I arrived in Switzerland at the end of May and registered immediately in Zürich where I live. I am currently looking for a flat in Pfäffikon, SZ as the tax advantage is enough to convince me to move down the side of the lake.

I have just had a chat to a colleague who believes that, because I first registered in Zürich, I will pay Kanton Zürich tax for a whole year irrespective of where I live, which means moving now would be pointless.

Does anybody know if there is any truth to this. Anybody have first hand experience?

If switching cantons, you pay in the canton/Gemeinde where you are resident on 31 December.

We were living in canton ZH, then moved to SZ in the middle of the year (July) - that year we paid SZ taxes for the entire year.

The savings can be significant.

(You might want to check out towns other than just Pfäffikon - Wollerau, Freienbach, Bäch, and Hurden have the same tax rate, but are less congested. Feusisberg and Schindellegi are just a point or two higher; lovely towns as well.)

Thanks. Great colour. I have decided on Pfäffikon as it seems to be the place with the best public transport link into Zürich. I am not so sure if I want to rely on a bus and then train link. Ichecked out Bäch (not impressed) and Freienbach already, but Pfäffikon is winning because of the Seedammer Center, 1 stop to Rapperswil, and fast trains to Zürich. If I luck out in Pfäffikon though I will be checking out the other towns you mention.

I also passed through Lachen, which seems like a possibilty as well.

Hi,
I am a Non-EU B permit holder currently living in Aargau. My taxes are deducted at source. I will be moving in to a new apartment in Zug starting 1st December. But I have to still rent my apartment in Aargau till the end of December since the new tenant is moving in only on 1st Jan. . I would like to know if I pay a pro-rata tax for the time spent in Aargau/Zug or pay only for Zug? I was told that I pay Zug taxes since I have moved actually in to Zug on 1st Dec. i see huge savings by the move but not clear if this can really be true..
my HR informed that they will recompute the December based on the new address and taxes i paid in aargau will be refunded to me in Dec salary.

Thanks!

Is that right? I live in Olten, moving to Zurich sometime in the first quarter of 2011. I currently pay 15% tax, my equivalent rate in Zurich is about 10%. Sounds like it maybe good for me to move pre 31st December.

Can you confirm?

Cheers

confirmed.

where you live at the end of the calender year is where you pay your taxes.

i can reconfirm again from what I heard from my HR. Its much easier if we get the tax refund from the december paycheck.

It's the law!

http://www.admin.ch/ch/d/sr/642_14/a68.html

Martin

It's actually the same municipality, i.e. the municipality is Freienbach consisting of six villages: Bäch, Freienbach, Hurden, Pfäffikon, Wilen and Wollerau. The islands Lützelau nd Uf(e)nau are also part of the municipality, BTW.

Martin

is this for swiss citizens or C permits only or does it apply for B permit holders

Hmmm, could be good news. Will work out if the tax savings outweigh the costs of possibly paying for 2 apartments.

Cheers

Countrymouse, the referendum to be voted on 28. Nov.could significantly change Swiss taxation, requiring a minimum cantonal/gemeinde tax rate of 22% (exclusive of federal tax) for higher incomes and raising the rate of the wealth tax for high net wealth individuals, thus essentially eliminating the cantonal tax advantage.

Map of Kantons/Gemeinde affected by the proposal:

http://www.tagesanzeiger.ch/schweiz/...story/12513564

I have no idea if the referendum is likely to pass - the SP and EDP are in favor, the FDP, CVP and SVP against.

If tax is a factor in your choice, you may want to keep an eye on the vote before making your decision as to where to live.

The report looks to only be concerned with over 250k salary, maybe in 10 years............

Not quite so simple...

Currently, property values tend to track with tax rates - low tax cantons/Gemeinden tend to have higher rents, high tax cantons/towns tend to see lower rents.

Take away the tax advantage, and you may see a shift in attractiveness - and thus housing prices - in many areas. Housing farther away from centers of employment that now enjoy a tax advantage could become less attractive, and property prices could likely decline. Housing that is closer to employment centers could likely become even more sought after, causing prices to rise.

Also, consider the impact of the increase in wealth tax. The value of real estate is included in wealth tax. Own a property or two, and you are easily at the 2Mio mark. If a landlord's wealth tax is suddenly increased, what are the chances that cost will ultimately get passed on in the form of increased rents...

All I'm saying is that the referendum could have farther reaching impact than what it seems at face value. (Not to mention the whole radical change in the notion of cantonal sovereignty thing... )

I'd be concentrating on factors other than financials when making housing decisions at the moment, as there could be some uncertainty ahead.

Just a thought.

Funny that, whilst reading your post I was thinking the same thing. there's so many if's and but's, it's much easier to focus on what a home should be i.e. close to work, things close which interests you etc etc not just where the tax advantage is........

Thanks for you help

it is confirmed (my HR spoke with kanton officials) that for withholding tax individuals, prorata tax is applicable.