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Old 28.03.2010, 03:38
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asset net wealth tax for non-working residents

We wont own property in switzerland but we will be there about 10 months so we heard if we have L or B permit we will have to pay tax. I understand that my property in US will not be taxed but what about cash accounts and trusts accounts held int he US? Is the total wealth of such accounts taxed or is just the income from trust and other equity/cash accounts taxed. Pelase explain how this net wealth tax effect bank accounts and equity accounts etc. DOes it matter where the accounts are held?
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Old 28.03.2010, 16:14
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Re: asset net wealth tax for non-working residents

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We wont own property in switzerland but we will be there about 10 months so we heard if we have L or B permit we will have to pay tax. I understand that my property in US will not be taxed but what about cash accounts and trusts accounts held int he US? Is the total wealth of such accounts taxed or is just the income from trust and other equity/cash accounts taxed. Pelase explain how this net wealth tax effect bank accounts and equity accounts etc. DOes it matter where the accounts are held?
Worldwide wealth is considered in the calculation of tax but foreign real estate works only to determine your tax bracket (as with the USA foreign earned income exclusion).

Trusts are 'recognized' for certain purposes under Swiss law because Switzerland has ratified The Hague Convention on Trusts. But a trustee should not be liable for tax on the principal or income, and a beneficiary of a trust may or may not be recognized as such. A 'Totten trust' (a POD account) is a form of succession (inheritance provision) and not an indefeasible or present interest in the account.

There is a tax treaty and your federal and state tax may mean that you are not subject to income tax at all in Switzerland. As for wealth tax see below:

Wealth Tax

Swiss cantons levy taxes on the net wealth of individuals which are subject to (limited or unlimited) taxation. In the case the individual is resident in Switzerland, his worldwide wealth is subject to wealth taxes in Switzerland. Real estate or permanent establishments abroad are not taxed in Switzerland but considered for the determination of the applicable tax rate. In the case the individual is taxed on his/her real estate or permanent establishments located in Switzerland, the taxation is limited to the assets located in Switzerland.
  • The wealth taxes in the canton of Geneva amount to approx. 0.6% of the taxable net wealth.
  • In the canton of Vaud the wealth tax amounts to approx. 0.3%.
http://geneva.angloinfo.com/information/11/tax.asp
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Old 29.03.2010, 20:06
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Re: asset net wealth tax for non-working residents

Hi, thanks for the info. So am I to understand that I will pay a tax on all my wealth (not property wealth) if a resident of switzerland? Do you pay this tax every year? Seems strange that they would tax a person over and over on the same wealth. SO if I have 5 million in bank accounts in the US, then do they tax me on that or do they only tax on wealth that is held in switzerland? I am looking to live in Berne, do you know the wealth tax rate there? I understand that I will still file US taxes while living abroad. If I have a US LP that earns income will I pay the income taxes when I file the US return or when I file the swiss return?
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Old 29.03.2010, 23:18
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Re: asset net wealth tax for non-working residents

Switzerland will levy wealth tax on your global assets.
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