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-   -   employee in CH and investments (https://www.englishforum.ch/finance-banking-taxation/296895-employee-ch-investments.html)

marcofbbr 24.02.2020 13:10

employee in CH and investments
 
Hi,

I am European/Italian and will move to CH tomorrow and start working in Bern with a permanent contract. !

I recently sold all my investments (80% of my entire capital was invested in around 20 SICAV funds) as I was not sure what were the regulations in CH for capitals invested abroad.

When I lived in Italy and in the NL I used an a web (brokarage) service to buy/sell funds (around 4K SICAV funds were available). This service was independent from my bank account. Perhaps there is something similar here?

So the questions below are about getting some general indications about how to invest in funds/ETF in CH:

- is there a bank account which offer a great selection of funds/etf more than another with reasonable costs? I would like to be able to choose from a wide pool available and I don't really need a financial advisor to choose the funds as I prefer to find my information online

- how do you pay taxes on your earnings ? I read that there is no tax on capital gain but should I report it in my income? Is it advisable to get a tax adviser for that?

- what are the cost for this kind of operations? The reference I have with my old fund was about fund with a TER of 1% to 3%, + 15euros for each buy/sell operation + some other management commission in the extent of 0,x% (where applicable)

Thanks

fatmanfilms 24.02.2020 13:20

Re: employee in CH and investments
 
Quote:

Originally Posted by marcofbbr (Post 3150797)
Hi,

I am European/Italian and will move to CH tomorrow and start working in Bern with a permanent contract. !

I recently sold all my investments (80% of my entire capital was invested in around 20 SICAV funds) as I was not sure what were the regulations in CH for capitals invested abroad.

When I lived in Italy and in the NL I used an a web (brokarage) service to buy/sell funds (around 4K SICAV funds were available). This service was independent from my bank account. Perhaps there is something similar here?

So the questions below are about getting some general indications about how to invest in funds/ETF in CH:

- is there a bank account which offer a great selection of funds/etf more than another with reasonable costs? I would like to be able to choose from a wide pool available and I don't really need a financial advisor to choose the funds as I prefer to find my information online

- how do you pay taxes on your earnings ? I read that there is no tax on capital gain but should I report it in my income? Is it advisable to get a tax adviser for that?

- what are the cost for this kind of operations? The reference I have with my old fund was about fund with a TER of 1% to 3%, + 15euros for each buy/sell operation + some other management commission in the extent of 0,x% (where applicable)

Thanks

No reason to sell your old funds, you are making this more complicated then is necessary. Income likely to be tiny, you can add to tax return if you get one.

wantone 24.02.2020 13:59

Re: employee in CH and investments
 
Interactive Brokers account is a very cost effective platform for investing.

marcofbbr 24.02.2020 15:49

Quote:

Originally Posted by fatmanfilms (Post 3150799)
No reason to sell your old funds, you are making this more complicated then is necessary. Income likely to be tiny, you can add to tax return if you get one.

actually it is not that easy . I signed a declaration when I opened the account with the italian broker (2014) , stating that I was not residing in countries part of a blacklist (CH was already in the blacklist when I signed) .

Now I am moving to CH and I don't know whether CH is still considered in the blacklist or not by the italian government. Since I failed to understand what are the legal implication of that document I preferred to avoid assumption. For the broker everything is ok but I am the one who signed....while he wants to keep earning commissions.

So I decided to start everything from scratch and consolidated my gain :)

Quote:

Originally Posted by wantone (Post 3150813)
Interactive Brokers account is a very cost effective platform for investing.

Thanks, I read something about it in some other posts.

How do you make investments using Interactive broker?

As I am trying to understand the process high level, it something like:

- I open an account
- I find the fund/etf I want to buy.
- I give them the money and they buy the ETF/fund
- At some point I will ask them to sell the ETF/fund.
- They send the money back to my bank account
- I pass the details about the operation to my accountant that will be considered in my tax return/declaration.

Is it how it works?

Thanks

wantone 24.02.2020 16:05

Re: employee in CH and investments
 
Yes you wire them money and they credit your investments account. You look for the fund, type a buy or sell order and they execute. You do it online by yourself or via an investment advisor. Then you withdraw your money back to your bank via wire again.

marcofbbr 24.02.2020 18:21

Re: employee in CH and investments
 
Quote:

Originally Posted by wantone (Post 3150854)
Yes you wire them money and they credit your investments account. You look for the fund, type a buy or sell order and they execute. You do it online by yourself or via an investment advisor. Then you withdraw your money back to your bank via wire again.

ok, it seems quite simple.
Is it easy to extract the information required by the accountant for the tax declaration or I would need an investment advisor?
I suppose this is a one time operation at the end of each (fiscal) year.

I never had to deal with those aspects so I don't know what to expect.

fatmanfilms 24.02.2020 18:42

Re: employee in CH and investments
 
Quote:

Originally Posted by marcofbbr (Post 3150896)
ok, it seems quite simple.
Is it easy to extract the information required by the accountant for the tax declaration or I would need an investment advisor?
I suppose this is a one time operation at the end of each (fiscal) year.

I never had to deal with those aspects so I don't know what to expect.

Quantity & value in CHF @31/12

list of dividends to reclaim withholding tax & then be taxed at marginal rate.

Income tax deduction of 0.3% for management fees or actual costs if higher

wantone 24.02.2020 20:27

Re: employee in CH and investments
 
Quote:

Originally Posted by marcofbbr (Post 3150896)
ok, it seems quite simple.
Is it easy to extract the information required by the accountant for the tax declaration or I would need an investment advisor?
I suppose this is a one time operation at the end of each (fiscal) year.

I never had to deal with those aspects so I don't know what to expect.

Yes very easy. The issue statements daily, annually etc. Just give the annual statement to the accountant and he will declare the earnings etc.

wantone 24.02.2020 20:28

Re: employee in CH and investments
 
Quote:

Originally Posted by fatmanfilms (Post 3150904)
Quantity & value in CHF @31/12

list of dividends to reclaim withholding tax & then be taxed at marginal rate.

Income tax deduction of 0.3% for management fees or actual costs if higher

The annual statement includes absolutely everything.

roegner 24.02.2020 20:31

Re: employee in CH and investments
 
Quote:

Originally Posted by wantone (Post 3150936)
The annual statement includes absolutely everything.

Yes, but that still can be quite confusing if you are new to Switzerland and the taxation system and if you want to know now what you need to do :D

wantone 25.02.2020 08:10

Re: employee in CH and investments
 
Quote:

Originally Posted by roegner (Post 3150937)
Yes, but that still can be quite confusing if you are new to Switzerland and the taxation system and if you want to know now what you need to do :D

Οbviously you need to find a good local accountant who speaks English. Problem solved.

roegner 25.02.2020 08:20

Re: employee in CH and investments
 
Quote:

Originally Posted by wantone (Post 3151013)
Οbviously you need to find a good local accountant who speaks English. Problem solved.

Not in all cases. A lot of banks now provide an year end overview that can be uploaded into your tax documents, easy peasy as it will have all items correctly stated.


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