Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 04.09.2019, 07:35
Newbie
 
Join Date: Sep 2019
Location: Hong Kong
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
zyxi has no particular reputation at present
Are non-residents taxed on interest earned in Swiss bank accounts?

Hi everyone, first post here.

I used to live in Switzerland 10 years ago, and I still have a (pretty empty) bank account there. I live in Hong Kong now, and due to the recent political tensions here, I want to get my money out and was thinking of moving it to my Swiss account. I called up my bank and it looks OK from their side.

I was wondering if there were any tax implications though. I would probably put a lot of it in USD time deposits for now, maybe up to $500k deposit in total, and just let it earn some interest (I’m estimating it would amount to less than $10k/year), but would I be taxed on this interest in Switzerland? If yes, would I need to file a Swiss tax declaration form or is the tax withheld directly by the bank?

Also, is there any wealth tax I would be subject to simply by virtue of having the money sitting in Switzerland?

Thanks for your help.

Greg
Reply With Quote
  #2  
Old 04.09.2019, 13:58
Senior Member
 
Join Date: Jun 2014
Location: Basel
Posts: 396
Groaned at 6 Times in 5 Posts
Thanked 210 Times in 121 Posts
dbucar is considered knowledgeabledbucar is considered knowledgeabledbucar is considered knowledgeable
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

There is most probably 0% interest on bank accounts today.
Reply With Quote
The following 2 users would like to thank dbucar for this useful post:
  #3  
Old 04.09.2019, 14:20
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 26,988
Groaned at 1,693 Times in 1,295 Posts
Thanked 31,344 Times in 14,979 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Quote:
View Post
There is most probably 0% interest on bank accounts today.
And there is a 35% withholding tax on any interest.

Tom
Reply With Quote
The following 2 users would like to thank st2lemans for this useful post:
  #4  
Old 04.09.2019, 14:30
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 9,421
Groaned at 54 Times in 51 Posts
Thanked 14,809 Times in 6,823 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Depending on how much you transfer, it might not earn any interest at all and instead you'd pay negative interest rates.

https://www.swissinfo.ch/eng/wealth-...ients/45133506
Reply With Quote
The following 4 users would like to thank 3Wishes for this useful post:
  #5  
Old 04.09.2019, 16:17
Banned
 
Join Date: Jan 2019
Location: close to the frontier
Posts: 1,063
Groaned at 141 Times in 86 Posts
Thanked 597 Times in 379 Posts
Clocker has become a little unpopular
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Quote:
View Post
And there is a 35% withholding tax on any interest.
Doesn't this apply only from a certain amount upwards nowadays? It used to be on any amount, but I think this has changed to cut down on paperwork and refunds.
It might be different for non-residents though.
Reply With Quote
This user would like to thank Clocker for this useful post:
  #6  
Old 05.09.2019, 02:20
Newbie
 
Join Date: Sep 2019
Location: Hong Kong
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
zyxi has no particular reputation at present
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Thanks for the replies. Is this 35% withholding tax (if it's applicable) kept automtically by the bank rather than me having to file a tax declaration in Switzerland?



I'm aware CHF and EUR rates are zero (or negative), but the bank told me they offer USD Libor deposits at around 1.5%.
Reply With Quote
This user would like to thank zyxi for this useful post:
  #7  
Old 05.09.2019, 07:10
Banned
 
Join Date: Jan 2019
Location: close to the frontier
Posts: 1,063
Groaned at 141 Times in 86 Posts
Thanked 597 Times in 379 Posts
Clocker has become a little unpopular
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

If the amount of interest accrued is above a certain amount, the bank retains 35% of it and pays it to the state - this is the case if you are resident though.
Reply With Quote
  #8  
Old 05.09.2019, 08:10
Forum Legend
 
Join Date: Sep 2006
Location: SZ
Posts: 9,781
Groaned at 23 Times in 22 Posts
Thanked 21,803 Times in 6,992 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Quote:
View Post

I'm aware CHF and EUR rates are zero (or negative), but the bank told me they offer USD Libor deposits at around 1.5%.
Would you mind sharing which bank this is?
Reply With Quote
This user would like to thank meloncollie for this useful post:
  #9  
Old 05.09.2019, 08:26
eyebeebe's Avatar
Forum Veteran
 
Join Date: May 2009
Location: Pfäffikon SZ
Posts: 1,600
Groaned at 16 Times in 15 Posts
Thanked 1,711 Times in 804 Posts
eyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond repute
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Quote:
View Post
Would you mind sharing which bank this is?
I’d expect any private bank to do so if you are depositing USD 500k. At the retail end they are going to offer you zero (and perhaps charge an account fee).

However, I’m surprised they are offering a LIBOR rate. Not sure the OP meant that, as that would mean the rate given would be on a variable basis. This isn’t common at all for deposits. Normally it’s a fixed rate.
Reply With Quote
The following 3 users would like to thank eyebeebe for this useful post:
  #10  
Old 05.09.2019, 12:06
Newbie
 
Join Date: Sep 2019
Location: Hong Kong
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
zyxi has no particular reputation at present
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Yes, apologies, it was poor wording. They don't offer a "USD Libor" deposit, but were mentioning the possibility of opening a fixed-rate time deposit. As these deposits are often short term, between 3 month-1 year, the fixed rate is often not too far off from Libor itself, which is what I was thinking of.

(As an aside: Libor today is about 2.1%, and in Hong Kong it's common to get these fixed-rate deposit at around 1.7-2.0%, just under the Libor rate itself. I'll find out what I can get from Swiss banks and post back here.)

I'm talking with UBS, and have another call soon, I can update with more details here when I have them.
Reply With Quote
This user would like to thank zyxi for this useful post:
  #11  
Old 05.09.2019, 13:44
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 11,050
Groaned at 168 Times in 145 Posts
Thanked 15,705 Times in 6,368 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Are non-residents taxed on interest earned in Swiss bank accounts?

Quote:
View Post
Thanks for the replies. Is this 35% withholding tax (if it's applicable) kept automtically by the bank
Yes. That is what is meant by "withholding". The bank withholds the money and passes it to the government, so if you're a nasty little tax dodger who doesn't declare income, at least on government has been paid.

You have to fill a tax declaration to get it back. Usually - there may be a way of getting interest paid gross. I certainly get interest paid gross from my UK bank account.
Reply With Quote
This user would like to thank NotAllThere for this useful post:
Reply

Tags
tax




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax on interest earned on foreign account keepsmiling Finance/banking/taxation 4 04.09.2018 21:34
Non-residents Maintaining Swiss Bank Account DavidB52 Finance/banking/taxation 23 13.12.2016 10:07
Are there any swiss banks dealing with non residents Yiannis Finance/banking/taxation 10 13.05.2014 23:18
Tax Rate on Interest Earned from Foreign Euro Bank Accounts Ashish Finance/banking/taxation 17 04.03.2013 11:25
Paying tax on interest earned in Australia Waldo000000 Finance/banking/taxation 5 21.09.2011 14:19


All times are GMT +2. The time now is 17:37.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0