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Old 05.04.2016, 02:00
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tax amount for property in Slovakia

Hello,

This year I started 100% contract so I will be earning over 120k. I got curious how that will affect my tax as I knew I will have to switch to full taxation. Interestingly now I have learned the concept about foreign property tax, and moreover, the imputed rent gain...

1. The tax amount: To my surprise when I added in VaudTax a property it asks for imputed rent gain value - I added 3k chf (that's what one would pay annually for such apartment), the tax due increased by 2,7k chf. What is going on? How does the landlords earn anything from renting, here in Switzerland, if the tax is equal to the gain (minus just small margin...)?

2. Some posts, unfortunately older, stated that for foreign property you can state 0 in the imputed rental gain. Is it correct, in Vaud? If not what's the way to avoid such high tax - make a rent contract with a friend stating that I rented the flat for free?

Sorry for bothering, I would like to know up-front what to do and maybe change something if needed before the tax day...
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Old 05.04.2016, 02:42
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Re: tax amount for property in Slovakia

Is the place rented out?
If it's rented out, you don't have to factor in the Eigenmietwert (but pay tax on the rent-income).
If not, the tax office will calculate one (how this is calculated depends on the canton).
I don't know about VD, but for ZH, it's 3.5% of the current market value (for a house) and 4.5% for an apartment - I just asked last month.

Plus, I will have to investigate if I would actually be liable for taxes in Germany, if I was to buy a property in Germany (and not rent it out).
Don't know about .sk in such a case.
I know that people who would pay a lot of taxes (millionaires, basically) had to sell every property in Germany. Their houses, their holiday-homes, their parents' houses. Everything.
They can't even take the same hotel room every time because the tax office might consider it a "home"....

I hear you can funnel everything through an off-shore company and save a lot of taxes.
It's totally legit ;-)
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Old 05.04.2016, 14:03
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Re: tax amount for property in Slovakia

That's absurd!

4.5% of the value of the property 100k chf would be 4500 chf, but it is virtually impossible to rent it out for such price.

Another point is, "if it is rented out...", so that's what I am thinking about as an escape from this madness of paying for not rented out property. If I make a legal contract, signed and binding according to local .sk law, with a friend that I am renting it out for 0 chf then I expect it must be 'approved' here in the tax form since it will be literally legal - the friend will be able to live there for free if she wishes and I will not be able to charge for it, only give notice to break the contract.

I'm asking those questions to know how to manage my current "home" abroad but also because I am interested in investing the money earned in CHF into something physical - property is the safest investment. I simply don't trust money, stocks, etc. Well, maybe gold is an option too.

Another point is that buying property for rent is a normal side business and so the income should be taxed more or less like any other income but here in CH it seems to be taxed specially high (from 3k chf rent income annually, the tax due increased 2+ k chf). Maybe I did something totally wrong in the tax form and the VaudTax app got crazy. Can anyone share simple calculation for, let say:
- 130 k chf gross annual salaried income
- 100 k chf property abroad
- 3k chf rent income from that property?

Thank you!
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Old 05.04.2016, 14:06
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Re: tax amount for property in Slovakia

I would seek the advice of a professional tax-adviser.
I'm about as far from being a tax-professional as you can get...
;-)
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Old 05.04.2016, 14:08
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Re: tax amount for property in Slovakia

Quote:
View Post
Is the place rented out?
If it's rented out, you don't have to factor in the Eigenmietwert (but pay tax on the rent-income).
If not, the tax office will calculate one (how this is calculated depends on the canton).
I don't know about VD, but for ZH, it's 3.5% of the current market value (for a house) and 4.5% for an apartment - I just asked last month.

Plus, I will have to investigate if I would actually be liable for taxes in Germany, if I was to buy a property in Germany (and not rent it out).


I add the house I have in Germany and deduct the interest I pay for the mortgage (it is not rented out).
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Old 05.04.2016, 14:18
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Re: tax amount for property in Slovakia

Basically you are referring to a non liquid asset (something that cant be relocated to Switzerland. i.e. property). In this case there is a separate form for such assets. Your tax office (Gemeinde) should be able to provide you with this from. You will not be directly taxed on the property outside of Switzerland, but the value will be used to determine your tax bracket for the Asset (Vermogen) tax. I.e. you will be taxed at a higher rate! However, income (from rent) from outside the country, I do not know if you should be taxed on this or not. But your tax office should definitely know this.
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Old 05.04.2016, 22:21
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Re: tax amount for property in Slovakia

Thank you all. I know, tax is tough subject...

I just wonder how much a tax advise would cost? I think I will really talk to some professional. Don't get me wrong but I think I cannot relay much on the discussions in the forum.

Have a nice day!
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