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Old 18.09.2018, 13:05
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Relocation bonus taxes

Hi everybody,
I'm going to relocate with my family (wife not working and 1 toddler) from another EU country to Zurich.
In October I will start working in Zurich.
The annual salary will be greater than 120.000 CHF. However, in 2018 I'll be working only for 3 months, so it won't be so high.

I will receive a relocation bonus in the first month and it will be paid with my first salary. I suspect the tax will be pretty high, about 25%.
Will this tax be applied to the first salary ? Also, will this tax rate continue to stay high for the next months, even though I will only receive the normal salary in the upcoming months ?
Sorry if these questions don't have any sense, but in my country we have a very primitive tax system

Thank you.
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Old 18.09.2018, 13:10
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Re: Relocation bonus taxes

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I will receive a relocation bonus in the first month and it will be paid with my first salary. I suspect the tax will be pretty high, about 25%.
Will this tax be applied to the first salary ? Also, will this tax rate continue to stay high for the next months, even though I will only receive the normal salary in the upcoming months ?
Sorry if these questions don't have any sense, but in my country we have a very primitive tax system

Thank you.
Will this tax be applied to the first salary ? Yes, if the relocation bonus is paid with the first salary

Will this tax be applied to the first salary ? If paid out then yes, also tax rate on where you live

Will this tax rate continue to stay high for the next months? No
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Old 18.09.2018, 13:13
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Re: Relocation bonus taxes

Thank you very much for your help!
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Old 18.09.2018, 15:05
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Re: Relocation bonus taxes

When I relocated to Switzerland, in 2011, I did not pay tax on the relocation allowance.

My employer had a cantonal tax ruling. The payment continued to be reported on the salary certificate and was still subject to AVS.
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Old 18.09.2018, 15:08
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Re: Relocation bonus taxes

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When I relocated to Switzerland, in 2011, I did not pay tax on the relocation allowance.

My employer had a cantonal tax ruling. The payment continued to be reported on the salary certificate and was still subject to AVS.
My company thought as well until they got hit by the tax authorities and had to tell us that anyone relocated as from 2009 still had to pay tax on that
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Old 18.09.2018, 15:41
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Re: Relocation bonus taxes

I asked my employer to "gross up" my relocation bonus so I was able to receive the full amount. They did that.

Also, sounds like you are taxed at source. Your tax rate is calculated monthly on that particular pay check. Which, for me working in sales with some months wildly varying from others is hard to get a good handle on what your actual tax rate will be.

That's why we get to do a return at the end of the year
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Old 18.09.2018, 18:10
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Re: Relocation bonus taxes

In AG I got a few k reloc. money.
They applied some rate per kilometer of distance for purpose of relocation from my previous place and there was no tax due, no invoices required.
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