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-   -   Can I save taxes through house buying with non-Swiss debt? (https://www.englishforum.ch/housing-general/157178-can-i-save-taxes-through-house-buying-non-swiss-debt.html)

vlad_island 19.09.2012 22:20

Can I save taxes through house buying with non-Swiss debt?
 
Hello
Can I loan money (e.g. 800k) for buying a house in Switzerland, from a non-CH individual, so that this debt will be taken into account in my annual tax calculation here in CH? (if it is relevant at all, I am non-EU, L permit holder)

fatmanfilms 19.09.2012 22:24

Re: Can I save taxes through house buying with non-Swiss debt?
 
Quote:

Originally Posted by vlad_island (Post 1668289)
Hello
Can I loan money (e.g. 800k) for buying a house in Switzerland, from a non-CH individual, so that this debt will be taken into account in my annual tax calculation here in CH? (if it is relevant at all, I am non-EU, L permit holder)

If someone will loan you money yes, it's a loan, any interest payable is deductible against the assumed income from the notional rent. I suspect you can't buy a house on an L permit............buying 1 property for 800k won't make having a company viable, as I said its a get round for rich people meaning 10million plus to invest.

vlad_island 19.09.2012 22:29

Re: Can I save taxes through house buying with non-Swiss debt?
 
Thanks. Only the interest is considered or the settlements as well?
Hypothetic example: house costs 480k. I have a 20 years loan, i.e. 240 settlements of 2000 SFR a month + 100 SFR interest; assume that the rent is 1500 SFR. Would this imply that I get a tax reduction of 2000 + 100 - 1500 = 600 SFR?

Thanks

Quote:

Originally Posted by fatmanfilms (Post 1668294)
If someone will loan you money yes, it's a loan, any interest payable is deductible against the assume income from the notional rent. I suspect you can't buy a house on an L permit............


fatmanfilms 19.09.2012 22:36

Re: Can I save taxes through house buying with non-Swiss debt?
 
Quote:

Originally Posted by vlad_island (Post 1668301)
Thanks. Only the interest is considered or the settlements as well?
Hypothetic example: house costs 480k. I have a 20 years loan, i.e. 240 settlements of 2000 SFR a month + 100 SFR interest; assume that the rent is 1500 SFR. Would this imply that I get a tax reduction of 2000 + 100 - 1500 = 600 SFR?

Thanks

Only interest is an expense not capital.........I don't think this is going to work, your talking about 20 years, how long is your L permit valid for......which can't be renewed for ever..........

vlad_island 19.09.2012 22:41

Re: Can I save taxes through house buying with non-Swiss debt?
 
you are right. But I have plans to stay.
So in my example, does it mean that the interest is supposed to be higher than
the rent for having a tax return?

Quote:

Originally Posted by fatmanfilms (Post 1668310)
Only interest is an expense not capital.........I don't think this is going to work, your talking about 20 years, how long is your L permit valid for......which can't be renewed for ever..........


fatmanfilms 19.09.2012 22:44

Re: Can I save taxes through house buying with non-Swiss debt?
 
Quote:

Originally Posted by vlad_island (Post 1668316)
you are right. But I have plans to stay.
So in my example, does it mean that the interest is supposed to be higher than
the rent for having a tax return?

It can be higher or lower, 1 will mean you pay more tax, one less tax.

I never knew non EU on an L could choose to stay, it's not a permanent permit, it's a temporary one. Please don't start a third thread on this subject....

vlad_island 19.09.2012 22:51

Re: Can I save taxes through house buying with non-Swiss debt?
 
I will not, no worries. But just for your information, l permit usually turns into B after few years, and then B can potentially turn into C

Quote:

Originally Posted by fatmanfilms (Post 1668320)
It can be higher or lower, 1 will mean you pay more tax, one less tax.

I never knew non EU on an L could choose to stay, it's not a permanent permit, it's a temporary one. Please don't start a third thread on this subject....



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