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Old 24.12.2018, 05:47
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Tax for Cash & Real estate in abroad

Dears, I will move to Geneva next year, and I be told that I should declare my bank account and real estate in abroad. If I have more than 200,000CHF in account then must pay 0.5% tax yearly, which seems a quite high rate and I can't understand why I have to pay money to Swiss authorization for what I saved on other country...
For the house, the value is not stable as the market price may change, how I should declare it? I heard in some countries you may need to pay very high tax if the house price increase, is this also needed for Swiss? How I should declare the house value then? Many thanks!
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Old 29.12.2018, 14:06
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Re: Tax for Cash & Real estate in abroad

Real estate abroad is not directly taxed in Switzerland but it value will be used to determine the applicable tax rate.

How the tax value of the property abroad is derived will depend on the canton. Not sure how it works in Geneva but here an example how it is done in canton Fribourg: tax_value = (purchase_value + 2 (rental_income / 0.08) ) / 3
If there is no rental income it will be set to purchase_value 0.025
https://www.fr.ch//sites/default/fil...en_ausland.pdf
Geneva might have other rules but at least it should give you a ball park figure.

Property gain tax will be levied by the Swiss canton where the property is. Hence a property which is abroad is not subject to any Swiss property gain tax. Note: Swiss property gain tax has only to be paid once the property is sold and the longer you had the property the lower the gain tax will be. Also there is no gain tax if the gain is reinvested in a new property where you will reside.

Now, tax is used to maintain, run, and operate this wonderful country with all its amenities. Tax is levied on a persons economic and financial capabilities. The more you have or earn the more you can spare as you still have lot more left after paying tax than the poor guy. Although there is wealth tax Switzerland has no capital gains tax. Wealth but no capital gains tax makes sure that people invest the money instead of letting it rot in a bank account. Wealth tax also makes sure that a rich person can not live like a freeloading leach using the infrastructure but not paying for its use and maintenance.
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Last edited by aSwissInTheUS; 29.12.2018 at 14:33.
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Old 02.01.2019, 03:07
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Re: Tax for Cash & Real estate in abroad

dear aSwissInTheUS, many thanks for your details explanation
Happy New Year and wish you a fruitful 2019
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