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  #61  
Old 16.11.2014, 20:43
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Re: Low cost Investment Funds in Switzerland

hi Newbie investor here

if invest in a VAnguard ETF which is not Swiss based do my profits if there are any get taxed?


also from what i have read i should choose a fund that doesnt distribute dividends?

sorry for asking really basic questions but google doesnt help me as much as you guys!
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  #62  
Old 16.11.2014, 20:52
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Re: Low cost Investment Funds in Switzerland

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hi Newbie investor here

if invest in a VAnguard ETF which is not Swiss based do my profits if there are any get taxed?


also from what i have read i should choose a fund that doesnt distribute dividends?

sorry for asking really basic questions but google doesnt help me as much as you guys!
Capital gains are not charged in CH on shares or funds. Income is taxable.
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  #63  
Old 16.11.2014, 22:16
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Re: Low cost Investment Funds in Switzerland

I have an account with Keytrade bank since years, which I use to buy funds and trackers...to me they look good, but I'm not an expert in this field. They charge 10 EUR for each buy operation that I do on funds, and 15 for trackers...
I'd appreciate a 2nd opinion from more expert members of the forum :-) Maybe I've been ripped off all these years without realizing it...

I was also considering tddirectinvesting.com in the last few weeks...they have no entry fee for funds, but as far as I can see they don't offer trackers.
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  #64  
Old 17.11.2014, 11:44
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Re: Low cost Investment Funds in Switzerland

You can get a bit cheaper (e.g. Swissquote is CHF 9 for some ETFs) but as long as you're investing relatively large amounts relatively infrequently it won't make that much difference. Just make sure you know if you're paying an annual fee, get to choose from the full range of funds, and if you're investing in non-CHF funds you're not getting ripped-off on the exchange rate.

I don't know anything about tddirectinvesting.com but 'not offering trackers' sounds like 'all our funds charge at least 1% per year'. It doesn't matter if you save 10 buying into the fund if you pay an extra 0.5% or more per year. It's stating the obvious but the annual charge hits you every year, whereas a one-time 10 is negligible if you stay invested for several years.
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  #65  
Old 18.11.2014, 20:13
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Re: Low cost Investment Funds in Switzerland

I've been looking literally for years for a website like eToro, but accepting payments in EUR instead of USD...

eToro is in fact the only trading website that I know, that allows you to choose the leverage level when buying and selling. For me this is very important, since I never want to go over x10...
On the other hand...they only accept payments in USD. I'm not sure how much this screws any gains, but I never understood why they cannot accept other major currencies...

Do you know any trading/investment website that allows you to choose the leverage level, AND accepts EUR payments?
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  #66  
Old 29.11.2014, 10:45
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i have another newbie question which is if i go to invest in an ETF euronext fund ie: out of holland then swissquote flashes a warning saying you cant get the dividend in switzerland..any ideas?

and also what about buying US ETF's ok for the dividends to come back to switzy?

Last edited by 3Wishes; 30.11.2014 at 17:22. Reason: merging successive posts
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  #67  
Old 01.12.2014, 12:04
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Re: Low cost Investment Funds in Switzerland

Are you investing specifically for dividend return? If not and you're going to reinvest the dividend it's probably easier (and more tax efficient) to pick an 'accumulating' ETF that automatically reinvests it.
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  #68  
Old 12.01.2015, 16:38
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Re: Low cost Investment Funds in Switzerland

To those who *insist* on buying via Swiss banks and brokers - iShares are available via Credit Suisse https://fundlab.credit-suisse.com/ch/en/retail

Do not get me started on entry/exit fees or other similar debaucheries. The more I educate myself, the more I search back posts of fatmanfilms and still cannot grasp how anyone would pay swiss banks this much money for nothing.
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Old 13.01.2015, 16:31
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Re: Low cost Investment Funds in Switzerland

Hi all,

Have been reading through the thread and it's great info. Just want to clarify that if I go ahead and open a Schwab International account to start investing in accumulating US ETFs (so no dividend payments) that only tax is 15%?
I'm a UK citizen, resident here in Switzerland.
Is this understanding correct?
Thanks for any help!
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  #70  
Old 13.01.2015, 19:07
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Re: Low cost Investment Funds in Switzerland

US domiciled ETFs are all distributing, i.e. they must distribute the dividends to the investors.
Therefore the 15% US withholding tax will be deduced from these payments.
Those dividends are then taxed as an income in Switzerland.
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  #71  
Old 13.01.2015, 21:02
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Re: Low cost Investment Funds in Switzerland

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US domiciled ETFs are all distributing, i.e. they must distribute the dividends to the investors.
Therefore the 15% US withholding tax will be deduced from these payments.
Those dividends are then taxed as an income in Switzerland.
Only taxable in CH if you declare them, however if you do you will get the withholding tax refunded & end up with a negative wealth tax bill on the first 5,000,000 or so. Most people will benefit from declaring, it's an administrative matter if you don't, rather than a criminal offence.
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  #72  
Old 13.01.2015, 21:34
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Re: Low cost Investment Funds in Switzerland

a negative wealth tax bill? If you declare the dividend you also declare the amount invested ('fortune') I think. Can you please explain

At the moment there is no automatic exchange of account info wit other countries but that might change in a few years.
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  #73  
Old 13.01.2015, 21:39
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Re: Low cost Investment Funds in Switzerland

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a negative wealth tax bill? If you declare the dividend you also declare the amount invested ('fortune') I think. Can you please explain

At the moment there is no automatic exchange of account info wit other countries but that might change in a few years.
In ZH you get an allowance to look after your wealth of 0.3%, wealth tax does not hit that for a very long time, so yes by declaring you get a credit of income tax that is higher than your wealth tax liability.

Swiss banks don't even talk to the tax office, neither does the AVS/AHV office.... other countries talking, its going to take an awful lot before that happens.
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Old 13.01.2015, 21:47
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Re: Low cost Investment Funds in Switzerland

okay, now I understand. I am in Vaud and not aware of the ZH allowance. That's a bit weird isn't it to get an allowance for managing your wealth... where did that come from?
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  #75  
Old 13.01.2015, 23:11
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Re: Low cost Investment Funds in Switzerland

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okay, now I understand. I am in Vaud and not aware of the ZH allowance. That's a bit weird isn't it to get an allowance for managing your wealth... where did that come from?
Item 16.3 on a ZH tax return, I would be surprised if nothing is allowed in Vaud, however tax rates are substantially higher in Vaud 30-50% higher than ZH.
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  #76  
Old 13.01.2015, 23:30
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Re: Low cost Investment Funds in Switzerland

An option that hasn't yet been mentioned yet here are the online banking services offered by many German banks. I have been with DAB bank (https://www.dab-bank.de/) for many years. Benefits in my opinion are: huge range of ETF that can combined into your own ETF saving plan, low trading fees, no custody fees, modern trading platform including apps for iPhone and Android. DAB bank are a subsidiary of BNP Paribas.
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  #77  
Old 14.01.2015, 09:00
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Re: Low cost Investment Funds in Switzerland

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Item 16.3 on a ZH tax return, I would be surprised if nothing is allowed in Vaud, however tax rates are substantially higher in Vaud 30-50% higher than ZH.
Thanks, I will check that
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  #78  
Old 14.01.2015, 09:28
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Re: Low cost Investment Funds in Switzerland

You can open an IG CFD account, they have a swiss version as well and it's 0.1% commission per trade.

You dont have to use leverage if you dont have to so you treat it like a normal stockbroking account. Yes daily financing costs a bit but not too much compared to the high costs you get elsewhere.

Anyone uses it to express opinion?
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  #79  
Old 14.05.2015, 16:17
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Re: Low cost Investment Funds in Switzerland

After reading this thread, I've noticed none suggested to transfer the swiss money to a foreign account and invest in there.

Example.
Us native
US bank account with $50000 invested in 1ETF
Moved to Switzerland
Open a Swiss account to receive swiss salary
transfer the salary to the US bank account and continue investing with low fees.

Is it legal?
if yes, how do you pay the swiss stamp?
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  #80  
Old 14.05.2015, 16:56
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Re: Low cost Investment Funds in Switzerland

That is what I recommend and I've seen it recommended several times in the forum (or maybe I'm imagining it) simply because US brokers are just that much better (cheaper, more choice etc.).

In order to keep it legal, you probably just need to declare either the dividends and/or the capital gains that you realize in order to pay any taxes due in Switzerland. Do note that having U.S. equities, even as a foreign resident, you have to pay U.S. tax on the dividends (which is collected at source by the broker). At least if I remember.
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