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  #21  
Old 23.03.2018, 10:35
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

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EDIT - but in Australia as a 'foreign resident' They will want me to pay 32% on my rental income too!?? Not sure who I am meant to pay tax to in this situation?
On the subject of double tax agreements since they have been mentioned. IF you had a tax liability from the property in both countries (and I dont think this will be the case), you would have to pay both countries. The DTA would allow you to offset the tax paid in the lower rate country from the tax bill in the higher rate country. So net net you end up paying the higher rate, and are probably out of pocket for a good while until it all gets paid/repaid after doing the returns.
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Old 23.03.2018, 10:52
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

Here's an interesting article about tax on property abroad.
https://www.hausinfo.ch/de/home/fina...n-ausland.html

From there:
Das heisst zum Beispiel: Ein Erwerbstätiger hat in der Schweiz ein steuerbares Einkommen von 100'000 Franken. Im Ausland besitzt er eine Liegenschaft, die einen jährlichen Ertrag (Mieteinnahmen) von 20'000 Franken bringt. Die Steuerverwaltung wendet zur Berechnung seiner Steuern nun jenen Steuersatz an, der gültig ist bei einem Einkommen von 120'000 Franken. Effektiv zu versteuern sind zu diesem höheren Satz aber lediglich die 100'000 Franken aus dem in der Schweiz erzielten Einkommen – und nicht nur das, wie Philipp Lütscher sagt: «Genau gleich verhält es sich mit dem Vermögen, also dem Wert der Liegenschaft.»

Rough translation:
For example, a working person has an income of 100,000 francs. Abroad, he owns a property that generates an annual income (rental income) of 20,000 francs. The [Swiss] tax administration now uses the tax rate that is valid for an income of 120,000 francs to calculate its taxes. However, this [higher rate] applies only to the 100,000 francs income earned in Switzerland - and, as Philipp Lütscher says: "Exactly the same [reasoning] applies to the assets, ie the value of the property."

Your situation is obviously different if you do not have any income in Switzerland.

Over and above that, as for so many things in Switzerland the tax system is different from canton to canton. In some cantons, the costs of maintaining the property abroad can be put on the Swiss tax declaration as a deduction.
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Old 23.03.2018, 10:58
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

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Your situation is obviously different if you do not have any income in Switzerland.

Over and above that, as for so many things in Switzerland the tax system is different from canton to canton. In some cantons, the costs of maintaining the property abroad can be put on the Swiss tax declaration as a deduction.
Good link.

But the situation is not obviously different for the OP, just that the tax rate calculated on the global income will be multiplied by zero. Note the careful use of language; the property is taxable (ie must be included in the return) but results in no actual tax liability (or a very marginal one if the OP had Swiss income)

There are not inter-cantonal differences as regards how overseas property will affect your Swiss tax liability. This is just an extension of the federal level property income and asset allocation rules that already apply in Switzerland (say you have a holiday home in another canton from your residence) to overseas property. You can apply the same deductions to overseas properties as you can to Swiss properties (granted these rules may vary between cantons).

Finally, note that you should not put the market value of the properties but the taxable value. I always used the same ratio of taxable value/market value as we have on our Swiss home (about 50%). There is a more scientific way of doing this, but as the impact on your Swiss liability is close to zero I was never asked to prove any overseas property values.
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Last edited by dannyt986; 23.03.2018 at 11:11.
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  #24  
Old 23.03.2018, 11:58
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

The inter-cantonal difference, as I understood it, is with regard to the deduction of the costs of maintaining a property abroad. Some cantons allow such a deduction, which can result in a lower tax altogether, while other cantons exclude deductions for properties abroad.

From the same article:
Natürlich besteht auch die Möglichkeit, dass die von den Bruttoerträgen bzw. vom Eigenmietwert abziehbaren Kosten für Unterhalt, Versicherungen und Verwaltung die Erträge übersteigen. Es entsteht ein so genannter Gewinnungskostenüberschuss – also eigentlich ein Verlust. Mit diesem werde nicht in allen Kantonen genau gleich umgegangen, sagt Philipp Lütscher. In einer Minderheit der Kantone, zum Beispiel Zürich, Basel-Stadt und Graubünden, wird der Gewinnungskostenüberschuss als Minuseinkommen aus dem Ausland übernommen. Hier wirkt er sich also klar steuermindernd aus. Die meisten anderen Kantone wie auch der Bund übernehmen dagegen ein Minus aus dem Ausland nur satzbestimmend.
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Old 23.03.2018, 12:01
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

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Natürlich besteht auch die Möglichkeit, dass die von den Bruttoerträgen bzw. vom Eigenmietwert abziehbaren Kosten für Unterhalt, Versicherungen und Verwaltung die Erträge übersteigen.
"die Erträge übersteigen" ie this is talking about the treatment of net losses (ie income less costs) on overseas properties... it states that in all cases costs are deductible.
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Old 23.03.2018, 12:09
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Re: B Permit Holder in Zürich - Worth Filing a Tax Return?

Yes, thanks, now I see the difference. A net loss allowed as a deductible allowed only in a minority of cantons, but costs deductible in all cases.

Thank you.
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