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Old 13.11.2019, 12:18
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transfer savings from overseas or not?

i have just moved to switzerland from Dubai . i have some savings over there which earns +2% in FD. my question is whether i should bother transferring the funds to a swiss account here , am i breaking any tax laws if i don't ?
the TT transfer rates are horrible / the interest rates here are actually negative / you get charged money for every transaction .. i don't get it ?

thanks in advance.
NeWBe in Vaud.
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Old 13.11.2019, 12:21
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Re: transfer savings from overseas or not?

In Switzerland you're taxed on worldwide wealth, so it doesn't matter where your assets are, they will tax you the same.

The Swiss National Bank has a negative interest rates, so cash here in CHF will earn 0% in the bank.

I'd say it depends if you want to return to Dubai at some point or not. You can also consider opening a brokerage account where you can hold multiple currencies, then you're not stuck with just a simple bank account in 1 currency.
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Old 13.11.2019, 12:32
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Re: transfer savings from overseas or not?

You can have your assets wherever you want. Be aware about reporting obligations to the canton Vaud tax authorities which must be done on your own accord without invitation

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Subsequent ordinary taxation
In certain cases, persons taxed at source who are domiciled in the canton of Vaud under tax law are subject to ordinary taxation at a later date. This is the case when:
  • the gross annual income subject to withholding tax of the taxpayer or his spouse, who lives in a common household with him, exceeds the amount of 120,000 fr;
  • the taxpayer receives other income which is not subject to withholding tax (widow's/widower's pension, income from self-employment, income from real estate, etc.);
  • the taxpayer has assets (movable and/or immovable in Switzerland and/or abroad).
In the event of subsequent ordinary taxation, the withholding tax is maintained, the deductions made being deducted from the tax which will subsequently be calculated in accordance with the ordinary taxation procedure.

When one of the above-mentioned hypotheses is realized or when taking up residence in the canton of Vaud, the taxpayer is invited to inform the "Section de l’impôt à la source" without delay that one of the reasons for the ordinary roll is fulfilled in this case. This request for ordinary scheduling must be sent by mail to: Section de l’impôt à la source, Rue Caroline 9bis, 1014 Lausanne.
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https://www.vd.ch/themes/etat-droit-...rce-sourciers/
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Old 13.11.2019, 15:01
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Re: transfer savings from overseas or not?

We've been in a similar situation coming from Singapore in the past. In the end we chose to move our assets to CH, since we plan to stay here long term.



Also our SG assets were in SGD, and inflation numbers were not looking good. On top, I find it a lot easier to invest our assets with EU/CH brokers compared to SG brokers. These days with services such as Transferwise, conversion and banking fees are minimal.
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Old 13.11.2019, 16:18
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Re: transfer savings from overseas or not?

If you can keep the money there, for free, and its safe. Why not keep it.

Diversify the currency in your portfolio. Plus the 2% your earning is pretty good compared to as has been mentioned banks here paying nothing.
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Old 13.11.2019, 18:48
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Re: transfer savings from overseas or not?

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You can have your assets wherever you want. Be aware about reporting obligations to the canton Vaud tax authorities which must be done on your own accord without invitation


Translated with deepl.com
https://www.vd.ch/themes/etat-droit-...rce-sourciers/
Yes. This self declaration can only be done ONCE without penalty/prosecution.
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Old 13.11.2019, 22:05
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Re: transfer savings from overseas or not?

Do you need the money? If so bring it over but otherwise you can leave it but you're exposed the currency risk.

You can find cheaper ways to send money than the banks with their poor rates and spreads, look at the likes of Transferwise.
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Old 14.11.2019, 09:23
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Re: transfer savings from overseas or not?

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Yes. This self declaration can only be done ONCE without penalty/prosecution.
This has nothing to do with previous false returns, it's just informing the tax authority of your liability.
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Old 14.11.2019, 13:17
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Re: transfer savings from overseas or not?

In my humble opinion, keeping your money in the Emirates for the time being would be a good move for several reasons:
  • You earn realtively good interest there.
  • The AED/CHF rate has been very stable. The value of your AED is not likely to fall against the franc.
  • Holding your money in more than one currency, region and legal jurisdiction diversifies your portfolio, which minimizes vulnerability to economic and politcal fluctuations. I presume you will hold the Swiss francs you earn here in Switzerland.
  • As a resident of Switzerland, you can keep your wealth any place you like. You simply declare it for Swiss wealth tax purposes.
  • The SNBs negative interest rates are likely to sharpen. Interest paid on savings by Swiss banks has been dwindling steadily for years with no signs of stopping. That is not the case with the AED.
It is worth noting that there are Swiss banks which pay enough interest on savings accounts to make holding money there worth it. Make sure to compare savings accounts. You can compare online. I would only recommend this for the Swiss francs you earn while here though. The 2% you earn on your AED beats the best you will get here.
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Old 14.11.2019, 17:05
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Re: transfer savings from overseas or not?

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In my humble opinion, keeping your money in the Emirates for the time being would be a good move for several reasons:
  • The AED/CHF rate has been very stable. The value of your AED is not likely to fall against the franc.
  • The SNBs negative interest rates are likely to sharpen. Interest paid on savings by Swiss banks has been dwindling steadily for years with no signs of stopping. That is not the case with the AED.
Careful with the speculation.

Make a decision on what is most convenient or easy for you, not on what you expect in the future.
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Old 14.11.2019, 18:26
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Re: transfer savings from overseas or not?

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The AED/CHF rate has been very stable. The value of your AED is not likely to fall against the franc.
The AED is pegged to the USD. I wouldn't bet my money that it wasn't likely to fall against the franc.

I remember when people laughed when it was suggested the CHF and USD would be at par. A 2% fall in the USD/AED would wipe out any gains ...
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Old 14.11.2019, 18:31
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Re: transfer savings from overseas or not?

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The AED is pegged to the USD. I wouldn't bet my money that it wasn't likely to fall against the franc.

I remember when people laughed when it was suggested the CHF and USD would be at par. A 2% fall in the USD/AED would wipe out any gains ...
The CHF has lost money v USD year to date, no reason to think it won't continue to do so.
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Old 14.11.2019, 18:37
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Re: transfer savings from overseas or not?

Other than all the new oil coming on stream as demand falls. The US is a big oil exporter, as are quite a few countries tied to the dollar.

In my mind there is enough uncertainty to believe the dollar won't be appreciating in the mid-long term.
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Old 14.11.2019, 18:45
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Re: transfer savings from overseas or not?

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Other than all the new oil coming on stream as demand falls. The US is a big oil exporter, as are quite a few countries tied to the dollar.

In my mind there is enough uncertainty to believe the dollar won't be appreciating in the mid-long term.
Over the last 4 1/2 years the 2 currencies have tracked incredibly closely, it's amazing that you believe the CHF is intrinsically stronger than the USD on a 5 year view.
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