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Old 25.11.2020, 23:38
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Taxes in Switzerland

Hi all

New post, new member! (please be gentle!)

I have a question. I am Spanish, I work in London in the pharma sector. I have received a job offer from a company in Switzerland (Canton Schwyz). All happened in less than a week.. mad, I know! Approached me on LinkedIn, job offer in 3.5 days!

I am now considering whether to move or not and net pay is important. My offer is for CHF 200k. 7% will be my contribution towards my company's pension. Therefore I will be taxed on CHF 186k.

The company is in Pfaeffikon, in zip code: 8808. I am 33years old, single, no kids, no religion, no net worth and if I move to Pfaeffikon I will get an apartment there. Could you please advise what taxes I will pay?

I am trying the different tax calculators and get different results. The one posted here:

https://swisstaxcalculator.estv.admi...ome-wealth-tax

shows that my cantonal+communal+direct federal taxes will be 22,065. Therefore am I right believing that my net pay will be 186,000-22,065=163,935. So, on a per month basis: 13,661 net?

However, eth:

https://ethz.ch/en/the-eth-zurich/wo...alculator.html

shows 11,757 net.

Could you please explain which one is correct? Thank you very very much!

(Please guys do not go to the route of telling me both amounts are high enough and I should be grateful. I am providing financial support to a member in my family and the 2k difference is important)
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Old 26.11.2020, 01:25
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Re: Taxes in Switzerland

You need to find the tax calculator for the canton Schwyz. Beware there is also a Pfaeffikon in Kanton Zurich. Global income is taxed either directly or indirectly. I think Schwyz is a low tax canton. You get taxed based on where you live, not where you work.
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Old 26.11.2020, 01:51
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Re: Taxes in Switzerland

The ETH calculator calculates all uni withholding, including insurance AND *pension* (which you say you would already be paying at your company and have pre-subtracted). If you put in your full salary (200,000), it gives you 12,634, which is closer to the other calculation you made. Working at ETH may also require you to pay for some Zurich things that you may not have to pay for if you work and live in Schwyz (not 100% sure on the accuracy of this, as I am no expert - just trying to be helpful).

I would say if this is a make-it-or-break-it moment for you, tell the HR that you need tax guidance and a better understanding of take-home pay. It sounds like they really want you, so they should be willing to give you a realistic estimate or at least point you in the direction of someone who can (and maybe pay that someone as part of your recruiting costs).

Good luck, and I hope you get the info you need to make the choice that fits you best.

P.S. If you've been reading this forum about the cost of living in Switzerland/Zurich, people here (IMHO!) absolutely over-estimate how much money is "necessary" to live a good life. You can lead a modest (but comfortable!!) lifestyle and have generous savings to support others! I don't know what kind of lifestyle you're looking for, but just thought I'd flag up in case you took some of these "120k is minimum wage in CH" posts too seriously.
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Old 26.11.2020, 01:41
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Re: Taxes in Switzerland

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Tax calculators and get different results. The one posted here:

https://swisstaxcalculator.estv.admi...ome-wealth-tax

shows that my cantonal+communal+direct federal taxes will be 22,065. Therefore am I right believing that my net pay will be 186,000-22,065=163,935. So, on a per month basis: 13,661 net?

However, eth:

https://ethz.ch/en/the-eth-zurich/wo...alculator.html

shows 11,757 net.

Could you please explain which one is correct? Thank you very very much!
The first is for regular taxation to second for tax at source. As your gross income is >120k you will have to use the one for regular taxation. Otherwise there will be a ~5k difference for your salary. In the end the calculator can only give you a ballpark figure as long as the deductions are only estimated.

You also have to know if you have to enter gross or net income and what is net income. But with your pay check you should be smart enough to find this out for yourself or able to afford a professional which can explain it to you.
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Old 26.11.2020, 01:55
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Re: Taxes in Switzerland

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The first is for regular taxation to second for tax at source.

The second gives a choice for tax at source or not. The problem is it's the wrong canton (unless I've majorly missed something)
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Old 26.11.2020, 03:52
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Re: Taxes in Switzerland

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The second gives a choice for tax at source or not. The problem is it's the wrong canton (unless I've majorly missed something)
You can chose the canton of residence. If you deselect tax at source option it will not calculate any tax but just the usual deductions only.

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Working at ETH may also require you to pay for some Zurich things that you may not have to pay for if you work and live in Schwyz (not 100% sure on the accuracy of this, as I am no expert - just trying to be helpful).
There is no canton Zurich specific stuff. Selecting the correct canton of residence is all it takes. Pension contributions however are ETH specific.
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Old 26.11.2020, 10:16
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Re: Taxes in Switzerland

Thank you all for your responses. (In the ETH calculator you can select the canton and I did Schwyz as the plan is to live there).

May I please understand what are the taxes that one pays? Am I right in assuming you have to account for 1) cantonal, 2) federal, 3) municipal, 4) withholding?

I tried to use the canton Scwhyz one (https://www.sz.ch/steuern/steuern-na...3487-3483-3481) and the answer is the same with the first calculator I mentioned. However, there is no mention of withholding tax which given my permit B I think I should take into account. Right?
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Old 26.11.2020, 10:23
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Re: Taxes in Switzerland

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Thank you all for your responses. (In the ETH calculator you can select the canton and I did Schwyz as the plan is to live there).

May I please understand what are the taxes that one pays? Am I right in assuming you have to account for 1) cantonal, 2) federal, 3) municipal, 4) withholding?

I tried to use the canton Scwhyz one (https://www.sz.ch/steuern/steuern-na...3487-3483-3481) and the answer is the same with the first calculator I mentioned. However, there is no mention of withholding tax which given my permit B I think I should take into account. Right?
Federal, cantonal, municipal. Tax at source (which you may mean by withholding) is a proxy for the sum of these three. With B permit, this will be deducted form your salary directly (lists of tax burden available on sz.ch, depends on your family situation as well). At the end of the year you do a proper tax filing and the final tax will be calculated against what you have already paid over the year. So it is just a cash issue.

Taxable income will be calculated after deduction of social security, health insurance.

SZ is cheap.

Here are the at-source tax tariffs for SZ. With (left) or without (right) church tax. A (single), B (household with one income), C (two incomes). The number, e.g. C2N, is for the number of kids.

https://www.sz.ch/unternehmen/auslae...3-441-439-4667
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