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Old 08.03.2021, 15:53
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Wealth tax

hello,



My mum and I have a joining account in my home country, its about 110000 EUR. I just feel a bit complicated as I dont own the whole money myself, but then i have to pay wealth tax in Switzerland. The money wasnt under my name 2 years ago until this year, after we bought a fund bond (banker said it needed to change to my account so as to pass the risk evaluation) its still a joining account but just the fund bond part under only my name.



Can anyone recommend what i can do? Also, how much is the wealth tax for that amount?


Thanks.
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  #2  
Old 08.03.2021, 15:57
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Re: Wealth tax

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hello,



My mum and I have a joining account in my home country, its about 110000 EUR. I just feel a bit complicated as I dont own the whole money myself, but then i have to pay wealth tax in Switzerland. The money wasnt under my name 2 years ago until this year, after we bought a fund bond (banker said it needed to change to my account so as to pass the risk evaluation) its still a joining account but just the fund bond part under only my name.



Can anyone recommend what i can do? Also, how much is the wealth tax for that amount?


Thanks.

Depends on much wealth you have already. But not much, a couple of hundred or so at most.
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Old 08.03.2021, 20:28
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Re: Wealth tax

thanks for your reply HickvonFrick


I have searched for hours, now I found out the wealth tax is around 7-800CHF, which is quite a lot given that I have no job here.



Another question, What if my mum transfer money to my bank, at the moment I only know gift from parents to children has no tax, bank will accept the transaction.



But what if it is a loan not a gift? if I need money for buying a house but I will pay her back in the future, will bank really care what purpose of that money? Because i once heard that my mum has to write a note on the transaction saying it is a gift, then it is ok. But what about a loan? Will bank accept it too as its a true reason? and also i dont know how to fill out the tax form afterwards...
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Old 08.03.2021, 20:34
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Re: Wealth tax

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thanks for your reply HickvonFrick

I have searched for hours, now I found out the wealth tax is around 7-800CHF, which is quite a lot given that I have no job here.

Another question, What if my mum transfer money to my bank, at the moment I only know gift from parents to children has no tax, bank will accept the transaction.

But what if it is a loan not a gift? if I need money for buying a house but I will pay her back in the future, will bank really care what purpose of that money? Because i once heard that my mum has to write a note on the transaction saying it is a gift, then it is ok. But what about a loan? Will bank accept it too as its a true reason? and also i dont know how to fill out the tax form afterwards...
I think if it is in your account on 31 December then they will be collecting the monies - but will leave it for someone else more knowledgeable to answer properly.

Gifts aren't subject to income tax perhaps - but the money gifted will nontheless be subject to wealth tax.
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Old 08.03.2021, 20:35
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Re: Wealth tax

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thanks for your reply HickvonFrick


I have searched for hours, now I found out the wealth tax is around 7-800CHF, which is quite a lot given that I have no job here.



Another question, What if my mum transfer money to my bank, at the moment I only know gift from parents to children has no tax, bank will accept the transaction.


But what if it is a loan not a gift? if I need money for buying a house but I will pay her back in the future, will bank really care what purpose of that money? Because i once heard that my mum has to write a note on the transaction saying it is a gift, then it is ok. But what about a loan? Will bank accept it too as its a true reason? and also i dont know how to fill out the tax form afterwards...
Sounds a bit high, it would be 0 in Zurich
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Old 08.03.2021, 20:36
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Re: Wealth tax

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Sounds a bit high, it would be 0 in Zurich
Depends if that's all they have - but yes Basel Stadt is a very high tax area. Hence my abode in Aargau but within the TNW travel area
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Old 08.03.2021, 23:21
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Re: Wealth tax

what do you mean by 'the bank will accept it'? this is switzerland not russia. the bank will accept any transfer. i move funds around all the time between US/CH/UK - never been asked questions about it.
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Old 09.03.2021, 08:17
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Re: Wealth tax

Thats exactly in my country, no problem at all for money transaction. I always in and out a big amount to my mums account because of investment. Bank never question about it.



BUT here is different, when I opened my bank account, I asked the banker about transfer money from my country to here and was told that I have to proof where the money come from. It's only 150K CHF not one zero more! He also said the sender and recipient`s name must be the same.



Thats why I am extremely confused, can my mum send me money when we buy a house? At the moment I only know sending money from parents is fine as a gift, and bank would be ok with it. But what about I tell the truth, its a loan from my mum for us to buy a house?



Also, again a bit confused afterwards, will I have to tell the tax department why suddenly we are able to buy a house?
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Old 09.03.2021, 08:22
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Re: Wealth tax

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Thats exactly in my country, no problem at all for money transaction. I always in and out a big amount to my mums account because of investment. Bank never question about it.



BUT here is different, when I opened my bank account, I asked the banker about transfer money from my country to here and was told that I have to proof where the money come from. It's only 150K CHF not one zero more! He also said the sender and recipient`s name must be the same.



Thats why I am extremely confused, can my mum send me money when we buy a house? At the moment I only know sending money from parents is fine as a gift, and bank would be ok with it. But what about I tell the truth, its a loan from my mum for us to buy a house?



Also, again a bit confused afterwards, will I have to tell the tax department why suddenly we are able to buy a house?
It will be fine, if there is a problem they will ask for more info. Some countries raise red flags, Jersey a tiny island off the UK often does!
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Old 09.03.2021, 09:02
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Re: Wealth tax

When I've transferred large sums of money into Switzerland, I just declared where it had come from. E.g. repayment of loan to my parent-in-laws, inheritance.

Nothing to be concerned about.
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Old 09.03.2021, 09:16
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Re: Wealth tax

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Sounds a bit high, it would be 0 in Zurich
And maybe CHF 100 around here.

Tom
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Old 09.03.2021, 09:22
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Re: Wealth tax

try the tax calculator here: https://www.steuerverwaltung.bs.ch/s...errechner.html

Vermögenssteuer
Nettovermögen CHF
110000

Steuerbares Vermögen CHF
35000

Steuerbelastung Kanton CHF
158

1.44‰

Steuerbelastung Gemeinde CHF


Steuerbelastung Total CHF
158

1.44‰
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Old 09.03.2021, 09:46
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Re: Wealth tax

Thanks all for the replies.



Also thanks for the link. The 7-800 wealth tax I mentioned before was including all our assets together, becasue i cant just put 150K and it will bring 0, so I calculated the different from the current assets and after puting 150K. The more money you have the high % to pay.
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Old 09.03.2021, 11:28
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Re: Wealth tax

Interesting that calculator says "andere/ohne Konfession".

Anyway, 700-800CHF asset tax a year in addition. You must have a good pot of assets.
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Old 09.03.2021, 12:04
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Re: Wealth tax

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Interesting that calculator says "andere/ohne Konfession".

Anyway, 700-800CHF asset tax a year in addition. You must have a good pot of assets.
250k would 788 CHF
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Old 09.03.2021, 18:42
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Re: Wealth tax

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250k would 788 CHF
Thanks. Not as good as mine - it's all I wanted to know.
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Old 09.03.2021, 21:49
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Re: Wealth tax

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try the tax calculator here: https://www.steuerverwaltung.bs.ch/s...errechner.html

Vermögenssteuer
Nettovermögen CHF
110000

Steuerbares Vermögen CHF
35000

Steuerbelastung Kanton CHF
158

1.44‰

Steuerbelastung Gemeinde CHF


Steuerbelastung Total CHF
158

1.44‰
We've seen confusion here before when calculating wealth, so I want to point out that the ‰ mentioned by Phil means per mille. Not percent.
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Old 10.03.2021, 02:49
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Re: Wealth tax

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Thanks. Not as good as mine - it's all I wanted to know.
Snob
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Old 14.03.2021, 17:27
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Re: Wealth tax

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My mum and I have a joining account in my home country, its about 110000 EUR. I just feel a bit complicated as I dont own the whole money myself, but then i have to pay wealth tax in Switzerland. The money wasnt under my name 2 years ago until this year, after we bought a fund bond (banker said it needed to change to my account so as to pass the risk evaluation) its still a joining account but just the fund bond part under only my name.
Just declare wharever portion of the money you don't own as a debt, it won't count as your wealth and problem solved. You don't need to submit any papers proving the debt (as long as you're not claiming interests deduction for it, for that they expect a proof)

Don't try to just "forget" that bank account on your tax declaration, this ain't gonna work today with AEOI. Your foreign bank will report the account to its tax authorities who will forward the info to Switzerland, so the swiss tax office would eventually know.
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Old 14.03.2021, 21:41
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Re: Wealth tax

Declaring to the bank "loan from my mother" should be sufficient. You then record this amount as both a loan and an asset in the tax return however and income the fund makes will be deemed to be yours.
People (who don't live in Basel) often say "oh wealth tax is so low it isn't worth worrying about". I have a non-standard pension set-up and have to pay thousands each year.
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