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Old 20.05.2019, 21:18
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invest in an other land. what about tax?

I have to ask around via friends around me, but no luck so far, so I thought I might try here as there are many expats that are potentially interested or knowledgeable about tax + investments.

I live in Zurich, but am interested in investing, let's say in Germany, for a residential real estate investment. My question is on the tax side: Is it correct that all income that I generate in Germany via that real estate investment is taxed there (I think progressive tax, up to 42% and sometimes 49% at the maximum), but also in Switzerland, I have the following impact: I won't be taxed here, BUT, but I will get a higher tax bracket (exactly by the amount of income that the real estae is generating) - and at that new level my other Swiss income is taxed.

Is this true?

Thanks in advance for your help
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Old 21.05.2019, 08:34
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Re: invest in an other land. what about tax?

Yes tax bracket will change.
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Old 21.05.2019, 08:42
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Re: invest in an other land. what about tax?

AFAIK you will not be taxed in Germany as you are not a resident. It will be added to your income and wealth here though.

At least: I do not pay any taxes on the house we have in Germany.
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Old 21.05.2019, 09:19
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Re: invest in an other land. what about tax?

http://taxsummaries.pwc.com/ID/Germa...ersonal-income

"Non-resident individuals are taxed (usually by withholding) on German source income only."

I think you will be taxed in Germany on income but here not. But it has to be declared here. And will change your tax class here.
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Old 21.05.2019, 12:00
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Re: invest in an other land. what about tax?

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AFAIK you will not be taxed in Germany as you are not a resident. It will be added to your income and wealth here though.

At least: I do not pay any taxes on the house we have in Germany.
You seem to have fallen through some cracks.

See Thurgovia for example (in German only):
Someone arriving from abroad remains taxable abroad on the income generated by their real estate abroad. That income won't be taxed in CH but it will be considered when determining the tax bracket.
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Old 21.05.2019, 12:29
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Re: invest in an other land. what about tax?

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I do not pay any taxes on the house we have in Germany.
Interesting, as we pay Italian property taxes on the house in Italy.

Tom
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Old 21.05.2019, 12:34
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Re: invest in an other land. what about tax?

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AFAIK you will not be taxed in Germany as you are not a resident. It will be added to your income and wealth here though.

At least: I do not pay any taxes on the house we have in Germany.
but do you rent it out and receive rental income?
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Old 21.05.2019, 12:46
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Re: invest in an other land. what about tax?

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You seem to have fallen through some cracks.

See Thurgovia for example (in German only):
Someone arriving from abroad remains taxable abroad on the income generated by their real estate abroad. That income won't be taxed in CH but it will be considered when determining the tax bracket.
That's what I said verdammt emal
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Old 21.05.2019, 14:15
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Re: invest in an other land. what about tax?

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Interesting, as we pay Italian property taxes on the house in Italy.

Tom
I do pay Grundsteuer in Germany. But nothing else, apart from the insurances etc etc

And no, it is not rented out, that must be the difference
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Old 21.05.2019, 18:14
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Re: invest in an other land. what about tax?

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I do pay Grundsteuer in Germany. But nothing else, apart from the insurances etc etc

And no, it is not rented out, that must be the difference
Non resident taxes on income and land tax can be really high-like in Australia. Minimum is 30 % tax on income and 10 % tax on the value of any land owned.

Last edited by omtatsat; 21.05.2019 at 19:47.
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Old 22.05.2019, 09:13
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Re: invest in an other land. what about tax?

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That's what I said verdammt emal
If that's supposed to be dialect it should be more like " 'Tami nomol" or "Votami nomol". Or "verdammt nochmal" in standard German.
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Old 22.05.2019, 17:42
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Re: invest in an other land. what about tax?

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If that's supposed to be dialect it should be more like " 'Tami nomol" or "Votami nomol". Or "verdammt nochmal" in standard German.
Dialekt varies by city and region. Theres no one dialekt
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Old 30.05.2019, 16:21
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Re: invest in an other land. what about tax?

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You seem to have fallen through some cracks.

See Thurgovia for example (in German only):
Someone arriving from abroad remains taxable abroad on the income generated by their real estate abroad. That income won't be taxed in CH but it will be considered when determining the tax bracket.

This is what I thought as well.

So, in Germany, there is progressive tax as well... would I be taxed only at the level of income of that property (or if I have more, the sum of) in Germany?

While I won't be taxed in Switzerland, but my bracket changes. Is that correct so far?
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Old 02.06.2019, 03:59
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Re: invest in an other land. what about tax?

Is it true that CH also won't tax interest I reported I earned abroad?
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