Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 13.11.2019, 11:18
Junior Member
 
Join Date: Jun 2019
Location: lausanne
Posts: 30
Groaned at 3 Times in 3 Posts
Thanked 9 Times in 5 Posts
pierrenay has made some interesting contributions
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.
Reply With Quote
  #2  
Old 13.11.2019, 11:21
Forum Veteran
 
Join Date: Mar 2014
Location: Neuchatel
Posts: 769
Groaned at 3 Times in 3 Posts
Thanked 351 Times in 216 Posts
Enohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputation
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.
Reply With Quote
This user would like to thank Enohzee for this useful post:
  #3  
Old 13.11.2019, 11:32
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,783
Groaned at 99 Times in 88 Posts
Thanked 19,576 Times in 8,681 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
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

Quote:
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.
Translated with deepl.com
https://www.vd.ch/themes/etat-droit-...rce-sourciers/
Reply With Quote
  #4  
Old 13.11.2019, 14:01
Member
 
Join Date: Jan 2012
Location: Lausanne
Posts: 138
Groaned at 2 Times in 2 Posts
Thanked 111 Times in 64 Posts
hans1 has made some interesting contributions
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.
Reply With Quote
  #5  
Old 13.11.2019, 15:18
peaky's Avatar
Senior Member
 
Join Date: Nov 2013
Location: zurich
Posts: 363
Groaned at 6 Times in 6 Posts
Thanked 249 Times in 139 Posts
peaky has earned the respect of manypeaky has earned the respect of manypeaky has earned the respect of many
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.
Reply With Quote
  #6  
Old 13.11.2019, 17:48
Banned
 
Join Date: Oct 2007
Location: CH
Posts: 10,975
Groaned at 2,032 Times in 1,120 Posts
Thanked 5,139 Times in 3,246 Posts
omtatsat omtatsat omtatsat omtatsat omtatsat
Re: transfer savings from overseas or not?

Quote:
View Post
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.
Reply With Quote
  #7  
Old 13.11.2019, 21:05
Neko's Avatar
Member
 
Join Date: Sep 2017
Location: Vaud
Posts: 225
Groaned at 0 Times in 0 Posts
Thanked 176 Times in 107 Posts
Neko is considered knowledgeableNeko is considered knowledgeableNeko is considered knowledgeable
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.
Reply With Quote
  #8  
Old 14.11.2019, 08:23
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,047
Groaned at 445 Times in 341 Posts
Thanked 22,358 Times in 11,564 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: transfer savings from overseas or not?

Quote:
View Post
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.
Reply With Quote
The following 3 users would like to thank fatmanfilms for this useful post:
  #9  
Old 14.11.2019, 12:17
Junior Member
 
Join Date: Oct 2011
Location: Zurich
Posts: 68
Groaned at 9 Times in 6 Posts
Thanked 70 Times in 34 Posts
Danieldreier has earned the respect of manyDanieldreier has earned the respect of manyDanieldreier has earned the respect of many
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.
Reply With Quote
This user would like to thank Danieldreier for this useful post:
  #10  
Old 14.11.2019, 16:05
Forum Veteran
 
Join Date: Mar 2014
Location: Neuchatel
Posts: 769
Groaned at 3 Times in 3 Posts
Thanked 351 Times in 216 Posts
Enohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputationEnohzee has an excellent reputation
Re: transfer savings from overseas or not?

Quote:
View Post
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.
Reply With Quote
  #11  
Old 14.11.2019, 17:26
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 4,926
Groaned at 249 Times in 183 Posts
Thanked 6,700 Times in 3,156 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
Re: transfer savings from overseas or not?

Quote:
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 ...
Reply With Quote
  #12  
Old 14.11.2019, 17:31
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,047
Groaned at 445 Times in 341 Posts
Thanked 22,358 Times in 11,564 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: transfer savings from overseas or not?

Quote:
View Post
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.
Reply With Quote
  #13  
Old 14.11.2019, 17:37
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 4,926
Groaned at 249 Times in 183 Posts
Thanked 6,700 Times in 3,156 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
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.
Reply With Quote
  #14  
Old 14.11.2019, 17:45
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,047
Groaned at 445 Times in 341 Posts
Thanked 22,358 Times in 11,564 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: transfer savings from overseas or not?

Quote:
View Post
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.
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #15  
Old 03.02.2020, 22:34
Junior Member
 
Join Date: Jun 2019
Location: lausanne
Posts: 30
Groaned at 3 Times in 3 Posts
Thanked 9 Times in 5 Posts
pierrenay has made some interesting contributions
Re: transfer savings from overseas or not?

Thanks for all replies, my final experiance is to bite the bullet and transfer funds TT , the banks are fckers, so either way u lose.buy gold bullion, exchange to Euro , get a bitcoin account, forget it.. "what seems apperant is your bank of origin will give you best rates that are negotiable. So argue with your banker to get best rates
Reply With Quote
  #16  
Old 06.02.2020, 17:29
Senior Member
 
Join Date: Jul 2016
Location: GR
Posts: 442
Groaned at 21 Times in 17 Posts
Thanked 144 Times in 122 Posts
wantone has no particular reputation at present
Re: transfer savings from overseas or not?

Quote:
View Post
Thanks for all replies, my final experiance is to bite the bullet and transfer funds TT , the banks are fckers, so either way u lose.buy gold bullion, exchange to Euro , get a bitcoin account, forget it.. "what seems apperant is your bank of origin will give you best rates that are negotiable. So argue with your banker to get best rates
I would convert them to USD and transfer the funds to Switzerland or directly to an Interactive Brokers account and do some investment in USD or some other European currencies other than CHF. Much more flexibility that way and same tax burden as you need to declare them in any case.
Reply With Quote
Reply

Tags
foreign assets, swiss banks




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
TNT shipment from overseas Guest Other/general 10 03.12.2020 20:46
Paying a car by bank transfer from overseas. Nano Finance/banking/taxation 4 23.04.2019 19:24
weird pension situation. transfer to qrops fund here transfer out to swiss resident Guest Finance/banking/taxation 12 23.07.2015 16:43
Moving to Switzerland from USA - Advice needed on how to transfer money in savings rage30 Finance/banking/taxation 4 13.02.2012 21:58
Tax on overseas earnings Fahle Finance/banking/taxation 8 10.06.2007 17:51


All times are GMT +2. The time now is 21:07.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0