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Old 28.06.2012, 13:35
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Theoretical Tax Question: If you won lottery

I was dreaming the other day, what would happen if you hit the Euromillion jackpot and won 40 million CHF. (Or 50 or 150, or whatever it happens to be when the weekly draw happens... but I was just thinking about the current jackpot.)

Assume Euromillions takes the 35% off the top, but in Zürich you'd have over 41% tax liability according to comparis. In Zug, it would only be 23%. Can you claim some of that 35% back if you lived in Zug for example?

If you won the lottery, would you be tempted to move cities or cantons to save millions in taxes? Sounds a bit crazy... but it'd be the first thing I'd want to do with all that money hitting the bank!

(Of course being American probably throws the whole "move to Zug" plan off... I bet winning the lottery here would royally stink if you're American!)

Girl can dream...
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Old 28.06.2012, 13:57
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Re: Theoretical Tax Question: If you won lottery

If I won the lottery I would indeed move. Not to a low tax canton, but rather to SG where taxes are quite high - because my dream home is on the market right now.

Given the numbers we are talking about, I wouldn't care how much I would be rendering unto Ceasar... there would be enough left over for me and a herd of homeless doglets, why quibble. Let the state benefit to a greater degree.

But given that the chance of winning the lottery is zero, that dream home remains a mere dream...

In real life I do need to count the pennies and Rappen.
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Old 28.06.2012, 14:16
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Re: Theoretical Tax Question: If you won lottery

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I was dreaming the other day, what would happen if you hit the Euromillion jackpot and won 40 million CHF. (Or 50 or 150, or whatever it happens to be when the weekly draw happens... but I was just thinking about the current jackpot.)

Assume Euromillions takes the 35% off the top, but in Zürich you'd have over 41% tax liability according to comparis. In Zug, it would only be 23%. Can you claim some of that 35% back if you lived in Zug for example?

If you won the lottery, would you be tempted to move cities or cantons to save millions in taxes? Sounds a bit crazy... but it'd be the first thing I'd want to do with all that money hitting the bank!

(Of course being American probably throws the whole "move to Zug" plan off... I bet winning the lottery here would royally stink if you're American!)

Girl can dream...
This depends on the canton. Most cantons treat lottery winnings as income (hence income taxes applicable). Some do not (hence special lottery winning taxes applicable).

Best is to relocate to the canton with the lowest tax regime (Zug or Obwalden) before December 31st, and then negotiate the best tax deal with all Swiss cantons the following year for wealth tax.

If you are a US citizen, marry a non-US citizen immediately, have her claim all the earnings in a separate account (you mist trust this person), renounce your US citizenship and move the money to a joint account the next fiscal year!
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Old 28.06.2012, 14:29
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Re: Theoretical Tax Question: If you won lottery

Never understood why such gambling wins are tax free in the UK - yet another disincentive to actually get up in the morning and work for a living.

Well done Switzerland on taxing wins...
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Old 28.06.2012, 14:38
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Re: Theoretical Tax Question: If you won lottery

Well, I would invest half of it in Mutual Funds and give the rest of it to my friend, Saheib, in Securities.
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Old 28.06.2012, 14:54
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Re: Theoretical Tax Question: If you won lottery

I have an online friend in Nigeria who has precisely this problem and is seeking to transfer the funds in return for me getting 10%.

If you want I can connect you two up.

I can assure you my friend is very trustworthy.
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Old 28.06.2012, 14:59
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Re: Theoretical Tax Question: If you won lottery

I'd also really like a piece of this action!
IBAN 123456789000 PIN: 99999

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I have an online friend in Nigeria who has precisely this problem and is seeking to transfer the funds in return for me getting 10%.

If you want I can connect you two up.

I can assure you my friend is very trustworthy.
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Old 28.06.2012, 15:23
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Re: Theoretical Tax Question: If you won lottery

Funny thread - I thought I was the only one who daydreamed these theoretical 'problems'....
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Old 28.06.2012, 15:27
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Re: Theoretical Tax Question: If you won lottery

I'd move to Greece this way I don't pay ANY tax!
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Old 28.06.2012, 15:44
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Re: Theoretical Tax Question: If you won lottery

So far i have won 2, 4, & 6 CHF respectively since I arrived in Swiss. On the flipside of this furtunate country, I have lost an accumilated asset of 50 CHF.


So much for my 20-stories-high mansion, with table tenise field, a boat, a 15.6 Sqm pool by the side of a huge state-of-the-art Heli pad, a ground play, a zoo, and a private island on the cost of Newzealand dream.
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Old 28.06.2012, 15:49
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Re: Theoretical Tax Question: If you won lottery

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So far i have won 2, 4, & 6 CHF respectively since I arrived in Swiss. On the flipside of this furtunate country, I have lost an accumilated asset of 50 CHF.


So much for my 20-stories-high mansion, with table tenise field, a boat, a 15.6 Sqm pool by the side of a huge state-of-the-art Heli pad, a ground play, a zoo, and a private island on the cost of Newzealand dream.
c'mon, don't give up when the goal is in sight.
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Old 28.06.2012, 15:54
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Re: Theoretical Tax Question: If you won lottery

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Never understood why such gambling wins are tax free in the UK - yet another disincentive to actually get up in the morning and work for a living.

Well done Switzerland on taxing wins...
In the UK the tax is taken off at source so the Prize Fund they announce is after Tax. I think its much simpler that way. So the UK government gets the tax upfront before the winner has a chance to come up with a tax evasion scheme
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Old 28.06.2012, 16:17
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Re: Theoretical Tax Question: If you won lottery

Ok your signiture name starts with diamond and you'r day dreaming of winning Europes most prestigious lot?

I would say we've got ourselves a Golddigger Watson..



...you'r right.
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Old 28.06.2012, 17:31
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Re: Theoretical Tax Question: If you won lottery

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If you are a US citizen, marry a non-US citizen immediately, have her claim all the earnings in a separate account (you mist trust this person), renounce your US citizenship and move the money to a joint account the next fiscal year!
Oh cool! I wondered if I could just pay all my theoretical lottery winnings into my hubby's account. That would be great so Uncle Sam doesn't have to see it. That's legal here, isn't it? I'm not giving up my citizenship so easily though... although in theory with millions of CHFs I could move anywhere in the world!

I do like going over this fantasy problem in my head. Which mansion to take? The blue one or the pink one?
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Old 28.06.2012, 17:49
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Re: Theoretical Tax Question: If you won lottery

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Most cantons treat lottery winnings as income (hence income taxes applicable).
Can lottery ticket purchases be claimed as business costs then?
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Old 28.06.2012, 17:52
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Re: Theoretical Tax Question: If you won lottery

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Can lottery ticket purchases be claimed as business costs then?
If I won 150 millions I wouldn't bother about taxes. There would be enough left for me.
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Old 28.06.2012, 17:59
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Re: Theoretical Tax Question: If you won lottery

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If I won 150 millions I wouldn't bother about taxes. There would be enough left for me.
I was thinking more the losers. Saw a chap buy 100 CHF of scratchcards the other day. He didn't look like he did much winning.
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Old 28.06.2012, 19:24
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Re: Theoretical Tax Question: If you won lottery

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I was thinking more the losers. Saw a chap buy 100 CHF of scratchcards the other day. He didn't look like he did much winning.
Try it! But I bet that the taxman will suffer a heart attack caused by roaring laughter
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Old 09.01.2013, 06:07
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Re: Theoretical Tax Question: If you won lottery

I would donate to all the EFs that whine about how expensive switzerland is!
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Old 09.01.2013, 07:38
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Re: Theoretical Tax Question: If you won lottery

I was wondering something similar the other day. If I were to win a nice sum of money in say November/December, but didn't cash the ticket until the following January/February, when would I be taxed as having the income, the year of the winning or the year of actually getting the money?

Again it was along the lines of thinking about moving cantons to pay the lowest amount of tax possible, as I understand that if you move cantons part way through a year they will tax you pro rata, so moving canton in December if you need to claim the income at that point would not really be worth it. But if you can move and claim the next year when you are in the nice canton you could be a lot better off.

But then again, this is all dreaming, and would be a very nice problem to have...
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