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Old 31.12.2014, 12:21
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Moving Savings / Stocks to CH

Hi All,

I have a B residence permit in CH and pay taxes at source. At the same time I have a savings account and stocks outside CH with some interest and capital gains earned on it and and would like to move all to CH gradually.

Questions:

1. Should I declare assets/income on interest earned from savings account outside CH to the tax authorities?

2. Should I declare my foreign stocks positions in my tax return? The current dividend income is marginal, and it's locked in the brokerage account now.

3. What is the best way to move stocks to CH from tax optimisation perspective: transfer stock positions and pay some fee (2% or a bit more) to the brokerage or sell stocks and move capital (though in this case the implications for taxation are not clear).

Thanks in advance for your answers.
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Old 31.12.2014, 15:12
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Re: Moving Savings / Stocks to CH

Wealth tax is quite low here (at the moment), there is no capital gains tax for personal investments (with some exceptions like direct investment in real estate) and if your investments are not yielding a large income, there will be a correspondingly low income tax.

You should declare assets/income because these are used together with your Swiss earnings etc.to calculate your tax rate in Switzerland, which is dependent on your world wide income, even if not all that income is subject to tax here. It is, of course, even theoretically possible that these push you above the 120K threshold for tax at source. See point 13 in the document below:

https://www.stadt-zuerich.ch/content...t_qst14_en.pdf

As for the technicalities of bringing your investments here, I'm not sure that tax here will be the main consideration. There may, however, be some tax implications where the assets are based (withholding tax, CGT etc).

Simply ask the Bank that you have chosen to use here what they recommend/charge. If the total assets involved are relatively small, it may be better just to sell there, and buy here, in the normal cycle of reviewing your portfolio.
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Old 31.12.2014, 15:55
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Re: Moving Savings / Stocks to CH

If you don't fill in a CH tax return, you probably won't be able to declare the stock income which probably already has withholding tax, so your liability will be small if any.

No need to move stocks.

Switzerland does not have any CGT, however if you make a sale you might be liable to CGT in your home country. This would apply to the UK unless you are UK non resident for at least 5 Full tax years.

Stocks can be directly transferred without a sale, however swiss banks etc are not very competitive so I would generally avoid.
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Old 03.01.2015, 18:58
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Re: Moving Savings / Stocks to CH

As Fatmanfils stated Swiss banks generally are quite expensive to trade on the market. Especially if your shares are currently held in a low cost trading account such as Interactive Brokers or TD Ameritrade etc.
It may be cheaper to leave them where they are but do declare the trades, income etc in your Swiss taxes.
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Old 21.12.2015, 12:58
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Re: Moving Savings / Stocks to CH

Hello everyone,

While reading this (and quite some threads) about the income from stock market, I got a bit confused...I have a B permit and I earn below the 120 TCHF threshold in Zürich....

a) During this year I sold some stocks and made a profit out of it...Nothing out of the extraordinary but I guess that I have to fill in a regular tax return form since I have "other" income than the work one, is that correct?

b) Before selling the shares I received some dividends that were subject to the 35% withholding tax rate...In order to claim them, I guess the solution is also filling the "regular" tax form, right?

c) If I have to fill in a tax return form, does it mean I have to change to the "regular" tax system and leave the quellensteuer?

Thanks in advance for your help guys!
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Old 21.12.2015, 14:24
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Re: Moving Savings / Stocks to CH

For the Withholding Tax question, see http://www.steueramt.zh.ch/internet/...kblaetter.html
Look at the Document : Infoblatt für im Kanton Zürich quellensteuerpflichtige Personen / Infoblatt (englisch) points 12 & 13.
The "profit" on any share transaction is not (normally) relevant for tax.
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Old 22.12.2015, 11:00
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Re: Moving Savings / Stocks to CH

Thanks for your answer me.anon!
I guess I'll remain in the withholding tax unless I go over the TCHF 120 or get a C permit...And for claiming back the 35% withholding tax on the dividends sounds like I have to fill in a regular tax form.
Thanks again
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Old 22.12.2015, 12:09
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Re: Moving Savings / Stocks to CH

selling stocks is not income (for most cases), it's a capital gain and thus not taxable
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Old 22.12.2015, 12:18
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Re: Moving Savings / Stocks to CH

Quote:
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Hello everyone,

While reading this (and quite some threads) about the income from stock market, I got a bit confused...I have a B permit and I earn below the 120 TCHF threshold in Zürich....

a) During this year I sold some stocks and made a profit out of it...Nothing out of the extraordinary but I guess that I have to fill in a regular tax return form since I have "other" income than the work one, is that correct?

b) Before selling the shares I received some dividends that were subject to the 35% withholding tax rate...In order to claim them, I guess the solution is also filling the "regular" tax form, right?

c) If I have to fill in a tax return form, does it mean I have to change to the "regular" tax system and leave the quellensteuer?

Thanks in advance for your help guys!
Whilst you can reclaim the 35% you then have to pay your own tax rate so you will get some but not all back. Probably not worth the effort TBH.
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