Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 10.03.2008, 16:24
Newbie
 
Join Date: Mar 2008
Location: Muscat, Oman
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Blewyn has no particular reputation at present
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
Reply With Quote
  #2  
Old 10.03.2008, 17:22
monkeynut's Avatar
Forum Veteran
 
Join Date: Sep 2007
Location: Geneva
Posts: 1,131
Groaned at 38 Times in 32 Posts
Thanked 1,392 Times in 521 Posts
monkeynut has a reputation beyond reputemonkeynut has a reputation beyond reputemonkeynut has a reputation beyond reputemonkeynut has a reputation beyond reputemonkeynut has a reputation beyond reputemonkeynut has a reputation beyond repute
Re: Tax For Foreign Earnings ?

how come your not taxed?
Reply With Quote
  #3  
Old 10.03.2008, 17:35
Polorise's Avatar
Forum Legend
 
Join Date: Mar 2007
Location: about there
Posts: 2,738
Groaned at 26 Times in 26 Posts
Thanked 2,325 Times in 1,259 Posts
Polorise has a reputation beyond reputePolorise has a reputation beyond reputePolorise has a reputation beyond reputePolorise has a reputation beyond reputePolorise has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
how come your not taxed?

Dubai & others in Middle East.

just saw, Oman ....
Reply With Quote
  #4  
Old 10.03.2008, 18:22
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
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.
Reply With Quote
  #5  
Old 10.03.2008, 18:52
vwild1
 
Posts: n/a
Re: Tax For Foreign Earnings ?

Quote:
View Post
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..?
Reply With Quote
  #6  
Old 11.03.2008, 18:08
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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.
Reply With Quote
  #7  
Old 10.03.2008, 22:29
Forum Legend
 
Join Date: May 2005
Location: Luzern currently
Posts: 2,565
Groaned at 3 Times in 3 Posts
Thanked 720 Times in 373 Posts
Richard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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:
View Post
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...
Reply With Quote
  #8  
Old 12.03.2008, 07:54
Newbie
 
Join Date: Mar 2008
Location: Muscat, Oman
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Blewyn has no particular reputation at present
Re: Tax For Foreign Earnings ?

Quote:
View Post
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)
Reply With Quote
  #9  
Old 13.03.2008, 11:24
FriendlyKiwi's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: Shoppinzentrum
Posts: 1,784
Groaned at 20 Times in 16 Posts
Thanked 914 Times in 551 Posts
FriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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.
Reply With Quote
  #10  
Old 13.03.2008, 11:26
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,531
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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.
Reply With Quote
  #11  
Old 13.03.2008, 11:30
FriendlyKiwi's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: Shoppinzentrum
Posts: 1,784
Groaned at 20 Times in 16 Posts
Thanked 914 Times in 551 Posts
FriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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"
Reply With Quote
  #12  
Old 13.03.2008, 11:38
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,531
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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"
Ehm... no.
Reply With Quote
  #13  
Old 13.03.2008, 17:46
Newbie
 
Join Date: Mar 2008
Location: Muscat, Oman
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Blewyn has no particular reputation at present
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).
Reply With Quote
  #14  
Old 13.03.2008, 20:09
Tilia's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: ZH
Posts: 2,767
Groaned at 81 Times in 45 Posts
Thanked 2,649 Times in 1,194 Posts
Tilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond repute
Re: Tax For Foreign Earnings ?

As Richard already mentioned, there are ways around it. If you want to come, I think it would be well spent money to get some sound advice from a _recommended_ Swiss tax-advisor on the best way for you to set up/do your business.


[quote=Blewyn;188575]
Quote:
View Post
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).
Reply With Quote
  #15  
Old 15.03.2008, 00:29
Gr8-Ideas's Avatar
Junior Member
 
Join Date: Mar 2008
Location: Crans-près-Céligny
Posts: 46
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
Gr8-Ideas has no particular reputation at present
Re: Tax For Foreign Earnings ?

Quote:
get some sound advice from a _recommended_ Swiss tax-advisor
Is there a list or some type of register for Friendly Tax Advisor's for the ex-pat / new European?

Especially in the region of Swiss's most western Socialist republic?? (Great Analogy Shorrick)
Reply With Quote
  #16  
Old 14.03.2008, 08:14
FriendlyKiwi's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: Shoppinzentrum
Posts: 1,784
Groaned at 20 Times in 16 Posts
Thanked 914 Times in 551 Posts
FriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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).
24% is low. In New Zealand the top tax bracket was 40%, with average tax around 33%.

In Germany taxes are also higher. During reunification, up to 50% or more.

Remember too: Switzerland has wealth tax. In Zurich a 1m CHF house will cost around 2,500 in wealth tax each year.

Taxes would be lower if everybody paid their share - if you try to avoid paying tax, we have to subsidise you with our taxes.

Does that sound fair?
Reply With Quote
  #17  
Old 17.03.2008, 17:55
Newbie
 
Join Date: Mar 2008
Location: Muscat, Oman
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Blewyn has no particular reputation at present
Re: Tax For Foreign Earnings ?

Quote:
View Post
24% is low. In New Zealand the top tax bracket was 40%, with average tax around 33%.
24% is not low compared to the 0% I pay right now.
Quote:
View Post
Taxes would be lower if everybody paid their share - if you try to avoid paying tax, we have to subsidise you with our taxes.

Does that sound fair?
Yes it does. The reason is because I won't be in Switzerland for more than 48% of the time, and all my income is generated and earned outside Switzerland. I am therefore pumping wealth directly into the Swiss economy, taking none out, while using the communal property and services less than half of the time.

In effect my net contribution to the Swiss economy will be greater than that of someone actually working there - after all your tax comes from an income you have taken out of Switzerland. I shall be bringing fresh funds from outside the country.
Reply With Quote
  #18  
Old 27.03.2008, 20:23
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post

I am therefore pumping wealth directly into the Swiss economy, taking none out, while using the communal property and services less than half of the time.
But your wife will live continuously in Switzerland. Your anticipated children will go to school here. And all will benefit from superb Swiss social security, when afflicted by illness, invalidity, unemployment, etc.
Reply With Quote
This user would like to thank Goldtop for this useful post:
  #19  
Old 06.06.2008, 10:00
Member
 
Join Date: Jan 2007
Location: Zurich
Posts: 140
Groaned at 16 Times in 6 Posts
Thanked 38 Times in 19 Posts
private_banker has annoyed a few people around hereprivate_banker has annoyed a few people around hereprivate_banker has annoyed a few people around here
Re: Tax For Foreign Earnings ?

Quote:
View Post
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).
Have you ever thought about the flat rate tax agreement in Switzerland...I don't know what your overall wealth is and whether you have enough to convince the tax authorities to offer you one.

Let me know if you need further info on the flat rate tax.
Reply With Quote
  #20  
Old 13.03.2008, 20:03
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: Tax For Foreign Earnings ?

Quote:
View Post
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.
Do not forget the compulsory Social Security contributions to AHV (old age insurance), ALV (unemployment insurance), IV (invalidity insurance) and FAK (family allowances).

These add up to 15% and is split between employer and employee. Self-employed pay both parts.
Reply With Quote
Reply

Tags
foreign earnings tax




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
Tax at source for foreign employees of foreign companies? ichthyst Finance/banking/taxation 1 17.03.2008 15:20
Tax on foreign house MrMert Finance/banking/taxation 1 30.12.2007 22:09
Starting a Swiss firm with foreign income, what a re tax and legal implications? dcribb Business & entrepreneur 9 12.07.2007 12:07
Tax on overseas earnings Fahle Finance/banking/taxation 8 10.06.2007 17:51
Swiss tax on overseas earnings DavidInBern Finance/banking/taxation 2 19.01.2007 15:20


All times are GMT +2. The time now is 09:33.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0