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Old 08.12.2015, 17:27
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Re: How to declare UK apartments on Swiss tax return

The property/wealth tax in Switzerland is a strange concept to get your head around. They say if you've got loads of money you're likely to make loads of money from that money so we'll tax you on it, but only to the point where the tax doesn't decrease the value of your wealth. You're left with a chicken and egg situation. If you enter a rental amount it will calculate the capital amount for you from it. You can think that this is the amount of capital you should be taxed on in order to achieve that return. If you have an expensive house and rent it for peanuts then you're not making much money from your money so you don't pay much tax. On the other hand, if you don't rent it out you give the market value and it calculates a virtual income for you based upon a particular return on your capital. For my rented house, the rental amount gives a capital amount of about half of the market value of the house. In Basel the software asks for an official or land registry value. I don't know if they'll ask for any evidence.

There is the concept of a "tax brake" for wealth tax. Each canton has it's own rules but the general idea is that you shouldn't pay "too much" tax. It's usually limited to a proportion of the income derived from the wealth.

There are some scenarios that cannot be captured in the forms so you have to think of them as transferring the information to the tax people for them to peruse and then hope that they'll take any special circumstances into account in the assessment. You have to let them know of these circumstances of course. It seems to be the Swiss way that you try it on a bit and negotiate later.
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