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-   -   Tax For Foreign Earnings ? (https://www.englishforum.ch/finance-banking-taxation/20367-tax-foreign-earnings.html)

Blewyn 10.03.2008 16:24

Tax For Foreign Earnings ?
 
Hello,

I have a job that allows me to live anywhere, and I'm thinking of moving to Switzerland (kids maybe coming in the next year or two and I think it would be a great place for them to grow up...and a great place for my wife to stay while I'm working). I would hopefully move to Switzerland with a permit B by purchasing a home, and continue to work and earn my salary outside Switzerland. The question is, how much tax would I have to pay on those earnings ? I work in the middle east and am paid in the UK. I am not taxed.

Thanks

Blewyn

monkeynut 10.03.2008 17:22

Re: Tax For Foreign Earnings ?
 
how come your not taxed?

Polorise 10.03.2008 17:35

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by monkeynut (Post 186592)
how come your not taxed?


Dubai & others in Middle East.

just saw, Oman ....

Goldtop 10.03.2008 18:22

Re: Tax For Foreign Earnings ?
 
Swiss residents must pay taxes in Switzerland. The tax rate depends on where precisely you live and of course on your taxable income. You would chose a commune close to a major airport and having low taxes.

Are you entitled to unconditional Swiss residency, i.e. either you or spouse are Swiss? Otherwise, it may be difficult to convince the Swiss authorities why you want to live here.

10.03.2008 18:52

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Goldtop (Post 186622)
Are you entitled to unconditional Swiss residency, i.e. either you or spouse are Swiss? Otherwise, it may be difficult to convince the Swiss authorities why you want to live here.

Does that mean most Formula 1 drivers are Swiss or married to one..? ;)

Richard 10.03.2008 22:29

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Goldtop (Post 186622)
Swiss residents must pay taxes in Switzerland.

This is not true at all. Only one thing is not optional and it will raise its ugly head after ca 80 years and that will be the last that you are interested in anything.
Quote:

Originally Posted by Goldtop (Post 186622)
Are you entitled to unconditional Swiss residency, i.e. either you or spouse are Swiss? Otherwise, it may be difficult to convince the Swiss authorities why you want to live here.

Actually the OP is welsh and that is part of the UK which is part of the EU. As such the OP can reasonably come and live here although the Swiss authorities might then just want to see some form of income that they can tax, but there are ways around this...

Goldtop 11.03.2008 18:08

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by vwild1 (Post 186636)
Does that mean most Formula 1 drivers are Swiss or married to one..? ;)

The Swiss Cantons roll out the red carpet for F1-Drivers. And they can negotiate their fixed tax contribution. The rest of us are not so lucky.

Maybe some forum veterans can reveal how we lesser residents can be tax exempted.

Blewyn 12.03.2008 07:54

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Richard (Post 186718)
Actually the OP is welsh and that is part of the UK which is part of the EU. As such the OP can reasonably come and live here although the Swiss authorities might then just want to see some form of income that they can tax, but there are ways around this...

Indeed I am, and I feel right at home in the green mountains of the Swiss alps :-)

Any idea how much tax I would have to pay ? AFAIK they would tax me on the assumption that I earn 200K Sfr (which I do not, nowhere near) but I have been unable to find out the percentage. How would you get around this....?(as you mentioned)

12.03.2008 08:19

Re: Tax For Foreign Earnings ?
 
Here is an online tax calculator. It will give you a rough idea how much you have to pay on your taxable income plus compare the tax to lower and higher taxed communities.

Comparis

Sorensen 12.03.2008 09:24

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Blewyn (Post 187275)
Indeed I am, and I feel right at home in the green mountains of the Swiss alps :-)

Any idea how much tax I would have to pay ? AFAIK they would tax me on the assumption that I earn 200K Sfr (which I do not, nowhere near) but I have been unable to find out the percentage. How would you get around this....?(as you mentioned)

As others wrote, it depends on Canton, Gemeinde (municipality/parish), number of children, net worth and possibly more.

If you earn a lot, and/or you go to a place desperate for good taxpayers (Canton Jura for example, plenty of green hills), you may be able to negotiate.

For the 200k CHF, I have seen a tax rate about 17%. But add to that Federal Old Age pension (AHV) at 5%, Unemployment (1%), occupational pension (7.5% + the same from employer), and that you do have to take out health insurance yourself (check www.comparis.ch).

I am not sure how the various pension requirements and unemployment would be handled in your case, though, but better count on paying

The figures above can vary considerably!

First thing to decide on is if you prefer German or French.

Good luck

Gr8-Ideas 12.03.2008 23:09

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Sorensen (Post 187327)

First thing to decide on is if you prefer German or French.

Good luck

Is there a major difference in the taxation/choice of canton depending on the country that they border?

12.03.2008 23:16

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Gr8-Ideas (Post 187996)
Is there a major difference in the taxation/choice of canton depending on the country that they border?

Is your income in the millions or tens of thousands per year..? If you're middle income like most people the differences in taxation rates will hardly be noticeable. In the end you can usually figure if the taxes are lower the cost of living is higher.

Gr8-Ideas 13.03.2008 00:27

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by vwild1 (Post 188001)
Is your income in the millions or tens of thousands per year..?

I constantly wish for the millions, but until my invention of the automatic spud peeler takes off ;) it will be in the middle income bracket.

We aim to be in and around Geneva, where I personally don't mind canton as long as it is close to a good golf course (I will be shot if my wife reads this)

Info 13.03.2008 09:53

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by vwild1 (Post 188001)
Is your income in the millions or tens of thousands per year..? If you're middle income like most people the differences in taxation rates will hardly be noticeable. In the end you can usually figure if the taxes are lower the cost of living is higher.

Typically, what is considered as the 'middle income range' in Switzerland?

13.03.2008 10:18

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Info (Post 188140)
Typically, what is considered as the 'middle income range' in Switzerland?

I sure there are facts and figures on that somewhere but I'd say 100-120 annually is a comfortable range.

FriendlyKiwi 13.03.2008 11:24

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Blewyn (Post 186567)
I have a job that allows me to live anywhere, and I'm thinking of moving to Switzerland (kids maybe coming in the next year or two and I think it would be a great place for them to grow up...and a great place for my wife to stay while I'm working). I would hopefully move to Switzerland with a permit B by purchasing a home, and continue to work and earn my salary outside Switzerland. The question is, how much tax would I have to pay on those earnings ? I work in the middle east and am paid in the UK. I am not taxed.

Under Swiss tax law, you are taxed on your worldwide income.

I once worked out that the Swiss tax was around 24%, by the time you included the indirect taxes like health insurance, rubbish bag fees, etc

Direct taxes hover around the 12% range (one months salary), which you generally pay once a year in one lump sum.

Even at around 24%, Swiss taxes are very reasonable.

Shorrick Mk2 13.03.2008 11:26

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by FriendlyKiwi (Post 188261)
I once worked out that the Swiss tax was around 24%, by the time you included the indirect taxes like health insurance, rubbish bag fees, etc

Direct taxes hover around the 12% range (one months salary), which you generally pay once a year in one lump sum.

Unless of course you live in the Socialist Republic situated at the westernmost tip of Switzerland.

FriendlyKiwi 13.03.2008 11:30

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by Shorrick Mk2 (Post 188263)
Unless of course you live in the Socialist Republic situated at the westernmost tip of Switzerland.

But doesn't it give you a warm fuzzy feeling when you walk past the unemployed living in subsidized housing and you can say to yourself "I helped pay for that" :D

Shorrick Mk2 13.03.2008 11:38

Re: Tax For Foreign Earnings ?
 
Quote:

Originally Posted by FriendlyKiwi (Post 188269)
But doesn't it give you a warm fuzzy feeling when you walk past the unemployed living in subsidized housing and you can say to yourself "I helped pay for that" :D

Ehm... no.

Blewyn 13.03.2008 17:46

Re: Tax For Foreign Earnings ?
 
[quote=FriendlyKiwi;188261]Under Swiss tax law, you are taxed on your worldwide income.

I once worked out that the Swiss tax was around 24%, by the time you included the indirect taxes like health insurance, rubbish bag fees, etc
[\quote]
Bloody hell ! A quarter of my income !!! Might have to re-think this one...What if my wife buys the house and I come and go as a tourist ? (I would be away working at least 50% of the time).


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