Hi there,

I am excited to be moving to Zurich in July to take up a new position. This forum is a great help in finding information. I got a question that I am not sure whether has been asked on here before. If it has, please point me to there.

I will be on probation in the first few months of joining the company and the relocation package will include the usual ticket, hotel etc. I would like to wait until I am sure that all is working out before I lease a property as I understand it can be quite problematic if you do not speak German (which I don't), plus the long lease (i.e. 1yr plus). The company will provide hotel accommodation up to 3 months. So if I stay in the hotel for that duration, how will my tax be calculated please?

If you make under the threshold which I think is 120K, it doesn't matter as you will most likely pay tax at source and this is calculated on an average cantonal rate. So the rate will be the same anywhere in the canton.

If you make over 120k (or whatever the threshold is) then I don't know. Someone else might be able to give you the answer.

The type of accommodation makes no difference (i.e. hotel, apartment, whatever) - only the location matters. However, when you file your taxes, you will file based on your residence as of 31 December, so probably it will be a non-issue.

As I started in July, the tax year here is end of Calendar year? If so, this year I will be under threshold and far as I know, I will be paying at source. In that case, at end of July when I get my first pay packet, I will be in hotel, so does that mean I will pay no tax and catch up at end of year when I have my own place?

depends on the company administering the payroll. dont be too surprised if the entire value of the accomodation is treated as taxable income in december and you get an yastronimical tax bill. best thing is to make sure the tax on relocation is also bourne by the company in your contract.

even though the company is paying the hotel directly? I need to check my contract but I find things very fustrating atm as no informaiton is coming my way - much. I can ask questions but no answers are coming sometime up to a week and even got told off when asked what is classified as relocation cost. Being a planner, that is causing a lot of anguish when I know I could have sorted it all out if it is left up to me.

There are quite a lot of expat in the company and department as well but I am unable to chat with them on their experience as they are busy. So I am flying blind here.

Possibly not if you are on a special expat contract which allows certain fixed expenses. Otherwise, yes, if free accommodation is part of your remuneration package then you will be taxed on it.