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Old 19.12.2018, 12:17
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Swiss Tax on Foreign Assets - Bank accounts & Property

Hello, my husband and I moved to Switzerland this year and we will leave end of February 2019. I wanted to ask how the swiss tax system works for foreign assets.

If you have a bank account outside of Switzerland :
- is the balance converted CHF using the FX rate as at 31 Dec 20XX?
- Do you need to provide a bank statement to confirm the balance or is online screenshot ok so they do not see all the transactions?

If you own property overseas with a mortgage how is this treated on your swiss tax return:
- Do you get to offset the mortgage against the value of the property?
- Can you deduct the repairs/maintenance etc…
- How is the value of the property determined? Do you need to get a real estate agent to provide a valuation at year end or can you use one from using the year

Thank you in advance.
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Old 19.12.2018, 12:57
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

Yes, the rate is determined for the year and can be found on the website of the tax office of your Kanton.

Don´t know whether you need to provide a bank statement, I do.

You can deduct the interest part of the mortgage. As to the valuation, check out the website from your Kanton.
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Old 21.12.2018, 18:30
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

Some comments:
"If you have a bank account outside of Switzerland :
- is the balance converted CHF using the FX rate as at 31 Dec 20XX?

Response: Yes, use year-end f/x rate for assets such as available at:

https://www.ictax.admin.ch/extern/de.../ratelist/2018

- Do you need to provide a bank statement to confirm the balance or is online screenshot ok so they do not see all the transactions?

Response: Generally not for foreign bank accounts.

If you own property overseas with a mortgage how is this treated on your swiss tax return:
- Do you get to offset the mortgage against the value of the property?

Response: Yes. Keep in mind that the value of foreign real estate is not directly taxed by the CH canton but is used to determine the asset tax rate for taxable assets. After including the net value of foreign real estate in the cantonal tax return, it may be excluded through the Steuerausscheidung process.

- Can you deduct the repairs/maintenance etc…

Response: to the extent that they are not value enhancing, they can be deducted from income earned on the property.

- How is the value of the property determined? Do you need to get a real estate agent to provide a valuation at year end or can you use one from using the year

Response: A supported value for the property is needed which can take various forms.
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Old 21.12.2018, 18:45
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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Hello, my husband and I moved to Switzerland this year and we will leave end of February 2019. I wanted to ask how the swiss tax system works for foreign assets.

If you have a bank account outside of Switzerland :
- is the balance converted CHF using the FX rate as at 31 Dec 20XX?
- Do you need to provide a bank statement to confirm the balance or is online screenshot ok so they do not see all the transactions?

If you own property overseas with a mortgage how is this treated on your swiss tax return:
- Do you get to offset the mortgage against the value of the property?
- Can you deduct the repairs/maintenance etc…
- How is the value of the property determined? Do you need to get a real estate agent to provide a valuation at year end or can you use one from using the year

Thank you in advance.
A screenshot is fine, they will know the balance is correct due to exchange of info, they probably know about transactions too.

A lowish approximate valuation is fine, a cash sale at midnight 31/12 will never give the best price & property valuations are an opinion rather than fact.
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Old 23.12.2018, 13:57
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

Thank you all for the information you have shared. It is much appreciated.
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Old 01.04.2019, 22:51
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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Yes, the rate is determined for the year and can be found on the website of the tax office of your Kanton.

Don´t know whether you need to provide a bank statement, I do.

You can deduct the interest part of the mortgage. As to the valuation, check out the website from your Kanton.
Hello,
Apologies for crashing this post. I am preparing my first Swiss tax return for 2018 (got the extension). I have filled it online as mine is very straightforward. However the only thing I’m unsure about is where / how to disclose my ownership of property abroad and associated debt. The form seems to only allow for Swiss-based properties. Can someone please advise?

Many thanks
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Old 01.04.2019, 23:13
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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Hello,
Apologies for crashing this post. I am preparing my first Swiss tax return for 2018 (got the extension). I have filled it online as mine is very straightforward. However the only thing I’m unsure about is where / how to disclose my ownership of property abroad and associated debt. The form seems to only allow for Swiss-based properties. Can someone please advise?
You can not use the ZHprivateTax-Light version, but must use the full ZHprivateTax version.

All properties can be declared on the Liegenschaftenverzeichnis
Debts can be declared on the Schuldenverzeichnis.

Use the Steuererklärungsformulare Modus instead of the Assistant to edit single forms.
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Old 02.04.2019, 09:08
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

Thank you so much for this, super helpful.
Just to check, the Liegenschaftenverzeichnis also allows listing of foreign property? I was confused as it looked like you can only put Swiss address in the fields (it doesn’t show an option for “country” etc.. can you please clarify this?
Sincere thanks agajn
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Old 02.04.2019, 09:19
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

In LV, click on "Liegenschaft bearbeiten". This will cause a new screen to pop up. Then, on the new screen, click on the document symbol on the left side of the first line and a pop-up opens. Then there's a line "Kanton/Ausland". Use the drop-down to find "Ausland". Fill in the address and value of your foreign property.
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Old 02.04.2019, 10:02
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

Brilliant. Sincere rhanks
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Old 02.04.2019, 22:36
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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In LV, click on "Liegenschaft bearbeiten". This will cause a new screen to pop up. Then, on the new screen, click on the document symbol on the left side of the first line and a pop-up opens. Then there's a line "Kanton/Ausland". Use the drop-down to find "Ausland". Fill in the address and value of your foreign property.
I just populated this tonight and it works - sincere thanks. One last question though - it is now pulling through the rental income from that UK property into my “income from real estate” (section 6.1). Isn’t that wrong? I thought no Swiss tax is charged on foreign real estate income? Thank you!
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Old 21.04.2019, 15:21
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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In LV, click on "Liegenschaft bearbeiten". This will cause a new screen to pop up. Then, on the new screen, click on the document symbol on the left side of the first line and a pop-up opens. Then there's a line "Kanton/Ausland". Use the drop-down to find "Ausland". Fill in the address and value of your foreign property.
Dear Mulhollander,
Happy Easter! A quick thank you. I’ve almost completed my return based on your fantastic help. I have one last question if you could please help? The only thing I am unsure about is the UK property income - as you suggested, I have included the property value, debt etc (converted to CHF) but I have also input the UK rental income, which seems to be pulled into my Swiss income tax calculation (Section 6.1) - am I making a mistake here? I thought non Swiss rental income does not get taxed here.

Should I not include the rental amount, i.e. leave that 0?
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Old 23.04.2019, 19:16
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Re: Swiss Tax on Foreign Assets - Bank accounts & Property

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Dear Mulhollander,
Happy Easter! A quick thank you. I’ve almost completed my return based on your fantastic help. I have one last question if you could please help? The only thing I am unsure about is the UK property income - as you suggested, I have included the property value, debt etc (converted to CHF) but I have also input the UK rental income, which seems to be pulled into my Swiss income tax calculation (Section 6.1) - am I making a mistake here? I thought non Swiss rental income does not get taxed here.

Should I not include the rental amount, i.e. leave that 0?
You need to show the rental income & any tax you have paid on that income.
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