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  #61  
Old 09.05.2018, 16:37
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Re: Wealth Tax in Switzerland - seeking clarification, information

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HI

This is for Kanton Zurich. Wanted to know what will be taxed wealth amount
200k or 400k

Like : 200k CHF in CH bank accounts
200k CHF in Overseas bank accounts
Amount determining tax rate: 400k.
Amount being taxed: 400k.

Only real estate is taxed at canton/country of location but used to calculate local tax rate anyway.
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Old 09.05.2018, 16:47
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Re: Wealth Tax in Switzerland - seeking clarification, information

On a side note...
How is the value of a house / property abroad calculated for wealth tax? Purchase price?
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  #63  
Old 09.05.2018, 17:03
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Re: Wealth Tax in Switzerland - seeking clarification, information

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On a side note...
How is the value of a house / property abroad calculated for wealth tax? Purchase price?
like every other number in your tax return you should be prepared to back it up / prove it. Take 70% the lower of the purchase price (you have a receipt/mortage?) or of the offical evaluation you probably needed to purchase (due diligence, etc.)

c.f. more info link
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  #64  
Old 28.09.2018, 18:30
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Wealth Tax

Hello All,

I'm new to the forum and will likely be moving to Switzerland in January, so I have a never ending list of questions, to dos, etc. One thing I've read about, but have read conflicting replies is regarding the Wealth Tax. If anyone out there is a high income earner and has had to pay the wealth tax, can you help me understand this? I'm having a hard time wrapping my head around it because I think there is no way I could be understanding this correctly!

We will be living there for a year, perhaps 18 months and then returning to the US. We are hoping to live in Basel. I just looked up the Basel wealth tax rate for 2018 and it is .76%. My husband's income will be in the high $200,000's, so from what I can glean, he will not be exempt from this tax. So, say our personal wealth is valued at $2 million francs (on assets held and earned in the US prior to arriving in Switzerland), the canton will tax us $15,200 francs for the year?!?! Surely this can't be true?
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  #65  
Old 28.09.2018, 19:11
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Re: Wealth Tax

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Hello All,

I'm new to the forum and will likely be moving to Switzerland in January, so I have a never ending list of questions, to dos, etc. One thing I've read about, but have read conflicting replies is regarding the Wealth Tax. If anyone out there is a high income earner and has had to pay the wealth tax, can you help me understand this? I'm having a hard time wrapping my head around it because I think there is no way I could be understanding this correctly!

We will be living there for a year, perhaps 18 months and then returning to the US. We are hoping to live in Basel. I just looked up the Basel wealth tax rate for 2018 and it is .76%. My husband's income will be in the high $200,000's, so from what I can glean, he will not be exempt from this tax. So, say our personal wealth is valued at $2 million francs (on assets held and earned in the US prior to arriving in Switzerland), the canton will tax us $15,200 francs for the year?!?! Surely this can't be true?
Well they don't tax you in CH on wealth in US. Your assets in US simply puts you in another tax category here in CH. Maybe different for US citizen but for an Australian its so.( Double tax agreement.)
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Old 28.09.2018, 19:13
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Re: Wealth Tax

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Hello All,

I'm new to the forum and will likely be moving to Switzerland in January, so I have a never ending list of questions, to dos, etc. One thing I've read about, but have read conflicting replies is regarding the Wealth Tax. If anyone out there is a high income earner and has had to pay the wealth tax, can you help me understand this? I'm having a hard time wrapping my head around it because I think there is no way I could be understanding this correctly!

We will be living there for a year, perhaps 18 months and then returning to the US. We are hoping to live in Basel. I just looked up the Basel wealth tax rate for 2018 and it is .76%. My husband's income will be in the high $200,000's, so from what I can glean, he will not be exempt from this tax. So, say our personal wealth is valued at $2 million francs (on assets held and earned in the US prior to arriving in Switzerland), the canton will tax us $15,200 francs for the year?!?! Surely this can't be true?



With all this money, why don't you just go and pay an tax accountant who can advise you properly ?
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  #67  
Old 28.09.2018, 19:58
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Re: Wealth Tax

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Hello All,

I'm new to the forum and will likely be moving to Switzerland in January, so I have a never ending list of questions, to dos, etc. One thing I've read about, but have read conflicting replies is regarding the Wealth Tax. If anyone out there is a high income earner and has had to pay the wealth tax, can you help me understand this? I'm having a hard time wrapping my head around it because I think there is no way I could be understanding this correctly!

We will be living there for a year, perhaps 18 months and then returning to the US. We are hoping to live in Basel. I just looked up the Basel wealth tax rate for 2018 and it is .76%. My husband's income will be in the high $200,000's, so from what I can glean, he will not be exempt from this tax. So, say our personal wealth is valued at $2 million francs (on assets held and earned in the US prior to arriving in Switzerland), the canton will tax us $15,200 francs for the year?!?! Surely this can't be true?
Switzerland does not have any CGT, so likely on average far less tax liability in CH, however you need to renounce your US passports if you don't want to pay CGT to Uncle Sam. Basel is one of the higher Swiss German tax cantons, look at Basel Land which is very close by, it's where lots of the rich people live. ZUG or Zurich would be lower tax for sure, which is why people commute or only stay in Basel during the week.
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  #68  
Old 28.09.2018, 20:28
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Re: Wealth Tax

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Well they don't tax you in CH on wealth in US.
Since when you no longer pay taxes on anything you own abroad?
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  #69  
Old 28.09.2018, 20:41
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Re: Wealth Tax

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Since when you no longer pay taxes on anything you own abroad?
Potentially the case with Australia if they tax wealth and have a suitable dual tax agreement in place, but I suspect it’s the usual nonsense from our favourite BS fountain.
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Old 28.09.2018, 21:03
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Re: Wealth Tax

if you look at it in isolation, it seems a bit unbelievable that wealth gets taxed. But I guess the alternative is higher income tax, higher inheritance tax, higher capital gains tax.

Of course one or other of those might suit you better....but unfortunately we don't get to choose individual tax systems
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  #71  
Old 28.09.2018, 21:09
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Re: Wealth Tax

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if you look at it in isolation, it seems a bit unbelievable that wealth gets taxed. But I guess the alternative is higher income tax, higher inheritance tax, higher capital gains tax.

Of course one or other of those might suit you better....but unfortunately we don't get to choose individual tax systems
You have to remember that historically paying wealth taxi CH was somewhat optional as Swiss Banks did not divulge info to the Swiss Tax authorities, that may still be true for Swiss residents today. Numbered accounts for the wealthy, then even your family will not know about the funds unless informed as the Bank traditionally held all mail on such accounts. (for a fee of course)

Remember evading 200k a year of tax in CH is still not a criminal offence, merely an administrative matter like a parking ticket.
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Old 28.09.2018, 21:12
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Re: Wealth Tax

Several comments on Swiss wealth tax:

1. It is assessed by cantons and communities and the rates vary from place to place.
- The Swiss Federal government does not assess a wealth tax.
2. It is progressive in all cantons except LU, NW, SZ, TG and UR where it is proportional.
3. Baselland generally has lower wealth tax rates than Basel-Stadt, as noted by FMF above. Use a Baselland Steuerrechner (tax calculator) to determine taxes due for the canton and by community.
4. Foreign real property is normally excluded from the wealth tax but its value plus taxable assets determine the rate that is used to tax taxable assets.
5. Pensions are normally excluded from wealth tax.

For information on Switzerland, consider picking up a recent copy of David Hampshire's book "Living and Working in Switzerland".
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  #73  
Old 28.09.2018, 21:35
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Re: Wealth Tax

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Potentially the case with Australia if they tax wealth and have a suitable dual tax agreement in place, but I suspect it’s the usual nonsense from our favourite BS fountain.
Lets put it this way. I know from personal experience. Tax is paid in Australia but one does not pay tax here in CH on the wealth in Australia ( dual tax agreement ) One has to declare assets ,income etc. in the CH tax return. This puts one in another higher tax " category". So stick that up your proverbial ......!
https://home.kpmg.com/ch/en/home/ser.../dba-tool.html

USA also has tax agreement

https://www.swissbanking.org/de/them...es_english.pdf
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Old 28.09.2018, 21:46
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Re: Wealth Tax

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Lets put it this way. I know from personal experience. Tax is paid in Australia but one does not pay tax here in CH on the wealth in Australia ( dual tax agreement ) One has to declare assets ,income etc. in the CH tax return. This puts one in another higher tax " category". So stick that up your proverbial ......!
https://home.kpmg.com/ch/en/home/ser.../dba-tool.html

USA also has tax agreement

https://www.swissbanking.org/de/them...es_english.pdf
USA does not have a wealth tax, so nothing to offset.
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  #75  
Old 28.09.2018, 21:48
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Re: Wealth Tax

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USA does not have a wealth tax, so nothing to offset.
And when you earn money from a property? Thats taxed?
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  #76  
Old 28.09.2018, 21:49
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Re: Wealth Tax

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Well they don't tax you in CH on wealth in US.
Of course they do. And things like stocks are "movable assets", they become CH wealth the moment you register in town hall.

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Your assets in US simply puts you in another tax category here in CH.
So you still pay tax on them, just indirectly in the form of an increased tax rate on income/wealth that they do directly tax. Still a sizeable chunk of money. Of course one can simply choose to forget to declare, it's no biggie here, especially for foreign real estate, they have no way to check.
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Old 28.09.2018, 21:52
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Re: Wealth Tax

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Of course they do


So you still pay tax on them, just indirectly in the form of an increased tax rate on income/wealth that they do directly tax.
Well in CH one has to declare all types of wealth in other countries. But its not a double tax
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Old 28.09.2018, 21:54
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Re: Wealth Tax

Yes, and once you declare your tax rate goes up and you suddenly owe them more money, all other things being equal! So it is a form of tax, even though they pretend not to tax foreign properties.
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Old 28.09.2018, 21:56
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Re: Wealth Tax

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Yes, and once you declare your tax rate goes up and you owe them more money! So it is a form of tax, even though they pretend not to tax foreign properties.
True but it would be nothing like a direct tax on foreign assets
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Old 28.09.2018, 21:59
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Re: Wealth Tax

Not really. Consult a calculator before making claims like that. Could be easily 20-30% of tax due if taxed normally.
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