Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 05.08.2011, 19:06
Newbie 1st class
 
Join Date: May 2011
Location: San Francisco
Posts: 17
Groaned at 1 Time in 1 Post
Thanked 0 Times in 0 Posts
Cavalier has no particular reputation at present
Home Ownership Taxes

Hello,

I am thinking of moving to Europe and Switzerland seemed liked a wonderful place to call home, besides being centrally located in Europe being beautiful and having an efficient well educated populace, the taxes are relatively lower than other European nations.

Two things I recently discovered.

1. Is it true that if you own a home in Switzerland that you must count the equivalent of rent you would have to pay to live there as additional taxable income?

2. There is also a wealth tax of not more than .3% anywhere in the country but that would include the value of your home and cars etc. Is this correct?

Actually I was quite excited to hear from my brother in law in Germany that the property tax in Stuttgart where he lives is a joke compared to the USA, maybe only a few hundred Euros per year as opposed to 1.25% where I live in San Francisco. However, I am now checking with him if Germany has the same sort of requirement where you must count your make you include the equivalent rental value as your income for home owners. YUCK! France? Spain? Italy? Are they same? low property tax but must include the rental value as your income?

What about non-resident owners? So if I bought a castle in France but didn't live in France year round, then they shouldn't be able to tax my income and make me include the rental value into my income.
Reply With Quote
  #2  
Old 05.08.2011, 21:30
Forum Legend
 
Join Date: Jun 2007
Location: Ticino
Posts: 3,046
Groaned at 96 Times in 67 Posts
Thanked 4,016 Times in 1,591 Posts
Snoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond repute
Re: Home Ownership Taxes

Quote:
View Post
Hello,

I am thinking of moving to Europe and Switzerland seemed liked a wonderful place to call home, besides being centrally located in Europe being beautiful and having an efficient well educated populace, the taxes are relatively lower than other European nations.

Two things I recently discovered.

1. Is it true that if you own a home in Switzerland that you must count the equivalent of rent you would have to pay to live there as additional taxable income?

2. There is also a wealth tax of not more than .3% anywhere in the country but that would include the value of your home and cars etc. Is this correct?

Actually I was quite excited to hear from my brother in law in Germany that the property tax in Stuttgart where he lives is a joke compared to the USA, maybe only a few hundred Euros per year as opposed to 1.25% where I live in San Francisco. However, I am now checking with him if Germany has the same sort of requirement where you must count your make you include the equivalent rental value as your income for home owners. YUCK! France? Spain? Italy? Are they same? low property tax but must include the rental value as your income?

What about non-resident owners? So if I bought a castle in France but didn't live in France year round, then they shouldn't be able to tax my income and make me include the rental value into my income.
My answer to some of your questions (no guarantees though)

1. Is it true that if you own a home in Switzerland that you must count the equivalent of rent you would have to pay to live there as additional taxable income? Correct, except that the rental value of the house is set by the tax authorities and is generally far less than the market rental value of the house. But remember that you can also deduct any interest payable on your mortgage from your income for tax purposes as well as money spent on the house's upkeep (restrictions apply).

2. There is also a wealth tax of not more than .3% anywhere in the country but that would include the value of your home and cars etc. Is this correct? Corrrect (although I can't vouch for the percentage. It's not very high, I do know that) but remember that you can deduct any mortgage amount from your assets for tax purposes.

However, I am now checking with him if Germany has the same sort of requirement where you must count your make you include the equivalent rental value as your income for home owners. As far as I know this is not the case, unless you actually did rent out your house in which case the rent would be income.
Reply With Quote
  #3  
Old 05.08.2011, 21:42
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Home Ownership Taxes

Capital gains taxes of 80-100% are also possible in the first 5 years of ownership, rates reduce for the next 25 years depending on Canton. Immovable property in CH is the only thing CGT applies to, makes owning seem like a waste of time to me.
Reply With Quote
  #4  
Old 05.08.2011, 21:46
Forum Legend
 
Join Date: Jun 2007
Location: Ticino
Posts: 3,046
Groaned at 96 Times in 67 Posts
Thanked 4,016 Times in 1,591 Posts
Snoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond repute
Re: Home Ownership Taxes

Quote:
View Post
Capital gains taxes of 80-100% are also possible in the first 5 years of ownership, rates reduce for the next 25 years depending on Canton. Immovable property in CH is the only thing CGT applies to, makes owning seem like a waste of time to me.
In Aargau CGT starts at about 35% in the first year, and then decreases by 1% point each year. (So nowhere near 80 - 100%, although I guess that other cantons may be different)
Reply With Quote
  #5  
Old 05.08.2011, 21:51
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Home Ownership Taxes

Quote:
View Post
In Aargau CGT starts at about 35% in the first year, and then decreases by 1% point each year. (So nowhere near 80 - 100%, although I guess that other cantons may be different)
IIRC there is no land gains tax in AG, that was true 10 years ago when I was looking. It's important to know as the liability of the seller stays with the land if they dont pay.
Reply With Quote
  #6  
Old 05.08.2011, 21:57
Forum Legend
 
Join Date: Jun 2007
Location: Ticino
Posts: 3,046
Groaned at 96 Times in 67 Posts
Thanked 4,016 Times in 1,591 Posts
Snoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond reputeSnoopy has a reputation beyond repute
Re: Home Ownership Taxes

Quote:
View Post
IIRC there is no land gains tax in AG, that was true 10 years ago when I was looking.
No longer true I am afraid...
Same rates apply to land as they do to houses/apartments.

Of course CGT can be deferred if you replace the sold property with one that is more expensive within 2 years of the sale. (Doesn't apply to land though).

Last edited by Snoopy; 06.08.2011 at 01:01.
Reply With Quote
This user would like to thank Snoopy for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question about home ownership Jack Carter Leaving Switzerland 5 17.09.2011 14:03
Taxes - Advisors/Accountants / Cantonal Offices / ZH Tax forms / Expat US Taxes Longbyt Finance/banking/taxation 1 15.08.2011 16:48
Forfeitary taxes on holiday home owner hogshatch Finance/banking/taxation 3 16.05.2011 19:25
Second home ownership - advice and definition, please annah Housing in general 7 12.02.2009 18:27
Taxes will be paid to Geneva, then Geneva returns taxes to Zurich, IS IT OK ? Huonikil Finance/banking/taxation 6 06.12.2008 22:09


All times are GMT +2. The time now is 11:58.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0