old 20.05.2015, 22:05
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Re: Low cost Investment Funds in Switzerland

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Actually my preference would be to keep the current account, the problem is that every Italian account has to pay a wealth tax of 0.2%, which would be on top of the swiss wealth tax.

Yet, I believe it would cost me more to transfer money than to pay the Italian wealth tax. It's not a big deal since in italy we have 26%tax on the capital gain and the move to Switzerland will save me a substantial amount
Switzerland should have a tax treaty with Italy. So you will get a credit for the wealth tax paid.

As a Swiss resident you won't be liable to Italian CGT
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  #87  
Old 20.05.2015, 22:48
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Re: Low cost Investment Funds in Switzerland

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Switzerland should have a tax treaty with Italy. So you will get a credit for the wealth tax paid.

As a Swiss resident you won't be liable to Italian CGT

Thank you.

Well, I'm looking for a tax consultant with expertise of transfer between Switzerland and Italy.However, I'm sure I owe the italian wealth tax, since it's tied to the bank account, not the residence..
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  #88  
Old 08.06.2016, 23:10
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Re: Low cost Investment Funds in Switzerland

Does anyone know of a 3rd pillar (3eme pilier) investment in Switzerland that allows investing in ETFs but has no obligation to contribute every year? Banks in CH usually have interest bearing accounts or in-house funds for 3rd P, but there's no obligation to contribute each year. The insurance companies have more interesting products but they force you into a contract that requires that you contribute every year until retirement.

Does PostFinance still offer accounts with zero custody fees? I'm surprised that exists in CH.
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  #89  
Old 09.06.2016, 08:58
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Re: Low cost Investment Funds in Switzerland

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Thank you.

Well, I'm looking for a tax consultant with expertise of transfer between Switzerland and Italy.However, I'm sure I owe the italian wealth tax, since it's tied to the bank account, not the residence..
Personally, I'd save the cost for the expert and instead ask the Steueramt.
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  #90  
Old 09.06.2016, 15:57
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Re: Low cost Investment Funds in Switzerland

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Switzerland should have a tax treaty with Italy. So you will get a credit for the wealth tax paid.

As a Swiss resident you won't be liable to Italian CGT
But if he maintains his account in Italy, how he will be able to avoid Italian CGT, even being a Swiss resident? Isn't it automatically withheld by the bank/custodian institution?

Last edited by Capo; 09.06.2016 at 16:27.
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  #91  
Old 09.06.2016, 16:00
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Re: Low cost Investment Funds in Switzerland

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But if the maintains his account in Italy, how he will be able to avoid Italian CGT, even being a Swiss resident? Isn't it automatically withheld by the bank/custodian institution?
Due to tax residence, so no.
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  #92  
Old 09.06.2016, 16:46
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Re: Low cost Investment Funds in Switzerland

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Due to tax residence, so no.
How does it work? He communicates Italy "IRS" that he is now a Swiss resident and that's enough to avoid the tax?
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  #93  
Old 09.06.2016, 16:51
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Re: Low cost Investment Funds in Switzerland

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Does anyone know of a 3rd pillar (3eme pilier) investment in Switzerland that allows investing in ETFs but has no obligation to contribute every year? Banks in CH usually have interest bearing accounts or in-house funds for 3rd P, but there's no obligation to contribute each year. The insurance companies have more interesting products but they force you into a contract that requires that you contribute every year until retirement.

Does PostFinance still offer accounts with zero custody fees? I'm surprised that exists in CH.
https://www.credit-suisse.com/ch/en/...eit.html#tab_3
(Click on Investment options tab)

I invested my pillar 2 pension into CSA Mixta-BVG Index 45.No custody
account /buy in fees for pension stuff.Its doing quite well.These ETFs may also
be available for pillar 3.

https://www.postfinance.ch/en/priv/p...nds/offer.html
Postfinance has something similar.

Last edited by MarkH; 09.06.2016 at 17:04.
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  #94  
Old 09.07.2016, 00:53
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Re: Low cost Investment Funds in Switzerland

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Thank you for the answer.
I guess you need to declare your total wealth to the swiss authorities, since you pay the wealth tax. Yet, if I have only stocks/etf that do not distribute any dividend, do I have to declare anything?
I am still trying to figure out how accumulating ETF's are treated in Switserland. I read on another forum that you still need to declare the dividends the ETF received, even if it's an accumulating ETF! There is even a special website for this: https://www.ictax.admin.ch/extern/en.html#/search
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  #95  
Old 11.07.2016, 13:06
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Re: Low cost Investment Funds in Switzerland

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I think fund smith.co.uk is likely to be a great long term investment, they have an Euro dominated feeder fund based in Luxembourg.
I have found their customer service in Luxembourg to be really poor, it takes days to get a reply to an email, phoning is not much better...
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  #96  
Old 11.07.2016, 13:18
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Re: Low cost Investment Funds in Switzerland

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I have found their customer service in Luxembourg to be really poor, it takes days to get a reply to an email, phoning is not much better...
I don't know what sort of questions you ask on the phone but they have always been able to answer. It's always the same person. They don't accept dealing instructions by email but do by fax.

The Luxembourg office is not really geared up for 'customer service' as there are very few investors (70 when I asked 18 months) months ago.

They do however send monthly valuations by post & important shareholder info 1 time a year by registered post.
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  #97  
Old 11.07.2016, 13:18
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Re: Low cost Investment Funds in Switzerland

Can try Postfinance:

https://www.postfinance.ch/en/priv/p...und/offer.html

They have a few index funds:

https://www.postfinance.ch/en/priv/p...2&currency=USD

that seem interesting:

http://www.morningstar.ch/ch/funds/s...?id=F0GBR04MDE

And till now, NO custody fees!
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  #98  
Old 11.07.2016, 13:24
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Re: Low cost Investment Funds in Switzerland

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Can try Postfinance:

https://www.postfinance.ch/en/priv/p...und/offer.html

They have a few index funds:

https://www.postfinance.ch/en/priv/p...2&currency=USD

that seem interesting:

http://www.morningstar.ch/ch/funds/s...?id=F0GBR04MDE



And till now, NO custody fees!
Those index funds have hugely underperformed the index they are tracking.... over 2% year to date on the US fund. They can't be index funds in any shape or form.

The Pictet fund has under performed the index by over 1% compound on 3/5/10 years to me would indicate a very poor choice.
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Old 11.07.2016, 14:24
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Re: Low cost Investment Funds in Switzerland

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Those index funds have hugely underperformed the index they are tracking.... over 2% year to date on the US fund. They can't be index funds in any shape or form.

The Pictet fund has under performed the index by over 1% compound on 3/5/10 years to me would indicate a very poor choice.
So there's no free lunch? What would you rec? Fundsmith?
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  #100  
Old 11.07.2016, 14:34
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Re: Low cost Investment Funds in Switzerland

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So there's no free lunch? What would you rec? Fundsmith?
A tracker will always slighter under perform due to costs & fees however a tracking error of more than 0.25% is absurd.

I would & do invest in Fundsmith, it's my largest holding by a very huge margin over 50% on net worth, aiming for 80-90% within 2 years.
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